Nokia (NOK) Said to Be Losing Grip on Key Market: Europe
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Is Nokia's (NYSE: NOK) new series of smartphones a steaming pile of you-know-what? Maybe... according to several European wireless providers.
Though no specific carriers were named, Reuters cited one exec who said no one comes into the store looking for a Windows Phone. The telecos told Reuters the Nokia Lumia was not good enough to compete with peers. Everyone wants an Apple (Nasdaq: AAPL) iOS or Google (Nasdaq: GOOG) Android product.
No kidding.
Amid the criticism, one executive said Windows Phone works well with PCs which allow users to do "tons of cool things." Basically, if Windows Phone was actually Android or iOS, Nokia would have trouble keeping the device in stock.
Carriers are also suggesting Nokia might need to take a deeper loss to get its foot in the door with carriers (e.g. - Some are frustrated that Microsoft, who is laden with cash, isn't taking a more forward approach with its marketing budget.) Although carriers say they basically can open a store and train staff on the product, its ultimately Microsoft and Nokia responsible for pushing awareness of the products.
Nokia currently has about 1 percent share of the U.S. smartphone market. AT&T (NYSE: T), which has been selling the Lumia series in the States, said sales have been "strong."
With Nokia failing to gain confidence in its core European market, what's left for the mobile device OEM giant? No one knows. Microsoft and Nokia clearly need to step up marketing efforts in Europe and in the States to make consumers aware that, yes, there is a cool new Nokia device out there.
Here's another problem: carriers in the U.S. Though AT&T is the second-largest U.S. carrier, one report from WMPoweruser suggested T-Mobile expected to pick up the Lumia in the summer. From a marketing standpoint, this appears to be a soft opening. Why not choose Verizon (NYSE: VZ) or Sprint (NYSE: S) in the U.S., which have multitudes of wireless subs. Maybe Nokia is simply waiting for Windows 8 to debut later in 2012?
On Monday, Moody's cut its rating on Nokia to Baa3. For more color on the move, click here.
Nokia shares are down about 0.7 percent Tuesday morning.
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Though no specific carriers were named, Reuters cited one exec who said no one comes into the store looking for a Windows Phone. The telecos told Reuters the Nokia Lumia was not good enough to compete with peers. Everyone wants an Apple (Nasdaq: AAPL) iOS or Google (Nasdaq: GOOG) Android product.
No kidding.
Amid the criticism, one executive said Windows Phone works well with PCs which allow users to do "tons of cool things." Basically, if Windows Phone was actually Android or iOS, Nokia would have trouble keeping the device in stock.
Carriers are also suggesting Nokia might need to take a deeper loss to get its foot in the door with carriers (e.g. - Some are frustrated that Microsoft, who is laden with cash, isn't taking a more forward approach with its marketing budget.) Although carriers say they basically can open a store and train staff on the product, its ultimately Microsoft and Nokia responsible for pushing awareness of the products.
Nokia currently has about 1 percent share of the U.S. smartphone market. AT&T (NYSE: T), which has been selling the Lumia series in the States, said sales have been "strong."
With Nokia failing to gain confidence in its core European market, what's left for the mobile device OEM giant? No one knows. Microsoft and Nokia clearly need to step up marketing efforts in Europe and in the States to make consumers aware that, yes, there is a cool new Nokia device out there.
Here's another problem: carriers in the U.S. Though AT&T is the second-largest U.S. carrier, one report from WMPoweruser suggested T-Mobile expected to pick up the Lumia in the summer. From a marketing standpoint, this appears to be a soft opening. Why not choose Verizon (NYSE: VZ) or Sprint (NYSE: S) in the U.S., which have multitudes of wireless subs. Maybe Nokia is simply waiting for Windows 8 to debut later in 2012?
On Monday, Moody's cut its rating on Nokia to Baa3. For more color on the move, click here.
Nokia shares are down about 0.7 percent Tuesday morning.
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