What people really think of the Microsoft-Nokia nostalgia phone

Photo credit : mikewaters / 123RF.

Taking everyone by surprise, Microsoft said late yesterday it was going to launch a new Nokia phone in India – one that would predictably play on user nostalgia and stick to being un-smart.

Remember Nokia? That once-giant that was dying a slow, painful death when Microsoft stepped in, and then decided to wrap it up up? In May, Microsoft announced it was selling the feature phone business it acquired from Nokia in 2013 to a subsidiary of Foxconn for US$350 million.

Well, it so happens that Microsoft may be seeing a new opportunity unfold before them. “Sometimes … the channels demand a good feature phone from a brand like Microsoft (Nokia). Slowing down the feature phone roll-out and sales in last few months has left a huge void in the market which is being picked up by cheaper Indian and Chinese brands,” Counterpoint Research analyst Neil Shah told Tech in Asia.

The feature phone market in India is still worth $35 million per quarter

“Microsoft (Nokia) might have sensed an opportunity to launch at least one model before the holiday season to satisfy the demand for quality feature phones. Feature phones still sell a 100 million units per quarter globally, and India contributes to almost one in three feature phones sold globally,” he said.

In India Nokia used to sell 4 million feature phones per quarter on an average till even last year, he said. That dropped to less than a million units of late. “This new model should drive some uptick back to a million units per quarter level until Foxconn-HMD takes over,” Neil said.

Urban users, however, are not very impressed. While most Indians have nostalgic Nokia stories to share, and love to relive old memories of playing “snake” on them, the modern day phone user isn’t very likely to shed $$ just for nostalgia.

“I loved Nokia at one point, but I am very comfortable with my Android right now,” said Debasmita Majumder, a marketing professional in Bangalore. “The 216 is the most basic phone there can be. The features are not good enough for me.”

Debasmita’s sentiments were echoed around a casual survey of 20 people Tech in Asia carried out. While most people had fond memories of owning a Nokia back in the day, the majority said they were likely to give the Nokia 216 a pass.

“I can buy it as a backup phone, or for my mother who is totally averse to technology, but that’s that,” said Jyotirmoy, a Mumbai-based entrepreneur.

Most users have memories of playing snake on their Nokia sets. Photo credit : Arvid Rudling.

That could be telling. While the up-and-coming middle class in India is not Microsoft’s target group with this launch, the feature phone market did grow 16 percent year-on-year in Q2 2016 in India and still is a 35 million per quarter market, Counterpoint’s Neil said.

That in itself is not enough to fully revive Nokia as a brand, but this move could help bridge some gap in the market and enable a smooth handover of the business to HMD-Foxconn on a much more positive note, he said.

This post What people really think of the Microsoft-Nokia nostalgia phone appeared first on Tech in Asia.

from Tech in Asia https://www.techinasia.com/nokia-microsoft-new-phone
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