nokia’s w8 phone catches more consumers’ attention, needs ... · nokia’s w8 phone catches...
TRANSCRIPT
Nokia’s W8 Phone Catches More Consumers’ Attention, Needs More Apps
REPORT
December 6, 2012 Companies: AAPL, GOOG, MSFT, NOK, RIMM
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Susan Jennings, [email protected]
1 Ferry Building, Suite 255, San Francisco, CA 94111 | www.blueshiftideas.com
Summary of Findings
Nokia Corp.‟s (NOK) Lumia 920 is the most praised
Windows phone to date, prompting some pro-Android
(Google Inc./GOOG) and iOS (Apple Inc./AAPL) customers
to switch allegiances and representing a change in
sentiment from six months ago. Microsoft Corp.‟s (MSFT)
Windows 8 OS is expected to yield long-term share gains.
The limited availability of Nokia‟s Lumia 920 on the Nov. 9
launch day created quick sellouts. Supplies since have
been more in line with demand. AT&T Inc. (T) store
sources reported initially receiving only a handful of
Nokia‟s Windows 8 devices.
An industry specialist, an AT&T store associate and a
customer said consumers are experiencing “iPhone
fatigue” because of Apple‟s recent lack of technological
improvement and a closing of the feature gap by
competitors.
App developers‟ views on Windows 8 were mixed, but four
reported increased sales of Windows 8 apps following
Lumia 920‟s release.
Microsoft is extremely supportive of and actively wooing
developers. The company is expected to catch up in
offering an app library comparable to Android‟s and
Apple‟s.
For now, Windows 8‟s lack of apps, specifically popular
ones like Pandora Media Inc. (P) and Facebook Inc.‟s (FB)
Instagram, is a negative. Lumia 920‟s weight of 185
grams also is an issue. Comparatively, the iPhone 5
weighs 112 grams.
Lumia 920’s
Popularity vs.
Previous
Windows
Phones
Current Apps
for Windows 8
Phones
App Developers
Industry Specialists
AT&T Stores
Research Question:
Will Nokia’s new Windows 8 Phones be this holiday season’s surprise winners in
smartphone sales?
Silo Summaries
1) APP DEVELOPERS Two of seven sources have seen downloads of their Windows
apps increase 30% to as much as 100% since Lumia 920‟s
launch while a third source expects the phone to gain in
popularity. Two others have experienced a slight increase in app
downloads; one of the two expects single-digit growth for the
Windows 8 platform year to year. The remaining two sources said
app developers have little interest in creating apps for Microsoft.
Still, five sources praised the company‟s support of app
developers. Lumia 920‟s hardware, particularly the PureView
camera, are positives, but the phone‟s weight is an issue.
2) INDUSTRY SPECIALISTS All five sources were more positive on the Lumia 920 than on any
other previous Windows phone. One source believes reported the
phone shortages have more to do with a lack of supply rather
than heavy demand. A second source said Nokia is the leading
Windows phone maker and believes Windows eventually will take
share from Android and iOS. Another believes the Lumia 920 will
allow Nokia to increase its share relative to Samsung and HTC.
Four sources who commented said the Windows 8 platform still
is missing a few key apps, including Instagram. Positive
comments centered on Microsoft‟s support of developers and
Lumia 920‟s attractive price point, camera and large screen size.
One source noted Android and iOS fatigue among consumers.
3) AT&T STORE VISITS Five of eight sources who commented on the Lumia 920‟s
launch-day sales reported selling through all their inventory but
added that initial stock was between only five to 15 phones.
(Three had no comment on launch-day sales.) Three sources
noted increased consumer interest compared with previous
Windows Phone launches, and one source said his store had a
line waiting outside on launch day—a first for Windows Phones.
4) VERIZON STORE VISITS Of the two sources, one reported no customer demand for
Windows phones, which may change over time as people become
aware of the devices and the OS. The second source believes
Windows phones will be as popular as Android and Apple phones
within two years.
5) CUSTOMERS Of these four sources, one was not a fan of Microsoft but now
owns and likes the Lumia 920, namely because of its gaming
capabilities. Two others are considering the Lumia 920 because
they said its features are on par with or exceed the iPhone‟s. One
of these two also said consumers are tiring of the iPhone‟s recent
lack of technological advancement. Our fourth source believes
Windows phones need to be better promoted and that the Lumia
920 is too large.
Nokia Corp.’s Windows 8 Phones
1 Ferry Building, Suite 255, San Francisco, CA 94111 | www.blueshiftideas.com
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Background
Blueshift Research‟s Aug. 31 report focused on long-term sales prospects for Nokia‟s Windows 8 Phones. Store sources
reported hearing no consumer buzz for the phones, but app developers were cautiously optimistic for Windows 8 and on
Nokia‟s ability to lead in offering devices for the OS.
Blueshift found strong initial sales for Nokia‟s Lumia 920 and shortages on and shortly after its November launch day, but
also lingering questions regarding Windows 8 Phones‟ holiday and long-term sales trends and the OS‟ ability to regain share
from Android and iOS.
CURRENT RESEARCH In this next study, Blueshift assessed whether Nokia‟s new Windows 8 Phones would exceed expectations following the
company‟s disappointing sales in previous Windows Phone launches. We also asked AT&T stores selling the Lumia 920 about
launch data sales and supply demand balances in the weeks following the phone‟s introduction. We employed our pattern
mining approach to establish and interview sources in six independent silos:
1) App developers (7)
2) Industry specialists (6)
3) AT&T stores (8)
4) Verizon stores (2)
5) Customers (4)
6) Secondary sources (3)
We interviewed 27 primary sources, including two repeat sources, and identified three relevant secondary sources focused on
launch-day sellout reports of the Lumia 920, the device‟s software and battery life issues, and its comparison against the
iPhone 5.
Next Steps
Blueshift will track Microsoft‟s progress in offering more high-profile apps such as Instagram. We also will question enterprise
IT department leaders on the integration of non-BlackBerry devices into the workplace and determine if Windows Phones are
gaining enterprise market share. Finally, we will follow up on sources‟ negative comments regarding RIM to determine the
company‟s future footing in the enterprise market.
Silos
1) APP DEVELOPERS Two of seven sources have seen downloads of their Windows apps increase 30% to as much as 100% since Lumia 920‟s
launch while a third source expects the phone to gain in popularity. Two others have experienced a slight increase in app
downloads; one of the two expects single-digit growth for the Windows 8 platform year to year. The remaining two sources
said app developers have little interest in creating apps for Microsoft. Still, five sources praised the company‟s support of app
developers. Lumia 920‟s hardware, particularly the PureView camera, are positives, but the phone‟s weight is an issue.
CEO for a European mobile app developer with more than 24 published Windows Phone apps
Downloads of the firm‟s Windows Phone apps have spiked 30% since the launch of the Lumia 920, prompting the source
to believe the phone will be a big success in the coming months, especially in Europe. The PureView camera and software
such as Nokia Drive will make the 920 very attractive, especially when combined with improvements in the OS. Microsoft
has done well to attract top developers to the platform, but the jury is still out on how successful the OS will be on PCs.
Nokia Corp.’s Windows 8 Phones
1 Ferry Building, Suite 255, San Francisco, CA 94111 | www.blueshiftideas.com
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“From my application downloads, I can see that after the Lumia 920 introduction the number of downloads grew
quickly. Downloads have increased by 30%.”
“Definitely it is possible for Windows Phone 8 to take significant market share. The Nokia phones especially will
take a huge portion of that share. Windows Phone is not a well-known brand, but Nokia‟s Lumia is getting more
and more traction. People are starting to speak on the streets about the Lumia and starting to ask about what
make my phone is (I have a Lumia 900). This phone looks astonishing.”
“The new camera [in the Lumia 920] with optical stabilization looks and works great. I think it‟s the best
available on the market. In terms of software, they are getting better and better, especially Nokia Drive, which is
a key feature. With Windows Phone 8, a lot of bug fixes were introduced, so it should be great.”
“Microsoft filled a lot of the gaps on Windows Phone 8—better music, better NFC. Nokia also filled some gaps—
the great Nokia Drive application, data transfer counters. A lot has changed since version one; now they have to
inform consumers about those changes and to train sellers.”
“[Microsoft] is doing very well [in marketing Windows 8]. Look at the
Windows 8 apps; they‟re getting all the top developers. Everyone is
interested in creating apps for Windows and Windows Phone 8.”
“Recently, I spoke with a Microsoft employee. They are planning big. A
lot of money will be invested in Windows 8‟s success. A lot of apps will
be created soon. They are working hard with companies to create new
apps and port the most successful apps from other platforms.”
“We are tweaking our best apps for Windows Phone 8. No big changes
are required to adjust apps [from Windows 7].”
“I was working for a while on Windows 8 on a PC because I had to build
some apps for Windows [Phone] 8. In my opinion, it will be great and a
big success on tablets. That is guaranteed. On PCs, we will see. It will
be much easier for young and new people to get used to the new Windows 8. For older ones and for pro users,
we have to wait for a few more apps in the Windows Marketplace. The number of apps is growing pretty fast,
and they are OK though not perfect. Developers still have some time to make them better. Windows 8 will be OK
for new PCs with touch screens and more sophisticated touchpads.”
“Most developers do games, and with Windows Phone 8 it will be possible to create native apps using
[Microsoft‟s] DirectX and [Unity Technologies‟] Unity Engine. In my opinion, a lot of developers will jump on that
opportunity. It will be easy to port apps from Xbox 360, Windows 8 and so on.”
Windows Phone 8 app developer based in Canada
This source has seen downloads of his most popular apps double since the release of the Lumia 920 and believes Nokia
will be the leading manufacturer of Windows 8 devices as long as it can keep up with demand. Nokia‟s new ad campaign
has attracted a large audience. The Lumia 920‟s built-in features, such as wireless charging, the PureView camera and
NFC, are important and differentiate it from the iPhone. Improvement to the Windows Phone 8 platform gives developers
the ability to build better game experiences in shorter periods, all within a well-supported development environment.
“I currently have 115 Windows phone apps in the marketplace; by the end of the year I hope to have 150.”
“I‟ve seen downloads for my top 10 apps double in the past week since the Nokia Lumia 920 came out. I‟m
excited. I‟m watching my revenues go up.”
“As long as Nokia can keep up with the demand, I think they will be the leading manufacturer.”
“The Windows Phone 8 platform opens up a lot of things for developers. It gives them a lot more options to build
experiences that they couldn‟t previously build on the Windows Phone 7 and 7.5 platform. Windows Phone 8
gives developers more access to the phone hardware itself to be able to make better games, to make a better
experience for games. Before, it was harder to do.”
“Nokia has more Windows 8 models out there than any of the other vendors. … They are covering a wider range
and can pick up a larger share of the buying public.”
“Nokia‟s marketing is now smart and humorous and is leading to better acceptance.”
“Nokia‟s lower price is also reaching the younger, student-type customer who doesn‟t have a lot of money now
but who will later graduate into the next phone and buy more apps.”
“Microsoft is also marketing Windows 8 properly, which I didn‟t see with Windows 7. They are getting it front of
people‟s eyes. I went to see the Twilight movie recently, and during the ads three were Windows 8-related.”
Microsoft filled a lot of the gaps
on Windows Phone 8. … A lot
has changed since version one;
now they have to inform
consumers about those
changes and to train sellers.
CEO, Mobile App Developer
European
Nokia Corp.’s Windows 8 Phones
1 Ferry Building, Suite 255, San Francisco, CA 94111 | www.blueshiftideas.com
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“I‟m just developing for Windows now. I‟ve dropped all the others because I haven‟t found them as profitable.
I‟ve got one project where I‟m doing both a Windows Phone 8 and an iOS version of an application. … The iOS
part of that build is taking almost three times as long, which gives you an idea of the costs involved, longer
coding time. That‟s one of the reasons I see a very heavy Windows 8 adoption coming for businesses.”
“Wireless charging is one of the cooler features of the Lumia 920 that is attracting consumers. … It‟s a positive
differentiation with the iPhone.”
“The camera on the Lumia 920 is one of the best cameras I‟ve ever
used, whether it‟s on a phone or not. Any kind of evening or night photo
is fantastic. My pictures are just stunning.”
“Another differentiation with the iPhone [is] there is access to NFC.
That‟s like being able to tap and transfer files back and forth to each
other. Have you ever seen the posters in airports or malls that say
„Touch your phone here and I‟ll give you song‟? It‟s NFC that sends the
URL to your phone and then your phone goes and gets it. Developers
are excited about NFC. They are thinking about what kind of cools app
they can build using NFC that will make them the next rich guy. It opens
up a whole new way of communicating and getting information back
and forth. It definitely creates excitement both in the development
communities and in the consumer communities as well.”
“People Hub is a new part of the Windows Phone 8 OS; you can attach
you Facebook, Twitter, LinkedIn, etc., and it will go out and find all your
contacts and bring them into one center, which they call „People.‟ You
can then put those people in different groups and instantly see what
they are doing along all the social networks. It‟s done quite
seamlessly.”
“People also want color and design. On the Windows 8 phones you can
set your screen‟s „Live Tile‟ colors to suit your mood. It‟s a fantastic
option … and is something that doesn‟t exist elsewhere.”
“Apple has been able to do something that no one else has been able
to do: They put a useful, complicated and intricate device into your
hands and within a couple of minutes you know how to work it. That‟s a
huge win. That is the model that everyone is following, and I think
Microsoft had done a great job making the Live Tiles adjustable on the
front screen, making it so that you can customize the phone the way
you want it. … Microsoft is properly integrating things into their
management system for companies that want to be able to have a
smartphone experience.”
“Microsoft is providing a unified ecosystem like Apple‟s App Store,
whereas with Android there are something like 13 different stores now. … Android‟s a problematic system that
ends up being a hard sell for the ecosystem. But the bigger problem is that it‟s a hard sell for businesses to
accept Android phones coming into their network, to have business emails going through their devices.”
“The consumers buying Windows 8 phones also tend to be buying apps. They are not just going and
downloading free apps or stolen apps. They are actually purchasing apps. It‟s generating revenue. With Android
phones, developers aren‟t making a lot of money. If you look at the Android model, you can buy Android phones
in parts of the world for $30 to $40. People who are buying cheap smartphones on last year‟s hardware are not
going to go out and spend the same amount on apps.”
“Both Nokia and Microsoft are putting a lot of effort into making sure the developer communities are properly
supported. The Windows 8 platform is the only one that does that. On the Apple platform, developers are just
about on their own. Basically, Apple is a cost center for development, whereas Microsoft makes sure the tools
are free. You can get all sorts of excellent help, videos, source code and sample code. They give you everything
they can to make sure the app developers have the most easily managed, connected and supported experience.
That really excites developers, and I‟ve seen a lot of them come from other platforms to develop for Windows
Phone 8 because of both the new hardware features, the new software features and the new access. The ability
I‟m just developing for Windows
now. I‟ve dropped all the others
because I haven‟t found them
as profitable. I‟ve got one
project where I‟m doing both a
Windows Phone 8 and an iOS
version of an application. … The
iOS part of that build is taking
almost three times as long. …
Both Nokia and Microsoft are
putting a lot of effort into
making sure the developer
communities are properly
supported. The Windows 8
platform is the only one that
does that. On the Apple
platform, developers are just
about on their own. Basically,
Apple is a cost center for
development, whereas
Microsoft makes sure the tools
are free.
Windows Phone 8 App Developer
Canada
Nokia Corp.’s Windows 8 Phones
1 Ferry Building, Suite 255, San Francisco, CA 94111 | www.blueshiftideas.com
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to use their existing code base from other languages, the support level, and the developer tools are the best in
the industry.”
“The development time is much quicker now with Windows Phone 8. Let me give you an example: I can write an
application on in Objective-C on Xcode for Apple in six weeks. I can write the exact same application using
Eclipse and Java and XML on Android in about two and a half weeks. I can write the same exact application for a
Windows 8 phone in two days.”
“On the Apple platform, I believe the developer program costs $99 a year. The Microsoft platform is also $99 a
year, but with Apple you have to buy the development tools. … Then you also have to buy a Mac. A Mac with
comparable hardware to a PC will be almost twice as much.”
Co-founder and user-experience designer for a Windows Phone app development team
The Lumia 920 will be extremely popular because it offers great hardware, a terrific camera, the best GPS software and a
palatable price. For developers, Windows Phone 8 is not yet a moneymaking opportunity, but the development tools are
easy to use and the platform represents a chance to get in on the ground floor.
“The 920 is the first Windows Phone device that I can genuinely recommend over Android and iOS phones. I just
ordered 920s for my parents, siblings and close friends.”
“The display is very clear, produces rich colors and outperforms all other displays in direct sunlight. The camera
takes great shots with a novelty factor of being able to take photos in the dark. It has the best GPS software on
the market. It‟s the most durable phone on the market; it‟s a tank and most definitely feels that way. It can be
used as a portable hard drive. You can drag and drop music and video files—no need for software like iTunes.”
“It has many attractive color options, very reasonable prices and is an intuitive and easy-to-use OS. I think the
920 has a good chance of being widely adopted.”
“Nokia handsets have exceptional build quality. … The latest Lumia
phones also have fantastic hardware—screen, camera, internals—and
come bundled with really useful exclusive apps such as Nokia Drive.”
“When it comes to shop windows and display stands, I think the Nokia
devices have a really good chance of standing out this year.
Consumers are going to be pleasantly surprised with what Nokia and
Windows Phone 8 have to offer.”
“There is no doubt in my mind that Nokia will lead [the Windows Phone
makers]. I don‟t see Samsung [Electronics Co. Ltd./KRX:005930]
competing with them at all on this front. If anything, HTC
[Corp./TPE:2498] is the one that could potentially take the top spot as
they‟ve come up with some great handsets, but I really don‟t see it
happening.”
“Many people still hold Nokia in high regard. Who doesn‟t have fond
memories of their products? I think people will be more than happy to
give them a second chance if they‟re presented with a device that is on par with or better than iOS and Android.”
“The only real way to make money [as a developer] on Windows Phone 8 right now is via contracting. I don‟t
believe the ecosystem is big enough to support successful consumer-based apps. The only reason we are
building consumer-based apps is to gain exposure for ourselves in preparation for the potential success of the
platform. If we had a killer app idea that hadn‟t been done before, the first OS we‟d support definitely wouldn‟t
be Windows Phone. The numbers just aren‟t there yet.”
“We [started developing for Windows Phone because we] were very impressed by the Metro Design Language.
We believed that its unique and refreshing take on the smartphone OS would really help Windows Phones stand
out from the crowd and provide a genuine alternative to iOS and Android.”
“iOS and Android are saturated markets. It‟s much easier to stand out and be noticed on a completely new
platform such as Windows Phone.”
“I have never developed for iOS or Android. However … Microsoft‟s development tools are second to none.
Microsoft makes it extremely easy for developers with a fantastic tool set, a wealth of learning resources and
plenty of development and design templates that make it very simple to get started. The developer community is
also huge, and because the technologies used to build apps on Windows Phone 8 have been around for a long
time, it‟s also very easy to get help or find issues that have been experienced by others online.”
Microsoft still has more work to
do when it comes to marketing
the phone to consumers. I
don‟t believe it‟s common
knowledge that Microsoft has a
smartphone OS on the market
that is just as good as Android
or iOS.
Co-founder & Designer
Windows Phone App Developer
Nokia Corp.’s Windows 8 Phones
1 Ferry Building, Suite 255, San Francisco, CA 94111 | www.blueshiftideas.com
6
“Microsoft still has more work to do when it comes to marketing the phone to consumers. I don‟t believe it‟s
common knowledge that Microsoft has a smartphone OS on the market that is just as good as Android or iOS.”
“I think they are on the right track. We attended the Microsoft Build 2012 conference. … They were able to
generate a real buzz around the new platform and showcase the potential for why people need to start building
apps for it.”
“I don‟t see any major issues with the Windows Phone Marketplace. From a developer‟s point of view, it would
be nice to have clarity on how they rank apps and have access to better, more real-time analytics, but I don‟t
think there are any problems here from a consumer‟s point of view.”
Windows programmer with two apps in the Windows Phone store
Nokia‟s Lumia phones running Windows 8 are unlikely to greatly affect the smartphone market this holiday season; the
Windows platform remains a distant third in consumers‟ minds. Some phone buyers will be attracted to the Lumia 920‟s
great camera, but others are likely to be turned off by its size and weight. The winner among Windows 8 phone makers
will come down to marketing rather than technical specs. Microsoft is effectively marketing the Windows Phone platform
to developers.
“Unfortunately, Windows Phone is a niche operating system. Until
Windows Phone is widespread and plays an equal role to the other
mobile operating systems, Windows Phone devices will remain niche
phones.”
“I hope [Windows Phones will gain significant popularity], though I don‟t
see it happening in the next one to two years. Windows Phones … are
trying to play catch-up, but some consumers are going to want to stay
with their current platform for quite a while, just because it works for
them. I think Windows Phone has the full potential to become the No. 2
operating system, but it will not happen immediately and thus is not
relevant for the current wave of devices.”
“The Nokia Windows 8 phones are bigger than some of the alternatives and in some cases don‟t provide any
real benefit in terms of features. With that said, the Lumia 920‟s camera is really different, so some customers
could be attracted to the device by that feature.”
“One thing that will be taken into consideration by all customers is the size of the device in comparison to
alternatives. My wife tried my Lumia 920 and the HTC 8X in the store and decided that she much preferred the
[8X‟s] lighter/slimmer device over the camera feature.”
“[Nokia‟s] Lumia and [Samsung‟s] Ativ will compete. I‟m not sure who will win. I guess it depends more on the
marketing than on the technical side. It‟s hard to say who the leading Windows 8 phone manufacturer will be. It
might be Nokia, but it also very well might be HTC or Samsung.”
“Among the Windows Phone 8 devices, Lumia will be widespread. It will be one of the top three, not a true niche
device like the Lumia 610. With that said, I think that each company [Nokia, Samsung and HTC] will have
roughly the same market share.”
“I‟ve seen the TV ads for Windows Phone 8—very nice and appealing. But Microsoft is doing a much better job
promoting the platform to developers [than to consumers], with free tools, educational content and training for
Android and iOS developers.”
“I have been a professional developer with Microsoft technologies for more than 10 years, so Windows Phone
was low-hanging fruit when I evaluated the mobile platforms. I have apps published on all three platforms [and]
the Microsoft platform is by far the easiest to learn and develop with. In terms of profitability … the answer
clearly depends on how widespread Windows Phone becomes as a platform.”
“From the consumer‟s point of view, the [Windows Phone app store] is good. From a developer and publisher‟s
point of view, it could be better. Nothing too serious to be concerned about—just issues with a long certification
process and some reports, which could be changed.”
Executive for a multiplatform app development company in the United States
Windows 8 phones will see single-digit growth during the next 12 months, and the Lumia 920 will fare better in Europe
than in the United States. The source‟s company has developed apps for Windows 6 and 7 products but has had zero
demand from developers pursuing Windows 8 apps. The Lumia 920 has impressive features and functionality, but its
I have apps published on all
three platforms [and] the
Microsoft platform is by far the
easiest to learn and develop
with.
Windows Programmer
Windows Phone Apps
Nokia Corp.’s Windows 8 Phones
1 Ferry Building, Suite 255, San Francisco, CA 94111 | www.blueshiftideas.com
7
weight and the feel may discourage buyers. Among the Windows 8 offerings, the HTC 8X will outsell the Lumia 920
because it weighs less (130 grams vs. the Lumia‟s 185 grams).
“Nokia is in a very tough spot in the U.S. and having a hard time getting into North America. As consumer sales
and interest pick up in places like Africa and India, it may help. In the United States, the Nokia Lumia 920 is
being pushed by AT&T, and that‟s a positive. Android ultimately got accepted because Verizon [Communications
Inc./VZ] pushed it.”
“They will probably sell a lot of Lumia 920s this season but not as much as the Windows 8 competitors.
Windows Phone will do OK overall, but … the HTC 8X is already having a hard time even though it‟s lighter and
streams faster than the Lumia. [Microsoft] may be off to a good start, but adoption will be slow.”
“We develop apps for smartphones and the Web, across all platforms. … We worked on apps for Windows 6 and
6.5, which was an absolute nightmare. We partner with firms and individuals for app development, and we have
not seen one opportunity for Windows 8 app development. People are still leading with iPhone apps. The
proliferation of Android apps has gotten absolutely crazy.”
“The market for Windows 8 smartphones in general seems positive,
and they have a good operating system. But they are not suddenly
going to overtake the market. … The Windows 8 smartphone will
probably be in the single digits [of market share] by next year. The
phones might carve out a niche over the long haul, say the next five to
10 years, but they will have to keep at it.”
“The [Lumia 920] camera is killer [and] is excellent in both bright light
and dark settings. The picture is crisp and clean. It‟s probably the best
camera I‟ve seen on a smartphone. It‟s probably got higher quality than
the iPhone. The quality of the camera does not surprise me because in
2007 Nokia was a leader in smartphone cameras.”
“The Lumia 920 also has wireless charging. You just drop it into an
induction charger.”
“As for Windows Phone 8, I like the design. It‟s definitely a different
navigation system than Android or iOS. It uses tiles instead of icons. It‟s
a different paradigm, and consumers will either like it or not. … Nokia is
nowhere in North America, and it‟s been that way for them for about 10 to 12 years. They are trying to crawl
their way back in the U.S.”
“Samsung isn‟t out yet, but if the Samsung [Windows 8 phone] is thinner, lighter and is closer to the HTC,
Samsung will do better than the Lumia. The Lumia has distinct qualities, but as soon as you put it in your hand,
it loses some appeal. Based on what we‟ve seen in the Galaxy family of Samsungs, they will probably go for a
large screen but a device that is „softer‟ in the hand. The hardware will feel better. [Samsung] uses plastic
hardware whereas the Lumia series relies on metal. The Galaxy S III has a 4.[8]-inch screen and weighs 4.[7]
ounces. The Lumia screen is the same size, but it weighs 6.5 ounces.”
“The Lumia 920 has more competitive features than the HTC [8X], but as soon as you pick it up, it‟s too heavy.
The colors and designs are appealing, but the sound qualities for the HTCs are pretty good. [HTC] does lose out
with the induction charging and the camera.”
“Samsung sold 66 million phones last year, and I would bet Windows will have a hard time doing a million. …
The iPhone sold 25 to 30 million last year. After that, there is not a lot left.”
App developer based in Silicon Valley
This app developer has worked for nearly 10 years on building mobile apps for Nokia‟s Symbian and Microsoft Windows
systems and currently is employed by a company developing apps for iOS. He has not seen any voluntary move by the
community‟s developers to build apps for Windows 8, and believes any development for the OS will be business-driven by
those in upper management. After testing the Nokia Lumia 920 specifically for this interview, he said he immediately was
struck by the phone‟s excessive weight and was disappointed with certain aspects of the phone‟s user flow (UX). Also, he
noted the lack of some major apps. Only the Twitter app was built by Twitter; the Facebook and YouTube apps both were
built by Microsoft, which he said signals the lack of interest in developing in the Windows Phone 8 space.
“It‟s too early to talk about building our company‟s application for Windows 8 yet.”
“Voluntarily, I‟m not seeing the mobile development community moving into Windows 8.”
We partner with firms and
individuals for app
development, and we have not
seen one opportunity for
Windows 8 app development.
People are still leading with
iPhone apps. The proliferation
of Android apps has gotten
absolutely crazy.
Executive, Multiplatform App Developer
United States
Nokia Corp.’s Windows 8 Phones
1 Ferry Building, Suite 255, San Francisco, CA 94111 | www.blueshiftideas.com
8
“Development for Windows 8 could be somewhat business-driven. I‟ve
heard some OEMs ask management at our company if we are planning
to build our mobile product for Windows 8, but currently we are not.”
“One of the first observations I have of Lumia is that it seems four times
heavier than the latest Android or iPhone.”
“I am a bit disappointed with some of the basic UX aspects of the
phone. For example, configuring or prompting for Wi-Fi is a core part of
a mobile phone, but when I returned home from the office, I had to
search in the settings and then go change the Wi-Fi access point.”
“There are some continuing UX engineering issues that I associate with
the old Nokia Symbian and Windows operating systems. It‟s just a gut
feeling that I have.”
“I didn‟t see any major apps in the Windows app store. Only Twitter is
developed by Twitter. All the latest social apps like Pinterest and
Instagram are not yet available directly from those companies. The
Facebook app is not by Facebook; it‟s developed by Microsoft. The
YouTube app is also developed by Microsoft. This shows there‟s not
much interest yet from the major companies to develop apps in this
space.”
“I‟m not surprised that the Lumia is selling well in Europe; there is some loyalty to the brand there.”
“With Nokia, I expect the camera and music to be great.”
“The phone is good. I like the UX more on the Windows 8 desktop than on the mobile Windows 8. I felt
connected on the desktop but not very excited on the mobile. This is all feedback as a user.”
India-based mobile developer with six apps in the Windows Phone store
The Lumia 920 might just be the best smartphone on the market and should excel in India if priced right. Microsoft has
not done much consumer marketing of Windows Phones in India but has been reaching out to developers, which is
important given the holes in its app store.
“I find the Lumia 920 much better than any Android phone or iPhone 4S/5. The only drawback I see is the
weight. However, I believe that given the right pricing strategy, it could sweep the market.”
“[Nokia‟s Windows 8 phones] are top-notch handsets in terms of quality and beauty. I don‟t see a reason they
will fail.”
“The Lumia line of phones is very rich at the moment compared to Samsung‟s Windows Phone 8 lineup, so I
believe Nokia will fare really well. Nokia is also addressing all price points with different handsets, so my take is
that Nokia will win this battle [among Windows Phone 8 manufacturers].”
“I haven‟t see much [marketing of Windows Phones] in India in the consumer space. Developers are a different
story. I see a lot of events happening for them, but device unavailability is a big factor. I am waiting for Lumia
Windows 8 phones to launch in India to really get started with development.”
“The Windows Phone store still doesn‟t have the app parity to iPhone or Android at the moment. I think there is a
big opportunity there to bring top app and game developers to the Windows Phone ecosystem. I think some sort
of direct engagement with them would help in a great way.”
“I became fascinated by Windows Phone when it launched in 2010. I just loved the platform and the idea that
every .Net developer was now a Windows Phone developer as well. With Windows Phone 8, I just feel that native
code support just exponentially expands the potential of the platform and opportunities.”
2) INDUSTRY SPECIALISTS All five sources were more positive on the Lumia 920 than on any other previous Windows phone. One source believes
reported the phone shortages have more to do with a lack of supply rather than heavy demand. A second source said Nokia is
the leading Windows phone maker and believes Windows eventually will take share from Android and iOS. Another believes
the Lumia 920 will allow Nokia to increase its share relative to Samsung and HTC. Four sources who commented said the
Windows 8 platform still is missing a few key apps, including Instagram. Positive comments centered on Microsoft‟s support
All the latest social apps like
Pinterest and Instagram are not
yet available directly from those
companies. The Facebook app
is not by Facebook; it‟s
developed by Microsoft. The
YouTube app is also developed
by Microsoft. This shows
there‟s not much interest yet
from the major companies to
develop apps in this space.
App Developer, Silicon Valley
Nokia Corp.’s Windows 8 Phones
1 Ferry Building, Suite 255, San Francisco, CA 94111 | www.blueshiftideas.com
9
of developers and Lumia 920‟s attractive price point, camera and large screen size. One source noted Android and iOS
fatigue among consumers.
Trade journalist covering mobile devices for a popular online publication; repeat source
The Lumia 920 smartphone is a far improvement over the Lumia 900 and appears to be selling well in international
markets. However, its popularity is muted in the United States because of its weight, its control by a single carrier (AT&T)
and its lack of popular apps. Reported shortages of the Lumia 920 may have more to do with marketing or supply
shortages than demand.
“The Lumia 920 is a good improvement over the Lumia 900. I‟ve heard the new Nokia/Win8 model is doing well
overseas. Here in the U.S. it‟s not as popular. Some people think it‟s a little bulky.”
“Any news of improved sales is good news for Nokia and any improvement over the previous Lumia model will
be a bonus. But I do not see it becoming the next iPhone.”
“I‟ve heard they have sold out at various AT&T stores, but I don‟t know what that means. It could be lack of
inventory, which could be more about a production problem than demand. A lot of companies play with the
[supply] numbers and a new product‟s market progress to create a
buzz.”
“It‟s a tough market here, and [Nokia is] trying to build a reputation
from scratch. Plus, there is a huge number of devices out this season,
with half a dozen top-level flagship phones competing. Samsung is a
huge competitor with the Galaxy S III. There‟s the iPhone 5; despite its
recent problems, it is popular because it has so many apps. We are not
wanting for good phones this year. The Lumia 920 has an advantage
on price, but you can only get it on one carrier [AT&T]. Nokia can have a
good holiday season and still not make a dent in the market.”
“If [Nokia] becomes the dominant Windows phone here, it will help, but
I don‟t think [Windows 8] will be as competitive as other platforms. I
don‟t see [Nokia] becoming the No. 1 smartphone maker, but I do think
if they keep at it, they will see growth and become a more significant
player.”
“Windows 8 itself has not done as well as Microsoft had hoped. But it
would be difficult to fail completely because every improvement for Windows is an advance. I don‟t think they
are making huge headway. I still think it‟s going to be a single-digit growth for market share.”
“Windows Phone 8 is doing better than the Windows 7, up to four times better, but part of it may be that
Microsoft has spent about a billion dollars to advertise Windows 8.”
“Windows is still lagging behind in apps although the quality is improving. Most of the app developers are on
Android and iOS, and Windows is still in third. I don‟t think app developers will give up other platforms. Even if
Windows takes off, I don‟t see developers committing to Microsoft exclusively. Most want to develop for the
whole spectrum of platforms. … iOS is still the No. 1 choice for app developers, even though the iPhone has only
20% to 25% of the market. Android is only now beginning to get interest from app developers.”
“Samsung keeps delaying its release first it was going to be November, then December. Now they are looking at
next year. As far as I know, Verizon is the only carrier, and I‟ve not heard anything mind-blowing. I don‟t know
why there‟s a delay but my guess is that it‟s an issue related to Verizon.”
Senior tech analyst/writer for an online technology site
This source was surprised by his readers‟ excitement around a Windows phone after he posted a 10-day video series on
the Lumia 920. Even his peers, who are iOS and Android users, are showing more interest. He attributes interest to user
fatigue with iOS and Android, but he is not sure if consumers will make the switch because of Windows 8‟s lack of apps.
Microsoft and Nokia are courting developers, and Microsoft provides the best development support; in time, the app
situation should improve. It is easier now for developers to build mobile game versions on Windows Phone 8.
“I cast the idea out on Twitter to ask what people would think about watching a video series about me trying out
the Lumia 920 phone, as someone who is very ingrained in the iPhone, for 10 days and giving my opinion about
the experience. The response, especially from Apple users, shocked me. People were really interested in seeing
what it was like.”
We are not wanting for good
phones this year. The Lumia
920 has an advantage on
price, but you can only get it on
one carrier [AT&T]. Nokia can
have a good holiday season
and still not make a dent in the
market.
Trade Journalist
Covering Mobile Devices
Nokia Corp.’s Windows 8 Phones
1 Ferry Building, Suite 255, San Francisco, CA 94111 | www.blueshiftideas.com
10
“I‟ve had a couple of coworkers say, „I could really see myself using
this,‟ or „I really want this,‟ which I didn‟t hear a year or six months ago.”
“I haven‟t seen this sort of excitement around any Windows phone,
period, in the last few years. There‟s definitely now an interest in giving
the Nokia Lumia 920 a look, which we didn‟t have a year ago or even
nine months ago when they released the Lumia 900.”
“There‟s built-up smartphone user fatigue. People are feeling bored
with what they have on iOS and feel that Android might be a little bit too
fragmented and complicated. They are willing to look at an alternative.”
“Whether or not consumers are going to shift to the Lumia 920, I don‟t
know, but there is definitely an interest level there. I think people are
actually going to visit the stores and give it a closer look and play with
it.”
“I‟m the only one in the office who has a Lumia 920; it‟s mostly a mix of
iPhone and Android.”
“The phone itself is big, but it takes really great pictures, even in low
light.”
“I like the People Hub; I love the way they have put the contact ecosystem together in a seamless way.”
“There‟s still an issue of apps not being there in the same way that they are with iOS and Android, but it‟s gotten
a lot better.”
“Something like 96 out of the top 100 most popular apps are there and represented on the Windows platform.
That‟s getting closer, but more important is that consumers are now interested in looking at it.”
“Finally, Microsoft has checked some of the required boxes. They‟ve got support for multitasking, and certain
apps are supported.”
“Not having Instagram really hurts the platform.”
“We haven‟t seen the developer adoption with the Windows that we‟ve seen with iOS and Android—not just in
terms of number of apps but also in quality.”
“There are some really good apps, but there are apps that just feel less mature and less realized than you see
on iOS and Android.”
“Windows 8 makes it easier for game developers and application developers to build mobile versions of their
apps or games.”
“Microsoft has the best developer relations on the planet. They go out and give their developers more support,
more information and more resources than any other company.”
“I also think the branding that‟s been going around Xbox has finally
started to work and that people who are invested in that system, or
those looking at the Surface tablets, are getting excited about Windows
8.”
“It‟s harder now for developers, especially for independent developers,
as well as some of the more name-brand developers, to adopt another
platform unless they know the payoff is going to be there with users.”
“Microsoft is going to have to focus on not just getting developers to
bring apps in but to make sure they are quality apps.”
“Apple is not going to pay anyone to make an app for their platform;
that‟s just not how they work. Microsoft is actively courting developers
and corporations to get them to make things. … Nokia has some
exclusive apps that you can you can only get for a period of time. They
are actively trying to get that stuff there.”
“Apple was very fortunate that they had a strong Mac software community, so with the iPhone they were able to
launch some very cool apps at the starting gate.”
“The other thing with iPhone is that early on, the best apps were from independent developers and they helped
define the ecosystem going forward. But those independent developers were really talented, and I have to say
that I haven‟t seen that kind of talent on a Windows phone.”
I haven‟t seen this sort of
excitement around any
Windows phone, period, in the
last few years. There‟s
definitely now an interest in
giving the Nokia Lumia 920 a
look, which we didn‟t have a
year ago or even nine months
ago when they released the
Lumia 900.
Senior Tech Analyst/Writer
Online Technology Site
There‟s built-up smartphone
user fatigue. People are feeling
bored with what they have on
iOS and feel that Android might
be a little bit too fragmented
and complicated. They are
willing to look at an alternative.
Senior Tech Analyst/Writer
Online Technology Site
Nokia Corp.’s Windows 8 Phones
1 Ferry Building, Suite 255, San Francisco, CA 94111 | www.blueshiftideas.com
11
Owner and editor-in-chief of an independent Nokia blog; repeat source
The Lumia 920 will be the breadwinner among Windows smartphones this year, surpassing HTC and Samsung in sales
thanks to features like PureView, the high-end screen and the navigation system. Nokia already is a leading manufacturer
in Europe, and the Lumia 920 should advance Nokia‟s position in North America. The Lumia 920 and Windows Phone 8
likely will not surpass Android, iOS and the leading device brands, but persistent marketing and a stronger stable of app
developers could narrow the lead.
“My view of the Nokia Windows device is more positive than it was three months ago. … They … listened to
consumer concerns. Are they there yet? No. They are still the third choice behind Android and Apple. … It‟s more
a matter of marketing and helping the consumer get out of their skin to make them more comfortable with the
Windows platform.”
“The Lumia 920 has gotten the attention of consumers. Now it‟s up to the marketing teams to carry it.”
“Windows 8 adoption seems to be going well. Anecdotally, I‟ve noticed more people outside of my normal peer
group [of Nokia users] with the Lumia 920. Outside of my circle, I can count four people that suddenly have
purchased the Lumia 920 or 820. Part of the interest is driven by price, and part is driven by advertising and TV
commercials. The commercials are attracting attention.”
“The Nokia Windows phone will stand apart from competitors because
Nokia owns so many patents and they‟ve been around a long time. I
think Nokia will destroy the [Windows Phone] competition in sales. HTC
is missing some important apps, and Samsung hasn‟t even been
released yet.”
“The cost is a no-brainer. If you are with AT&T and want a new phone,
do you go with the 32-GB Lumia 920 for $99 or the new iPhone for
$299? It‟s true there are some people who just go in to a store and ask
for the iPhone by name outright.”
“I have heard about shortages and backorders. I‟m not sure Nokia
realized how well it would sell. … There‟s a two-week backlog on
Amazon[.com Inc./AMZN], and in some AT&T stores I‟ve heard about
shortages of certain colors and white.”
“It‟s hard to decipher shortages. Apple regularly reports shortages, and
iPhones sell out after a new release. … I don‟t know if it‟s an industry
market scheme … or it‟s out of stock and on backorder. … I have not
heard of any production or manufacturing problems. There are no
major bugs affecting the supply chain.”
“I‟m using the Lumia 920 as we speak, and I absolutely love it. It offers so many new and improved features.
The thing that is huge for me is the extra-sensitive screen. … It is a decent size and has some heft, which I like.
It‟s not flimsy. The view is excellent in sunlight. … It also takes low-light photos.”
“The Lumia 920 has good handling and good integration. Windows 8 has enhanced … storage. … The new tile
screen is improved with three different sizes. … The Lumia 920 is the only Windows phone with PureView and
special technology for the camera. It has optical image stabilization for video.”
“Integration is coming along, given the amount of time Windows has been out. If you look at the early releases of
Android, during the same initial time period they have more apps onboard than Android did and they are on par
with the number of apps Apple offered during the early phases and during the same time period.”
“Windows 8 is doing pretty well with apps, but it‟s hard to compare it with Apple or Android. They are well behind
them although they have many of the mainstream apps. People do want some of the big apps like Instagram.”
“They have done a fine job with exclusivity. There are a lot of exclusive apps for the Lumia 920, including Nokia
partnerships with ESPN and Zynga.”
“Windows is a decent platform to work on. There not much coding, and it doesn‟t take very long to do. The more
people who use the Windows Phone, the more the app developers will build. If Windows 8 really takes off this
season, they will jump onboard. And Microsoft‟s status is huge because of its integration with the Xbox.”
“I can‟t see why any app developer would give up developing for iOS or Android and work exclusively with
Windows platform. App developers want to build for as many platforms as possible and profitable.”
The Nokia Windows phone will
stand apart from competitors
because Nokia owns so many
patents and they‟ve been
around a long time. I think
Nokia will destroy the [Windows
Phone] competition in sales.
HTC is missing some important
apps, and Samsung hasn‟t
even been released yet.
Owner & Editor-in-chief
Independent Nokia Blog
Nokia Corp.’s Windows 8 Phones
1 Ferry Building, Suite 255, San Francisco, CA 94111 | www.blueshiftideas.com
12
Owner of an online rental company for new electronic devices and gadgets
The Lumia 920 currently is the source‟s second most popular handset after the iPhone 5. He believes the 920 will
become the leading Windows 8 phone, primarily because of pricing. Customers have given positive feedback on the
Lumia‟s PureView camera, colorful look and large screen size. Negative feedback has centered on the lack of apps, which
the source said has pushed some customers to seek out the iPhone instead.
“Our No. 1 phone rental has been the iPhone 5, No. 2 has been specifically for the Lumia 920, and then the
Androids, which have all been less popular than the Lumia.”
“The problem with Androids is that there are just so many.”
“In terms of platforms, I think Lumia has become synonymous with the
whole Windows situation.”
“We do have HTC 8X and the Lumia 920, and we‟ve had much more
interest with the Lumia than the HTC.”
“The Lumia 920 will do very well because they are priced well. From a
pricing standpoint, if you are going to buy a Windows 8 Phone, you
have a $200 HTC 8X or a $100 Lumia 920.”
“Unless the other Windows 8 Phone manufacturers jump in with much
more marketing effort and muscle, I think Nokia will remain ahead of
the line.”
“Nokia has done a very good job with their camera technology. The PureView technology is very revolutionary.
It‟s something that no one else has. This differentiation will make a difference down the road because the
hardware is very important. The night photography on the Lumia 920 is unbeatable. The downside of that is that
the 920 is thicker than most phones on the market today. … The field has gone toward thinner and thinner.”
“There‟s been very positive feedback from the Lumias in general. … The app base is limited. I think that‟s the
reason why people use the Apples, but people do like the larger screen real estate.”
“The lack of applications is a setback for the Lumia, no doubt about it. … It‟s just the sense we‟ve gotten from
customers when we ask them for feedback.”
“Really, it‟s all about marketing, price and apps. Nokia finally has a device that is competitive on all subjects but
the apps. I don‟t care about the apps because I‟ve never found them particularly useful, but a lot of people
apparently care about them.”
“There are shortages [of the Lumia 920], and that has led to a number of customers on our side because we
provide the device right away.”
Device reviewer for a website dedicated to Windows Phones
The Lumia 920 will be the best Windows 8 device on the market this holiday season, and will help Nokia to increase its
share of the Windows Phone market over HTC and Samsung. How the Lumia 920 and Windows 8 will fare against
Android and iOS is too early to guess. That battle will take several years to play out and will be closely tied to Microsoft‟s
success in getting Windows 8 accepted by home PC and enterprise users.
“For the short term, I would not be surprised if the 920 sold really well. I think the $100 price range … will get
people interested. It‟s not going to do iPhone numbers. … But … it will sell well.”
“I don‟t think the Windows Phone market share will go up much [this holiday season], but the Nokia share within
the Windows 8 market will increase.”
“I was actually surprised at the $100 price. … The 920 has more in terms of hardware [than HTC‟s Windows 8
phones].”
“HTC has an interesting relationship with Microsoft right now because the 8X has been branded „the Windows 8
phone,‟ but people still think of Nokia, because of their partnership with Microsoft, as having the flagship
Windows phone. That will help Nokia, as well as the fact they were first on the market with the Lumia 920.”
“They do a really good job with the camera, and there‟s a large subset of people who don‟t want to have another
camera. They just use their phone.”
“If you look at it from a technical spec level, I think the 920 matches up with the iPhone 5 in many respects.
Where iPhone has an advantage is in the apps and the ecosystem. … People just get used to the look and feel of
it, and moving to something unfamiliar will hold them back.”
“The Windows phones, specifically the 920, matches most of [the Android phones]. The biggest thing will be
people getting used to the ecosystem. That‟s the biggest hurdle. Windows Phone came out late, very late. People
get used to what they have.”
Really, it‟s all about marketing,
price and apps. Nokia finally
has a device that is competitive
on all subjects but the apps.
Owner, Online Rental Company
Electronic Devices & Gadgets
Nokia Corp.’s Windows 8 Phones
1 Ferry Building, Suite 255, San Francisco, CA 94111 | www.blueshiftideas.com
13
“It comes down to getting people ingrained in an ecosystem. … It may take five to 10 years, but it‟ll eventually
happen. Consumers will get used to the product. It‟s possible they could cut that down to three to five years if
they marketed it properly and taught the public well, and I don‟t think they‟ve done that.”
“You can‟t discount Samsung‟s reach. … While Nokia may sell a good number of Windows 8 phones in the U.S.
comparatively, Samsung is going to be hard to match globally.”
“I really like my HTC Titan II, but I‟m thinking of switching to a 920 just because of everything it offers.”
“Nokia‟s biggest strength will be the support of their in-phone apps. Nokia offers applications that are only
available on the Nokia phone. … The 900 and 920 have in-phone apps that are really well done and the
interface works really well. I think that‟s going to be a selling point.”
“The issue I see [with the Windows Phone app store] is not as much quality control. Android is too open and iOS
may be too closed, but at least the Apple store has a lockdown on the quality. While Microsoft is trying to get the
numbers up, they may be letting too many low-quality apps in, and that may tarnish the marketplace.”
Founder and host of a popular website featuring mobile phone news and weekly podcasts
Despite the strong design and features of the Nokia Lumia 920, Windows 8 will be a niche player in the North American
smartphone market. The source predicts slow adoption and limited market share. The biggest opportunity for Nokia and
Microsoft may reside in the enterprise sector given the demise of the BlackBerry, the trend toward corporate support for
employee-owned devices and the ubiquity of Windows in the workplace. However, Apple‟s iPhones, iPads and the iOS
platform appear to be filling the immediate gap.
“Windows smartphones are unimpressive. I‟m not a fan. I don‟t believe Windows 8 will find much more success
this year than Windows 7 did last year. At best, I think it can secure no more than 10% of the U.S. market.”
“In the near term Windows Phone 8 is a niche product. They will need more going for them than just Nokia and
HTC in a couple of models to make the platform take off. I know Microsoft put a billion into marketing. But even
with the marketing push they will be lucky to see their market share hit 10% in the United states by this time
next year.”
“All of the initial reports and reviews state Windows 8 is an improvement over earlier releases, but I‟m still not
super interested in it. Nothing about the Windows platform grabs my attention.”
“I have no numbers on [Windows 8] adoption. But I work in the corporate setting and have not seen one person
with a Windows phone of any brand. Occasionally when I go out … I see a person with an older model but very
rarely if ever have I seen a new model.”
“There is a big opportunity on the enterprise side with the move to „bring your own device‟ [BYOD] to work as
RIM [Research In Motion Ltd./RIMM] falls out of favor and even out of functionality. My company now provides
some very slick tools for iOS to support the personal devices. RIM is done, and iPhone about two to three years
ago was not being brought into the office. Now iPhones and iPads are the favored BYOD. But Microsoft is
embedded everywhere in the enterprise setting. They do have active sync exchange in the network, but that will
not be enough to incorporate the Windows 8 phone. It‟s hard to see the corporate community suddenly
embracing a Windows phone over an iPhone, which already has one foot in, until they bring in more tools for
enterprise. And until that‟s a reality it‟s hard to see app developers rushing in.”
“The Lumia 800 and 900 series and the Lumia 920 specifically are nice pieces of hardware. The 920 has some
unique features, and it looks nice.”
“If I were going to buy a Windows phone—and I would never buy one—I would buy the Lumia 920 over the HTC
8X.”
“App development seems to be going well, and they are doing a good job of getting development people
onboard. It seems as if everything you really would need is already on the Windows phone. All of the big name
apps are there. That said, I hope the app developers stick with the platform for their sake. Right now Windows is
way behind iOS and Android. The quality right now is better than the quantity.”
“[Microsoft has] to seed the developers to get them onboard for the new platform. Meanwhile, they are sending
out the Windows 8 devices for review, and I still don‟t see that translating into widespread adoption or
excitement yet.”
“If Windows phones was a more lucrative platform it would possibly draw some developer loyalty. Developers are
frustrated with the existing platforms on many levels: iOS is too closed and Android is like working in the Wild
West.”
“The development of the apps need to have widespread or important utility. … I am someone who does not buy
a lot of apps, but when I do buy an app, I use the heck out of it. It‟s been close to a year since I‟ve bought an
Nokia Corp.’s Windows 8 Phones
1 Ferry Building, Suite 255, San Francisco, CA 94111 | www.blueshiftideas.com
14
app, but I made the switch to iOS because it is easier. I don‟t like using the iPad and the iPhone exclusively but
when it comes to integration, nothing else is there yet.”
3) AT&T STORES Five of eight sources who commented on the Lumia 920‟s launch-day sales reported selling through all their inventory but
added that initial stock was between only five to 15 phones. (Three had no comment on launch-day sales.) Three sources
noted increased consumer interest compared with previous Windows Phone launches, and one source said his store had a
line waiting outside on launch day—a first for Windows Phones. However, demand has waned since the launch, and two
sources said even launch-day sales failed to meet expectations. Three stores are awaiting further shipments while five
sources said current inventory is adequate to meet demand. Positive comments for the Lumia 920 included its price point,
video game capabilities, rich features and ease of use. Negative comments focused on the lack of apps. One source said
customers are beginning to tire of iPhones.
AT&T sales associate, Chicago
Although the store was prepared for the Nokia 920 to outshine the 900 in sales, staff was surprised by the phone‟s sales
strength. The store often sells out of the 920 and currently has only a few phones. Customers like the ease of use and
features; the only downside is the number of apps.
“We knew the Nokia 920 would be more popular than the Lumia 900,
but we did not anticipate how popular it is.”
“The Windows 8 phones are extremely popular. We can hardly keep
them in stock.”
“We are stocking more of the Lumia 920s, so that is what they are
usually getting.”
“We only have a few Lumia 920s in stock now—all white. We are sold
out of the red and black.”
“We should get more Lumias in today. We really don‟t know for sure,
but we get in a shipment every day.”
“The Nokia Lumia 920 is selling better than the HTC Windows phone.
Nokia is more of a well-known brand.”
“The only downside to the Windows phones is they don‟t have all the apps that iPhones and Androids have. But
they have the most popular apps ready to go, and more are being developed all the time.”
“We only got in a few of the HTC Windows phones. We only have a few now too.”
“iPhone is the top selling phone in the store, but it is limiting. You cannot download anything with Adobe Flash,
and that is not going to ever change.”
Reporter Observations: On a Monday morning the store was somewhat busy and had two checkout lines. Only two staff
members were working, and Blueshift waited 20 minutes to speak to someone. The iPhone was the first phone
displayed, followed by the Windows phones. Tablets were on the opposite wall. The AT&T Holiday Gift Guide had a picture
of the Lumia 920 on the front cover, and the first page was devoted entirely to Windows 8 phones. We did not see any
customers look at the Windows phones.
AT&T store manager, California
The store sold all five Nokia Lumia 920s received before Black Friday to former Android and iPhones users. The store did
not get a second shipment of four Lumia 920s until a week later. The phone is priced right, easy to use, feature-rich, and
versatile—perfect for business users needing Microsoft products, gamers using their Xbox, and people who have never
owned a cell phone. The negative is the lack of apps. Microsoft is excelling at marketing right now and can begin to
regain share as long as it overcomes the app hurdle.
“We were initially sent five phones, and they sold out the same day. Three were iPhone users and two were
Android. We just got another shipment of four today.”
“Our shipments usually come on a weekly basis. If I sell five Nokias, I can‟t snap my fingers and get more. We
can only carry so much stock in-store, so we can‟t sell as many as we possibly could right now.”
“The Nokia Lumia 920 is a great phone. Very simple.”
We knew the Nokia 920 would
be more popular than the
Lumia 900, but we did not
anticipate how popular it is. …
We get in a shipment every day.
Sales Associate, AT&T
Chicago
Nokia Corp.’s Windows 8 Phones
1 Ferry Building, Suite 255, San Francisco, CA 94111 | www.blueshiftideas.com
15
“It‟s a 32-GB, which is very good, especially at the $99 price point.”
“Showing the phone is also important. The tiles are easy.”
“Nokia should send demo devices.”
“We set up people‟s tiles when they buy a Window phone. Otherwise, they‟ll walk out confused.”
“This is a great phone for business users—those who already know and use Microsoft products. You don‟t have
to mess with third-party apps.”
“The phone is very nice to connect with computers and tablets, and the
charger is a wireless pad. You don‟t have to plug it in.”
“The maps are good and improving. The talking [Nokia Drive, the
equivalent to iPhone‟s Siri] is on point.”
“I haven‟t even mentioned how great the Xbox part of this is. It‟s so
fast.”
“There are no viruses like you get with the Android.”
“You can‟t scratch the Nokia. … I show customers that I can‟t scratch it
with a key.”
“The negatives are the apps. Instagram is huge, and that‟s what people
want. That‟s the biggest problem with Windows at the moment.”
“If Windows doesn‟t fix the apps, it will lose its push. They definitely
have to get on that.”
“The Nokia music is similar to Pandora, but, meh, it‟s not Pandora. A lot of people won‟t settle for anything else.”
“The typical Nokia and Windows 8 customer is hard to pin down. The people who are buying them range from 16
to 65 [years old]. And they are switching from iPhones 5s and Samsung Galaxy S III, the two most popular
phones in our store.”
“Nokia‟s biggest problem at the moment is the popularity of the iPhone and Android systems.”
“We sell a lot of iPhones every week. We are fully stocked, so 15 to 20 in-store.”
“Why would a customer buy a Nokia when all the salespeople have iPhones?”
“There weren‟t enough ads for Windows 8. There are now though! They are all over the commercials.”
“The problem with the HTC 8X is they overpriced them. You can‟t compete at that price when the Nokia Lumia
920 is $99, and the smaller 820 is $49.99.”
“People love the Samsung Galaxy Tab. It‟s a big seller.”
AT&T store manager, California
This AT&T store sold all six initial Nokia Lumia 920 phones received during Black Friday and expects three to five
additional phones to be sent the week after Thanksgiving. Interest in Windows 8 phones—especially the HTC—is strong,
but does not begin touch the 30 iPhone 5 phones sold during Black Friday sales. The Nokia 900 was a colossal failure
with an 80% return rate, but the 920 is greatly improved with no complaints or returns one week in. Microsoft is copying
Apple‟s approach to a “system” that encourages consumers to sync all of their technology, and the source gave high
marks for Microsoft‟s marketing and Xbox capability. However, it has to
overcome the limited number of apps and the failures of previous Windows
Phone versions.
“Our initial shipment was six phones, and we sold all of them. We
should be getting another shipment of four or five phones in three or
four days. So, yes, the phone is popular, but compare that to the 30
iPhones we sold, there‟s still a long way to go.”
“The iPhone 5 is by far the best seller. The iPhone 4 is free, but we
haven‟t had it in stock for a month.”
“More people have been asking about the HTC 8X. The Nokia has a few
different colors, but HTC is supposed to come out with all these crazy
colors.”
“A lot of what Microsoft is doing is copying Apple. They want customers
to buy into the system—computer, tablet, phone, everything syncing.
They are pushing it as being more convenient.”
“The Nokia 920 is $99 and went to $50 for Black Friday. We got it a
week and a half ago. Lots of people come in asking about it.”
We were initially sent five
phones, and they sold out the
same day. Three were iPhone
users and two were Android.
We just got another shipment
of four today.
Sales Manager, AT&T
California
Our initial shipment was six
phones, and we sold all of
them. We should be getting
another shipment of four or five
phones in three or four days.
So, yes, the phone is popular,
but compare that to the 30
iPhones we sold, there‟s still a
long way to go.
Sales Manager, AT&T
California
Nokia Corp.’s Windows 8 Phones
1 Ferry Building, Suite 255, San Francisco, CA 94111 | www.blueshiftideas.com
16
“Windows is a „system‟ like Apple. People get used to it and see it on all their technology, and they become
comfortable with it.”
“The downside to Windows 8 is apps. There are more and more, but it‟s an area they need to work on a lot. Like
in the case of Pandora: People want it and can‟t get it on Windows, so they won‟t get that phone.”
“Because of the tiles, the 920 and Windows 8 phones are definitely social media phones. In that aspect, it‟s
awesome. That‟s the phone to have if you are a social media junky.”
“The software is definitely an advantage, especially on the Xbox. You can transfer music from your Xbox music to
your phone. You can text other Xbox players while playing.”
“The 920 camera is pretty awesome.”
“Microsoft is doing the right thing and spending a lot of money on marketing. They also did that with the 900,
saying it was the future in phones. All of our in-store signage touted it as the best phone ever. And that failed so
we‟ll see in a month.”
“We‟ve had no returns on the [Lumia 920] phone, which says a lot. But you have to give it a month to see. We
had so many returns with the 900. We sold 10; eight were returned.”
Reporter Observations: On a Thursday at midday, three customers and three staff members were in the store. Two
customers looked at and selected the iPhone 5 despite discussing other phone options. A FedEx shipment of five iPhone
5s arrived during our visit. None of the employees had the Nokia Lumia 920. Window signs promoted the HTC 8X; the
Nokia Lumia 920 signs were twice the size but were set back behind the counter. All three associates were helpful and
knowledgeable, and pitched in ideas about the various products.
AT&T store manager, Chicago area
Prerelease inquiries and outside launch-day lines demonstrate a growing interest in Windows Phone 8 and its ability to
compete with Android and Apple. The store sold approximately 15 Lumia 920s on launch day and has sold at least one
daily since then. Inventory is adequate. The Lumia 920 is selling better than the HTC X8 because of the better promotion
and pricing.
“When the Lumia 920 came out a few weeks back, we actually had 10
to 15 people waiting at our door that morning to get it. We also had a
bunch of people calling and asking when it would be in. That alone tells
me there is a growing interest in Windows phones.”
“We have a lot of new phones all the time. With the exception of the
iPhone, we don‟t get lines of people when the phone is released. That
why it was a bit of a surprise when people were lined up waiting for the
Lumia 920. They could give Android and Apple some competition.”
“We are selling more than one Lumia 920 per day.”
“We have plenty of inventory on the Windows phones. I don‟t see us
running out, even if we sell a bunch this weekend.”
“Phones are all so competitive that customers really end up choosing
based on who has the best promotion.”
“As for Windows phones, we have the HTC and the Lumia 920. The
Lumia 920 is selling better just by the fact that it has a better
promotion now. For the Lumia 920, with a two-year contract, the price
is $99.99; plus, you get the wireless charger free and $100 in accessories for $50.”
“The HTC Windows phone is about the same at the Nokia Lumia 920. The price for a two-year contract is
$99.99, like the Lumia, but without the extra promotional items.”
“Ease of use and the accessibility to millions of programs are why customers really like the Windows system.”
“iPhone is still the top-selling phone in the store, followed by the Samsung Galaxy S III, which is the best-selling
Android phone we carry.”
“Nokia is pricing the Lumia to be more competitive in price than the Galaxy or iPhone so that it gets out there.
When people compare the Lumia 920 to the Galaxy S III, their features are nearly the same.”
“When you get a Windows Phone, you can get $100 off a Windows tablet. Some customers have opted for it.”
Reporter Observations: The store was slow during Blueshift‟s Friday afternoon visit. In addition to the manager, four
salespeople were standing around the sales floor. One associate directed a woman in her 50s toward the iPhone 5 and
When the Lumia 920 came out
a few weeks back, we actually
had 10 to 15 people waiting at
our door that morning to get it.
We also had a bunch of people
calling and asking when it
would be in. That alone tells me
there is a growing interest in
Windows phones.
Sales Manager, AT&T
Chicago
Nokia Corp.’s Windows 8 Phones
1 Ferry Building, Suite 255, San Francisco, CA 94111 | www.blueshiftideas.com
17
Android phones. The iPhone 5 display was nearest the store entrance, followed by the Windows phones and then the
Samsung Galaxy S III.
AT&T sales associate, New Jersey
The number of customers leaving the iPhone has been greater for the Lumia
920 than for the Lumia 900. Customers are becoming increasingly aware of
their options, and some are ready to try something new. That said, the iPhone 5
still will be the top-selling smartphone this holiday season. The biggest complaint
about the Lumia 920 is the number of apps.
“The Lumia 920 is doing very well. We had a bit of a problem keeping
up with demand the first week or so after it was released, but that‟s
evened out.”
“I notice more people switching over from the iPhones to the Lumia
920 than when the Lumia 900 was released. I think people are starting
to tire of the iPhones and are getting more aware of the fact that there
are other options out there. I would say maybe one in five Lumia 920
purchases are switching over from iPhones.”
“The iPhone 5 will be the top selling smartphone for the holiday
season.”
“The iPhones have a tremendous advantage. People see them as the
phone to have … particularly [those] who don‟t know much about
phones. They do have an advantage when it comes to the number of
apps available, but it is largely due to marketing and brand awareness.”
“The biggest complaint about the Lumia 920 is that they don‟t have as many apps. They are aware of this and
are working to improve. I like the Lumia 920, but what is key for me is a TD Bank app. … Once they have it
available, I‟ll probably switch over to the Lumia.”
AT&T store manager, Georgia
Anticipation for Windows 8 phones was high before the launch, but demand during Thanksgiving was low and has been
less than expected. This store sells one Windows phone per day. The store has a full inventory, which includes three
Nokia models. Still, the source expects the Lumia 920 to sell well through early 2013.
“The response for Windows 8 phones is lower than before they launched. Until then, people were excited about
what the phones would do. Now people aren‟t really looking for them.”
“Nokia has the most popular Windows 8 phone.”
“We sell at least one Windows phone a day. That‟s lower than our expectations.”
“The Windows 8 phones account for 10% of our total phone sales.”
“We have three Nokia models in the store right now, and we have a complete inventory. We don‟t run out
because we get a couple of shipments of phones per week.”
“Sales over Thanksgiving were low for Windows. [Samsung] Galaxy and Motorola [Mobility Holdings Inc.‟s/MMI]
Atrix sold the best. I expect Lumia to sell well through the end of the year.”
“Teenagers are not really big purchasers of the Windows phones—college students, either.”
AT&T sales associate, New Jersey
The Lumia 920 is selling well and has not experienced any stock shortages. Although Nokia is a leader globally, the
iPhone 5 and Samsung Galaxy S III are the top sellers in the United States.
“The Lumia 920 is doing well.”
“I don‟t know how many we have sold, but there have been no issues with stock. The only problem is that some
colors like yellow are order-only and people want to see them in person.”
“There isn‟t just one type buying the Lumia. Some are upgrading from older Nokias. Others are switching from
iPhones or Android. It‟s all over the board.”
“The iPhone 5 will be the winner this season. The [Samsung] Galaxy S III is also a big hit.”
“Nokia is the leader globally.”
I notice more people switching
over from the iPhones to the
Lumia 920 than when the
Lumia 900 was released. I
think people are starting to tire
of the iPhones and are getting
more aware of the fact that
there are other options out
there. I would say maybe one in
five Lumia 920 purchases are
switching over from iPhones.
Sales Associate, AT&T
New Jersey
Nokia Corp.’s Windows 8 Phones
1 Ferry Building, Suite 255, San Francisco, CA 94111 | www.blueshiftideas.com
18
Reporter Observations: During Blueshift‟s Tuesday afternoon visit, no customers looked at the Lumia 920. The store
offered a free charging plate with the purchase of the Nokia phone.
AT&T sales associate, Georgia
Demand for Windows 8 phones was nonexistent until recently, and sales of Nokia phones have failed to meet
expectations. The store has only one Nokia Lumia 920 phone in stock. The source does not expect to receive any other
Nokia inventory in the near future.
“No one came in asking for the Windows phone before the launch. I
don‟t think they even knew there was a new phone coming out.”
“I do have a few people come in and ask about the Windows 8 phones.
They like the fact that the phone would be compatible with their home
computer, but the problem is most of them don‟t have Windows 8 on
their computer.”
“The only person I‟ve actually seen with one of those phones was a 10-
year-old kid, and I think he mainly had it to connect to Xbox. They have
cool features, but the phone doesn‟t really do anything for people.”
“We have one Nokia on the shelves, and it‟s been there for months. We
haven‟t sold one Nokia phone.”
“I don‟t think we‟ll sell any Nokia phones over the holidays. They
definitely aren‟t meeting our expectations for sales.”
“We won‟t get any shipments of Nokia phones until we sell the one we
have.”
“Nokia isn‟t offering us any incentive to sell their phones, but the phones are about $99 so maybe that‟s the
incentive for customers.”
“Our [overall phone] sales were good over Thanksgiving. We sold mostly iPhone 4S, iPhone 5 and the Galaxy S
III.”
4) VERIZON STORES Of the two sources, one reported no customer demand for Windows phones, which may change over time as people become
aware of the devices and the OS. The second source believes Windows phones will be as popular as Android and Apple
phones within two years.
Verizon store manager, California
The source reported zero demand for and zero awareness of Windows phones. Windows‟ customer base is limited to tech
people. The store was out of the HTC 8X, which did not concern the manager because of the lack of interest, and Black
Friday sales of Nokia Lumia 822s were weak. The iPhone 5, Samsung Galaxy and Motorola Droid Razr are the top sellers.
RIM‟s BlackBerry product launch in January will do little to help the company.
“There is zero demand for Windows 8, zero awareness.”
“In order to change that, people will have to see it working. Their mom, brother, sister and cousin will have to
have it and make a recommendation.”
“It will take more than one, two or three devices [regardless of brand] to see Windows 8‟s success and for it to
gain awareness. It took Android awhile to gain that kind of awareness too.”
“The only people who want Windows are tech people—people tied to Office and Microsoft products.”
“You will see few to no people who have Apple products buying a Windows phone. The compatibility is not there
with their other products.”
“The Windows 8 ecosystem has a long way to go.”
“Spec-wise, they are comparable to the iPhone and Android products.”
“Windows phones are missing apps like Pandora. Users are lacking the full experience available.”
Reporter Observations: The store was busy during our Thursday afternoon visit. The Windows phones were on a back
corner, and were limited to the HTC 8X and the Nokia Lumia 822 in black and white. The Apple and Android products
were displayed near the front.
I do have a few people come in
and ask about the Windows 8
phones. They like the fact that
the phone would be compatible
with their home computer, but
the problem is most of them
don‟t have Windows 8 on their
computer.
Sales Associate, AT&T
Georgia
Nokia Corp.’s Windows 8 Phones
1 Ferry Building, Suite 255, San Francisco, CA 94111 | www.blueshiftideas.com
19
Verizon sales associate, Chicago suburb
Windows will be as popular as both Apple and Android phones within two years. The store has had Windows phones in for
two weeks and sold through the initial shipment of 10 phones within a few days. The store currently has a few each of the
Lumia 822 and HTC 8X. The source also reported selling out of 10 HTC Droid
DNA phones on Black Friday. Apple remains the top seller.
“Windows phones are definitely going to give Android and iPhones a
run for their money. They can already do more than an iPhone. In a
year to year and a half, Windows should catch up to Android in terms of
their capabilities.”
“We got in the HTC Windows phone and the Lumia 822 on Nov. 15, so
we have only had them in a few weeks. We initially got three of the HTC
phones and seven of the Lumias. Both were sold through a few days
from the launch, and then we got some more in.”
“We have Windows phones in stock now. We have two of the HTC and
four of the Lumia 822.”
“The Windows phones did OK on Black Friday. We sold a few. What did
very well was the Droid DNA by HTC. We got 10 of them in the night
before Thanksgiving. Nobody knew we had them. All 10 sold on Black
Friday.”
“The Windows phones are selling. Will they sell as much as Android and iPhones? Probably not yet.”
“The people that get the Windows phones really like them. They are easy to use, and pretty soon they are going
to be able to interface with other Windows products. … That is what they got going for them, and it is huge.”
“iPhones are the easiest to use; that is why they are so popular. And everybody knows the name. They remain
our best seller.”
Reporter Observations: This store did not have most phones grouped by brand except for Apple and Windows phones.
Four customers were present, and most were looking at iPhones and Androids.
5) CUSTOMERS Of these four sources, one was not a fan of Microsoft but now owns and likes the Lumia 920, namely because of its gaming
capabilities. Two others are considering the Lumia 920 because they said its features are on par with or exceed the iPhone‟s.
One of these two also said consumers are tiring of the iPhone‟s recent lack of technological advancement. Our fourth source
believes Windows phones need to be better promoted and that the Lumia 920 is too large.
Man, Nokia Lumia 920 owner, California
The Nokia Lumia 920 is a simple, easy-to-use phone with enough wow factor to convince this source to buy a Microsoft
product. The Windows OS will excel if the apps can be improved. The Xbox capability surpasses Apple TV and is perfect
for gamers. Nokia and Microsoft need to offer in-store demos, free cases and deals to gain popularity.
“It‟s a nice, simple phone. It‟s easy to use for people who have never had a cell phone before and easy for
people who are switching from other phones.”
“I never liked Microsoft, but I‟m impressed with this. … They are going
to totally change the industry if they can pick up Instagram and
Pandora and the other popular apps.”
“My friends were trying to make fun of me for getting the Nokia, but
now that I have it and I‟m showing the features, they love it.”
“I throw it around in my car and don‟t worry about it.”
“For future success, Windows phones need to step up their app game.
They are killing it on everything else. The camera is very, very nice. The
video camera has a stabilizer feature.”
“Gamers are going to love it. They can talk online, find out who is
playing, etc. It‟s a big wow. With the Xbox 360, they should target
The people that get the
Windows phones really like
them. They are easy to use,
and pretty soon they are going
to be able to interface with
other Windows products. …
That is what they got going for
them, and it is huge.
Sales Associate, Verizon
Chicago suburb
My friends were trying to make
fun of me for getting the Nokia,
but now that I have it and I‟m
showing the features, they love
it.
Nokia Lumia 920 Owner, California
Nokia Corp.’s Windows 8 Phones
1 Ferry Building, Suite 255, San Francisco, CA 94111 | www.blueshiftideas.com
20
gamers.”
“Apple TV? I have it. But it doesn‟t always work perfectly. It lags sometimes. This is going to kill Apple TV.”
Man in his mid-30s, iPhone 4 user considering the Lumia 920, San Diego
The Nokia/Windows 8 combination is more exciting than the iPhone 5, but the partnership is essential to gaining share.
iPhone 5 sales are being driven more by Apple‟s marketing than its technological advancements. Other manufacturers
like Nokia are making larger technology leaps. Consumers will see the increasing value of syncing all their tech devices.
“If I were presented with the iPhone 5 or the Nokia, I think I would go for the Windows phone. A lot of it is just
wanting something different.”
“I‟m a bit tired of Apple. The iPhone is a good phone, but there was no
leap in technology from the 4 or 4S to the 5. Plus, the 5 navigation
system is rubbish.”
“Apple did a great job marketing the iPhone as the phone to have to be
cool. But since Steve Jobs died, there haven‟t been the technological
leaps. Of course, they are still putting out good products, but other
manufacturers are catching up and passing them. … There are phones
out there that are just as good—and now better—they just don‟t have
the must-have factor yet. That‟s due to Apple‟s great marketing. But the
Nokia with Windows 8 might do it.”
“I am more excited about the Nokia with Windows 8 than HTC with it.”
“I like that the Nokia with Windows 8 integrates with my laptop. … The
way things are going with smartphones, down the line, being on the
same OS will be advantageous.”
“I‟m not worried about the apps. There are going to be lots of apps.”
“I‟ve heard about the Nokia wireless charger being an incentive. That‟s a cool bit of kit, and you don‟t have to
buy a case for it and it‟s still a slim phone.”
“The Nokia Maps are a selling point for me. They are clever and not data-heavy. You don‟t need the 3G or 4G
signal to carry on with the directions. It‟s built into the phone.”
“I have gotten a new handset every year since 1995 and bounced around between several manufacturers, and
Nokia‟s were by far the most reliable handsets.”
Middle-aged man at an AT&T store, Chicago suburb
This source is hopeful Windows phones will take off because of their simplicity, decent memory and camera. He has been
an Android user and is considering a Lumia 920.
“I am hopeful the Windows phones will take off. People are attracted to simple, and the Lumia 920 is simpler to
use than any Android or iPhone.”
“The Lumia 920 is up there with the Samsung Galaxy S III. … It is comparable to anything on the market now.”
”I liked the weight of the Lumia 920. I liked how it fit in my hand. It seems like a really solid phone.”
“I liked the home screen, how it is divided up into all the different tasks you can do. It is really simple.”
“I am interested in a Windows phone. I have always been an Android user, so I could potentially go that route.”
“I like that a Windows phone can be easily integrated with my computer—easier than an Android.”
“I don‟t like Apple. I consider it a cult. I won‟t get an iPhone.”
Middle-aged man shopping for a new phone, Chicago
Because of their newness, Windows phones may need a few years to catch up to their competitors. Although a Windows
phone‟s potential to interact with a computer is enticing, this source most likely will purchase an Android. He likes the
Lumia‟s large screen and ease of use but said the device is too big for his pocket. His top choice is the Samsung Galaxy S
III, but cost is an issue.
“I use Windows on my computer. … That could be an incentive to getting their operating system.”
“Windows might catch up to Android and Apple, but it is going to take a few years. … Companies are not
advertising and promoting them enough. Not enough people know about them.”
“I did a comparison of five phones, and the Windows phone did not come out on top.”
“The Lumia was too big. Even though I do like the big screen, it is just too big for my pocket.”
“I overlooked the Lumia in the store. … It was not advertised or pushed enough.”
Apple did a great job marketing
the iPhone as the phone to
have to be cool. But there
haven‟t been the technological
leaps. … Other manufacturers
are catching up and passing
them.
iPhone 4 User Considering Lumia 920
San Diego, CA
Nokia Corp.’s Windows 8 Phones
1 Ferry Building, Suite 255, San Francisco, CA 94111 | www.blueshiftideas.com
21
“They were not giving enough of a discount that day on the phone with a two-year contract to entice me to
purchase any phone, including the HTC Windows model, last week.”
“I would for sure buy the Windows 8 phone if it were offered at a fair price or, better yet, free with a two-year
contract.”
Secondary Sources
Blueshift‟s review of secondary sources found discussion of early sellout reports of the Lumia 920 and of performance issues
for Windows 8 devices, including software freezing and battery life issues. Another source compared the Lumia 920 to the
iPhone 5: The Lumia 920 offers superior voice navigation, touch screen and shake-free video recording, but the iPhone 5 has
a smaller profile and more available apps.
Nov. 27 Los Angeles Times article
This article discussed the early sellout reports by Amazon.com and AT&T for the Lumia 920.
“The Nokia Lumia 920 is starting to make some rumbles in the smartphone market, selling out on Amazon.com
and seeing some wait times on AT&T for some versions.”
“On Amazon, the wait time for Nokia‟s flagship phone is one to two weeks. It sells the black version of the Lumia
920, which launched this month. The Seattle online retailer lists the 4.5-inch screen phone as back-ordered.”
“The black Lumia 920 is also sold out on AT&T‟s website and is listed as completely out of stock. The yellow and
cyan versions of the phone have one- to two-week wait times while white and red versions appear to still be
available.”
“The phone is also sold out in Germany and Australia, according to the Zacks Equity Research analysis firm.”
Nov. 18 article from The Verge
Microsoft‟s and Nokia‟s own support forums have been discussing Windows 8
phone issues, including “frozen” devices and short battery life.
“Windows Phone 8 devices have been available since the beginning of
the month and users are starting to report early issues across HTC and
Nokia handsets.”
“Nokia Lumia 920 users are also reporting random reboots and
freezes, with some complaining of poor battery life too. In a thread on
Nokia‟s support forums, a number of users appear to be complaining
of lock ups and resets with the Lumia 920.”
“Battery life issues have led to some users wiping their devices in hope
of a quick fix, unfortunately that seems to have resulted in some
devices left stuck on a Nokia splash screen.”
“Update: In separate statements to The Verge, both Nokia and HTC
confirms they‟re currently aware of the rebooting issues. „We are
working with Microsoft to investigate these reports. We will provide an
update as soon as more information is available,‟ said a Nokia
spokesperson, with HTC revealing it‟s currently researching the problem at call centers and within its labs.”
Dec. 3 Phonearena.com review
This comparison of Nokia‟s Lumia 920 to the iPhone 5 highlighted the 920‟s unique features such as shake-free video
recording, ability to use the screen with gloves and free voice-guided navigation. Meanwhile, the iPhone offers more apps
and a lighter smaller device.
“There‟s no arguing that the iPhone 5 is one of the most compact and premium material smartphones out there,
built out of glass and aluminum alloys. Nokia, on the other hand, threw every top features it was capable of in
the Lumia 920, including an OIS camera, resulting in a both thick and heavy chassis, made of polycarbonate in
various color choices, and zirconium for the well-situated side keys and the camera plate.”
“This burly impression from the Lumia 920 holds true in comparison with larger screen phones like the top
Androids, too, not only with the iPhone 5. Actually Nokia‟s phone is just a 1.5 ounce heavier than the previous
In separate statements to The
Verge, both Nokia and HTC
confirms they‟re currently
aware of the rebooting issues.
„We are working with Microsoft
to investigate these reports. We
will provide an update as soon
as more information is
available.
The Verge Article
Nokia Corp.’s Windows 8 Phones
1 Ferry Building, Suite 255, San Francisco, CA 94111 | www.blueshiftideas.com
22
iPhone, for instance, yet it‟s the combination of heft and girth that will catch you by surprise given today‟s
smartphone design standards.”
“We are looking at perhaps the two best mobile LCD displays with the iPhone 5 and the Lumia 920.”
“Nokia has employed Synaptics-based touchscreen tech to allow operating the display with gloves, pens and
other objects, which comes very handy in harsher weather conditions.”
“Windows Phone … [has a] somewhat steeper learning curve.”
“The app situation is in favor of iOS, whereas you often find that some services you are used to that don‟t yet
have dedicated apps for Windows Phone.”
“Nokia tries to compensate with exclusive apps like its free offline voice-guided navigation, which is superior to
what you‟d find on the iPhone, or the Mix Radio option, which streams Nokia Music tunes for free to your
handset.”
“The iPhone strikes back with its Siri natural language assistant, whereas the TellMe-based voice recognition of
Windows Phone 8 is more limited in nature.”
“Lumia‟s camera interface offers more adjustments for the images and videos before shooting, whereas the
iPhone 5 mostly decides automatically what to do.”
“In low light conditions the Lumia 920 can soak in quite a lot more light, as the optically stabilized camera
enables it to keep the shutter open longer.
“On one hand, you‟d have to sacrifice quite a bit of comfort picking the Lumia 920 before the iPhone 5. It is
chunky and hefty, and you might find quite a bit of apps still missing from the WP Store, especially compared to
the iOS ecosystem.”
“On the other, the Lumia 920 offers some pretty unique features you can‟t find not only in the iPhone 5, but in
any other handset, for that matter. Things like shake-free video recording with outstanding sound, the ability to
use the screen with gloves, and the free offline voice-guided navigation are not found on the iPhone, so if any of
those is important to you, they might tip the scales in Nokia‟s favor.”
Additional research by Seth Agulnick, Carolyn Marshall, Liana Mortazavi, Maggie Purcell, Tina Strasser, Cindy Elsberry and Lindsay
Gadsby
The Author(s) of this research report certify that all of the views expressed in the report accurately reflect their personal views about any and all of the subject securities
and that no part of the Author(s) compensation was, is or will be, directly or indirectly, related to the specific recommendations or views in this report. The Author does not
own securities in any of the aforementioned companies.
OTA Financial Group LP has a membership interest in Blueshift Research LLC. OTA LLC, an SEC registered broker dealer subsidiary of OTA Financial Group LP, has both
market making and proprietary trading operations on several exchanges and alternative trading systems. The affiliated companies of the OTA Financial Group LP, including
OTA LLC, its principals, employees or clients may have an interest in the securities discussed herein, in securities of other issuers in other industries, may provide bids and
offers of the subject companies and may act as principal in connection with such transactions. Craig Gordon, the founder of Blueshift, has an investment in OTA Financial
Group LP.
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