Will Nokia 8 help the company regain its market share?

Today more players are in the arena, indicating intense competition among them


Maidah Haris December 25, 2017
A new Nokia 8 phone is seen in this HMD Global handout picture obtained by Reuters August 16, 2017. PHOTO: Reuters

KARACHI: The world is moving at a very fast pace today. It is no longer a given that leaders of today will continue to lead tomorrow. This aptly describes Nokia’s situation.

There was a time when Nokia was the undisputed leader of the mobile handset market not just in Pakistan, but the entire world.

Its legendary phone 3310 was a big hit with the masses, so much so that the company has recently released its upgraded version.

The tech giant of the 1990s was a frontrunner in the smartphone market and it enjoyed phenomenal sales for more than a decade.

Then what went wrong?

Either Nokia became complacent with its success or it failed to notice the constant innovations in the mobile phone industry, but the reality was that its phones gradually phased out as other brands emerged on the scene.

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The advent of Android phones in the market was a bearer of bad news for the ace company as it was unable to adapt to the changing technology.

Also Chinese mobiles started flooding the Pakistani market. They were cheaper compared to the pricey Nokia feature phones, and naturally people preferred more at the lower price. Sony Ericsson, too, successfully captured the market.

According to a worldwide research report released by International Data Corporation, Sony Ericsson sold 9.8 million smartphones in the Oct-Dec period of 2012.

There was a time when a person wanted to buy a phone they would get Nokia only, but after the arrival of Chinese sets and QMobile among other brands, the company lost significant ground, said Karachi Electronic Dealers Association former general secretary Rasheed Noorani.

After a while Nokia phones were no longer available in the market.

Nokia’s comeback

In a grand ceremony at a local hotel last week, HMD Global, the home of Nokia phones, announced the launch of its first flagship phone Nokia 8. The company also announced the release of the complete portfolio of Nokia phones in Pakistan.

HMD Global is a Finnish company, affiliated with Nokia. It develops and markets smartphones and feature phones under the Nokia brand name.

Speaking at the event, HMD Global Country Head of Pakistan Kamran Khan boasted of successfully launching 12 products since its founding 12 months ago. This does seem like a remarkable feat for a company making its comeback to a highly competitive market.

The former tech giant is now looking to regain its market share and it has already taken the initiative by releasing Nokia 8.

The latest in its smartphone series, the phone offers some amazingly unique features; the most exclusive one being its dual-sight camera. Nokia 8 allows its users to simultaneously use the front and rear camera to take what the company has termed a “bothie”.

Nokia seems to have gone all-out with its new releases in a bid to once again establish its foothold in the industry. This was also evident from the proud faces of company officials as they unveiled their products. The HMD Global officials were very optimistic of their success in the market.

Talking to The Express Tribune, Khan conceded that they have lost their original position in Pakistan’s market but he was confident that they are back on track to once again reclaim that spot.

“We used to be a clear volume leader in Pakistan, second only to QMobile and there was a time when we had lost that position. But today we are unmistakable volume leader, after QMobile of course,” he said.

What once needs to keep in mind is that the playing field has changed vastly from the time Nokia came out with its original 3310 and just dominated the market. Today there are more players which means that there is intense competition.

“Nokia will take time to re-establish as there is a lot of competition,” said Noorani. Even though they have a name, they will face a very tough time, he added.

Elaborating further, he said now there is Samsung, QMobile, Huawei, Vivo, Oppo and other low-end Chinese brands in the market. These companies offer phones in a variety of price range with diverse features; hence, consumers have a lot of options to choose from.

Even Motorola has made a comeback to Pakistan. The company, which has announced of its return to Pakistan this year, is planning a different approach as it will now target the high-end smartphone market.

Talking about the competition, HMD Global Country Head of Pakistan said, “We are very respectful and mindful of the fact that there is strong competition but we believe that no other device will deliver the experience that this (Nokia 8) device will deliver.”

He claimed, “We outsell in terms of volume; Samsung, Huawei and all other brands by a mile. We are not there with QMobile but we will get there.”

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Khan said that in terms of feature phones “we are value leaders”.

Although the HMD team referred to doing research, their flagship phone still seems a little pricey at about Rs60,000.

Noorani, who is aware of the market demand, said, “Our customer preference is still for mobile phones below Rs10,000. But if someone wants to buy a mobile for more than that price, then they think why not Samsung.”

He said that the phone will generate sales but it will take time.

the writer is a staff correspondent

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