Success or failure is all about hitting the right marketing, public relations and advertising cord. These companies are struggling with that very issue.
The Wall Street Journal had two shocking stories about Nokia and RIM.
It said Nokia may be exiting the advanced smart phone market to focus on lower end smart phones and plain handsets. Nokia has not commented on this yet.
Nokia built their brand name on this more basic market and lead over the last decade or more. During the last few years since super smart phones have captured the attention of the marketplace new leaders like Apple iPhone and Google Android have taken over the marketplace.
Nokia has struggled trying to compete with Google and Apple and make an impact in that space, but has been unsuccessful at expanding their brand name into the smart phone market.
Success in this space tends to be more focused on software rather than hardware. Nokia is a hardware maker. Google and Apple are software makers.
Now it sounds like they are getting ready to exit the smart phone space. If they do what does that mean for the future of Nokia?
The question Nokia faces is weather to continually try and fail in this new smart phone space, or to go back to their successful, the plain cell phone and lower end smart phone segment.
This makes a lot of sense. There are still two markets today, the plain handset with regular smart phones, and the super smart phone. The smart phone market get’s more attention, but the plain cell phone market is still strong. Just not at the smart phone level.
The marketplace will continue to have these two markets for many years to come. Nokia could lead in this segment if they don’t blow it.
If Nokia cannot win at the super smart phone segment, they should re-focus on what they do best, make plain cell phones and lower end smart phones. There is still a growing market for this segment.
This was successful for them in the past and can be again if they focus on this segment and win.
Research In Motion – RIM
RIM may also be a casualty in the smart phone war. They lead the smart phone space for many years, then as Apple and Google jumped into their space they have been faltering.
The Wall Street Journal reports RIM may be getting ready to exit the Playbook tablet market. That would be a shock if they did that.
Why? Let me explain.
RIM has been struggling as the smart phone industry transitions from ordinary smart phones like they make, to super smart phones like Google and Apple make.
As they saw their smart phone market share drop, they said keep your eye on our new entry in to the tablet marketplace with the Playbook. We all watched and hoped.
The Playbook has had great reviews. The bottom line would be seen in the numbers of sales. Could they indeed pull the company out of the nosedive?
Now we hear the company is getting ready to exit the tablet marketplace after only a few short months.
That would be an incredible stunner if it happens.
The company has not yet discussed this as a possibility. We are now all waiting to see what RIM has to say.
RIM has a core problem. They have been losing senior executives, one after the other, over the last year or more.
This is a company with a great technology that alot of people really like, but they are failing.
If they could simply keep up with the Apple and Google competitors with new technology they could indeed continue to be successful.
However their technology, while strong, still has several weak spots they just have not fixed yet.
One example is the web browser that is not as usable as Apple or Google.
They do offer some important features like the Memo Pad, which synchs with the NOTES feature on Microsoft Outlook, but apparently that is not enough to keep the company growing.
RIM has to one, refocus on their core customer group, the business community. Two, update their technology, web browser and App store to rival that of Google and Apple. Three refresh their brand in the fast moving marketplace before they are lost forever. They are currently running in so many different directions they have no focus.
Ask anyone today about Apple or Google and they can tell you various areas they focus on and win at. Ask the same people about RIM and they will be confused. The same as RIM is. That is the core problem. Direction.
So what is the future of this once fast growing and seemingly bullet proof company? That is what we are trying to decide. If they cannot update their technology and bring their core smart phone technology up to speed, I am afraid to say they may indeed be in serious trouble. It’s not too late yet, if they can get back on track.
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These comments may be quoted in news stories.
Please attribute to Jeff Kagan, Tech Analyst with www.jeffKAGAN.com
If you would like to discuss, call me at 770-579-5810 or send an email to jeff@JeffKAGAN.com
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Jeff KAGAN| Tech Analyst at www.jeffKAGAN.com
Analyst sharing perspective on the changing industry for 25 years
~ One of best known Telecom Industry Analyst
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Contact InformationJeff Kagan
Title: Tech Analyst ~ Telecom Industry Analyst
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