Software could trip up Nokia's iPhone rival
First Nokia touchscreen phone could be a disappointment, analysts warn
LONDON (MarketWatch) -- Details of Nokia Corp.'s upcoming riposte to Apple Inc.'s iPhone are beginning to emerge, but analysts cautioned that while the touch-screen gadget is bound to look snazzy, its operating system could disappoint.
Nokia Corp. , the world's largest maker of mobile phones, has made it no secret over the past few months that it's working on a high-end phone with touch-screen technology to fight back Apple's foray onto its home turf.
The first hints of such a device came months ago but there are now signs that an official announcement could be imminent.
Nokia this week teased industry observers with a slide showing the phone, code-named the "tube," at the Evans Data Developer Conference in Redwood City, Calif.
Yet a Nokia spokesman declined to give a precise date for the launch, only saying it would happen in the second half of the year. He added that Nokia doesn't comment on the potential specifications of upcoming handsets.
Industry observers had been patient, stressing how important it is for Nokia to get it right and not risk disappointing fans with a half-baked device that wouldn't stand the comparison with the game-changing iPhone.
"The iPhone had a seismic impact on the industry," said Ben Wood, an analyst at U.K. telecoms consultancy CSS Insight. "From the day it was released, every other phone out there became disappointing," he said. "Unless Nokia's product is amazingly good, they'd better not come out with anything."
As the months pass, however, pressure is building up on the Finnish maker to unveil its iPhone competitor before Apple launches a third-generation (3G) version of the popular gadget.
"In the long term Nokia definitely needs a touch-screen portfolio. Apple has raised
the bar and Nokia needs to react," said Neil Mawston, research director in the mobile device practice of research firm Strategy Analytics.
He added Nokia is likely taking its time because of its "obsession with reliability and durability."
Software may be 'disappointment'
When Nokia's first touch-screen phone eventually comes out, looks will be important, but software is what could make the difference between success and failure.
Richard Windsor, of Nomura International, said that when he tested the latest version of the S60 operating system, understood to be the software the Nokia touch phone will run on, he was "deeply unimpressed."
He warned that unless there is a "meaningful improvement" to the user experience before the phone is launched, it could fail to catch on and become profitable.
"While the device looks great, we think that the software that runs it could easily end up being a massive disappointment," he said.
Carolina Milanesi, research director in the mobile device practice of Gartner, also had doubts. She believes the S60 operating system will only allow users to use one finger at a time when giving commands on the touch screen. In comparison, the iPhone's interface is "multi touch," meaning it can respond to the use of several digits simultaneously. That feature allows iPhone users to expand or shrink a photo by pinching its frame between two fingers, for instance.
That capability likely won't be possible on Nokia's device, and the maker "will need to come up with something to make up for this shortfall," Milanesi said.
Other analysts also predicted a difficult start for Nokia's first direct response to the iPhone.
"Apple has set the bar so high that any competing device will almost inevitably fail at its first attempt," CSS Insight's Wood said.
But even if Nokia's first device in the touch-screen segment is a flop, there's a good chance it can eventually develop a serious rival.
Wood noted that Samsung, now the number-two maker of mobile phones, has showed that it's possible to quickly improve on the first version of a touch-screen product.
The South Korean maker has released at least five touch-screen phones, including the Instinct, since the iPhone was first unveiled.
And the iPhone has its vulnerabilities.
Nokia could beat iPhone on text messaging
Perhaps the biggest opportunity is in text messaging, said Strategy Analytics' Mawston.
"I think if Nokia can crack the messaging on their contender to the iPhone, they stand a good chance at differentiating themselves," he said.
Text messaging is particularly popular in Europe as a way for teenagers to communicate, and it's also catching on in the U.S.
Mawston believes Nokia is likely to release just one phone initially and then gradually build a family, which could be called the T-series. He stressed that Nokia's goal is different from Apple's because the Finnish firm would never be satisfied with selling just 10 million phones.
They would want to sell many more to leverage economies of scale, he said.
By comparison, Nokia in 2007 sold 38 million devices from its high-end N series.
Nokia is scheduled to report first-quarter results next Thursday.
source
LONDON (MarketWatch) -- Details of Nokia Corp.'s upcoming riposte to Apple Inc.'s iPhone are beginning to emerge, but analysts cautioned that while the touch-screen gadget is bound to look snazzy, its operating system could disappoint.
Nokia Corp. , the world's largest maker of mobile phones, has made it no secret over the past few months that it's working on a high-end phone with touch-screen technology to fight back Apple's foray onto its home turf.
The first hints of such a device came months ago but there are now signs that an official announcement could be imminent.
Nokia this week teased industry observers with a slide showing the phone, code-named the "tube," at the Evans Data Developer Conference in Redwood City, Calif.
Yet a Nokia spokesman declined to give a precise date for the launch, only saying it would happen in the second half of the year. He added that Nokia doesn't comment on the potential specifications of upcoming handsets.
Industry observers had been patient, stressing how important it is for Nokia to get it right and not risk disappointing fans with a half-baked device that wouldn't stand the comparison with the game-changing iPhone.
"The iPhone had a seismic impact on the industry," said Ben Wood, an analyst at U.K. telecoms consultancy CSS Insight. "From the day it was released, every other phone out there became disappointing," he said. "Unless Nokia's product is amazingly good, they'd better not come out with anything."
As the months pass, however, pressure is building up on the Finnish maker to unveil its iPhone competitor before Apple launches a third-generation (3G) version of the popular gadget.
"In the long term Nokia definitely needs a touch-screen portfolio. Apple has raised
the bar and Nokia needs to react," said Neil Mawston, research director in the mobile device practice of research firm Strategy Analytics.
He added Nokia is likely taking its time because of its "obsession with reliability and durability."
Software may be 'disappointment'
When Nokia's first touch-screen phone eventually comes out, looks will be important, but software is what could make the difference between success and failure.
Richard Windsor, of Nomura International, said that when he tested the latest version of the S60 operating system, understood to be the software the Nokia touch phone will run on, he was "deeply unimpressed."
He warned that unless there is a "meaningful improvement" to the user experience before the phone is launched, it could fail to catch on and become profitable.
"While the device looks great, we think that the software that runs it could easily end up being a massive disappointment," he said.
Carolina Milanesi, research director in the mobile device practice of Gartner, also had doubts. She believes the S60 operating system will only allow users to use one finger at a time when giving commands on the touch screen. In comparison, the iPhone's interface is "multi touch," meaning it can respond to the use of several digits simultaneously. That feature allows iPhone users to expand or shrink a photo by pinching its frame between two fingers, for instance.
That capability likely won't be possible on Nokia's device, and the maker "will need to come up with something to make up for this shortfall," Milanesi said.
Other analysts also predicted a difficult start for Nokia's first direct response to the iPhone.
"Apple has set the bar so high that any competing device will almost inevitably fail at its first attempt," CSS Insight's Wood said.
But even if Nokia's first device in the touch-screen segment is a flop, there's a good chance it can eventually develop a serious rival.
Wood noted that Samsung, now the number-two maker of mobile phones, has showed that it's possible to quickly improve on the first version of a touch-screen product.
The South Korean maker has released at least five touch-screen phones, including the Instinct, since the iPhone was first unveiled.
And the iPhone has its vulnerabilities.
Nokia could beat iPhone on text messaging
Perhaps the biggest opportunity is in text messaging, said Strategy Analytics' Mawston.
"I think if Nokia can crack the messaging on their contender to the iPhone, they stand a good chance at differentiating themselves," he said.
Text messaging is particularly popular in Europe as a way for teenagers to communicate, and it's also catching on in the U.S.
Mawston believes Nokia is likely to release just one phone initially and then gradually build a family, which could be called the T-series. He stressed that Nokia's goal is different from Apple's because the Finnish firm would never be satisfied with selling just 10 million phones.
They would want to sell many more to leverage economies of scale, he said.
By comparison, Nokia in 2007 sold 38 million devices from its high-end N series.
Nokia is scheduled to report first-quarter results next Thursday.
source
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