Tuesday, 26 April 2011

Don't judge Nokia or Apple by revenues, but by penetration

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BBC News - Nokia market share falls but Microsoft deal confirmed:

Nokia v Apple (Q1)

NokiaApple

SOURCE: STRATEGY ANALYTICS

Handset sales

108.5m

18.6m

Average wholesale price

$87

$638

Handset revenues

$9.4bn

$11.9bn


This graph shows that Apple was able to make more money by selling a far more expensive device. So if you own apple stock you are happy.

But think about what this means for the mobile application world. It means that as Apple added less than 20 million devices to the world's supply Nokia added almost 110 million. Put simply, in a year Nokia would produce a user population globally larger than the size of the USA Apple would produce a market the size of Germany.

If you want to get at the global user community you need to stop thinking in terms of profits or hype. Nokia may not be cool right now and it may be losing market share, but it is still the platform much of the world will use as its first smartphone.

The open question is if this is OVI or Windows Mobile. Our hunch is that OVI will play a much larger role in the web 3.0 world than people are yet thinking. AlJazeera.net has released a OVI app which it is promoting heavily on its cable network. Very smart of them, they know where their future market is on now.

Do you know how many of your users are on smartphones or which smartphones? Does you company have any idea how many users could be reaching you on OVI if they had the right app?

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