Welcome!

Wearables Authors: Pat Romanski, William Schmarzo, Shelly Palmer, Liz McMillan, Elizabeth White

Related Topics: Wearables, Mobile IoT

Wearables: Blog Feed Post

Nokia Follows Google But Can They Capitalize In The US?

The Free Nav Bandwagon:

Nokia's newly-announced free navigation is being positioned as a planned part of their Location Based Services (LBS) offerings, delivered via their "Ovi" web services platform.

Is "free nav" from Nokia a part of a plan, or a defensive reaction to try to take back lost smartphone market share and try to establish a US beachhead in the face serious pressure from "new" movers and shakers like Google, Apple, RIM, Palm, and others?

It certainly seems Nokia had no choice but to go this route, as they are in market share freefall and have had no answer for the beloved iPhone, years after its launch. They lost 10% smartphone market share in Q4 2008, while Apple and RIM took off. In the middle of all this, Ovi's May 2009 app store launch was widely considered a flop. Now Google is in the mix too, bringing some serious mobile advertising chops to-bear. Nokia makes excellent hardware and have a dominant global market share position (38%), but they seem to have stood by and watched, as the US mobile advertising market rapidly evolved. They let Google jump behind the counter while no one was minding the store.

"While smartphone sales overall increased 3.7% in Q4, Nokia's share slid from 50.9% to "just" 40.8% on 15.6 million units. While many, including Samsung and HTC gained, it was RIM and Apple that made the biggest advances. RIM increased its share of the lucrative market to 19.5% (7.4 million units) from 10.9% while Apple more than doubled its share, up from 5.2% to 10.7% (4.1 million units)." Source.

Nokia dropped $8BN to buy Chicago-based Navteq, the leader in US base map data and Nokia bought their own navigation routing engine (Gate5) in 2006. Nokia acquired Boston mobile ad agency Enpocket almost exactly a year later. Navteq, before it was acquired by Nokia, invested in (and now owns) marketing agency Acuity Mobile. In December of 2006, Navteq bought The Map Network, a small company that was doing some very interesting things around placing the branded locations of hotels and restaurants near convention center maps. This morphed into Direct Access (video link)- a program that allows retailers to plug in locations and logos, as ads, into Navteq maps. They also own Traffic.com, which makes a majority of its revenue from location-aware advertising. Location Point (video link) is what Navteq calls their ad services.

So, the Nokia/Navteq paid services and advertising capabilities deck is long, but can they sort out all the moving pieces to form a coherent strategy and move "beyond the device" and establish new effective revenue-generating touch points with the users of their devices?

What started this ball rolling, remember, was when Google blew the lid off the "free nav" can of worms back in October 2009, announcing free navigation on free maps, via their Android mobile operating system (on up to 35 phones)! Google loves giving away a free services to open up more opportunities to sell ads. Maybe we should start calling this disruptive innovation tactic "Freegling"?

So Nokia answers Google to try to gain back marketshare. Not much of a statement until you stop and consider that Google is not a device manufacturer. Google sells ads and they are very good at what they do. All products lead to this profit center and they can loss leader like mad to drive more people to see their ads. Free is their friend and people like free.

Free works, as long as there is a "Trojan horse" element in the form of advertising, paid value-add services or market share upside that pays for free. Nokia is certainly in a good position today, as they have sold more phones capable of running navigation served by their Ovi platform than there are dedicated personal navigation devices on the planet. While device sales are brisk now (esp in Europe), the long-term problem is that they have almost no market share in Google's US back yard and they have no track record of getting people to pay for Nokia services, after they buy the phone.

Nokia launched its first phone in 1987. Google's founders were likely in 7th grade and would not start Google for 11 more years. Nokia has a market capitalization of about $47BN, while Google's is about $172BN. Nokia says it would like to generate about $2.89BN in annual revenues from web-based services offered to users of its phones by 2011. Google makes this amount via web-based services..about every 5 weeks. My point is that, if Nokia hopes to catch up by charging the millions of users of their devices for "after sale" services and delivering ads on the back of free navigation, they had better get moving.

Nokia is now up against a lot more than Google for ads and apps. Their free nav move has just forced every other navigation platform and device company to rapidly accelerate their location-aware advertising and web services plans. Location-specific advertising served by proximity to those using their phones to get where they are going is (finally) about to become the hottest game in town.

Read the original blog entry...

More Stories By Wilson Kerr

Wilson has 11+ years experience in the Mobile and Location Based Services (LBS) space. Recently, he became Director Of Business Development and Sales for Unbound Commerce, a Boston-based mobile commerce solution provider. He has deep expertise in the areas of mobile commerce, social media, branded location integration, branded content licensing, and is knowledgeable in a broad range of navigation technologies. Wilson has worked with top tier brands, content providers, device manufacturers, and application developers, including Nokia, Unbound Commerce, Tele Atlas/TomTom, The Travel Channel, Langenscheidt Publishing, Intellistry, Parking In Motion, GPS-POI-US, and others. Wilson is a blogger on all things location-based, edits the LBS topic page on Ulitzer, teaches a Social Media 101 class, and has served as a panelist and speaker at Mobile LBS conferences and networking events. Wilson has held positions in Business Development, Sales/Marketing, and Digital Licensing at The North Face, Outdoor Intelligence, Fishing Hot Spots Maps, Tele Atlas North America/TomTom and, most-recently, Unbound Commerce. Wilson left Tele Atlas to start Location Based Strategy, LLC in 2007. Company Website: http://www.LBStrategy.com. Twitter: @WLLK

@ThingsExpo Stories
The Internet giants are fully embracing AI. All the services they offer to their customers are aimed at drawing a map of the world with the data they get. The AIs from these companies are used to build disruptive approaches that cannot be used by established enterprises, which are threatened by these disruptions. However, most leaders underestimate the effect this will have on their businesses. In his session at 21st Cloud Expo, Rene Buest, Director Market Research & Technology Evangelism at Ara...
SYS-CON Events announced today that N3N will exhibit at SYS-CON's @ThingsExpo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. N3N’s solutions increase the effectiveness of operations and control centers, increase the value of IoT investments, and facilitate real-time operational decision making. N3N enables operations teams with a four dimensional digital “big board” that consolidates real-time live video feeds alongside IoT sensor data a...
Internet of @ThingsExpo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 21st Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devic...
Mobile device usage has increased exponentially during the past several years, as consumers rely on handhelds for everything from news and weather to banking and purchases. What can we expect in the next few years? The way in which we interact with our devices will fundamentally change, as businesses leverage Artificial Intelligence. We already see this taking shape as businesses leverage AI for cost savings and customer responsiveness. This trend will continue, as AI is used for more sophistica...
SYS-CON Events announced today that SourceForge has been named “Media Sponsor” of SYS-CON's 21st International Cloud Expo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. SourceForge is the largest, most trusted destination for Open Source Software development, collaboration, discovery and download on the web serving over 32 million viewers, 150 million downloads and over 460,000 active development projects each and every month.
SYS-CON Events announced today that DXWorldExpo has been named “Global Sponsor” of SYS-CON's 21st International Cloud Expo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Digital Transformation is the key issue driving the global enterprise IT business. Digital Transformation is most prominent among Global 2000 enterprises and government institutions.
Elon Musk is among the notable industry figures who worries about the power of AI to destroy rather than help society. Mark Zuckerberg, on the other hand, embraces all that is going on. AI is most powerful when deployed across the vast networks being built for Internets of Things in the manufacturing, transportation and logistics, retail, healthcare, government and other sectors. Is AI transforming IoT for the good or the bad? Do we need to worry about its potential destructive power? Or will we...
SYS-CON Events announced today that Daiya Industry will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Daiya Industry specializes in orthotic support systems and assistive devices with pneumatic artificial muscles in order to contribute to an extended healthy life expectancy. For more information, please visit https://www.daiyak...
SYS-CON Events announced today that SIGMA Corporation will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. uLaser flow inspection device from the Japanese top share to Global Standard! Then, make the best use of data to flip to next page. For more information, visit http://www.sigma-k.co.jp/en/.
SYS-CON Events announced today that B2Cloud will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. B2Cloud specializes in IoT devices for preventive and predictive maintenance in any kind of equipment retrieving data like Energy consumption, working time, temperature, humidity, pressure, etc.
SYS-CON Events announced today that NetApp has been named “Bronze Sponsor” of SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. NetApp is the data authority for hybrid cloud. NetApp provides a full range of hybrid cloud data services that simplify management of applications and data across cloud and on-premises environments to accelerate digital transformation. Together with their partners, NetApp em...
SYS-CON Events announced today that Interface Corporation will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Interface Corporation is a company developing, manufacturing and marketing high quality and wide variety of industrial computers and interface modules such as PCIs and PCI express. For more information, visit http://www.i...
SYS-CON Events announced today that Massive Networks, that helps your business operate seamlessly with fast, reliable, and secure internet and network solutions, has been named "Exhibitor" of SYS-CON's 21st International Cloud Expo ®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. As a premier telecommunications provider, Massive Networks is headquartered out of Louisville, Colorado. With years of experience under their belt, their team of...
SYS-CON Events announced today that Mobile Create USA will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Mobile Create USA Inc. is an MVNO-based business model that uses portable communication devices and cellular-based infrastructure in the development, sales, operation and mobile communications systems incorporating GPS capabi...
SYS-CON Events announced today that Nihon Micron will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Nihon Micron Co., Ltd. strives for technological innovation to establish high-density, high-precision processing technology for providing printed circuit board and metal mount RFID tags used for communication devices. For more inf...
SYS-CON Events announced today that Suzuki Inc. will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Suzuki Inc. is a semiconductor-related business, including sales of consuming parts, parts repair, and maintenance for semiconductor manufacturing machines, etc. It is also a health care business providing experimental research for...
While some developers care passionately about how data centers and clouds are architected, for most, it is only the end result that matters. To the majority of companies, technology exists to solve a business problem, and only delivers value when it is solving that problem. 2017 brings the mainstream adoption of containers for production workloads. In his session at 21st Cloud Expo, Ben McCormack, VP of Operations at Evernote, will discuss how data centers of the future will be managed, how th...
SYS-CON Events announced today that Ryobi Systems will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Ryobi Systems Co., Ltd., as an information service company, specialized in business support for local governments and medical industry. We are challenging to achive the precision farming with AI. For more information, visit http:...
SYS-CON Events announced today that MIRAI Inc. will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. MIRAI Inc. are IT consultants from the public sector whose mission is to solve social issues by technology and innovation and to create a meaningful future for people.
SYS-CON Events announced today that mruby Forum will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. mruby is the lightweight implementation of the Ruby language. We introduce mruby and the mruby IoT framework that enhances development productivity. For more information, visit http://forum.mruby.org/.