Nokia’s best chance to make deeper inroads into the UK smartphone market is to offer full Android devices alongside their Windows models, YouGov data suggest.
The analysis – based on YouGov’s smartphone tracker (SMIX) – follows Nokia’s recent announcement of its “X” range of smartphones that use a variant of Android and are pitched at the low end market. The move comes six months after Microsoft agreed to purchase the Finnish manufacturer. Although the “X” phones will initially be sold in emerging markets, Nokia’s leadership said that they expect the devices to be released in Europe in due course.
YouGov’s analysis of its smartphone tracking data shows that the manufacturer has stabilised its position in the UK over the last year-or-so. Although the company’s installed base is small (currently 7% of the UK smartphone market), its customers hold Nokia’s reliability and their previous experience of the brand higher than the industry average for smartphones. It is also on par with the average for smartphone manufacturers producing good handsets.
However, the manufacturer’s current “Windows-only” strategy also means the potential new audience for Nokia in the UK is limited. Although over a fifth (22%) of smartphone owners are considering getting a Nokia next time they change phones, the manufacturer is currently behind Samsung (44%), Apple (40%) and HTC (23%). Yet just 6% of smartphone owners looking to upgrade actually expect to get a Nokia.
YouGov’s research suggests one of the major problems for Nokia lies in its Windows operating system (OS). Currently two thirds (67%) of Windows users have Nokia handsets. The SMIX data show that Windows OS users (52%) are less loyal towards their operating system than iOS (82%) and Android (65%) owners. One reason for this is that almost a third (32%) of Windows phone owners are frustrated by the devices’ perceived lack of apps.
The OS issue is also highlighted when looking at what set-ups people switching from feature phones to smartphone plan to use. Nokia (29%) is just behind Samsung (30%) when it comes to which smartphones feature phone owners would consider upgrading to. Yet when it comes to Nokia feature phone owners looking to get smartphones, double the number would choose Android (22%) over Windows (11%) with only 8% favouring iOS. However, the biggest group by far is don’t know (58%), suggesting that offering multiple operating systems could place Nokia in a strong position to offer a range of options to consumers in this bracket.
Russell Feldman, Technology & Telecoms Director at YouGov, says: ‘People like Nokia as a manufacturer and many people’s first phones were made by the company. This should stand it in good stead among its competitors. However, at the moment it is only seeing incremental growth in its sales and market share – mainly in the lower profit low end range, such as the 520.
‘In sticking to its “Windows-only” approach it is catering to a niche whereas offering full Android devices alongside its current models could return it to the mainstream once more. By offering a credible, mid-range, full Android handset as well as its current Windows devices, Nokia could start to take business away from its competitors.
‘The Microsoft buy-out is clearly a big factor when it comes to which operating systems Nokia goes with. However, the launch of the “X” range shows the company is toying with a two-platform model even if the limited version of Android being used suggests that it is doing it by baby steps. An Android phone in the UK market could be the game changer the company needs to help it make waves instead of tread water.’
