Just as there are Republicans, Democrats, and everyone else in the political arena, there are Android, iOS, and the rest in the smart devices market. Currently, Android commands an impressive 55% market share globally, with iOS around 24%. This is a major issue for other manufacturers of smartphones and tablets, because although there is Android as an alternative to Apple's OS, Samsung is the only company that is currently making a profit using Mountain View's software. This is exactly what spurred a struggling Nokia to partner with Microsoft in February of 2011, agreeing to make Windows Phone their primary smartphone strategy. No other company has thrown their full weight behind Redmond's offering like Nokia has, as previously, the other corporations had made a few Windows Phones, but they were essentially just rehashed Android models that were not met with much excitement in the industry. This bold move by Nokia was a huge commitment to Microsoft, as it's future as a company is now dependent on how well they are supported by the Windows manufacturer. Their CEO, previously an employee of Microsoft, claimed that no other Windows Phone OEM would have such a close relationship and partnership with their software manufacturer, and Steve Ballmer himself said that Nokia would produce their flagship products. Nokia's unveiling of the Lumia 920 and 820 on September 5th seemed to confirm this, with the CEO's of both companies on stage presenting the soon-to-be-released Windows Phone 8 smartphones.
Come September 18th, however, just two weeks after Nokia's event, Taiwanese company HTC presented two high-end Windows 8 smartphones of their own. Now, this would not have been a surprise normally, as HTC has had a relationship with Microsoft that goes back 15 years, when they made Windows Mobile phones for the enterprise market. What made this event a shock was that Microsoft had secretly partnered with HTC to produce these phones, even telling the company to name them the Windows Phone 8X and 8S. Additionally, Steve Ballmer informed the crowd that Microsoft would be running a joint ad campaign in the US to promote these phones as the "signature Windows Phones". These are the phones that customers will see on TV, and when they walk into a carrier's store with the intention of buying a Windows Phone, there will be nothing more obvious than the phones with that moniker in their names. Nokia Lumia? People in the US don't quite know what that is.
Come September 18th, however, just two weeks after Nokia's event, Taiwanese company HTC presented two high-end Windows 8 smartphones of their own. Now, this would not have been a surprise normally, as HTC has had a relationship with Microsoft that goes back 15 years, when they made Windows Mobile phones for the enterprise market. What made this event a shock was that Microsoft had secretly partnered with HTC to produce these phones, even telling the company to name them the Windows Phone 8X and 8S. Additionally, Steve Ballmer informed the crowd that Microsoft would be running a joint ad campaign in the US to promote these phones as the "signature Windows Phones". These are the phones that customers will see on TV, and when they walk into a carrier's store with the intention of buying a Windows Phone, there will be nothing more obvious than the phones with that moniker in their names. Nokia Lumia? People in the US don't quite know what that is.
This was a slap in the face for Nokia. It may not effect their sales too badly in Europe, where they have a much greater presence than HTC, but they have recently been trying very hard to gain some market share and mind share in the States, as they are not very well known here. HTC is much more well known here, and this branding of their phones coupled with Microsoft's financial support could really put a damper on American sales of the Lumias. The Finnish based company knows this, with their US President Chris Weber taking to twitter immediately after HTC's event, saying "While others may choose to tactically re-brand their products, Nokia is driving an industry-leading smartphone franchise – that we call Lumia -- exclusively around Windows Phone." The defensiveness and spitefulness is quite apparent in that statement. Only after the coming months will we know the full impact of these events, yet even now, it is safe to say that Nokia's climb back to relevancy and profitability just got steeper.
