Strategic positioning in the mobile handset sector

Let's start by recalling some important dates:

- 2008, July, the 9th.: the new LG Secret (LG-KF750) touch-screen phone is launched
- 2008, July, the 11th.: new iPhone 3G is revealed by Steve Jobs
- 2008, September, the 23rd. : T-Mobile G1 (Google phone with the Android OS) is released
- 2008, October 2nd.: Nokia 5800Xpress (Tube) came up on the market

Nokia finally released yesterday its first touch-screen mobile phone, at a two years' distance from the pioneer Apple. This has been one of the last novelties for this year coming from the leading mobile phone producers.
The purpose of this post is not to explain you the technical capabilities of these smart-phones, neither to compare them on a point by point basis. What I want to do is to make you aware of the changes in the strategic positioning of these companies.

I will try to position the four mobile handset producers on three dimensions:
1) technological novelty
2) price (comparison on the price on www.electromaticinc.net)
3) fun dimension

So let's take them in chronological order.

<The LG secret is the latest LG mobile phone with a touch-screen, which brings with it a 5mp integated camera. However, it doesn't have WiFi. The price is 400$ without a contract. Analyzed on the three dimensions, it is positioned high in the fun dimension and medium priced, with medium level of novelty.



The second generation of iPhone, the 3G brings with it a new, smoother design, and is technologically more advanced than the previous iPhone version. It includes: 3G technology, GPS, Wifi and a 2mp camera. It is being advertised as a "gorgeous phone" (Steve Jobs). If we place it on the three dimensions, it is high on all dimensions.

The T-Mobile G1 costs about 500$ without a contract, has WiFi, GPS and TV-out and a 5mp camera included. Plus, it works on the new Android operating platform. However, design-wise it is not so "sexy", nor as fun as the iPhone. The advantage is that it allows music download from all Internet platforms, unlike the iPhone who supports only the iTunes. Thus, we position it high on the technological dimension, high on price.

Lastly, the Nokia 5800 Xpress has bluetooth, a 3.2.mp camera and an improved sound surround included. It operates on a new Symbian platform which is supposed to be more user-friendly. Its Nokia Music program should be a response to the HTC G1 phone and to the iPhone. It is priced at about 400$. On the three dimensions, I would position it low on technology, medium on price and medium on the fun dimension.

To conclude:
- Apple has succeeded to maintain its strategic position despite its diversification strategy in the mobile phone sector. Apple stands for innovation, user-friendliness and fun at a premium price.
- LG keeps its position as a producer of handsets with rich media characteristics at a medium price.
- T-Mobile G1 aims to directly compete with the iPhone, although it lacks some of the "sexy touches" that the iPhone has. This strategic positioning is confirmed also on price dimension.
- Nokia - maintains its position as a mainstream phone producer, whose phones are characterized by reliability and viability. Price-wise, it is premium priced as compared to normal phones, but a little under-priced when compared to smart phones.

All in all, Nokia seems to be safe for know as it has a high brand recognition, high customer fidelity and a good distribution network. However, Apple's decision to lower iPhone's price makes me wonder where it wants to position itself in the long run. Provided that it keeps the same prices and widens its distribution network to include other network carriers than AT&T and Orange, it could become Nokia's direct competitor on the smart-phone segment.

Finally, let's not forget about Research inMotion, who produce the BlackBerries. For the moment, they are safe as they are on a niche segment, directly targeting big corporations. However safe they might feel because of their existing customer base and close contact with their buyers, they should take into consideration to upgrade their technology. Otherwise, the G1 and its next versions might become a threat.