Nokia launched their new Windows Phone 8 devices today - the Lumia 920 and Lumia 820. During the event, Nokia and Windows Phone fans took to social media, encouraging consumers to embrace the new experiences delivered by these offerings by tweeting the hashtag #switchtolumia

The devices, which feature a number of incremental enhancements from previous models, have raised the bar in the extremely competitive smartphone market. Nokia has successfully differentiated with its hardware. The design of the previous Lumia models has received a lot of praise, and a range of colors will certainly help Nokia stand out from the crowd. Wireless charging will help to differentiate Nokia devices (for the time being), and it has made great advancements with its imaging technology and software - object remover and Cinemegraph in particular are cool. Location services also featured prominently, with the augmented reality of Nokia City Lens another great feature.

Nokia Lumia 920 (Source: press.nokia.com)

However, are these hardware and software features compelling enough to convince consumers to switch operating systems or are Nokia left to fight with Apple and Android for new smartphone buyers? Previous Strategy Analytics research has found that most consumers are hesitant to switch OS due to:

• Concerns about having to learn a new, unfamiliar OS;
• Potential to lose data or content currently saved or downloaded to their device, and importantly;
• Lack of availability of the long tail of apps that individual consumers are particularly attached to.

With new announcements to come from Apple and Motorola/Google this month, do these new offerings from Nokia and Microsoft offer sufficiently compelling innovations to convince consumers to switch to a new operating system? While some of the enhancements -especially wireless charging - are currently not supported by competing platforms, we are unconvinced that incremental innovations, such as the ability to use the touchscreen while wearing gloves, are sufficient to provide those consumers who purchase high-end devices (who tend to be the most platform-loyal) with a compelling reason to switch.

See the first impressions of the Nokia Lumia 920 from my Wireless Smartphone Strategies colleagues here - Nokia Microsoft Lumia 920 WP8 Smartphone: Our First Impressions

- Paul Brown

Consumers find confidence in and prefer using operating systems that are trusted, well-known and innovative. Strategy Analytics' Wireless Device Lab recently conducted focus groups in the US, where consumers evaluated four of the top mobile operating systems in the industry – Android, Apple's iOS, BlackBerry OS and Windows Phone. Consumers prefer Android OS and Apple iOS, currently the top two OS in the mobile industry, due to both being well established, staying current with the consumers’ needs and wants in regards to features, services and applications offered, and providing quality and popular applications – an aspect consumers look for when purchasing a new device.

Consumers that prefer an easy to use and intuitive OS like a closed platform, similar to Apple iOS, finding the need to customize their devices relatively low. However, consumers who like the ability to customize their device, don’t mind a bit of complexity and prefer having the choice of numerous applications, find an open market OS, such as Android OS, more appealing.

Consumers are hesitant to switch mobile OS, with the majority mainly concerned with the burden of learning a new, unfamiliar OS as well as losing any data or content currently stored or downloaded to their device. In order to attract consumers to switching operating systems, it is imperative for operating systems to offer an easy transition from one to another to obtain new users. Consumers find services such as the Cloud, an easy and trusted way to transfer their content, as long as they are compatible and available with the mobile OS.

To view the full report, including an evaluation of all four mobile operating systems and how participants perceive each OS, strengths and weaknesses of each OS and consumer interest in the mobile OS across different devices, click here: Ecosystem Determines Consumer Attachment to Mobile Operating Systems (subscription required)

- Taryn Tulay

Nokia has announced the first CDMA Windows Phone designed specifically for the Chinese market, the Nokia Lumia 800c. Our Wireless Smartphone Strategies colleagues believe that it remains to be seen how the device will help Nokia regain the ground it is losing in the Chinese smartphone market.

However, having recently included the Lumia 800 in a user experience benchmark with Chinese smartphone buyers, we observe that Nokia has unveiled a product that is well placed to meet the needs of the target audience in this market.

In our research, the Lumia 800 received positive feedback for its high-end industrial design and the uniqueness of the Windows Phone interface.  At the same time, we identified a number of areas where all of the major smartphone platforms – including Windows Phone – failed to meet the specific needs of Chinese consumers. These include:

• Lack of integration of Chinese internet services.  In our research, Chinese users were clear that deep integration of Facebook, Twitter etc. was of little relevance to them. They wanted the same level of integration of Chinese internet services from RenRen, Sina Weibo, QQ and Baidu. 
• Some China-specific use cases not supported.  Our research identified opportunities for apps that meet the specific needs and behaviors of Chinese consumers (such like group messaging, data management, phone number location, etc.) which are not currently supported by default by the main smartphone platforms.
• Insufficient offline implementations of experiences.  Chinese users prioritize applications and features that work entirely in offline mode.  Functions such as maps that can only operate in connected mode are likely to be considered as too costly.  In our latest research, Chinese smartphone owners reported that only 29% of music listened to on their device was streamed, compared to 42% of US smartphone owners. 

Based on the available information, the Lumia 800c appears to address these challenges, to at least some extent:

• The device will be optimized for local internet brands.  Nokia has announced that the Chinese version of the Lumia 800 will support all of the major Chinese internet services.  Of course, 'support' does not necessarily imply deep integration throughout the OS (as desired by our research participants), but the launch announcement touts a "compelling, locally relevant experience ... especially tailored for people in China".
• Bundling free music, games and Nokia Maps will be appealing to price sensitive Chinese consumers.  However, the extent to which services will be able to be used entirely offline (to avoid expensive data charges) will be critical to adoption.
• The launch of “BeTop”, an incentive program to encourage local developers to produce apps for the platform is a smart move.  To maximize the value of this investment, we believe that Nokia should prioritize the creation of apps that meet the specific needs and behaviors of Chinese consumers that we identified, and promote the best apps that plug these gaps to the user base.

We also note that, as a brand, Nokia remains stronger in China than in most regions.  Our latest brand loyalty research found that 66% of Chinese Nokia owners plan to remain loyal to the brand when they purchase their next device, compared to 50% of UK Nokia owners. 

As identified by our colleagues, price will be a key factor in determining the success of the Lumia 800c - especially as the product will be targeted towards younger Chinese users, who are particularly price sensitive.  However, if Nokia and China Telecom can offer a very competitive subsidized price, as the vendor achieved with the launch of its Lumia 900 device in the US earlier this week, this will make the product a very appealing offering.

Strategy Analytics’ user research in China is available to Wireless Device Lab clients or for purchase here. Strategy Analytics’ China Handset Market Share report for Wireless Smartphone Strategies clients can be found here.

As widely rumoured, Nokia this morning announced that it will adopt Windows Phone as its main smartphone platform, embracing Microsoft's operating system to power its future high end devices.

At first glance, this alliance represents a very positive development for two organizations that at one time dominated the smartphone market but are now struggling to achieve scale, their offerings having been overshadowed by those from Apple and Google in recent years.

We do not agree with the assessment that this collaboration represents the coming together of "two turkeys".

• Our user experience benchmarks of smartphones have shown that Nokia has consistently demonstrated its ability to produce hardware with exceptional build-quality. Nokia also continues to demonstrate leadership in hardware experiences including mobile imaging. However, we do feel that Nokia has yet to produce a compelling device form-factor that is as appealling as the Samsung Galaxy S or Motorola Droid X to consumers in the world's largest smartphone market - the USA.


• From the software perspective, we have been impressed by the usability of Windows Phone 7.

Moreover, the collaboration appears to be a good fit in terms of brand recognition - our recent research into consumer brand perception showed that Windows Phone is stronger in the USA, while Nokia remains a highly trusted brand in Europe, India and China.

However, while this alliance looks good on paper, we believe that one of the biggest challenges facing these organizations lies in execution. Both companies have been plagued by an inability to get high end product to market in a timely manner over the past few years. For Nokia in particular, the question must be asked - after failing to get both Symbian^4 and Meego products into the hands of consumers, what are the implications on time to market of switching horse yet again?

In theory, working with MSFT gives Nokia a platform that is complete and should therefore be faster to integrate. However, questions over how elements such as Ovi and Windows Marketplace will be integrated remain as yet unanswered, and have the potential to impact ability to launch.

Nokia has jumped from its burning platform into the life raft of Windows. In my view, both organizations must now paddle as fast as they possibly can if they are to reach the safety of the shoreline.

- Kevin Nolan

Although Microsoft is yet to release official sell-through figures for Windows Phone 7 devices, indications from the software vendor's OEM partners have suggested that uptake of the new OS has so far failed to meet expectations.

In an effort to understand why consumers appear to have not yet embraced WP7, Strategy Analytics undertook a qualitative survey of 158 smartphone owners and intenders in San Diego, CA. The research was conducted in the week ending 21st January 2011 with an equal number of consumers in four categories: owners of Android, iPhone, and Blackberry devices, and consumers who intend purchasing a smartphone within 60 days.

Respondents were asked how likely they would be to consider a device running each of the following operating systems if they were to purchase a new phone immediately.

• 85% of respondents said they would consider or strongly consider an iOS device
• 84% would consider or strongly consider an Android device
• But, only 51% would even consider a Windows Phone 7 device

We asked all respondents who said that they would not consider a WP7 device - or were unsure - to explain the reason for their answer in their own words. Post-survey analysis of their responses indicates that the main reason for this is a lack of awareness of the OS.

If reports that Microsoft have spent in excess of $500m promoting WP7 are accurate, the company will no doubt be disappointed to find that 1 in 4 of our respondents said that they had never heard of the OS, or felt that they did not know enough about it to consider purchasing a device running it.

The full list of reasons given by WP7 rejecters (and the number of respondents who mentioned each one) is as follows:

• Unfamiliar with it / Don't know enought about it (42 mentions)
• Prefer another OS / Prefer Mac products generally (11)
• Consider Windows Mobile products to be Difficult to Use (9)
• Consider Windows Mobile products to be Poor Quality/Unreliable (9)
• Not enough Apps / Fewer Apps than Competitors (3)
• Consider Windows Mobile software to be Outdated (2)

It is also interesting to note that 1 in 8 respondents have a negative perception of Windows Mobile products - either that they are 'difficult to use', 'buggy/slow/unreliable', or simply 'outdated'. Most of the individual comments suggest that this perception is based on personal experience of earlier versions of the software.

Our Wireless Device Lab will produce a full report on smartphone OS perceptions during 1Q 2011.

Microsoft today officially  launched Windows Phone 7, eight months after it was first announced at MWC 2010 in Barcelona. The hardware specs of the initial nine devices that will run Windows Phone 7 are all pretty impressive. The Samsung Focus, the first WP7 phone that will be launched in the US on AT&T has a very impressive 4-inch Super AMOLED display, and at only 9.9mm thick, presents a very appealing form factor. Other WP7 devices to follow at AT&T bring in a variety of form factors – the LG Quantum with a slide out keyboard for those who reject touchscreen only devices, and the HTC 7 Surround with a kick stand and slide out speakers, providing an optimized multimedia experience. Despite these variations in hardware, WP7 should provide a consistent experience with the same look and feel of the homescreen and standardized ’Back’, ‘Windows’ and ‘Search’ keys on every device. Based on the launch details, Windows Phone 7 does provide a number of compelling features. The 6 ‘Hubs’ provide a centralized access point to content on the device, from people, to pictures to games. Integration with XBOX Live will allow gamers to control their avatar across multiple screens, while PowerPoint with editing capabilities and full animations is an innovative feature. Having already used WP7, I found that there are some features which are not entirely intuitive, especially accessing menu options from within applications.   My main concern with Windows Phone 7 is about the process of customizing and personalizing my homescreen. Yes, the tiles can be moved around by dragging and dropping them. I can add live tiles for individual contacts for quick access to not only speed dial and speed text but also speed social networking and photos. But, with only one homescreen, I can imagine that after adding a few contacts to this homescreen, along with downloading numerous applications, I could find myself scrolling through a very long list just to open up an application or contact card, or whatever other content I am able to put on my homescreen. Suddenly, I have to do a lot of searching and scrolling to find one of the 50+ applications which I have organized across multiple homescreens and in multiple folders on my current device.  Here, Android, iOS4 and Symbian ^3 appear to have an advantage over WP7 in terms of customization and organization options. Based on what I have seen, I have no doubt that Windows Phone 7 will provide a “user experience which is consistent and delightful” – the question that remains is just how intuitive it is to use in everyday situations and how easy it can be personalized. - Paul Brown Strategy Analytics’ Wireless Device Lab will be conducting an end user benchmark of Windows Phone 7 when it is commercially available.

Update - 4 March 2011: Wireless Device Lab clients can read a review of the Windows Phone 7 - HTC Trophy user evaluation here

Thank you to everyone who voted in our recent poll asking for your device highlights from MWC. The results are now in...and it appears that Sony Ericsson captured your imagination. 30% of you said that the Sony Ericsson Xperia X10 pro was your highlight, while 24% of you also chose the Sony Ericsson Xperia X10 mini. Windows Phone 7 Series was also up there, also gaining 24% of your votes.

Thanks again to everyone who took part and voted.

- Paul Brown

So another Mobile World Congress is over. In between running from meeting to meeting, I did manage to spend a bit of time looking around the show. If Mobile World Congress 2009 was all about touchscreens, 2010 was all about the end user.  The following are some of the main announcements from Barcelona that have the user experience at the forefront: Samsung Wave From the giant billboard on the bull ring for outside the Fira, to the massive crowded stand, it was hard to avoid the Samsung Wave. The stand had station after station highlighting different features of the Wave, from social networking to widgets. Advanced TouchWiz UI 3.0 allows the user to customize the menu, while the Super AMOLED display looked very sharp. This was particularly impressive when demonstrating the gaming experience the Wave offered. HTC Desire, Legend and HD Mini HTC announced 2 Android devices (Desire and Legend) and 1 Windows Mobile 6.5 device (HD Mini). All devices feature Sense UI, with an enhanced Sense on the Desire and Legend. Friend Stream gives users an even greater personalized experience, while Leap gives a great picture overview of applications currently open, similar to Windows Vista. Motorola Quench The Quench is Motorola’s first Android handset that is touchscreen only. The form factor is likely to appeal more in Europe than previous devices the Milestone and DEXT, especially to younger consumers, due to the ability to change the covers of the device. Quench also features MOTOBLUR, which Strategy Analytics believe will help to drive mobile social networking engagement. Sony Ericsson Xperia X10 mini and X10 pro The Xperia X10 mini and X10 mini pro are both based on Android. The customizable UI allows access to four applications from the homescreen – one in each corner. This has been designed for one-handed use, with each corner icon easy to access. Timescape also allows users to surface relevant content from a multitude of applications. Windows Phone 7 Series While there were no phones available running Windows Phone 7 Series, the demonstrations drew in big crowds. Windows Phone simplifies the user experience by having 2 homescreens. One is customizable, offering high versatility, and deep levels of personalization, while the second screen is simple, listing applications in alphabetical order. In contrast to Android, Microsoft is aiming to standardize the user interface to improve control over the user experience – OEMs such as HTC will not be able to add in their own layer on top of Windows Phone 7. Sagem Puma Phone Sagem and Puma may not sound like the most obvious combination of brands, but they have combined well to make an impressive feature phone. The UI moves away from the out-dated grid menu structure, while the solar panel on the back means the user can charge the phone while on the go – though how effective that is remains to be seen. The device also features nice little touches, such as how many messages have been powered by the sun. The sports apps should appeal to innovative new segments. 2010 was the first Mobile World Congress where the user experience played a prominent role in all major device launches. Personalization and customization were key drivers, with handset vendors starting to realize that to successfully compete with Apple they need to provide an enhanced user experience around context, convergence and compelling experiences. - Paul