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< Esato Forum Index > General discussions > Other manufacturers > "Nokia to remain top selling mobile brand next 3-5 years" Bookmark topic

Just found this article on Mobile Today, it's someone's opinion, but brings up some good points and theories as to why Nokia is the world's no. 1 handset manufacturer, and why they will probably stay there.

Quote:
Once again Nokia seems to be defying gravity. Despite missing several key trends in the industry, it is not only maintaining its leadership position, but on a worldwide basis it is actually growing its market share.
How can this be the case for a company that in 2003 dismissed clamshells, claiming it was 'aiming a little higher', and most recently missed the trend for thin handsets before audaciously suggesting that a newly launched slider was 'a mere 22mm thin.'
The plain fact is that a large proportion of customers have an irrational brand loyalty towards Nokia. Charles Dunstone allegedly referred to the brand as 'five magic letters' capable of guaranteeing huge sales if stamped on the outside of a handset.
So why should Nokia worry? It sold over quarter of a billion mobile phones last year and in the first quarter of 2006 grabbed a massive 34% of the worldwide market – nearly 14% ahead of Motorola.
Well, I contend that it should worry – it is becoming the Steve Davis of mobile, with the strapline 'boring is good'.
But I'm not betting against it because customers just love Nokia phones - they have grown up with them, they know the user interface and they trust them to deliver a product that does what it says on the tin. How many customers come into your shop and say: 'I want a Nokia'? How many people have you sold other phones to only to have them grumble the next time you see them about how difficult it is to use or how complicated the address book is?


(FULL ARTICLE)
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Posted: 2006-07-07 19:37:26
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Well unfortunately what the article says is all too true. People have the same idea about iPods as well. And as long as people have this mentality, Nokia can continue to just do nothing and still stay at the top.
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Posted: 2006-07-08 12:06:29
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Yes, 'Blind' loyalty seems to contribut a lot to Nokia's success, though they do make some good phones (I'm rather a fan of their Symbian smartphones for a start!) but there are a lot of people whose first phone was a Nokia, and don't want to move out of that 'comfort zone' and try a different phone make.

As the article states later on in it, "The guts of its high-end phones are delivering best-in-class quad-band, dual-mode and Wi-Fi functionality." They do also make good phones, and cameraphones with Carl Zeiss lenses (I have a couple of pairs of Carl Zeiss binoculars and they are excellent) though are doing the right things imo with their Walkman and Cyber-Shot branded phones.
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Posted: 2006-07-08 12:39:37
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People really like nokia phones. They know how to use them an they feel pretty comfortable using the nokia phones so there is no doubt that nokia will stay on top.
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Posted: 2006-07-08 12:48:51
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i believe they could have 40% within 3years. they have the biggest factory's and know how to do good logistics (something SE can't).
as the mobile phone market keeps growing, more phones will be sold, mostly the biggest manufactury's will gain from this growing market.
but also smaller ones. as there amount of sales grows they'll remain healty, but their market share won't be high, but they'll stay arround.

anyway as most of us are SE fans, lets try to get SE on that 2nd place within 3years. starting right now!
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Posted: 2006-07-08 12:54:55
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Quote:
On 2006-07-08 12:48:51, shuja91 wrote:
People really like nokia phones. They know how to use them an they feel pretty comfortable using the nokia phones so there is no doubt that nokia will stay on top.
well, this is the same case here in India. Many people like Nokias. They are simple/user friendly. People find it easy to use Nokias.
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Posted: 2006-07-08 21:28:00
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Quote:
On 2006-07-08 21:28:00, Evil Eye wrote:
Quote:
On 2006-07-08 12:48:51, shuja91 wrote:
People really like nokia phones. They know how to use them an they feel pretty comfortable using the nokia phones so there is no doubt that nokia will stay on top.
well, this is the same case here in India. Many people like Nokias. They are simple/user friendly. People find it easy to use Nokias.



or are too lazy and/or dumb to try anything else
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Posted: 2006-07-09 00:03:54
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I thought there couldn't be an easier-to-use phone than SE. everything you need is right there. but people are really comfortable with nokia phones. in this country it's a different story though. here Samsung, Sanyo, Motorola and Sony Ericsson are the leading brands. currently there's a V3 RAZR and Sony Ericsson K & W fever. few people have Nokias.
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Posted: 2006-07-09 01:40:06
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You also have to factor in that the highest selling phones in the world are actually low cost phones like the the Nokia 1100, 6030 etc., meaning that a lot of thier market share is attributed to low end phones. Nokia makes reliable, easy to use and generally OK looking low end products. People start off by buying a simple to use phone and generally move up towards the higher end. The halo effect. Sony Ericsson on the other hand don't focus on the low end, and when they do, their products aren't very exciting. Not reliable and not as easy to use as Nokia's phones.
It's all about brand trust. People will buy more expensive phones from manufacturers that they trust.
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Posted: 2006-07-09 04:50:49
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Quote:
On 2006-07-09 00:03:54, mrao wrote:

or are too lazy and/or dumb to try anything else

exactly mrao.
btw are you still using Nokia?
_________________
Proud owner of Nokia 6600, Nokia 6230i, i-mate K-JAM
Future PDA/Phone:
Come and join JWP Forums
Evil Eye

[ This Message was edited by: Evil Eye on 2006-07-09 05:00 ]
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Posted: 2006-07-09 05:53:00
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