20 Jan 2007
Dubai: For Nokia, thin is finally in. After two years of sitting on the sidelines as its competitors broke sales records with slim handsets, Nokia has jumped into the fray with a sleeker version of its powerful N-series phones.
At the Computer Electronics Show in Last Vegas this month, Nokia CEO Olli-Pekka Kallasvuo pulled the curtains back on the N76, a phone skinnier than its N-series cousins while still featuring the high level of technology that defines the family class.
Based on the 3G standard for high-speed wireless connection, the N76 has tools for shooting and editing video and a two-megapixel camera, which offers clearer pictures than the 1.3 megapixels offered by the iconic Motorola RAZR.
While Nokia first released a midrange slim phone in November, it has been noticeably absent from this young sub-category, which was first pioneered by the RAZR when it debuted in 2004 and became an instant phenomenon.
In the two years since, Motorola's flagship product has surpassed 50 million in sales, making it the top selling phone ever and inspiring a raft of copycats from Asian contenders such as Samsung.
"The question, when you have a success like the Motorola RAZR, do you copy it?" asked Simon Baker, a telecom analyst for IDC.
"For Nokia, which has such a strong brand, there is a good argument that we should stick to what we know - that we lower value of our brand by copying other people," he said.
With the N76, Baker said he has been surprised to see the Finnish handset maker produce what seems a direct response to the RAZR, which is nearing the end of its product lifespan.
"I'm not sure if the N76 looking so much like the RAZR is a good move," he said. "It's rather a bit late."
Nokia argues it doesn't just chase trends. "We don't do thin for thinness' sake," said Neil Gordon, general manager of multimedia sales and marketing for Nokia Middle East and Africa.
According to the company, Nokia's philosophy is to offer consumers a range of products in all shapes and styles.
"Thin is one design element, and the success of our designs right across the portfolio - whether clam, flip, monoblock, lipstick or swivel - make it clear that there is more than just a market for thin," Nokia said in a statement.
Its strategy so far seems to be working, after gaining several points in market share in the third quarter and posting a 20 per cent rise in revenues from the year before to $13.23 billion.
But while Nokia sat proudly on its hands, it missed out on a potential $7.5 billion in sales, given the 50 million RAZRs sold at an average price of $150.
By Ivan Gale
Gulf News 2007. All rights reserved.
