Monday, May 24, 2010

Nokia Needs to Change

The one time mobile market ruler Nokia has suddenly disappeared from the mobile circuit. After the rush of iPhones, android and smartphones looks like Nokia is loosing the pace in its innovation and technology department.

It is becoming apparent that Nokia as a mobile manufacturer has taken a backseat there can be numerous reasons for this. Apple has taken a lot of market share but this has not stopped mobile manufacturers from grabbing their share infact a lot of manufacturers have taken Apple’s entry in mobile segment as a challenge and are working on giving their customers something better. Nokia is sadly not amongst the ones who have speeded up their Research and development to bring out the best for its customers.

Nokia has spent around €36 billion which is 10% of its earned revenue during the same period on research and development. But the amount spent did not prove of high benefit to the company.

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Nokia is still following the independent manufacturer attitude and not going for mergers. If it plans to tie up with other supporting companies together a lot of visible changes can be achieved. When the company started mobile manufacturing there was not enough competition and the quality it gave to the users was unmatched. However now the competition has become complex, there is a need of technological changes. The hardware and software collaboration is a necessity today but Nokia is not yet ready for such transitions.

The financial growth of the company is still very strong. It has constant cash flow and €9 billion as cash and investments. It shipped 430 million phones last year for about €30 billion across the globe.

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Nokia just needs to focus on its expertise in designing and manufacturing sleek mobile phones and let the software companies do their job of launching new applications and software. Its expertise in mobiles was rewarded by the whole world a decade back, its time Nokia created the same magic once again.

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