Why cheaper Windows Phones are necessary?

[Usman Mubashir]

Why should Microsoft and Nokia make Lumia 420 and other cheaper models?


It has been some time that Microsoft along with its partners (especially Nokia) have been trying to push out their innovative new smartphone OS, the Windows Phone 8. They seem to have gained respectable market share in this time, but is this enough? Windows Phone 8 still hinges at a point where one small mistake could tumble it to its doom. I think Microsoft should include one more point to its list of strategies and actions to gain some momentum and market share.



With the release of cheaper Windows phones like Lumia 520 and 620-25, the Lumia boomed the Windows Phone market quit noticeably. We are also aware that the 80% market share boasted by Google is not because the Galaxy Brand of Samsung but rather really cheap mobiles running Android.
The point is clear, ?if you want to gain some market, target the largest group that will buy your product?. In other words, if Nokia launches even cheaper Windows phones, it will result in more buyers, it will result in permanent double figure market share, it will result in developers noticing this change in tides and start moving in. Just look at this image?



Unfortunately, more money is outside this circle than inside! People here are not very rich and very less often would you see a high end smartphone. If this market could be targeted with a phone that is specially designed for them, even with an OS trimmed down for their needs Windows Phone will gain enough market value to actually make a permanent mark. Gaining the important markets of USA and Europe is not the point here, the point is to make the base of the OS very strong, so that it builds itself in other markets. In simpler words, Windows Phone will gather enough market share from this region to attract developers, the app hurdle will be removed instantly, paving way for Windows to flourish in the important markets.

I am not very good at this, but here are some of the concepts I could think of:

Lumia 420
Processor: 1GHz
RAM: 512Mb
Memory: 8 GB extendable
Camera: 5Mp
Bluetooth: Yes
WiFi: Yes
Office: Yes
Price: US$ 120


Lumia 320
Processor: 512MHz
RAM: 512Mb
Memory: 4 GB extendable
Camera: 3.2Mp
Bluetooth: No
WiFi: No
Office: Only Word
Others: Comes with specially crafted version of Windows Phone 8
Price: US$ 99



Just think about it, these devices will put up challenge to Android and the expected iPhone-C in places un-imaginable. And since they belong to the Lumia line, they will be more famous than other cheap Android phones. As a super budget phone, they do not need too many updates and only ask for basic apps to just run. A Windows Phone which comes with brand at this price will provide the momentum needed to drive the Windows Phone market share to double figures permanently and make Microsoft a key player in global phone market in few years.

 

[crash1989]

Windows Phone with a T9 pad .. no way. I think better iterations of Lumia 520 should be very good. It is already very cheap and the next versions will only make it better

The Asha series is popular in India but the system is optimized for super low end stuff like Asha 200 , I don't know how Windows Phone can run on that and would even look good.

 

[paulxxwall]

All the rest I think is ok except WiFi and Bluetooth.wifi for those on capped data plans or because a rough signal are better of using WiFi and for Bluetooth every one use Bluetooth for alot of things, aftermarket radios , portable devices etc so those two areca must and will help sell!

 

[Bob Shiska]

It's called an Asha. The hallmark of WP is that you have a wide range of phones that all run the OS pretty well; halving the processing power would not go over very well.

You need to pay more attention to the fact that there isn't that much money to go around at this level. Why would developers care about people that can'f afford to buy their apps? Advertisers? MSFT would be cutting profit margins even further than where the 520 is. A 420 or lower would just be brand dilution.

 

[crash1989]

It's called an Asha. The hallmark of WP is that you have a wide range of phones that all run the OS pretty well; halving the processing power would not go over very well.

You need to pay more attention to the fact that there isn't that much money to go around at this level. Why would developers care about people that can'f afford to buy their apps? Advertisers? MSFT would be cutting profit margins even further than where the 520 is. A 420 or lower would just be brand dilution.

Marketshare is important right now and they will be helpful I guess. Developers will develop apps no matter what since they see higher end devices too. MSFT can restrict the apps going on to very low end devices.

I am not sure how this would work, but a T9 WP is no no ..

 

[anon(7935575)]

I agree with the idea but we have to accept the fact that these phones would have considerably low quality and less profit margins. Yes these phones may be a hit in the market in developing countries like my homeland India itself where Nokia is still a trusted brand by many but if you see overall condition, bad quality of one product may also mean bad publicity for the name.

Yes we need starter phones, I already have a Lumia 520 because i wanted to get familiar with wp8 before investing huge amount but im concerned how much can a company squeeze its profits and costs and still not let the quality be affected.

Kudos to your idea if it can be proposed.

Sent from my Nokia Lumia 520 using Tapatalk.

 

[gsquared]

Well there OP. You seem to be the Armchair CEO / Marketing Director / CIO / CTO / Etc all in one. Maybe MSFT and Nokia should just fire all of those folks that do those jobs and just have you.

Dare to say I'll take my chances and put my faith in the people that are there now and are trained in these fields.

 

[anon(7935575)]

Well there OP. You seem to be the Armchair CEO / Marketing Director / CIO / CTO / Etc all in one. Maybe MSFT and Nokia should just fire all of those folks that do those jobs and just have you.

Dare to say I'll take my chances and put my faith in the people that are there now and are trained in these fields.

He's trying to express his views. I believe that's what forums are for.





Sent from my Nokia Lumia 520 using Tapatalk.

 

[Bob Shiska]

Marketshare is important right now and they will be helpful I guess. Developers will develop apps no matter what since they see higher end devices too. MSFT can restrict the apps going on to very low end devices.

I am not sure how this would work, but a T9 WP is no no ..

3% market share with an average $10/month/device on app purchases is better than 30% market share with $0.50/month/device as far as devs and ad networks are concerned.

 

[Usman Mubashir]

no body is paying any attention!

Yes that is an Asha, a Nokia Xpress Music, C5 and another Asha.
But the point I'm trying to make is that MS should come up with something that would make cheaper phones possible! I didn't say I want a T9 keypad but thats only to present some ideas. I want to see devices cheaper than 520 because that means more market share for MS. I understand the difficulty but when you see the plus side, I think MS should sacrifice at least a little.

 

[tgp]

We are also aware that the 80% market share boasted by Google is not because the Galaxy Brand of Samsung but rather really cheap mobiles running Android.

Technically true maybe, but high end Android phones also sell very well. One quarter last year the Galaxy S3 by itself outsold the iPhone. There are plenty of high quality Androids out there and they do their share of propping up Android's total market share. But yes, without the cheap Androids their market share would be nowhere near 80%. WP needs to somehow get numbers up, INCLUDING high end devices.

I would think that besides looking at total numbers, developers like to see whether devices are low end or high end. My first Android was a cheap one, but now my wife and I both use Nexus devices as our primary phones. Even though my financial situation didn't change significantly, I find myself spending more on apps now than I did before. Maybe it's because with a better phone I can utilize the apps better, I don't know.

 

[Usman Mubashir]

Yes these phones may be a hit in the market in developing countries like my homeland India itself where Nokia is still a trusted brand by many but if you see overall condition, bad quality of one product may also mean bad publicity for the name.

This is my main point! WP should also be targeted to those masses who can buy, who live inside the "circle". But dear neighbour it does not necessarily means they have to be of poor quality. I trust Nokia with that.

 

[Paul Verizzo]

Forget it for the time being. One can buy a 520/521 for $120 cash or credit card. Apple just introduced their "inexpensive" and it's still over $400, I think. Seems to me they are selling all the phones they can make. (Someone said Android has 80% of the market.....wow, did you pull that out of an orifice? It's something on the order of just under 50%, iPhone a little below that, WP and BB bringing up the rear.)

Trying to make, market and sell phones well under a $100 will only dilute the quality image of Nokia and count on it, they will be shoddy. They have to be. Those same customers will not be buying pay for apps, either, so there goes that revenue stream.

What I don't get is the lack of mid-range Nokias on T-Mobile. They need another 810. It's very, very close to the 9-whatever from last winter except I can actually, you know, swap batteries and SD cards.

Maybe someday you can go to the dollar store and find a Windows phone on the real cheap. That's what goes on with Android, models from several years ago are there.

 

[raccoon210]

Forget it for the time being. One can buy a 520/521 for $120 cash or credit card. Apple just introduced their "inexpensive" and it's still over $400, I think. Seems to me they are selling all the phones they can make. (Someone said Android has 80% of the market.....wow, did you pull that out of an orifice? It's something on the order of just under 50%, iPhone a little below that, WP and BB bringing up the rear.)

Trying to make, market and sell phones well under a $100 will only dilute the quality image of Nokia and count on it, they will be shoddy. They have to be. Those same customers will not be buying pay for apps, either, so there goes that revenue stream.

What I don't get is the lack of mid-range Nokias on T-Mobile. They need another 810. It's very, very close to the 9-whatever from last winter except I can actually, you know, swap batteries and SD cards.

Maybe someday you can go to the dollar store and find a Windows phone on the real cheap. That's what goes on with Android, models from several years ago are there.

just FYI worldwide android market share is a little below 80%. In USA it's around 50 but it's obviously much higher worldwide. IOS has around 14% WP around 3-4% and rest is scraps

 

[OzRob]

...(Someone said Android has 80% of the market.....wow, did you pull that out of an orifice? It's something on the order of just under 50%, iPhone a little below that, WP and BB bringing up the rear.)...

I think the orifice may have belonged to global research firm IDC..

 

[Paul Verizzo]

just FYI worldwide android market share is a little below 80%. In USA it's around 50 but it's obviously much higher worldwide. IOS has around 14% WP around 3-4% and rest is scraps

Thanks for that. I was only familiar with US sales. If Android is 80% worldwide, it's because of all the very cheap phones that will sell well in third world countries.

 

[HeyCori]

Microsoft's acquisition of Nokia hardware division will also increase Microsoft's profit margins for each phone sold. Increased profit margins should allow Microsoft to make even cheaper handsets without sacrificing profits.