Nokia's iPhone Response - "Tube"

Last week we reported on the first iPhone clone - the Samsung Instinct.

Well, now it is Nokia's (NYSE: NOK) turn.

Code-named "Tube" it is a touchscreen handset that is both Java and Flash-enabled. Currently the iPhone does not support either technology. The Tube will also be able to upload photos. While the handset maker did not disclose any details about the timing of the launch of the device, reports claim the company plans to launch it before the 3G iPhone drops, which could be as soon as 60 days from now.

Forum Nokia's VP Tom Libretto poked fun at the recent news that Apple had shipped between 5 million and 6 million iPhones to date: "We've done that volume since we've had dinner on Friday," Libretto said.

We called it first, and it seems like someone listened

Movaya was heard when it declared 2008 to be The Year of the Mobile Game. An article in the NYTimes today (Trying Again on Mobile Games, by Andreas Tzortzis), is dedicated to the mobile gaming industry.

Andreas talks about the Nokia N-Gage QD, which is the follow up to the gaming-centric cellphone Nokia introduced in 2003. The original phone came and went pretty quickly, though one of our founders still rolls with one. The phone looks like a cross between a game controller and phone, and looks very awkward when held to ones head, rather like a taco.

A key takeaway from the article is the fact that companies in the mobile space have not spent money on investing in gaming, yet. Movaya is positioned well to catch as much business as possible here, and we are getting excited for our bet to pay off.

The other key point is that data transfer cost is falling, allowing for the marketplace to loosen up in terms of the willingness of consumers to download games. It used to be that downloading a game cost more in terms of $/kb downloaded than in the actual cost of the game.

Nokia on Fire

Nokia Corp. (NYSE: NOK) shares jumped more than 14% Thursday as the world's top mobile phone maker reported record profits and growth in the fourth quarter, selling more handsets than its three closest rivals combined.

Strong sales in emerging markets helped boost net profit 44% in the period and saw the Finnish company capture more than 40% of the global handset market — an all-time best and long-term goal.

Nokia's revenue grew 34% to $22.9 billion as Nokia sold a record 133.5 million handsets — up 27% from the same period in 2006.

Chief Executive Olli-Pekka Kallasvuo described the quarter as "excellent."

"Mobile phones are a necessity for a growing number of people worldwide," he told reporters. "In this sense, the market is everywhere."

Nokia's strong performance was in stark contrast to that of its rivals.

Motorola Inc.'s (NYSE: MOT) shares plunged 23% Wednesday after new CEO Greg Brown said the recovery of its ailing handset division will take longer than expected.

Nokia said its biggest growth in the period — of 52% — was in the Middle East and Africa, followed by 43% in the Asia-Pacific region and 38% in China.

In all Nokia sold 437 million handsets last year, 26% more than in 2006.

I was one of those 437 million , having recently picked up a Nokia N75. I will be providing a review soon but I can tell you that so far, I am VERY HAPPY with the device.

Vertu; Exclusively Crafted Handsets for Individuals Who Only Accept the Best

For those of you looking to truly impress your friends and colleagues with your wealth and status, you might want to familiarize yourself with Vertu.

This British subsidiary of mobile phone giant Nokia makes phones costing from $6,500 to $72,500. Even the lower-priced models boast fine materials such as Italian leather and 18-carat gold, while top-of-the-line units are studded with hundreds of diamonds and other precious stones.

The market for such luxury is bigger than you might think. Parent company Nokia doesn't disclose sales figures, but Neil Mawston, associate director at the British telecom consultancy Strategy Analytics, estimates that Vertu sells about 200,000 handsets a year at an average price of $8,000. That works out to $1.6 billion, nearly 3 percent of Nokia's $58 billion revenues.

Says Mawston, "Vertu is Nokia's version of Ferrari. It creates a warm luxury feeling for the rest of the phone line."

Vertu's president, Alberto Torres, says sales are on track to rise 120% this year. That follows 140% growth in 2006 fueled by booming sales in Russia, China, and the Middle East. "From what we've seen, the creation of a multibillion-dollar market in luxury phones over the next few years is very possible," Torres says.

According to Vertu's Torres, sales in Russia already outstrip those of any country in Western Europe, while the Mideast market should clock triple-digit growth until 2010. Demand is strong in more developed countries, too, with U.S. sales up 200% last year.

Other companies competing in this market include Switzerland's GoldVish and Russia's Gresso, who both offer handsets that run into the thousands of dollars. The prize for the most expensive phone, though, goes to Russian data-protection company Ancort, whose platinum-covered, diamond-studded Crypto smartphone sells for $1.3 million.

We had previously posted on the fact that luxury watchmakers such as Tag Heuer have announced plans to enter the luxury mobile phone market, too.

As for where you can buy Vertu phones, unfortunately there are no locations in Washington State so I'm out of luck right now. But if you happen to be in San Francisco, there are two locations:
European Designs on Townsend Street and Tourneau on Market Street.

Bad News for Motorola

According to newly released data, Motorola lost its second spot in the global mobile handset market to Samsung in the third quarter. Motorola ended the third quarter with a 13.1% share of the market, while Samsung garnered a 14.5% share, Gartner reported. Nokia increased its share to 38.1%.

Motorola’s share of the global mobile phone market fell to 13.1% in the three months to the end of September, compared with 20.7% a year ago and 14.6% in the second quarter of 2007, according to figures from Gartner, the research firm. Meanwhile Samsung edged up to 14.5% from 12.2% last year and 13.4% in the previous quarter.

Meanwhile, Nokia underlined its global dominance, increasing its share to 38.1% – its highest quarterly share to date – and up from 36.9% in the second quarter.

“Motorola today is a pale version of the company it was a year ago,” said Carolina Milanesi, research director at Gartner.

Motorola saw strong sales in 2005 and 2006 thanks to its ultra-slim Razr phone, which sold more than 50 million units, but has struggled to find new products with the same popularity.