Analysis that WP8 will determine whether Nokia can survive

In recent days, as part of the latest layoffs, Nokia’s three senior executives have resigned. The adjusted new management will take effect on July 1, and Nokia's management structure will be further simplified.

IT Business News learned that on June 20, Microsoft officially released Windows Phone8 (hereinafter referred to as WP8) platform. The news of the day made Nokia worse: WP8 will not support upgrading WP7 to WP8 now. However, Nokia is not pessimistic internally. They believe that WP8's pull on the entire ecosystem may be Nokia's turning point.

"We released a brand new strategy on February 11 last year. After 15 months, this layoff is a natural evolution of strategy." Gao Xiang, Nokia's director of Chinese information, uses "evolution" instead of "deepening." Gao Xiang tried to explain to reporters three main points: First, layoffs are for more focus; Second, shrinkage is an initiative; Third, the market changes very quickly, Nokia also needs constant change.

According to Gao Xiang's explanation, the purpose of this action is to adopt a more centralized strategy and focus resources on the advantageous areas. The first part is to continue to increase the investment of Lumia smart phones, which is the most important one of all Nokia strategies. Of course, this means that Nokia is still "sticky" to choose the only bundle in the field of smartphones with Microsoft, will be attached to the ecosystem of life and death on the WP. "The future will be more dependent on Microsoft." Insiders said.

The second part is to increase maps and location services. Compared to Google Maps and Apple’s just released maps, Nokia Maps Service is recognized as the best in the world. Highlight Nokia's distinctive assets, jump out of the Red Sea through this service, and compete in a different dimension to achieve differentiation. According to market research firm Opus Research, the mobile advertising market in 2012 was 2.5 billion U.S. dollars, and mobile ads related to maps or geo-location information accounted for about 25%. In 2010, it was only 10%. With the popularity of geographical positioning applications, this ratio is expected to continue to increase.

The third part is to increase the investment in feature phones and increase the competitiveness and profitability of feature phones.

It is reported that the sign of Nokia's recovery is to look at the market performance of Lumia mobile phones. After the Lumia series was released, it received a lot of praise from professional groups and won many awards. However, the situation of market sales was not easy.

Fei Xiangnet CEO Xiang Ligang believes that Nokia needs time to allow Lumia such products to have opportunities for development in the market. Lumia's biggest problem now is that "application" is not enough, there must be time for more "applied" software to appear, so it means that in the middle of the future, it will be able to survive.

The advantages of cross-platform may help WP's ecological speed. The development of the WP ecosystem is more critical to Nokia than hemostasis. Wall Street analysts even believe that WP8 will ultimately determine whether Nokia can survive.

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