Nokia's Android Phone Rumor & Microsoft’s Market Strategy

Is it a rumor or cheap shot against Microsoft that Nokia, now the property of Microsoft and hope of WP system, is expected to introduce Android-based system in the next month? Whatever purpose, the news undeniable causes a ripple and a variety of reflection.

 

The news started from the photo of Android-based Nokia phone uploaded by Chinese social network Weibo (via WPCentral), called Normandy. It is reported that model A110 will be equipped with Qualcomm processor and Android 4.4.1 operating system as well as a 5-megapixel rear camera. Despite the uncertain launch time, many industry insiders believe that Nokia is testing Android-based phone.

 

Of course, from common sense perspective, including me, many people hold suspicious attitude toward the truth of the news. As we all know, the reason why Microsoft bought Nokia is to promote its own WP system but not contribute its rival-Android system, not to mention that WP saw good achievement in European market with the help of Nokia’s brand, strong user base.

 

Leave aside the truth, the news shows two facts: free or low-price strategy is a major driver to market; Nokia has great influence worldwide, especially in emerging markets. The first direction makes Android system the leader of operating system market; and is driving Apple to offer some free content to users to increase market shares. The second facts shows if Microsoft makes use of Nokia’s competition, it can grow into a robust player in smartphone market and get long-term advantage.

 

However, the achievement needs Microsoft to adjust market position, just as Nokia’s Android phone shows. Four months has passed since Microsoft announced buying Nokia with $7.2 billion. But the result Microsoft wanted to see is not very satisfactory. The reasons include fierce competition from Apple and Samsung, the advantage of open Android system, the increasingly saturated high-end smartphone market as well as the high-end position of WP-based products and so on.

 

In my opinion, the rumor or possible truth of Nokia’s Android phone may advise Microsoft to first release low-price low-end WP-based smartphone to snatch up customers in emerging markets such as China, India, Brazil and other populous countries, on the basis of Nokia’s market onslaught; then pave way for increasingly expanded high-end application segments. Therefore, offer free content on the WP system is necessary.