“Windokia” or “Nokrosoft”? Neither.

One of the biggest (and probably the saddest) technology news recently was about the deal between Microsoft and Nokia, with the former company acquired the “Asha” and “Lumia” device name brand trademarks, while the Nokia brand will still be used on lower end devices.

Microsoft-Nokia

Therefore, there won’t be any “Windokia” or “Nokrosoft” phones, as the media perdicted. Microsoft will continue to use the Nokia brand name on feature phones (non-smartphones). For now, Microsoft is facing a dilemma in deciding which brand, Windows Phone or Nokia, will lead its mobile product services. Since it launched the Windows Phone, Microsoft has been facing the problem of its brand awareness. Hopefully, with Nokia’s handset business, Microsoft can boost its mobile service by conducting a clearer market segmentation.

Nokia Lumia phones with Windows Phone platform

Nokia UK posted this image on its Twitter feed to mark the announcement regarding Microsoft’s purchase of the company.

The market for feature phones is shrinking rapidly as people around the world are switching to smart phones. But not everyone can afford a smart phone, especially people from the emerging markets. According to Gartner’s research on Worldwide Mobile Phone Sales to End Users in the Second Quarter of 2013, Nokia still ranked the second for sales volume.

Source: Gartner (August 2013)   Please clink to enlarge the picture.

Source: Gartner (August 2013) Please clink to enlarge the picture.

In the developing countries such as India, the Nokia brand name still commands huge amounts of trust. It demonstrates the high brand equity of Nokia, with strong consumer loyalty, high brand awareness and emotional association.

If Microsoft can utilize the Nokia brand and handset business, it will enter the key growth markets more easily. Maybe it’s also a better marketing strategy for Windows.

 

 

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2 Responses to “Windokia” or “Nokrosoft”? Neither.

  1. shashali says:

    Seeing Nokia being sold to Microsoft is sad..Nokia has been in my family since 1997, and after my father stopped using it last year, Nokia was completely gone, left only Apple and Samsungs in the house. As a former consumer, I did know that this brand was strong, I believe making deal with Microsoft may be Nokia’s last shot in remaining in this market. I agree that strong names still work in developing countries, so I think other than cooperating with Microsoft, Nokia may be should focus more on how to brand its brand loyalty among former users.

    • Siyu says:

      Same here. Sometimes I really miss the good old days when I have “strong” phones rather than “delicate” smart phones. : )