Nokia Here – Move to where?

 

 

 

 

 

  • Nokia held an event yesterday to launch enhancements to its mapping offering but it was not clear to me how Nokia itself would benefit in the short term.
  • Here represents an enhancement to the maps application by putting much of the functionality in the cloud while at the same time still enabling mapping and directions on devices without a connection.
  • Three things are worth noting:
  1.     Nokia maps and location services will now be made available on pretty much all platforms and devices.
  2.     Nokia announced a deal with Mozilla where Here will be deeply integrated into the Firefox OS that’s due to properly debut on devices next year
  3.     Nokia is acquiring 3D mapping company Earthmine. Earthmine has technology that makes the collection and creation of a 3D environment like Google Streetview quicker and easier. This should accelerate the development of Nokia’s mapping offering bringing it close to what Google has to offer.
  • The timing is perfect. Apple is reeling from the mess that it has made of Apple maps and the iOS platform is ripe for a high quality alternative to the superb Google Maps that Apple has binned.
  • Nokia has already made the submission to be allowed entry into the App Store and here lies the catch.
  • Does Apple really want to approve this application? It could erode the stickiness of the iOS as those that must have this application will be able to get it anywhere.
  • This is the exact reason why Apple got rid of Google maps in the first place and to do the maps itself. It has no incentive to see Here on the App Store.
  • In allowing this application onto iOS, Apple will be enabling potentially damaging competition.
  • I can see how Apple would come under intense pressure if it were to refuse but I am pretty sure that Apple will be looking for ways to hold up, hinder and delay the publication of this application until it has its own house in order.  
  • In addition, we can be pretty sure that this application will be better, faster and more functional on Windows Phone and Windows 8 than it will anywhere else.
  • (Strangely though the 3D functionality is only currently available for Chrome, Firefox and Safari. It does not yet work on Internet Explorer!)
  • In the long run, one can see how users could be enticed to switch to Windows Phone if they really were to fall in love with the Here application on iOS or Android.
  • Outside of the highly remote probability that Nokia will be able to entice users to leave iOS and come to Windows Phone, I am not sure how Nokia benefits from this strategy.
  • By making it available anywhere, it has effectively made sure that, for the moment, there is no added incentive to go to Windows Phone.
  • This is clearly a long game and strategically, Here makes perfect sense, but it is risky.
  • Apple might say no and in the short term development costs are going to rise without a commensurate increase in revenues.
  • I am not sure that Nokia has long enough to make Windows Phone work for Here to make a significant difference.

 

 

RICHARD WINDSOR

Richard is founder, owner of research company, Radio Free Mobile. He has 16 years of experience working in sell side equity research. During his 11 year tenure at Nomura Securities, he focused on the equity coverage of the Global Technology sector.

Blog Comments

> Three things are worth noting:
>
> 2- Nokia announced a deal with Mozilla where Here will be deeply
> integrated into the Firefox OS that’s due to properly debut on devices next year
Firefox OS? Is this noteworthy as a negative commentary on Nokia management. 🙂