Thursday, June 26, 2014

Right and wrong with Nokia X2




Nokia just released a follow on device of its first android handsets, X2. As of hardware, there are several improvements like a higher CPU and RAM, front camera and larger screen size. The latest android handset by Nokia is based on Nokia X Platform 2.0 that supports multi-tasking and updated fastlane. The biggest visual difference can be seen on the front as there is now a home button along with the back key that was found on the earlier model. Perhaps that’s the biggest reason why the updated software platform would not be supported on the earlier devices.

To better understand the offering, here is a perspective. A few months ago, Nokia offered a new line of devices which supported its own forked version of Android. At launch ceremony, CEO Stephon Elop announced three variants namely Nokia X, Nokia X+ and Nokia XL. Running the same forked version of Android that replaces some of Google’s services with those of Microsoft, the only differences were in hardware and even those not so much.

In a world where users can get a cheap Android handset, around $100, and enjoy an enormous number of apps at disposal from Google play store, the last thing Microsoft would like to do is to confuse a prospective buyer with small choices among its own products.

Imagine consumers in a store that offers Nokia X line of handsets. They ask the difference between two identical handsets, X & X+, and the sales rep explains how bigger RAM would make apps run smoother. The customers believe that the device with lower RAM, the X, will NOT run the apps in a smooth fashion and eliminate it form their choice. Next they have to decide between the screen size of X+ and XL as they house the same amount of RAM. And then comes price, an important factor in low end markets. So even if a particular consumer only entered the store to buy a Nokia handset running Android and nothing else, he has now to decide on various factors like screen size, RAM and price between the handsets of the same company, very similar to Blackberry once offering curve, storm, bold, torch etc.

Apple did a great job with iPhone by not releasing multiple variants at launch. Their point of comparison was with "OTHER" manufacturers instead of their own mildly different offerings. They followed it with incremental improvements, one at a time with the exception of iPhone 5C. But it is worth seeing how Apple has positioned it as a colored variant of its flagship device instead of a small price savings which, for some, it very much is.

The success of iPhone reveals that if the value is delivered to consumers in an elegant manner, the price doesn’t remain a big concern to worry about. After building a great product, it is the better delivery of value that wins customers instead of efforts to court them from every corner.

Right

By announcing only one product, Microsoft resolved the problems stated above. Consumers now would not have to decide which option to choose from various siblings. Also, the front camera is a nice addition though its only VGA but it is quite acceptable at the selling price.

Wrong

Everything seems to be so right about the X2 but what about original X (or X+ or XL) owners. The updated software, Nokia X Platform 2.0, is not supported on the original devices. This is somewhat insulting for customers who spent their money on the new platform only few months ago. It is the same what happened with WP7 phone buyers when they came to know that WP8 wouldn’t be supported on their devices. Ironically, Nokia was the manufacturer of the devices then too.

  
Every iteration of a product is expected to be better than its predecessor. Microsoft did a good job in giving the X platform a chance and converging the initial offering of various handsets into a single product. How this helps them win customers and snatch some share from Google in services remain to be seen. 

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