No matter how bad Motorola is, it is still second in the world; no matter how good Nokia is, it is only a little better than Motorola
Last Friday I posted a post and said a few words for Motorola. Nice words, pointing out Nokia's shortcomings by the way, this is a normal means of competition. But what I didn't expect was that as soon as this post came out, it actually stirred up a hornet's nest. Many people gathered around to say good things for Nokia and reduced our Motorola to nothing.
But please think about it, if Motorola is really as bad as you say, why do so many people still buy it? Why is it second in the world after Nokia? The reason why Motorola can become the second mobile phone in the world must be because of its excellence.
Unlike Nokia which emphasizes practicality, we at Motorola emphasize style and fashion. Because we know very well that now is an era where fashion comes first. As a communication tool, mobile phones should naturally put fashion first, followed by practicality. And our Motorola has indeed done a good job in fashion, and it is well-known among the fashion people.
It is precisely because we at Motorola have adapted to the needs of the fashionable people and at the same time satisfied the needs of business people and elites that Motorola has become the world's second-largest mobile phone, with a reputation as high as Nokia's.
Therefore, I can say that our Motorola is definitely not as bad as you say. You are just exaggerating some of Motorola's small shortcomings. This may be because you have relatively high expectations for Motorola, plus the use of If you are used to Nokia, your problems with Motorola will naturally expand. I ask you all to pay more attention to Motorola's advantages in technology and fashion. After all, it is a world-famous brand. No matter how bad it is, it will not be any worse.
Although Nokia is the number one brand, in our view at Motorola, it only has advantages in practicality and communications. These are low-end performances, and most Chinese consumers are low-end. consumers, so Nokia's low-end strategy was successful. But even so, Nokia's market share does not exceed that of Motorola by much, just a few percentage points. I believe that with the advancement of Motorola's technology and the improvement of consumer spending power and consumption vision, we will surpass Nokia and become the number one mobile phone brand again.
In the future mobile phone world, technology and fashion will come first, and practicality will take a back seat, and this is exactly where our Motorola advantage lies. If Nokia still holds on to its advantages in practicality and communication, then it will wait to be surpassed by our Motorola!
Who will win in the battle for Nokia, Motorola and Nokia in a market with a population of 4 billion?
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July 11, 2005 13:30 IT Times Weekly
There are about 4 billion people in the world who have never used any form of telephone. This huge market is concentrated in India, Pakistan, the Middle East, Africa, Turkey, and all countries in South Asia. Now, rivals Nokia and Motorola are planning to fight in this emerging market
The markets in developing countries are becoming the main battlefield for mobile communication equipment manufacturers. In the mobile phone markets in India, Pakistan, the Middle East, Africa, Turkey and other places, Nokia and Motorola are launching a new round of competition.
Who can win in the competition in this emerging market? In addition to taking time to prove, the competitive strategy between the two will be the best proof of this decisive battle.
Fighting for Nokia to take the lead in emerging markets
Ron Garriques, executive vice president of Motorola's personal communications department, believes: markets in developing countries, especially China and India is becoming the main battlefield for mobile communication equipment manufacturers.
Jarik made these remarks during a speech at the 2005 Wharton Technology Conference. Jarrick said that today, although Motorola, headquartered in Illinois, is in a leading position in the United States, it has also invested heavily in China.
But Motorola's main rival, Nokia, the world's largest mobile phone maker, is unstoppable in Europe and is also flexing its muscles in developing countries. "The fastest-growing markets are India, Pakistan, the Middle East, Africa, Turkey, and all the countries in South Asia," he said. "These markets are dominated by Nokia, which has about 60 percent of the market. That's more than any other company." The share does not exceed 10%. ”
However, the number of potential customers in these markets is huge. There are about 4 billion people in the world who have never used a telephone, and the market space is very broad. Jarrick said. Take Nigeria as an example, "The country has a population of 160 million, which is more than half the population of the United States, and the penetration of mobile phone business there is almost zero."
It is understood that through these new equipment, developing countries Countries can speed up their own development by skipping the lengthy and costly process of installing fixed lines and computer networks. In many places, consumers have never even used a fixed line before jumping directly into wireless service.
In the competition in these emerging markets, Motorola and Nokia have become leaders. Motorola produces elegant and fashionable flip phones (or foldable phones), while Nokia launches a large number of lower-priced candy bar phones into the market, bringing higher profit margins to the company. Analysts say Motorola's average profit margin is about 10%, while Nokia's is 16%.
Each year, the industry produces about 700 million mobile phones and has sales of $100 billion, Jarik said. Motorola accounted for about 100 million units, or about $17 billion in sales. In 2004, Motorola earned US$1.5 billion, or 64 cents per share, with annual sales revenue of US$31.3 billion. In 2003, profits from this set of figures were US$893 million, earnings per share of 38 cents, and sales revenue of US$23.2 billion. After the company experienced a sharp decline in its stock price in the late 1990s, its stock price has recovered in recent years.
Motorola’s counterattack against fashion strategy was successful
Motorola’s weapon to compete with Nokia’s candybar models is to launch mobile phones priced at US$40. Mobile phones at this price are very competitive in markets with lower purchasing power. Jarrick believes this step will give his company an advantage over its competitors. "This is a big win for us because Nokia has had the lowest cost structure in the mobile phone industry for many years," he said. "If you want to change the dynamics of the game, you have to take action like this."
In China, where mobile phones are rampant, it is very important for consumers to afford them. "In China, there are about 200 state-owned mobile phone manufacturers," Jarik said. "They believed the market was a commodity market, so they produced 18 million phones that no one bought. (These companies) misread the market. The technology curve has changed: from black and white screens to full color screens, from candy bars style to clamshell style, while the old style they produced is still stagnant. ”
In India, whether consumers can afford it is less important. Jarik said consumers there prefer flip phones that cost more. According to Motorola's market research, Indians don't want to be thought of as consumers who only buy candybar phones. "People generally think of India as a low-level market. In the U.S. market, about 30% is high-end. In India, this number may only be 5%. But India has a population of nearly 1.1 billion." In comparison, the United States has only 2.9 100 million. In absolute terms, India's most valuable market is half the size of the high-end U.S. market. It is understood that Motorola Labs has established an applied research institution in Bangalore, India. This is Motorola Labs’ 11th R&D center in the world and its first R&D center in India. It is reported that Motorola's total R&D investment in India has increased from US$50 million in 2002 to US$85 million, and will increase at an annual rate of 10% to 20% in the future.
While Motorola is striving to expand markets in developing countries, it is also launching more fashionable and technologically advanced mobile phones in the North American market to ensure its leading position.
The Razr V3 mobile phone it launched caused a sensation in the market.
The ultra-thin phone (just half an inch thick) is about the size of a credit card but has a color camera, Bluetooth wireless technology, text messaging and custom ringtones. The market retail price is approximately US$450. "Although we sold only 750,000 Razr V3 units in the fourth quarter of 2004, it produced a halo effect among ordinary consumers," Jarrick said. "The pull effect of the brand is very significant."
In fact, at Motorola, fashion and trendiness have become mainstream. By focusing on design, Motorola has won back customers and market share... The symbol of this return to the trend is the ultra-thin Razr series. A string of successes allowed the Skonberg, Ill.-based company to show its strength to Nokia Group, solidifying its top spot in the North American market last year. More importantly, it made Motorola once again a trendsetter in innovative design.
The rave reviews for the Razr prompted Motorola to launch a series of mobile phones named after "four-letter words". The new series includes Slvr (pronounced the same as sliver) and Pebl (pronounced the same as pebble). Motorola designed the Pebl to look like a rock eroded by waves to attract female customers. But when the company showed the phone to consumers, it found that it was more popular among male consumers.
The competition between new technologies will determine the success or failure between the two
In this competition for emerging markets, who will have the last laugh? Perhaps, whoever defeats the other party in the competition of new mobile phone technologies may win.
Whether in developed or developing countries, the key to the future of the mobile device industry is to increase average revenue per user (ARPU), which is the average monthly phone bill paid by each user. “Everywhere in the world, as calling becomes almost free, revenue per user is declining and the next big new technology isn’t there yet,” Jarik said. "The company that can generate the highest average revenue per user will win the mobile game."
Jarrick is skeptical that sending pictures and videos between mobile phones will bring the expected revenue to the company. manner. He predicts that the technology that provides email services will be applied to more devices. “This is the technology that can really increase the average revenue per user,” Jarik said. "The key is that you have a 'cocaineberry' (so nicknamed because it also has addictive properties) that you can use over and over again."
Another promising one The main areas are mobile phones and digital music players. Such as the fusion between Apple's iPod. It is understood that Motorola recently released three music phones that can download and store up to 500 songs from a personal computer. In addition, Motorola is developing another phone that will enable users to download and play music from Apple's iTunes website.
There are untapped areas behind these products, including what Jarik calls "mobile advantage." "Think about your conference calls at work, those endless calls, especially those around 5 p.m. when you're scheduled to leave the house. You'd love to transfer that call to your phone and put it Take your car and leave the company. How much are you willing to pay for this feature?"
Another area that also has potential is "location services." This technology uses wireless devices to determine a user's location. "If you're a Verizon or Sprint customer, they know where you are at any time to within three feet," he noted. "If you are a Cingular or AT&&T customer, the error is a hundred feet." (Note: Verizon, Sprint, Cingular and AT&&T are all wireless communication operators in the United States)
"Every day, wireless The communications industry is a big gamble," Jarrick said. "It costs $15 million to $20 million to develop a new product, and another $100 million to market. You don't have enough marketing budget. Bet on all technologies with potential ”
Who will win in this race for emerging markets? Perhaps, it is a good idea to compete on new mobile phone technologies.
Wharton School of Business (for "IT Times" special article