Nokia strategy

This week, Nokia did not only unveiled new handset models, most of them focused on music, games and entertainment. It is not really new and just highlights what consumers are looking at. Simple phones are obsolete. With these models, Nokia tries to counteract and compete more effectively with Apple (iPhone) and Sony Ericsson (music). But it was not enough.

Nokia also announced it will provide mobile Internet services with a new brand, Ovi. The Ovi brand includes a mobile gaming service, called N-Gage, a Nokia Music Store, and own Internet services portal. No doubt that some operators will consider the move as a threat to their own mobile internet service. Nokia ' strategy is clear: push its brand, tie customers into its products, and gain new revenue streams. To date, operators have been very protective of their own service revenues, and direct-to-the user third-party services have not been well promoted or received with very few exceptions. Precisely, those exceptions have been made profitable thanks to ties with with a strong brand (Microsoft, Yahoo, Google, ..). Here Nokia wants to go alone providing the handset and the service. It will need to be vigilant to operator' s reaction.