As Moto Melts Down Nokia Cozies Up To Carriers To Boost US Share
This comes as no surprise: while Motorola (NYSE: MOT) is in full-blown panic mode, Nokia (NYSE: NOK), its Finnish rival sees a good opportunity at taking away market share in the US, where the American handset maker has been the traditional leader. Even now, according to Strategy Analytics, it still has a 35.1 percent share of the US market, compared to Nokia’s fourth place slice of 9.8 percent. The WSJ has an in-depth look at how Nokia is quietly humming, along making changes to the way it works to boost its American share and regain the top slot it once held in the late 1990s. Its biggest tactic is working closely with carriers to tailor phones specifically to their needs, something they’ve not done in the past. In fact, it was its refusal in the early 2000s to customize products—including a much wanted clamshell model—that led to its slide to fourth. Now the handset maker is inviting operators to its offices and allowing them to decide on changes all the way down to the colors of the phone and buttons that link to the carrier’s services. It’s also increasing its visibility with consumers, opening flashy retail outlets in swanky shopping areas; increasing its sponsorship of events that appeal to younger audiences; as well as taking out more ads promoting its phones. Meanwhile, Nokia says its American push, which began in earnest last year, probably won’t show an impact until “another year or so,” as it can take 18 months to design and manufacture the phones—which means Motorola’s decision to delay its split until 2009 could work well for it.
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