At one time, the Finnish phone maker could do no wrong and were at the top of the mobile phone business as the number one phone maker in the world. Unfortunately for them, the competition has stepped up their game and in doing so, have taken much needed revenue and market share away from Nokia.
With cash reserves now dwindling quickly, Nokia has to respond with something positive for investors and today, we saw them make two announcements. The first is horrible for Nokia employees, one of three of whom will potentially lose their job. Earlier today, Nokia confirmed that a new round of 10,000 job losses will reduce duplication and allow the company to focus on their attention on higher value products.
In addition to this, Nokia wants to address the challenges that Android has brought forward and to do so, the company is looking to launch a line of cheaper Windows Phones. Yes, Nokia does have an entry level Lumia Windows Phone, but to compete with Android, Nokia is looking to bring the price of their phones down even further. Stephen Elop, Nokia’s Chief Executive Officer did comment that Google has had good success with their Android operating system with budget phones and where Nokia faces “challenges” is in designing low end devices that still meet the minimum requirements of Microsoft’s mobile operating system. Where this will lead is anyone’s guess, but do you believe new, even cheaper Nokia phones will be able to compete with Android phones?