Can Nokia compete with Apple's iPhone on music and ‘lifestyle?’
Can Nokia steal market share from Apple’s iPhone? London-based market research firm Analysys thinks so. The firm believes that Nokia has laid down the gauntlet to the industry with the objective of being the service of choice for consumers looking to organize and get access to their social network and content from both the mobile and PC, according to a statement from the firm today.
Analyst Mike Grant at Analysys said that during Nokia’s recent three day industry conference in Amsterdam, senior management at the telecom giant outlined two major initiatives that accelerate a move by Nokia from being a pure device play into an integrated end-to-end consumer service organization in the shape of Apple.
First is Nokia’s introduction of “Comes with Music,” which is a service that allows buyers of certain Nokia devices with 12 months of free unlimited access to the Nokia music catalog, which Grant says is a clear nod from the manufacturer to Apple for its success in integrating music with mobile communications.
Grant said, “Clearly Nokia expects that users will find free music for a year a compelling alternative to iTunes on the Phone.”
Secondly, and more significantly to Analysys, Nokia has detailed the expansion of the its Ovi service into the Internet and PC worlds. Ovi currently provides users with access to music, games, social networking, content sharing, and mapping services through an on device WAP portal and going forward, Ovi.com is set to give users easy access to all of their content and the Ovi storefront through a personalized “dashboard” or web based portal.
The Ovi portal is also meant to allow easy integration with on-device data such as synchronized contact lists – all of which looks very similar to Apple’s current .mac service. As well, Nokia has announced the development of a PC version of the Ovi dashboard providing again integrated access to the same services and personal content.
“These moves are a clear statement that Nokia intends to compete head to head with Apple and others seeking to be consumer’s default personal information and entertainment destination…The implications for operators and other OEMs are significant. Should Nokia successfully execute these developments and attract even a small proportion of their current 1 billion customers to this service, both operators and other OEMs will have a mountain to climb to offer the same compelling proposition. Nokia is laying down the gauntlet, saying effectively that Apple has got it right, and they intend to compete for consumer loyalty across mobile, PC, and the Internet. Moreover, while Apple has a strong presence in the U.S., Nokia’s global market reach and scale make it a powerful competitor to all in this space.”
Interestingly, today Google announced the release of a new iPhone application that it says integrates its multiple services into a single interface, making it easy for iPhone users to find, use and switch between Google search, Gmail, Calendar, Reader, and more.
Google says its overall goal is to provide users with access to information, wherever they are, and is working to develop new mobile technologies.
With a number of players looking to take a bite out of Apple’s reign, the ones to benefit will be consumers.
What do you think? Chime in with comments below.
–Ann Steffora Mutschler, Senior Editor
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