Nokia talks shop about its revised US strategy, but is it enough?
The old adage goes "be careful what you wish for; you just might get it." After years of bellyaching (we're as guilty of it as anyone) that Nokia was giving Europe first dibs on its hottest handsets over North America, we're now seeing perhaps the most dramatic, positive shift in North American strategy in the company's history -- in fact, they're straight-up saying that they want to push all the way to number 1 in the local market. But is it enough of a shift to fend off aggressive moves from Samsung, LG, Apple, and the rest of the gang across every conceivable market segment?
Nokia's product portfolio manager for the region, Ira Frimere, sat down with Computerworld recently to discuss the renewed push, admitting that the company has had to rethink some fundamental things about its products and its business model to help its cause in the States; one small example is the fact that the Surge is launching without the typical four-digit model number or Nseries / Eseries code that is found on virtually every Nokia sold worldwide, ostensibly because Americans apparently prefer names to numbers (it'll launch as the Surge 6790 internationally, it turns out). Additionally, the company has dedicated a facility in San Diego to working with its North American carrier partners -- AT&T and Verizon, most prominently. It's still early on, but the labor there seems to already be bearing fruit, considering that AT&T will be stocking three S60 devices once the Surge launches -- a record -- and Verizon's rumored to have some interesting stuff in the pipeline.
Frimere adds that Nokia believes services are key to winning American hearts and minds, an area the company has been putting extensive R&D into lately with its Ovi line (unfortunately, so is everyone else -- and getting to iTunes and App Store-level acceptance with Nokia Music and the Ovi Store is going to be an uphill battle, to say the least). Ultimately, the conclusion seems to be Nokia's reluctant admittance that breaking into the US market requires a willingness to give carriers far, far more respect than they deserve by bending and breaking to their somewhat odd demands -- and that's going to be an ongoing problem for consumers, whether you're a Nokia fan or not.
Nokia's product portfolio manager for the region, Ira Frimere, sat down with Computerworld recently to discuss the renewed push, admitting that the company has had to rethink some fundamental things about its products and its business model to help its cause in the States; one small example is the fact that the Surge is launching without the typical four-digit model number or Nseries / Eseries code that is found on virtually every Nokia sold worldwide, ostensibly because Americans apparently prefer names to numbers (it'll launch as the Surge 6790 internationally, it turns out). Additionally, the company has dedicated a facility in San Diego to working with its North American carrier partners -- AT&T and Verizon, most prominently. It's still early on, but the labor there seems to already be bearing fruit, considering that AT&T will be stocking three S60 devices once the Surge launches -- a record -- and Verizon's rumored to have some interesting stuff in the pipeline.
Frimere adds that Nokia believes services are key to winning American hearts and minds, an area the company has been putting extensive R&D into lately with its Ovi line (unfortunately, so is everyone else -- and getting to iTunes and App Store-level acceptance with Nokia Music and the Ovi Store is going to be an uphill battle, to say the least). Ultimately, the conclusion seems to be Nokia's reluctant admittance that breaking into the US market requires a willingness to give carriers far, far more respect than they deserve by bending and breaking to their somewhat odd demands -- and that's going to be an ongoing problem for consumers, whether you're a Nokia fan or not.















Reader Comments (Page 1 of 1)
Douglas @ Jul 16th 2009 4:47PM
That's going to be a HUGE problem for consumers. We've got the idiots in there now at AT&T who think that consumers want THEIR version of the E71. I bet you anything that if you showed a prospective customer at an AT&T store both the E71x and E71 and told them what separated them, they would choose the E71 every time assuming they were both offered and priced the same. When is AT&T going to get it?? I want the phones that Nokia releases to everyone else except the US carriers; the phones that Nokia designed for us. We want Nokia's E71 NOT yours AT&T. I refuse to buy another phone from you because you fail to offer the things I want. The day AT&T offers an E72 with everything the retail package includes, without touching the hardware or software of the device, is the day I will walk into one of your stores with my credit card in hand and happily renew my contract and pick one up. Here's a question, why on earth would AT&T have Nokia design a new phone, called the Thresher, when they could simply pick up the beautiful 6600 Slide. But no, you can't do that AT&T, can you? Oh, and designing phones as goofy as the Mako, isn't going to get Nokia that #1 spot, no matter how good their services are. Phones first, then services.
Bart @ Jul 16th 2009 5:59PM
Have to agree with you there. I've used carrier phones and their unlocked versions, and will NEVER buy a carrier branded phone again. They are so incredibly worse than the unbranded unlocked versions it's amazing. My unlocked E71-2 has better battery life, stability, easier firmware upgrades, no restrictions on adding software, all the hardware actually works (yes, Verizon and to a lesser extent AT&T both deliberately cripple the hardware so you have to subscribe to their non voice services, GPS for example, and several bluetooth profiles that allow file exchange, stereo bluetooth and whatnot) than AT&T's E71x, it's flat no contest. Carrier branded and firmware phones are *horrible* compared to unlocked phones.
Too bad Americans are so clueless when it comes to what really can be offered when their phones aren't ruled by evil wireless corporate overlords who only care about how much they can fleece the public for.
Artur @ Jul 16th 2009 5:36PM
Names instead of numbers - why would I care about that. What I do care about is the fact that there is not a single Nokia smartphone in existence that supports 3G on the AWS band. That alone exludes T-Mobile customers from considering Nokia smartphones. I don't wan't to switch to Verizon or AT&T. Why is Nokia excluding an entire nationwide carrier subscriber base from their US strategy?
xingii @ Jul 16th 2009 6:51PM
I don't know if not supporting aws is enough to deter t-mobile fans. I wouldn't call myself a Nokia fanboy so much as a multi-tasking smartphone fanboy and there's no way that I would ever go to ATT. I've had S60, UIQ, and WinMo devices. While I'm excited by the prospect of the TP2, there are some things that really annoy me about WinMo. I certainly know others like me who wish that there were more AWS smartphones but prefer suffering EDGE than going to ATT.
Douglas @ Jul 16th 2009 6:07PM
We know why you won't see an S60 3G phone on VZW. The cost alone of changing the device to work on CDMA, is probably more than they're willing to dump into a project that they have no idea if it will do well enough to cover said costs. I think they should try and get some on T-Mobile, but again, who knows the costs associated with adapting a device to work on T-Mobiles AWS network, not to mention the fact that they are the 4th largest network, and Nokia sees much more potential in the two largest networks, one of which is GSM. And how is T-Mobile's 3G coverage at this point? Is it as wide as Big Blue's or Big Red's? Is it big enough to where Nokia sees a worth while opportunity to start making 3G devices for them? That's something Nokia might consider as well with deciding what carriers they want to launch 3G devices for.
leeeevy @ Jul 16th 2009 8:15PM
Here's a couple suggestions for you Nokia:
{1} How about you worry less about re-branding the devices with names vs numbers/letters and more about supporting American versions of your devices with FIRMWARE UPGRADES like you do with your European devices. My N95-3 (last years "flagship device") is still stuck with firmware version 20 while all the other N95 variants are at version 31!!!
{2} Try paying attention to your own "Nokia Support Discussions"! In the Software>Software Updates subforum 2/5 of the most heavily 'Kudos'ed (high rated) posts in the past 6 months and 3/5 in the past month are all in the "Will there be another N95-3 update?" thread @ http://discussions.nokia.co.uk/discussions/board/message?board.id=swupdate&thread.id=45177 and yet Nokia has yet to respond.
{3} In short, try not to piss off the people who are/were willing to lay down the $500+ to buy your devices without a contract as the best advertising has and always will be word of mouth and the people who buy your phones for full price are more than likely going to be your best word of mouth boosters/advertisers because they already clearly love(d) your device(s)!!!
My $0.02
Chris P @ Jul 17th 2009 4:41AM
The US variant of the N95 was released AFTER the European one, right? The first firmware would have been a more advanced version of the one first released on the European N95.. hence a lower firmware number.. work it out Sherlock;)
leeeevy @ Jul 17th 2009 2:29PM
Wow thanks for the thoughts Chris P! You'd be right the version numbers mean next to nothing. I'm sorry I assumed some level of intelligence and knowledge on the part of the average Engadget reader to know about how Nokia has completely not supported the North American variants & users of their phones. So forgetting the FW version numbers how about the simple fact that the FW revisions on the N95-1 & -2 have given those devices demand paging, better stability, better photo quality, better WIFI sensitivity, better battery management, quicker GPS locks, and built in auto-rotate using the accelerometer while the N95-3 & -4 are still waiting on those things?
James Poulos @ Jul 17th 2009 2:40AM
Nokia needs to start making their high end device available to people that have AT&T or T-Mobile instead of trying to sell all their nice "N Series" devices for full MSRP unlocked and then they may gain marketshare locking people into a subsidy 2yr pricing with a carrier! just food for thought NOKIA!
Verizon Tester @ Jul 17th 2009 1:44PM
The "rumored stuff" that is coming around the corner with Verizon is the Nokia Twist or Nokia 7705. It will be in the mold of the T-Mobile sidekick in the way the screen flips out displaying the keyboard. It will be marketed in the same realm as the Voyager, Versa, and Glyde.
Quint @ Jul 20th 2009 8:39PM
I am glad that Nokia is trying to make inroads here, but their CDMA line leaves a lot to be desired. Only flip phones (and the 7205 is the only one that seems decent)...they should invest in R&D... come up with some variety of styles. Although their GSM smartphones are great, most of them are expensive unlocked and are not available with a carrier. So they should come out with some entry level PDA phones at entry level prices (like the E63).
t3xr4t @ Aug 21st 2009 9:42PM
Nicely written. I also covered the subject today and your blog showed up as recommended reading.
http://tabulacrypticum.wordpress.com/2009/08/21/can-nokia-manage-a-second-shot-at-the-us-market/