Nokia hoped that Lumia 900 would become its “hero” phone in the US and Canada but it failed to gain enough foothold to threaten the dominance of the well-established iOS and Android market. The phone simply could not ignite the spark needed by Nokia to sway the customers’ perception.
Nokia revealed this week in its quarterly report that over 600,000 mobiles were shipped to North America, a number combining both the latest Lumia phone and other low-end Symbian phones already in the market today. The quarter saw Nokia’s failed big effort in trying to put as much hype as possible to Lumia 900. While the 600,000 figure looks significant, it actually marked a 60% decline from the same quarter earlier.
It is no secret how Nokia is trying to build its brand and face again in the United States and Canada, especially the former. Tons of advertisements were thrown during the second quarter to prepare the launch of Lumia 900 including a huge concert Times Square concert that features Nikki Minaj to no avail. Nokia even failed to see even a slight quarter-to-quarter improvement.
Experts believe that in a world saturated by Samsung and Apple devices like the US, Nokia needs to rethink its strategy. Although the figure of over half a million mobile units sold is generally still a good trend, Nokia needs to step up the ante especially since it is trying to relaunch its brand. The quarterly report did not even disclose how many units were sold directly to users.
The financial aspect of Nokia’s situation in the United States is showing improvement though. According to the quarterly report, the region produced revenue of $128 million, a big 45% increase compared to the same time a year earlier. The figure also shows that the second quarter generated about 38% more revenue than the first quarter. For Nokia, it is a tell-tale sign that consumers are shifting more towards getting Lumia smartphones while moving away from basic and prepaid phones.
Carriers like AT$T and T-Mobile USA tend to have reservations for Windows Phone at this time. Analyst Pierre Ferragu from Sanford C. Bernstein estimated that each of these carriers may have ordered only 250,000 each, given the untested waters Nokia’s Windows Phone is yet to navigate at this time.
Generally, Nokia still seem to be right in line despite the poor showing of Lumia 900. Let’s see how it goes in the next quarter.