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Microsoft 'committed' to Nokia despite Huawei smartphone launch

By , Editor, ITWeb Africa
Africa , 06 Feb 2013

Microsoft 'committed' to Nokia despite Huawei smartphone launch

Microsoft’s launch of the sub-$200 4Afrika Huawei smartphone yesterday does not undercut the global software giant’s Windows Phone alliance with Nokia, say company officials.

The low-cost 4Afrika smartphone, which is a customised version of the Huawei Ascend W1, was unveiled in Johannesburg, Abidjan, Lagos, Nairobi and Cairo yesterday. The move comes after Huawei announced its first handset Windows Phone 8 at the 2013 Consumer Electronics Show in Las Vegas last month. .

Planned to be initially available in South Africa, Kenya, Nigeria, Morocco, Egypt, Angola and the Ivory Coast; the 4Afrika smartphone is aimed at getting ‘millions’ of Windows Phone-based smart devices in the hands of young Africans.

However, Microsoft’s partnership with Chinese telecommunications equipment manufacturer Huawei to target Africa’s fast growing mobile market comes two years after the software giant partnered with Nokia on Windows Phone devices.

In 2010, Nokia announced it was ditching its Symbian operating system for Windows Phone, in an attempt to boost flagging phone sales, which took a hit from Apple and Android handset take-up.

Just over two years since the Microsoft-Nokia team-up, the Finnish phone maker reported a profit of $269 million in the three months through to December 2012, thanks to strong Windows Phone 8 sales.

But Windows Phone 8 as a smartphone ecosystem lags far behind Android, Apple and even beleaguered BlackBerry in terms of global usage.

According to the International Data Corporation (IDC), smartphones using Google’s Android operating system had a dominant market share of 68.3% in 2012, while Apple’s iPhone iOS and BlackBerry respectively had 18.8% and 4.7%. Windows Phone trailed in 2012 with a 2.6% market share.

IDC, though, forecasts that in 2016 Windows Phone could jump to third place behind Android and Apple in terms of the global smartphone share. And the research firm further expects Windows Phone to have an 11.8% share of the smartphone market in that year.

Microsoft then, intent on growing its Windows Phone base, has turned to Huawei and the African market, which has recorded an average annual growth rate of 44% since 2000 to reach 475 million mobile connections, says the GSMA.

In terms of IDC’s top five global smartphone vendors for the fourth quarter of 2012, Huawei ranks third behind Samsung and Apple. Shipments of Huawei devices amounted to 10.8 million units in the period while its market share reached 4.9%, still a way behind Samsung’s 29% and Apple’s 21.8%.

Yet Microsoft says it is not turning its back on Nokia.

“We’ll continue our relationship with Nokia in Africa,” Hennie Loubser - general manager, Microsoft West, East, Central Africa and the Indian Ocean - told ITWeb Africa.

“We don’t think that doing this work with Huawei excludes the work we’re doing with Nokia,” Loubser said.

Nokia has started selling its low-cost Lumia 510 and 620 in markets across Africa. And the Finnish phone maker has even gone as far as to welcome Microsoft’s partnership with Huawei in Africa.

“Our partnership with Microsoft is based on a joint commitment to build a winning third ecosystem,” Nokia’s South Africa’s head of communications, Leo McKay, has told ITWeb Africa.

“That includes attracting new OEMs (original equipment manufacturers), to build consumer awareness and attract investment from operators, retailers and developers. With that in mind, we welcome the addition of Huawei to the ecosystem,” McKay further said.

Senior analyst with Informa Telecoms & Media in South Africa, Thecla Mbongue, has proffered reasons for why she thinks Nokia gave the 4Afrika initiative a miss.

“Microsoft’s aim is to distribute a low cost smartphone,” Mbongue told ITWeb Africa.

“It could be that Nokia was not be interested in such an initiative which would be a direct competition for Nokia’s own range of low-cost smartphones including feature phones, Asha. However, Nokia already retails Microsoft Windows phones such as the Lumia range, “ Mbongue continued.

Despite increased competition from the likes of Huawei and potentially a reinvigorated BlackBerry, which launched its 10 smartphone series last week, Nokia dominates Africa’s mobile phone market.

Research firm World Wide Worx says that in South Africa, for example, Nokia held a 50% market share in 2012.

Maintaining that number one spot, however, may be tough moving forward, as World Wide Worx forecasts that in 2013 Nokia could lose its top position in South Africa.

Nevertheless, Nokia is upbeat following high profile smartphone launches from BlackBerry and Huawei in Africa..

“One component of Microsoft’s 4Afrika announcement is investment in retail store education to help people upgrading from feature phones to Windows Phone. That investment is in support of the rollout of the Nokia Lumia 510 and Nokia Lumia 620 in markets across Africa,” McKay explained.

“With those two phones already available to consumers, the Nokia Lumia 920, Lumia 820 and Nokia Asha 205 launching in several African countries, and general enthusiasm for the innovation in our latest Lumia and Asha devices, we believe Nokia is in a strong competitive position in Africa,” McKay concluded.

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