Now we can return back to Nokia. I talked about the smartphone industry as a whole and offered Apple as an example, because investors are looking at every smartphone company the same way. Whenever a company announces a new product, expect the "disappointed" investors to initiate a sell-off regardless of the company and the product. Nokia's new Lumia phone seems like an improvement over the same company's earlier flagship phone Lumia 920. It sounds like Nokia has paid attention to the consumers in making the changes on this phone. For example, a lot of people were complaining about how Lumia 920 was so thick and heavy, and as a result, Lumia 925 is much lighter and thinner. Consumers pay attention to things like that whereas investors don't. With Lumia 925, Nokia took its flagship phone and fixed it up considerably based on consumer feedback.
I won't talk about the technical specifications of this phone because most flagship high-end smartphones have very similar specifications these days. What sets phones apart from the competition tends to be the other details such as design, quality and user friendliness of a phone. Nokia is switching from polycarbonate to aluminum with Lumia 925. The phone will be tougher but lighter than Nokia's other high-end phones. Furthermore, the phone looks more "futuristic" and it is likely to attract younger people that are looking for something unique and different.
Ifi Magid, director of Nokia's Smart Devices talked about how Nokia will market the phone around its imaging capabilities and some "smart camera" capabilities. This is not much different than what Nokia did with Lumia 920. It seems like the company thinks that the only way it can differentiate itself from the competition is by focusing on photography aspects of its flagship phones. This may work, as a lot of people use their smartphones to take photos for a variety of applications they have, such as Facebook (FB). A recent Nielsen study found out that an average member takes 30 photos and 8 videos a month using his or her smartphone. Furthermore, an average user spends 19% of his or her smartphone usage time on multimedia activities including but not limited to taking, editing and viewing photos and videos. While photography capabilities of a smartphone are important for users, it's not the only thing a smartphone comes with. Maybe Nokia should focus on marketing the phone around other capabilities too.
Unfortunately, in the US, the phone will be sold by T-Mobile only. AT&T has Lumia 920, Verizon has Lumia 928 and T-Mobile has Lumia 925. I don't really like this strategy. All three carriers should carry all three phones and consumers should get to pick which phone they want from which carrier. The phone will not be able to sell many copies in the US because it is limited to T-Mobile, the smallest nationwide carrier in the country. It's hard enough to get Americans to change their mobile phone, but it is even harder to get them to change their phone carrier. Even though the trend is on the decline, on average subscribers of Verizon (VZ) or AT&T (T) stay with the company for 51 months which is a little over 4 years. Even when they decide to switch their carrier, subscribers of companies like Verizon and AT&T are not very likely to switch to T-Mobile, as they will usually switch from Verizon to AT&T or vice versa. Currently, Verizon and AT&T account for 65% of the market share in the US, whereas T-Mobile's market share is as low as 9%, which is down from 12% last year. It is sad that the best Nokia phone ever made will be available to 9% of US population where it may not gain a significant market share. Outside of the US, the phone is likely to sell more copies.