The past week saw some of the most exciting product launches
announced by a host of mobile companies as the industry prepares
for a frenetic holiday season next quarter. First, we had
Samsung
(
SSNLF
) and LG making waves with their respective product
launches. Samsung debuted its first Windows Phone 8
smartphone, apart from a host of Android devices, and LG took the
wraps off its upcoming flagship Optimus G smartphone powered
by a quad-core Qualcomm (
QCOM
) processor. Nokia (
NOK
) and Motorola (now acquired by Google (
GOOG
)) then followed with their respective flagship announcements, with
Nokia announcing its first Windows Phone 8 devices and Motorola
releasing upgrades to its Droid Razr line. Meanwhile, Apple (
AAPL
) sneaked in with the announcement of a media event next week,
increasing hopes that the iPhone 5 may be just around the
corner.
Nokia
The Nokia-Microsoft joint event was probably the most important
announcement made this week for the sheer impact that the
collaboration potentially has on the dynamics of the broader mobile
industry in general and Nokia in particular. The tech giants
who are jointly working on creating a third ecosystem of mobile
devices alongside iOS and Android announced the launch of their
first Windows Phone 8 devices, the Lumia 920 and the Lumia 820.
While the new phones sport quite a few new features that
differentiate them from the smartphones in the market such as the
Pureview imaging technology and a novel wireless charging
concept, Nokia's stock fell more than 15% after the
announcement on concerns that the phone may not find many takers
with the iPhone 5 expected to be launched next week. While the
iPhone 5 is expected to be made available for pre-order immediately
after launch, the new Lumias will start shipping only in 'select
markets' later in the year.
The timing of the market release may have spooked many investors
but Nokia's strategy is to align the Lumia launch with the release
of Windows 8 in late-October. In its own words, Microsoft is
preparing to make the Windows 8 launch its "biggest product and
services launch" ever. Closely tying the Lumia WP8′s release to the
Windows 8 launch could therefore help Nokia benefit from the
combined marketing power that will be put behind Windows 8 and
Windows Phone 8. (see
Nokia Announces Lumia WP8; Likely To Wait For
Windows 8 Launch Before Shipping
)
Samsung
Barely had a week passed since the historic ruling that went
against Samsung in the Apple patent-infringement
trial that the former, continuing with its strategy of flooding the
market with new gadgets, unveiled a plethora of mobile devices
and PCs ranging from smartphones, tablets and phablets to smart
cameras and ultrabooks. The multiple announcements included updates
to some of Samsung's best-selling existing models such as the
Galaxy Note as well as new product launches such as Series 5 and
Series 7 Windows 8 tablets and a ATIV S Windows Phone 8
smartphone.
The timing of these announcements probably points to Samsung
trying to divert some of the negative attention it had been
receiving since the end of the Apple patent trial, but it was also
reminiscent of the market-flooding strategy that has worked so well
for Samsung in recent times. However, the same strategy may not
work for long as Apple's recent patent win in the U.S.
threatens to stop Samsung in its tracks. (see
Samsung's Market-Flooding Strategy May Not Work
Much Longer
)
RIM
While most handset makers are trying to make the best of the
upcoming holiday season, conspicuous by its absence in September
and possibly through all of the holiday season will be erstwhile
smartphone leader, Research in Motion (RIMM). The beleaguered
company is rushing to get its BB10 OS ready in time for launch
early next year, having already postponed launching BB10
smartphones by a year. While CEO Thorstein Heins maintains that the
delays are to ensure that the product is completely ready before
launch, the constant postponement has affected the BlackBerry brand
and caused its hardware revenues to more than halve y-o-y from
around $3.8 billion to about $1.7 billion last quarter. While BB10
does give RIM the best chance of staging a turnaround, the number
of new product launches being announced ahead of the holiday season
only widens the gap between RIM and other rivals, making the
turnaround RIM is hoping for next year even tougher. (see RIM's
Absence This Holiday Season Makes Turnaround Tougher)
Understand
How a Company's Products Impact its Stock Price at Trefis