Microsoft Devices will continue to focus on feature phones, says Nokia India head

Nokia India, now part of Microsoft Devices, on Monday launched its first dual-SIM Lumia smartphone, also the first device with Windows Phone 8.1 in India.

Lumia 630 is priced at ₹11,500 – the first handset to be launched post the Microsoft-Nokia deal that closed on April 20. The new Lumia is also available with a single-SIM option too at ₹10,500. The new company will launch more products in the coming days in all brands, including Lumia, Asha series, X series and feature phones. P Balaji, Managing Director, Nokia India, in his first interaction post the deal with Microsoft, says lot of excitement is there in the new company. Edited excerpts:

How is the new company shaping up now? What kind of collaboration is happening?

There is a lot of excitement happening for multiple reasons. The two companies can now share lot of innovation. Therefore, the power of one can be unleashed into the marketplace for the end consumers.

The leadership team has said that this entire integration is based on principles of consumer centricity. The team has to find out how we can leverage with domains on enterprise, consumer and giving more value to erstwhile Microsoft business. The most important thing is to continue getting innovation in the smartphone devices space, not at just flagship level, but also at affordable level. More integration of services from Microsoft to our devices, whether it is OneDrive, latest operating systems, Office 365 and closer integration of all that into the devices.

What will happen to the Nokia brand?

For the mobile phones, including feature phones and Asha, the brand is purchased for 10 years. With Lumia, it is for one year from the date of closure (of the deal). But, will there be more devices from Nokia Lumia brand name? Yes, there will be.

What will happen to brands like Asha? Will Microsoft software support it?

No. For example, the Nokia X series is build on the Android open source project platform. Asha is on its own ‘asha’ operating system and Lumia has principle smartphone strategy, which is based on Windows phone operating system. But, in each of these devices, we are increasing more and more services of Microsoft.

For example, in a ₹3,000 device of Asha 230, we are putting OneDrive, which means access to cloud storage for consumers. That is not an operating system play, but it is a services play for Microsoft.

Therefore, on the platforms like Asha, services will be the differentiation.

In Lumia, clearly the operating system is Windows and we will continue to push for lower price points without compromising signature experiences that go with Lumia.

What are launches for this year? Are you launching tablets along with the handsets?

We have not announced anything yet, but directionally, more devices are coming in on the Lumia platform, X Series and Asha. We will have full range but we will definitely not go to places where we believe that people say that ‘why did Microsoft introduce this device?’ That is not something we will ever do.

What will be your game plan around feature phones?

There are 100 smartphones sold every minute, and five every second sold is a feature phone. So even if 60-70 million smartphones are to be sold next year (as per analysts), still we will have around 150 million feature phones market next year. It is just that feature phones are getting smarter. For example, features like Skype on a feature phone (Asha 225), which we will be launching soon. If we continue to add value through such process, it is a space that we will continue to invest because it is just not the device, but also the touch point of service, which we are providing in the new Microsoft context. There is space for the feature phones in the new Microsoft projects.

With the new identity, would there be movement of people in management?

Clearly on the Indian side, Nokia India is now a subsidiary of Microsoft Mobile Oy. That is the change from the owner’s point of view. Secondly, the business continuity is the ‘mantra’ and me and my entire team continues to drive the erstwhile Nokia devices business.

We have opportunity as one company and in a position to speak to other leaders in erstwhile Microsoft in our business. They are able to share lot more with us, which means that going forward, better collaboration and better things for consumers – whether they are individuals or enterprise. Those synergies can become even bigger in future as one large company in a collaborative and controlled manner.

The situation at the Chennai factory has been bad, especially with a suicide attempt also last week? How is it being handled?

Unfortunately, we are now with Microsoft and only thing that we can share is what are publicly known.

There is service agreement between Microsoft and Nokia and basis that there are people on the supply chain on both sides who take decisions. We are not involved in that.

The entire Chennai factory is run by them and that is not under our business agreement.

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