Relatively, Nokia seems to have lost its spot in the cellphone industry.
One of the main problems with Nokia is that they are selling mostly inferior goods - nonsmartphones. But unlike goods sold at Walmart, another reputed and successful company well known for selling inferior goods, people generally are unwilling to invest in inferior goods for something like a phone. Only 14% of nokias shipments are smartphones, as compared to 35% of samsungs shipments which are shipments.
Its clear that Nokias strategy of trying to sell cheaper inferior goods with their service is not a profitable strategy. As other companies progress, the demand for Nokia phones will probably reduce even more, as it fails to keep up with the competition.
http://money.cnn.com/2012/04/27/technology/nokia-samsung/index.htm
One of the main problems with Nokia is that they are selling mostly inferior goods - nonsmartphones. But unlike goods sold at Walmart, another reputed and successful company well known for selling inferior goods, people generally are unwilling to invest in inferior goods for something like a phone. Only 14% of nokias shipments are smartphones, as compared to 35% of samsungs shipments which are shipments.
Its clear that Nokias strategy of trying to sell cheaper inferior goods with their service is not a profitable strategy. As other companies progress, the demand for Nokia phones will probably reduce even more, as it fails to keep up with the competition.
http://money.cnn.com/2012/04/27/technology/nokia-samsung/index.htm
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