Why Isn't Nokia Competing?

While the big powerhouses of smart phones battle it out for a majority market share

, one of the world's largest mobile manufacturers, Nokia, seem to have allowed themselves to fall behind their competitors and the cracks are starting to appear.

Despite having large loyal following and an impressive line up of mobile phones, it has been widely reported that profits for Nokia in Q2 have fallen by 64% while Apple's profits soar from the launch of iPhone 4. Despite a PR nightmare that has arisen form antenna issues, Apple have recorded a YoY profit increase of 77% which further begs the question, Why is Nokia not competing heavily in this market?

It seems that this question is also being asked internally as Olli-Pekka Kallasvuo, Nokia's CEO, has been forced to defend his place within the Finnish company;

"I'm not in a position here and now to really shed any more light on the topic," he said. "There has been a lot of speculation on my position, on myself, during the last couple of weeks and that is not good for Nokia and must be brought to an end one way or another,"

In light of criticism about his position within the company he has taken the steps to assure shareholders that he is steering the company in the right direction;

"I am confident Nokia will make a come-back in the high end of the smart phone market. The N8 will have a user experience superior to that of any smart phone Nokia has produced."

The N8 will be powered by the new version of Nokia's Symbian OS, S^3. This release features a wide range of enhancements including more advanced usability, faster networking and graphics acceleration in 2D and 3D for games and apps.

The future success of Nokia in the growing smart phone market largely depends on the reception of the N8 which will demonstrate whether or not their Symbian OS can offer a superior user experience when compared against the iPhone, Blackberry and Android.

From the outside looking in, Nokia's problems are perhaps more serious than they would lead people to believe. The market dominance enjoyed by the iPhone and the Android OS demonstrates that Nokia gravely underestimated their potential and the universal acclaim that they would receive when compared to their own offering. If seems quite clear that if Nokia are to reclaim the market dominance they have enjoyed for almost 30yrs they need to make a serious shift away from their traditional mobile offering and focus on the growing smart phone market.

by: James Wilson.

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