It might have sounded like lunacy to say Nokia (News - Alert) would be struggling in the mobile market, but that’s where we are today. The Finish mobile company at one time was deemed untouchable because of the stronghold it possessed over the industry.
These days, however, it seems like Nokia can’t make a product with mass appeal.
Its latest phone, the Lumia 920T, was supposed to boost sales and help the company grab a share of the smartphone market, currently controlled globally by Samsung (News - Alert) and Apple, respectively. The question is will it keep doing as well as it is in the markets where the phone is available and a wider market in the future.
China can catapult the Lumia 920T and give it the boost it needs if Apple keeps playing hardball with a company that has 700 million customers. If Apple and China Mobile (News - Alert) don’t come to an agreement, the company will start offering the Lumia free on contract and with a customer base so large, a 10-percent contract renewal conversion could amount to 70 million units of the Lumia being sold.
Numbers this fantastic are obviously only available in China, but the phone is also doing well in other markets.
In the U.S., the phone has been doing rather well, debuting at number three on Amazon and only dropping out of the top 40 after supply and delivery problems. After the problem was resolved, it started to climb up the sales charts, currently standing at number 14 – second only to the Samsung Galaxy S III for AT&T (News - Alert).
Only time will tell if telecoms are willing to subsidize the Lumia for its customers, and with the introduction of new phones from Samsung, Apple (News - Alert) and RIM, Nokia has to step up with products people are excited about buying.
The Lumia is not the game-changer everyone was hoping for, and if China Mobile doesn’t get in to an agreement with Apple, it might be its only saving grace.