PureView Will Help Differentiate Lumia from Android and iPhone

by Trefis Team
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It seems like Nokia (NYSE:NOK) is on to something here. The company’s PureView technology that it unveiled at its press conference at the Mobile World Congress 2012 recently will soon make its way to the Lumia series of smartphones. [1]

The Nokia 808 PureView, that was launched at the MWC, uses the Symbian platform since the technology was in the works for a long time, well before the announcement of the Nokia-Microsoft (NASDAQ:MSFT) partnership. However, now that the company’s first Windows Phones are off to a solid start, we believe that it is a very good idea to incorporate this feature and differentiate them from the iPhone and the Android phones. Our $6.50 price estimate for Nokia stock is nearly 30% above the current market price.

See our complete analysis of Nokia here

Lumia keeps Nokia resurrection hopes alive

The impressive performance of its Lumia line of smartphones has helped Nokia become the largest Windows Phone player in just one quarter. [2] Windows Phone 7-based device shipments were up 36% compared with the third quarter, reaching 2.7 million units.

Nokia took the top spot among vendors, securing 33% market share with 900,000 units sold. Nokia’s growth was driven by an expanded portfolio of Windows Phone 7 models such as the Lumia 800, an increased retail presence and highly visible marketing campaigns across several European and Asian countries.

In the U.S., Nokia has launched the Lumia 710 at T-Mobile, where the smartphone has rapidly climbed its best-selling charts to the third position. Lumia’s debut performance in the U.S. market, which Nokia was once forced to exit after its Symbian phones failed to compete with the iPhones and the Blackberries, is heartening and should give it a good starting point to launch an all out assault on the hugely competitive but highly rewarding U.S. smartphone market.

Differentiating factors

In this quest, Nokia is building out a diverse portfolio of Lumia phones attracting different price sensitive customers as well as customized ones to meet every carrier’s needs. While the 710 was a mid-range smartphone, the Lumia 900 is a higher end one and will arrive on AT&T very soon. At the same time, it has also unveiled the Lumia 610 which is a lower-end smartphone for the price-conscious. Basically, Nokia is following the Android world in this respect and trying to capture a wider share of the smartphone market.

But to effectively compete with the Android phones and the iPhone, Nokia has to offer something different.

The Windows Phone platform goes a long way in addressing that need. Having a technology that makes possible taking high-resolution 41 megapixel pictures on a smartphone will take it a step further. It is therefore good news that the PureView technology will soon be making its way to Lumia. Not releasing that technology in the U.S. before it becomes available on Windows Phone is a step in the right direction as Nokia has realized that without a good OS, the concept may not find many takers in the U.S. Failure isn’t an option in this U.S. re-entry for Nokia.

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Notes:
  1. Nokia PureView technology confirmed for Lumia Windows Phone family, BGR.com, March 5th, 2012 []
  2. Nokia Becomes World’s Largest Microsoft Smartphone Vendor in Q4 2011, Strategy Analytics, February 24th, 2012 []
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