Nokia's Latest Beta Test Commercial Deserves a Look

by Holly Shoemaker

Nokia has certainly stepped up its television advertising campaign for the Lumia 900 with its continued bold message to consumers: that the “smartphone beta test is over.” While the campaign launched about a month ago, it is really within the past week that I noticed the increase in television commercials. That would make sense after Nokia reported disappointing numbers in Q1 2012.

Does the Rolling Thunder Campaign Work?

On many levels the campaign works, with the latest ad in the series seeming the most memorable. I admit it grabbed my attention when Chris Parnell, in a deadpanned humorous way, told me I was just a beta tester. It is a bold statement to make and one no other smartphone manufacturer has touched. It also allows Nokia to keep the story going using the same theme. That could create unity for the brand.

However, I see some obvious flaws:

• The previous ads that seemed to mock Apple and the look and feel of other smartphones were pulled. Therefore, those unfamiliar with the beta-testing theme may not catch on to the ongoing story line.
• Nokia had to quickly fix a bug after releasing the Lumia 900. In theory, a product should have no flaws if the beta test is over.
• I do not necessarily see the commercial appealing to new smartphone adopters. I encouraged a relative of mine to take a look at this phone when she could have purchased it for free from AT&T; however at this time, my relative wants little to do with having a smartphone.

Concluding Thoughts

While I think Nokia has a product that differentiates itself, and one of the best smartphone commercials on TV, the company needs to convince current smartphone owners that it offers a better product over an Android phone or an iPhone one. A beta test will mean little to those newer to smartphone adoption.

Fitch Ratings Downgrades Nokia's Debt Status

by Holly Shoemaker

After failing to meet analysts’ expectations last week, Fitch Ratings downgraded Nokia’s debt status to junk on Tuesday, April 24, 2012.

Fitch Ratings lowered the company to a BB+ rating; the lowest rating is a BBB-. The agency also gave Nokia a “negative” long-term outlook, which means the company could have its debt rating lowered again.

In addition to Nokia’s disappointing numbers last week, Fitch also downgraded the company based on the following:

• The company’s decreasing number of devices and services. 
• Fitch cited concerns that Nokia would post bigger operating losses the next quarter. To avoid further downgrade, Nokia must show “substantial improvements” in Q3 and Q4 2012 and during 2013, including keeping sales consistent and earning profits on smartphones like the Lumia 900.

Despite this news, Nokia’s stock increased slightly on Tuesday.

Concluding Thoughts

Nokia’s fate will come down to the Lumia line.  The company has increased its advertising and will have to convince consumers that the Windows-based smartphone provides a solid alternative to Android or iPhone devices. While Nokia certainly faces hurdles, I am not ready to call Nokia the Finnish Research in Motion (RIM).

Nokia’s Quick Lumia 900 Fix Shows Commitment to Customers

by Holly Shoemaker

On Wednesday, April 11, 2012, Nokia announced a “memory management issue” affecting the Lumia 900. The company stated the issue was unrelated to hardware or the network. On Friday, Nokia announced it fixed the data connectivity glitch that it attributed to a bug within the phone's software.

Those who paid $99.99 for the phone, available from AT&T, will receive a call credit for $100. Nokia is offering the credit through April 21, which essentially makes the phone free. Customers may download the update from Zune or the Windows 7 Connector.

The fix came earlier than expected as Nokia planned to announce it on Monday, April 16, 2012. Resolving the bug early was a needed step for Nokia. The company announced this week that it will not meet analysts’ expectations for Q1 2012. The company is likely to fall three percentage points short of expectations.

To date, the company has sold 12 million smartphones in Q1 2012, down from the 19.6 million sold in Q4 2011.

Concluding Thoughts
 

I am surprised that Nokia found a software bug as the Lumia 900 appeared to go through rigorous testing. However, Nokia acted quickly to resolve the issue. The company's honesty is also refreshing and shows a focus on customer service. Some may count Nokia out at this point, but it is too soon to tell - the Lumia 900 has been on sale for less than a week. The company has some time to see how the United States responds to its latest phone, the brand still has international appeal, and Nokia has yet to approach the frustration level that plagues Research in Motion (RIM).

More to follow next week when Nokia officially publishes its numbers…

Lumia 900 on Sale Tomorrow: Time to See if Nokia and Microsoft Will Compete

by Holly Shoemaker

In January, I discussed how the Lumia 900 garnered attention at the CES convention held in Las Vegas, Nevada.  I also discussed how the Lumia 900 provided the opportunity to help Nokia re-enter the North American smartphone market.

Starting tomorrow, April 8, 2012, consumers will have the opportunity to see for themselves if the Lumia 900 lives up to expectations.

Stakes High for Nokia and Microsoft

  

The success of the Lumia 900 will likely decide the fate of Nokia in the United States. After all, we have not seen a smartphone from Nokia in about five years.

Microsoft also has a lot at stake. Its release of Windows 7, while a vast improvement to Vista, did not meet many stakeholder expectations when Microsoft released it in late 2010. Current data also estimates that Microsoft holds less than four percent of the smartphone market share.

Benefits for Consumers and AT&T

AT&T and consumers will benefit from the Lumia 900. In addition to offering another choice between an Apple and Android phone, the phone runs on AT&T’s 4G LTE network – this is the first LTE-driven Windows Phone.

Those who want a lower priced phone are also in luck. AT&T will sell the Lumia 900 for $100.

Concluding Thoughts 

The prep work is complete and both Nokia and Microsoft took the necessary steps to develop, debug and market the phone. Based on the buzz, the phone should succeed. If it does not, there is always Nokia’s focus on China.