Monday, November 5, 2012

Nokia (NOK) Gears Up For US Assault As Verizon Joins The Lumia League


The US smartphone industry is extremely significant for handset manufacturers since success in this market usually translates into positive consumer reaction in other markets. It is therefore crucial that Nokia Corporation (ADR)(NYSE:NOK) finds a way out of the US market, where it has exceptionally lagged behind its competitors. AT&T Inc.(NYSE:T) is backing the Lumia to the hilt and it is only carrier to have the Lumia 9xx. It could use its previous iPhone experience to prove a competent ally in this mission to create a third mobile environment.

On the other hand, considering that the Windows Phone has insignificant brand awareness lately, Nokia will require support from carriers. The Lumia looks like a strong competitor to other popular smartphones and giving exclusive access of mobile carriers to different specially-made Lumias could aid Nokia in winning more carrier-backing. Such support along with Microsoft’s Windows drive in the upcoming months could prove to be active in putting more Lumias in people’s hands.

The timing of the launch of Lumia is likely to put Nokia in direct competition with a lot of popular smartphone such as the Galaxy Note II and the iPhone 5. To counter that, Nokia has adopted a strategy to align the launch of Lumia with the latest release of Windows 8 to benefit from Microsoft’s Windows push during the holiday season.

In addition to Microsoft’s push, Nokia will be counting on support from mobile carriers that are looking to amplify competition in the smartphone industry and decrease the impact of subsidies on their margins. Nokia is seeking to get more marketing dollar behind its Lumia lineup by offering mobile carriers exclusive access to different custom-made Lumias. With different Lumia models, mobile carriers will be able to distinguish themselves from rivals better and try to take advantage of the exclusivity.

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