Microsoft is expected to launch their Windows Phone 8 operating system sometime in the fall, and we are anticipating some intriguing Windows Phone smartphones from Nokia, who have a close partnership with Microsoft.
Now, according to a recent report from the FT, Nokia is in negotiations with a number of European mobile carriers in an attempt to score some exclusive deals for their new Windows Phone 8 smartphones.
This is not something Nokia has done previously with their Windows Phone devices. Instead, Nokia has tried to sell their smartphones through as many different mobile carriers as possible. This new strategy marks a significant shift in their approach to the market.
The Strategy Behind Exclusive Deals
The strategy of securing exclusive deals with carriers is not new in the smartphone industry. This is the strategy that Apple used with the launch of the original iPhone in Europe, signing an exclusive deal with O2. This approach worked very well for Apple, helping to create a sense of scarcity and desirability around the iPhone, which in turn drove up demand.
For Nokia, an exclusive deal with certain European carriers may work well, although that is assuming that Windows Phone 8 and the new devices become popular. Exclusive deals can provide several benefits, including better marketing support from carriers, more prominent placement in stores, and potentially better subsidies, making the phones more affordable for consumers.
Potential Impact on the Market
If Nokia successfully secures these exclusive deals, it could significantly impact the European smartphone market. Carriers that have exclusive rights to sell Nokia’s Windows Phone 8 devices might push these phones more aggressively, leading to increased visibility and sales. This could be a crucial move for Nokia, which has struggled to regain its former dominance in the smartphone market.
Moreover, exclusive deals could also lead to better integration of carrier services with Nokia’s devices, providing a more seamless user experience. For example, carriers might offer special data plans or services that are optimized for Nokia’s Windows Phone 8 devices, making them more attractive to consumers.
However, there are also risks involved. If the Windows Phone 8 devices do not meet consumer expectations or fail to stand out in a crowded market, the exclusivity could backfire, limiting Nokia’s reach and sales potential. Additionally, other carriers that do not have access to these exclusive devices might push competing products more aggressively, further challenging Nokia’s market position.
In conclusion, while the strategy of securing exclusive deals with European carriers is a bold move for Nokia, its success will largely depend on the reception of Windows Phone 8 and the new devices. If successful, it could help Nokia regain a stronger foothold in the smartphone market. However, the risks involved mean that this strategy is not without its potential downsides.
Source Financial Times
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