So, Q2 results are out and we have already seen Lumia sales rising by 32% quarter-on-quarter to 32%. While this is very impressive considering sluggish smartphone market and low demand for high-end phones from any manufacturer. In fact Samsung, Apple etc have all suffered in Q2.
But once you have a look at the result and still see Device and services division in red, it occurs that perhaps Nokia needs to step up its efforts at high-end and mid-range of Lumias. Volume of shipped devices have certainly gone up, but the ASP has dived to 157 from 191 in Q1. It is easy to note that this has happened due to Lumia 520, 620 accounting for a major chunk of smartphone shipment volume.
So, Nokia can actually learn from success of Lumia 520 and implement that to its high-end and mid-range devices. When a buyer compares Lumia 520 with competition fferings then it comes on top with its full value proposition. So, from that dual-core processor to good resolution to smooth performance, everything has been covered.
Same value is not perceived by a major chunk of buyers in case of high-end Lumias. Reason is simple buyers are bombarded with info about quad-core processors, bigger displays, 1080 displays from competitors and when they try to take a decision these things certainly play on their minds. So, though Lumia 9xx series is as good in performance as any other device and exceeds other in imaging, maps etc but it doesn’t have Lumia 520 kind of class-leading appeal.
The point, I am trying to drive in here, is the fact that Nokia needs to at least match the specs, which has become commonplace on the market, if it wants its high-end to see kind of success the Lumia 520 is deriving. It is a mind-game thing but still, is it a brilliant idea to lose a big customer base.
While Lumia 1020 may become a success due to its amazing camera tech but it must have been considered by many more, if they could see a Nokia device with quad-core processor, bigger display along with such amazing camera.
As we already said, it is better to learn from why Lumia 520 has such appeal and then Nokia may be able to do more justice to their high-end and mid-range offerings. Microsoft needs to actually step up their efforts much more than Nokia here, if they want Windows Phone to really emerge and grow fast as the 3rd ecosystem. Timing is the key here and the updates enabling high-specs should come to WP as fast as possible!!
Read more about Q2 results here.