Pricing will determine success of Nokia’s latest Lumia offering

Mahananda Bohidar Updated - July 15, 2013 at 09:29 PM.

The Windows OS, despite its immense potential, has yet to see as robust an ecosystem as that of Apple’s iOS or Google’s Android.

Much before the official announcement, there had already been leaked specs and pictures of the new Nokia Lumia 1020.

That, however, didn’t seem to deter tech enthusiasts from getting excited about the new launch, which took place in New York.

The new device is trademark Lumia with its simplistic Black, White or Yellow body. In terms of design, the 1020 has continued with the existing Lumia legacy.

The first Nokia smartphone that tried differentiating itself on the basis of its imaging capabilities was the Nokia 808 PureView, which also had a 41-megapixel camera. Despite its potential, it didn’t manage to snare enough consumers in India or overseas. But chances are, the new Lumia 1020 might just escape its predecessor’s fate.

Niche space

“The Nokia 808 PureView was based on the Symbian OS system which was a dying ecosystem. It was priced at a premium despite that. But the Lumia 1020 is coupled with better tech than that,” said Neil Shah, Senior Analyst, Wireless Device Strategies at Strategy Analytics.

The smartphone walks the line between a super-sized screen (5-inches and above) and, what are now considered small screens (sub-4 inch ).

The build and all that the Nokia Lumia 1020 packs in is premium, in an attempt to compete with the likes of the Apple iPhone 5 and the Samsung Galaxy S4.

In the Indian context, where the “high-end” market is almost synonymous with Nokia’s competitors , Nokia will have to price it wisely to be able to sell units.

Maps experience

“In highly subsidised markets such as the US, parts of Europe, Japan and Korea the handset might do well. But in full-price, prepaid markets such as India, it is slightly difficult for Nokia to sell millions of this premium unit,” says Neil.

Part of the problem also stems from the Windows operating system that Nokia has adapted for the Lumia 1020 (and the rest of the Lumia series). The OS, despite its immense potential, has yet to see as robust an ecosystem as that of Apple’s iOS or Google’s Android. Windows Marketplace might have apps that match other such stores in the choice and quality of its apps.

But Windows is only now starting to appeal to users, more young than old, and there’s still some time to go before its brand pull becomes as strong as that of Apple’s or Google’s.

In an attempt to strengthen its appeal, Nokia has also revamped its mapping experience.

With the Lumia 1020, users will have Here LiveSight which combines GPS-assisted mapping with a live-view perspective.

So, if you open the app, search for Coffee and point it in one direction, the app will show you small icons indicating cafes nearby arranged from nearest to farthest.

“We are also working on venue maps that have the potential to be a very big thing. So, if you are in a museum or conference centre, you can explore each floor of the venue virtually before heading there,” said Christof Helmis, VP, Map Platform, Nokia.

Nokia has flooded the market with smartphones across a wide spectrum of prices — starting with the Asha series to the Lumia 1020.

The one thing that will decide if Nokia is playing its cards right is if it makes sure this technology trickles down the price tier so that it becomes affordable to a wide cross-section of users.

mahananda.bohidar@thehindu.co.in

(The writer was in New York at the invitation of Nokia)

Published on July 15, 2013 15:54