Q2 Earnings call reveals strange strategy.
Nokia has consistently shown in recent years that it doesn’t have the best grasp of the high end, cutting edge handset market but that certainly isn’t affecting its market success…
The latest example came during a Q2 Financial Results conference call by Kai Öistämö, Nokia’s Head of Devices, where he revealed the company will first target the ”midrange” with its impending touchscreen handsets, not the high-end where surely this tech should debut?
Naturally enough Nokia has immediately jumped on this stating it: “remains fully committed to bringing to market a complete portfolio of touch products – for the mass-market, the high-end, and even at the low-end.” Still Kai was right since the quote continues: “We intend to play to Nokia’s strength, appealing to the broadest possible market, and leverage our advantages in brand, scale, platforms, manufacturing and distribution.”
So midrange then…
Of course its first touchscreen handset is going to be the much leaked and iPhone-influenced 5800 ‘Tube’ which is already shaping up to be mildly disappointing specs-wise. Furthermore, with the N96 failing to impress it could be argued the company should be concentrating on a breakthrough model to kick the iPhone 3G into touch and bring back some of the glamour once associated with the Finnish brand.
On the other hand, none of this is particularly hurting results with Nokia reporting Q2 turnover to be a massive €13.15bn up four per cent on the year ago quarter. Against this however profit – while still a whopping €1.5bn – is down a whole 38 per cent but this reflects similar strains felt by rival manufacturers in recent months and a number of significant one-off restructuring and ‘special items’ costs.
Still, iPhone killer… please make it!