It
might have taken more than a year since the
release of the hugely successful iPhone, but
Nokia believes the imminent launch of its new
touch-screen phone has come at the right place
and the right time.
The Finnish company, which commands 40 per cent
of the global mobile phone market, has so far
stuck with traditional screens even as rivals LG
Electronics, Samsung Electronics and smaller
handset-makers rolled out their own versions of
touch-screen phones over the past two years.
"We have chosen some important markets where we
believe the launch will be extremely good and
the markets extremely receptive," says
Christophe Corsi, the head of the Live Category
at Nokia Middle East. "We are launching now
because we believe the timing is right for this
kind of product."
Consumers in the UAE, along with India,
Indonesia, Hong Kong, Taiwan, Russia and Spain,
will be the first to get their hands on the
Nokia 5800 XpressMusic, dubbed by many as the 'iPhone
killer', when it is officially released in
December this year.
Although tight-lipped about the exact launch
date, Corsi stresses the choice of these
countries as launch pads bears no relation to
the fact they are markets where the iPhone has
not made much headway – dogged by operational
hurdles or, in the case of India, extremely high
device costs.
"The choice of the market is deliberate but we
were not taking into account that other products
were not launching in these markets," he says.
In the UAE, the phone's release ties is with the
launch of the Nokia Music Store, an online store
that will allow the purchase of music directly
on a mobile device or via a PC [see box], he
explains. The online store, also scheduled for a
December opening, is set to change the way
people in the UAE integrate with their devices
and download music, says Corsi.
"It's a perfect coexistence which will give
consumers here access to hundreds of new
services and music. Then of course it will
cascade down to the rest of the markets across
the Middle East immediately afterwards."
Despite Corsi's denial, Nokia is surely on a
warpath, and well on its way to challenge
Apple's dominance in one segment of the mobile
phone industry and of the digital music market.
Last week, Nokia President and CEO Olli-Pekka
Kallasvuo said at a speakers' forum in the US:
"Suddenly you have the mightiest companies in
the world there as your competitors. That is a
little mind-boggling."
The chief executive then singled out Apple for
bringing about a "positive impact" on the mobile
phone industry and that it had done everyone in
the industry "a big favour".
"We have a new, credible competitor in this
business. You know I need to take my hat off,"
he said of how the iPhone had raised
expectations for phones. Then he added: "Of
course we need to be able to respond to any
competitor and we will."
If the 5800 XpressMusic, expected to retail at
about Dh1,500, will challenge the iPhone's
dominance especially in emerging markets,
Apple's reign on more than half of the global
digital music sales could seriously be
threatened with the launch of the Comes With
Music service, Nokia's free music bundle offer.
Kickstarting in the UK – the world's third
largest music market – as early as next week and
initially available on two phone models, the
package will differ from others in the market
since users can keep all the music they have
downloaded during the subscription period of 12
or 18 months.
There are no charges for tracks downloaded as
the cost is bundled to the phone price.
But it is not just Nokia that is looking for
dominance in the touch phones arena. The release
on October 22 of Google's widely anticipated G1
phone in the US by T-Mobile is bound to shake up
the world of smartphones, pushing the appeal of
internet use on the move.
Set to retail at about $179 (Dh658) – slightly
cheaper than the entry-level price of $199 for
Apple's iPhone – with a two-year contract, the
G1 will be launched by T-Mobile's UK unit in
November and other European countries such as
Germany, the Netherlands and the Czech Republic
in the first quarter of 2009.
The new phone features Android Market, where
customers can find and download free
applications to expand and personalise their
phones, with officials saying the marketplace
would eventually include applications that are
sold for a fee.
Here too, a lot of emphasis is on music. The G1
comes loaded with Amazon.com's digital music
store, allowing users to search, download, buy
and play more than six million songs, pitting it
against iPhone's music player and Nokia's Comes
With Music bundle.
Canada-based Research in Motion (RIM), makers of
the hugely successful BlackBerry phones,
released their touch phone Storm on Wednesday,
to be rolled out later this year in the US,
Europe, India, Australia and New Zealand.
But for Nokia Middle East's Corsi, the focus is
really on bringing the touch device to the
masses. "The growth markets of the Middle East
and China and India are extremely important for
Nokia and we make sure they are always taken
into account in the development of our
products," he says.
"With our affordable price and fantastic
product, we hope the reception will be great. We
are very excited about it."
Kylie concert
To mark the launch of the Nokia Music Store in
the UAE, the company is sponsoring Kylie
Minogue's concert at Dubai Festival City on
November 21, as part of the Australian singer's
X2008 tour.
The event will be Kylie's first show in the
Middle East in a career spanning more than 20
years. As part of this sponsorship, Nokia will
be conducting an online competition offering
tickets and other prizes. Details of the
competition, including its starting date, will
be declared in the coming weeks. See Emirates
Business for details.
A la carte music
This December, as Nokia opens its first official
online music store in the Middle East starting
with the UAE, the person heading the charge at
the Finnish company's regional office is
confident it will change the way consumers here
use their mobile phones for ever.
"This is one of the first full track
downloadable services in the region," says Ayman
Chalhoub, Business Manager, Music, Nokia Middle
East and Africa. "This is a platform where users
can legally download music, find new songs and
create an integrated experience with our
devices. We consider this the next media
platform and is perfectly in line with our
strategy to move into internet business."
The website, www.music.nokia.ae, is Nokia's 12th
globally, with music provided by all major
international and regional labels including
Universal, Sony BMG, Warner, EMI, and Rotana, as
well as thousands of independent labels.
"The UAE is a melting pot. This is why we have
ensured that we are offering a diverse
collection of music that suits people's
different tastes covering Arabic, Bollywood and
international music," says Chalhoub. "Music, by
nature, is ever-evolving, and as new music comes
out, we will be continuously adding and updating
our catalogue."
The online store's launch will coincide with the
release of the highly anticipated Nokia 5800
XpressMusic in the UAE, the company's answer to
Apple's massively successful iPhone. "It's all
about discovery, it's all about ease of use,"
Chalhoub says.
