
Back in May this year, Yahoo and Nokia announced that they were joining forces to create a new global mobile partnership. Their mission statement was to “offer people rich experiences that keep them connected to others around the world”.
Here at DialToSave, we’re going to look deeper, and uncover whether the unexpected collaboration was a brilliant idea, or whether simply, nobody cares.
First off, there is certainly no doubting the sheer scale of both of these companies, but both seem to be having a bit of a hard time at the moment.
Yahoo is the third most visited website in the US, having recently been overtaken by Microsoft’s Bing search engine. It’s fair to say, Yahoo just isn’t such a big deal in the UK anymore, with Google and Microsoft satisfying all consumer needs and Facebook leading as the most visited website. Yahoo, unlike it’s competitors, doesn’t have it’s own mobile phone operating system, and they believe this is where they could be lacking.
Nokia on the other hand, are still the best selling mobile phone provider in this country with over 26.1 million handsets sold in the second quarter of 2010. They don’t share this popularity in the US however, with only 2.1 million handsets sold. Although hugely successful, they prove to be a brand that American’s just don’t care about, which is often blamed on their lack of trends, unusual handsets and insignificant application store. Even here in the UK, Nokia are beginning to struggle against the rise of high-end smartphones.
The partnership between Nokia and Yahoo shows these two massive companies trying to increase their slowly fading popularity, but are they really going about it the right way?
They started to implement their ‘big’ ideas in July this year, aiming for global availability in 2011, but do any of us even know, or care what this means? Well, it certainly wasn’t the most exciting announcement ever made, and it seems most people have forgotten about it already.
The collaboration will basically allow all Nokia instant messaging and mail services to be ‘Powered by Yahoo’, and all of Yahoo’s maps and navigation services to now be ‘Powered by Ovi‘. I think it’s fair to say it’s hardly the news that will leave Apple, Google’s Android and RIM quaking in their boots.
In a way, I suppose the deal does make sense. Nokia lacks skill in providing decent messaging software, and their e-mail capabilities have always fell short of that offered from their competitors. With social networking continually on the rise, maybe this could help Nokia up their game. However, when choosing a mobile phone, will people really be attracted by the fact that Yahoo IM is pre-installed? Most people simply want the capability to communicate with friends and family via SMS, e-mail, Facebook and Twitter.
Yahoo’s current map services are also seriously struggling against Google Maps, and it may be good for them to pinch Nokia’s talented navigation skills, and let Ovi take control. Providing a better mapping experience may help Yahoo to boost their popularity, but it’s unlikely it will help them compete against search-engine giants Google and Microsoft, especially in the UK. Yahoo doesn’t even power their own searches any more, so it’s hard to imagine how this could help them to rise above their competition.
Although certain flaws have already been pointed out, there is part of me that simply believes this deal makes no sense at all – especially regarding Nokia’s UK loyalties.
Nokia may still reign as the best selling manufacturer in the country, but Yahoo is slowly disappearing out of the minds of us UK folk. It’s unlikely that this collaboration will entice more of the UK market into buying their handsets rather than opting for Apple, or HTC‘s latest release. On the other hand, Yahoo is still massively popular in the US, but Nokia hasn’t managed to resonate with their mobile phone consumers. Nokia have said, admittedly, that they hope the forming of this partnership will boost their popularity in the US, but surely Yahoo IM and e-mail services cannot be enough?
Mobile phone technology is continuously developing, and becoming more and more advanced. Consumers won’t be looking for which phone has tools powered by Yahoo, they’ll be looking at the camera, the video software, it’s applications, and so on.
For Nokia to maintain their success in the UK, making a deal with Yahoo certainly wasn’t the best way to go about it. It may boost their sales in the US, but could also alienate some of their already loyal customers. Google, RIM and Apple probably haven’t stopped laughing since the announcement was made.
Oh, and I did try to get a response from both companies, but both have failed to comment. If they do get back to me, I’ll keep you updated!
Leave your opinions on the collaborating in the comment box below!