Mobile Phone Market Share: How Nokia Can Be Top 10 Again
Introduction
Despite the fact that cell phones have only been around for a very short time, the majority of us feel as though we cannot survive without them. Mobile phones, in their modern form, have only been around for the past two decades. Only recently did everyone have a cell phone, and especially a smartphone, which we use every day.
However, a US patent for a wireless telephone was awarded in Kentucky in 1908, marking the beginning of the mobile phone era. In the 1940s, AT&T engineers created cells for mobile phone base stations, marking the beginning of the era of mobile phone invention. The first iteration of mobile phones were two-way radios. Taxi drivers and emergency personnel, for example, might speak with one another thanks to these two-way radios.
In the early days of mobile phone networks, a single, extremely powerful base station served a far larger area than today’s networks, which use several base stations to cover smaller areas by relaying signals between them. These early mobile phones are often referred to as "0G" mobile phones, or "zero-generation" mobile phones. Most phones today rely on 3G or 4G mobile technology. Motorola introduced the world’s first mass-produced mobile phone on April 3, 1973. Other players such as Nokia, Blackberry, and Apple followed in the years and even decades that followed.
Nokia Overview
Nokia is a Finnish company that has been around since 1865. It is a multinational communications and information technology company. Nokia’s headquarters are located in Espoo, Finland. The company operates in more than 100 countries and has around 130,000 employees worldwide. Nokia produces mobile phones, tablets, televisions, network equipment, and other consumer electronics. Nokia is a company with a long history, but the company has not been very successful in recent years.
Nokia began as a rubber manufacturer. Nokia then focused on making telecommunications equipment and devices, such as the world’s first mobile phone in 1973. Nokia has since gone through many changes, including the acquisition of Alcatel-Lucent and its transition into the Smart Devices division. The company went public in 1991, became a part of the Dow Jones Industrial Average in 1996, and later split into two companies: Nokia Corporation for Technology Solutions and Nokia Corporation.
Nokia entered the telecommunications industry in the late '80s, first as a supplier of telecommunications equipment to the military, and has had many successes and failures. The company’s first product, the Nokia 1011, was released in 1996. It was a basic phone with an antenna that could only make calls. Nokia’s first major success came with the release of its 3310 model in 2000. This phone had a battery life of up to 10 days, making it popular among consumers at the time.
Nokia was the world’s largest manufacturer of mobile phones from 1998 to 2012. In 2011, it had a 41% share of the global smartphone market, making it the market leader. Nokia had a long history of success, mainly due to its strong presence in emerging markets such as India, China, and Africa. But in 2007, Nokia did not keep up with the changing market and lost its position as the leading mobile phone company because of intense competition from Apple’s iPhone line and Android devices, which offer more advanced features at lower prices. The advent of Apple’s iPhone in 2007 catapulted gadgets into the mainstream. The iPhone’s revolutionary touch-screen interface and virtual keyboard made it a game-changer in the mobile market. In late 2008, the first Android-powered smartphone hit the market.
Nokia's fall can be attributed to many things, such as the fact that it didn't come up with any new ideas for its products, which caused sales and profits to go down. Nokia’s most obvious failure was its unwillingness to pivot from its Symbian OS to Android as more phone makers adopted the OS.
Nokia’s most recent product failure came with their Lumia series of phones released in 2013–2014. These phones were not as popular as they had hoped because they were not compatible with many apps that consumers wanted to use on their phones at the time, such as Snapchat or Instagram. In the end, Nokia sold its devices and services division to Microsoft in April 2014. Microsoft still makes feature phones with the Nokia brand.
Mobile Phone Market Summary
Mobile phones are at the heart of our daily lives, helping us communicate, connect with other people, and stay informed. They are also at the center of the global economy. In fact, a recent study by Deloitte found that if nothing changes in the next decade, such devices will generate $1.2 trillion in global revenue each year (2015). and account for 5% of the world’s GDP by 2025.
There is readily available data about mobile phone usage that needs to be analyzed for decision making purposes. This data can be analyzed to interpret various points that will be beneficial to a smartphone company's market research team. However, for the purpose of this piece, we will be looking at the summary information.
According to 2022 research by Statcounter.com, Nokia is not among the top ten mobile vendors in terms of market share worldwide. The market is currently dominated by Apple, followed by Samsung and Xiaomi. See the chart below:
How Nokia Can Grow its Mobile Phone Market Share
Nokia has been in the mobile phone industry for a long time. They have been able to keep their market share and grow their market segmentation. Nokia has also been able to maintain a strong brand image and reputation. It is one of the few companies that have managed to stay afloat in the mobile phone industry, and there is still a chance for the company to grow its market share.
According to Fortune Business Insights, the global smartphone market size is projected to reach USD 792.51 billion in 2029, at a CAGR of 7.3% during the forecast period, 2022–2029. Nokia can gain a substantial amount of this market share by focusing on its market segmentation. The company should first identify the segments of the market that they want to target. They should then create a strategy for each segment and provide solutions for them. For example, if they want to target millennials, they should create a strategy that is tailored towards millennials and provide them with products that are relevant to their needs.
If Nokia wants to attract older consumer segments (age 45+), it could create a strategy targeted around senior citizen-centric mobile devices and features for people who are looking for ways to stay active, engaged, and socially connected with others. They could come up with a plan based on a social group that isn't already served by a mobile phone company. They could create a strategy focused around an issue that affects current or future mobile phone users, affects trends and education, or creates employment.
Strategies based on these areas would be more likely to appeal to a wide range of people and get help from people who wouldn't normally be advocates for any one group. The following are strategic segments Nokia can explore to increase its market share.
Re-target Gen X Nokia Users
Mobile phones are fashion statements, and fashion trends tend to come back. Fashion is cyclical by nature. All rejected or obsolete trends will find their way back into the cycle at some point. Take jeans, for example. Think about how many different “trends” there have been with just jeans alone. Nokia, like Jeans, shaped a generation of mobile phone users in many developing countries. Nokia can bring back the trend by targeting Gen X and Millennials, who were the first-time and most active users of Nokia’s iconic phone models between 1998 and 2012.
Nokia has tried to tap into the nostalgia of its iconic phones by relaunching the retro 3310 in 2017. Yes, they want to relive their childhood, but I think Nokia could’ve done a better job updating this classic phone with other interface motifs, form factors, or ideas that the iPhone can’t implement. Moreso, the campaign for the phone was to promote it as the Nokia brand. However, it would be better if it were promoted as a fashion item by runway models. The phone should also be upgraded to more modern camera phone features to reach more Gen x and millennials.
Mobile Phones for Developing Countries
with the rise in global inflation, which has hurt developing countries more than other places. Low-income markets in developing countries are expected to grow rapidly in the coming years.
Mobile phones have become essential for many people, especially those with low incomes. The low cost of mobile phones has helped them become more accessible to populations around the world. That is why this region is expected to have significant growth over the next few years. Nokia will need a strategy to address markets in geographical locations with high poverty levels and prospect for mobile phone penetration with low-cost devices with competitive features.
For example, in Nigeria, where Asian brands like Techno and Infinix are making smartphones targeted at this market segment, the average price of smartphones, which was $216 in 2014, dipped to $95 in 2018. and some basic internet-enabled phones can be bought for as little as $30.
According to Pew Research Center, only 32% in Nigeria use smartphones and its projected to reach 48% in 2027. Nokia can take a significant market share in this segment if they continue to focus on developing new products, creating advertisements and content for this market segment, and capitalizing on their current brand image and reputation.
Mobile Phones Designed for Content Creators
Selfies and videos are integral to generating content for social media feeds. This has led to an explosion of new users creating content on their smartphones and the need to improve the quality of the videos. Mobile phones have improved in this area but still lack features that can match those of professional video equipment.
The advent of 5G internet access should make it a lot easier for mobile phone users to upload videos without interruption, which will make it possible for mobile phones to become more like a true creative tool.
The need for improvement in video quality was addressed by Facebook with its introduction of live streaming videos in 2016 as well as several apps specifically created for editing these types of videos that offer filters, stickers, and text overlays, among other features. As of December 2014, the app had been downloaded more than 81 million times. “Facebook Live” was released in 2015 and allows users to make live broadcasts from their mobile devices. The videos are available for public viewing up to one hour after the broadcast is completed. The app is integrated with other apps like “Instagram Live." Users can also download a live stream as a video file. In November 2016, Facebook introduced Facebook Watch, which offers users exclusive weekly shows from media companies.
Nokia can streamline its product development to address these needs of content creators and incorporate social media trends for this segment to create products that can do the same job as professional video gear to increase its market share.
Conclusion
There are many diverse types of people and, therefore, many different segments within the market. To attract customers, Nokia needs to understand their needs and what they are looking for in a device. There is no one-size-fits-all solution, and therefore mobile phone companies have been trying to target new market segments to reach the largest number of possible customers.
For a company that has the goal of growing its phone market share by targeting these new segments, it would need to try and understand what these new customers are looking for in a smartphone so that it can create the right marketing campaigns. One way that they could do this is by looking at which smartphones they use and what features they find most appealing or not appealing. By comparing the features of competing smartphones and making a list of what they are, they can create a to-do list of features that they’d like to include or exclude in their own phone.
References
(Fortune Business Insights, 2022) https://www.globenewswire.com/en/news-release/2022/08/18/2500553/0/en/Smartphone-Market-Worth-USD-792-51-Billion-in-2029-7-3-CAGR.html
(Uswitch, 2022) https://www.uswitch.com/mobiles/guides/history-of-mobile-phones/
(O’Dea, 2022) https://www.statista.com/topics/840/smartphones/#topicHeader__wrapper
(Lopez, n.d.) https://currentboutique.com/blogs/cravingcurrent/why-do-fashion-trends-come-back
(Terry, 2017) https://www.linkedin.com/pulse/nokias-nostalgia-trap-targeting-millennials-just-like-terry/
(PEW RESEARCH CENTER, 2018) https://www.pewresearch.org/global/2018/10/09/majorities-in-sub-saharan-africa-own-mobile-phones-but-smartphone-adoption-is-modest/
(Statcounter, 2022) https://gs.statcounter.com/vendor-market-share/mobile/worldwide/#monthly-202110-202210-bar
