This week was a pretty bad one for Nokia. Disastrous would be an appropriate term. Lets recap:
1. Early this week Nokia announced the Flagship Store in London would close. (link)
2. Two days later, Nokia announced that Chicago and NYC Flagship Stores would close. (link)
3. End of the week: Apple counter-sues Nokia (link)
4. Just to put more pressure: Apple is already preparing for next-gen iPhone (Link)
5. And finally, Nokia admits Ovi Store is not a success (link)
Not this week only, but the last couple of months have been tough for Nokia. Lets remember that N-Gage failed and will be shutting down next year. And now, all the things listed above! Lets start digging more into each of them:
1. London Flagship store: Nokia supposedly is changing strategy. Part of this new strategy is closing the London and two Flagship stores in the US. The Flagship stores had very low sales and it was probably the main reason why Nokia is closing them. In the USA, a market totally dominated by carriers and where most people don’t know what ”unlocked” means, the Flagship stores were doomed. However, I saw both Flagship stores as a way for Nokia to show people their products, a way to build a brand rather than produce earnings, they were localized at the hearth of the big cities were everybody noticed them. Nokia promised to continue its presence through Amazon and Best Buy. What I keep asking myself is, why is that we don’t see the hot Nokia phones on AT&T?
3. Nokia sued Apple a couple of months ago for 10 patents that the iPhone infringed, now Apple is striking back claiming that Nokia infringes 13 Apple patents. This is a tough one, a lot of complex terms and variables. However, Nokia started a war that burns time and money, lots of them.
4. The favorite phone is the iPhone, no discussion. The iPhone is more than a phone, is an icon and the epitome of mobile technology. The true is, there has not been a single iPhone killer. Nokia, the leading manufacturer, totally lost this war. What is more concerning is that Apple is readying the next generation iPhone, presumably, for next year. What will Nokia come up with?
5. Since the first day after being released the Ovi Stored produced a lot of negative feedback. Nokia is well aware that the war with the AppStore is lost, now they want to redesign and launch again the Ovi Store. Why didn’t they get it right from the beginning?
Nokia, apparently, is going downhill. Let’s hope that 2010 is a better year for them.