Future's all about affordable smartphones, and India is now a bellwether for Nokia: Viral Oza

Almost everyone in India now wants to buy a smartphone. Are smartphones seen as affordable devices? What might the future hold for smartphones in India?
Everyone wants to progress, be it in terms of the car we buy or the clothes that we choose for ourselves. It’s no different in the case of mobile phones. In fact, mobile phones have been a status symbol and phones are the most visible aspirational product that people carry along. If you look at the demographics, 50% of the population is below 25 years of age and another segment is below 18 years of age. This is the generation that has grown up with the internet, social working and apps.

According to GFK, 90% of the devices sold are below Rs 5,000. If the consumer is getting a smartphone at that price point, then this pushes the growth of smartphones coming in that range. When you look at what Nokia has been doing so far, it is that we’ve been making experiences more accessible.

Over the last one year, we have seen a spurt in the launch of the high-end smartphones in India which is so price-sensitive. Since January, almost every company has been launching its so-called flagship models here. Even Nokia is about to follow suit. What kind of demand do these devices have in India?
You will get to know a lot more about our product on Thursday. Like I said, consumers across the board are aspirational. Technology has touched new heights in the lives of consumers. From clicking pictures to sending mail, to even accessing social networking sites, there is nothing which cannot be done on a mobile phone. In fact, they have become a way of life for most people. Trust me, this is the same across the board.
Our smartphone strategy at the high end is based on delivering great devices on three differentiated pillars of experiences -- location, imaging and entertainment.

Do you think India offers a strong market for top-end devices?
Without getting into specific numbers, let me say that India is a very complex market. While on the one hand, the demand for smartphones is increasing significantly, on the other, there are millions of consumers who still use a basic phone or a feature phone; and they are looking for affordable options to jump on to the smartphone bandwagon. This explains why nearly 80% of the market today is driven by replacements.

We have been coming up with differentiated experiences across price points. We have enough potential across the board. It’s up to us to show our capability and activity exists across the board.

For Nokia’s success globally, India has played a very significant part. It’s a market where we have all the three set-ups of R&D, factory, and sales and marketing. India has been the first market to launch flagship devices – this has been nothing new for Nokia. We have done this all the time. Many other brands have also started this practice, but for us, it’s always been the case, because of the potential that India holds for Nokia as a brand and a company, and the commitment that we have always shown to this market by launching our devices here.

Apart from flagship products, we had our global launch of the Nokia Asha 501 in India. Our global CEO, Steven Elop, travelled to India for the same. This portrays that India is a bellwether market for us.

What are Nokia’s key differentiators vis-a-vis Samsung and Apple?
One principal philosophy which Nokia has practised in the past 2-3 years is this: it’s not what a device has but what consumers can do with it that matters. And that is what the consumers are really looking for. It’s based on the same philosophy that we are focused on offering fantastic experiences, be it the Lumia or Asha devices.