In an attempt to reestablish its footing, Nokia Corporation (ADR) (NYSE:NOK) has launched a 41 megapixel smartphone, the Lumia 1020. In addition to flaunting a 41 megapixel camera, which is on average five times better than other leading smartphones, it will also feature amazing zooming capabilities. It will be available at AT&T Inc. (NYSE:T) for $300, close to $100 more than key competitors.
While this phone may record good sales, it will not in any way push Nokia Corporation (ADR) (NYSE:NOK) into Apple’s league. If anything, most of the past Lumia handsets unveiled were, from a tech standpoint, greatly innovative. A good example is the Lumia 925. While it received some criticism over its limiting 16GB memory that is not expandable, it also gained a lot of attention for its speed. The folks over at Geeksquad, a UK site that exclusively focuses on tech, were thrilled with its speed and in one review said ‘The device went from being in a completely powered off state to on and ready to use in a matter of seconds.’ Despite the positive responses, the Lumia 925 has failed to stir expected sales
For those with a keen eye, you will realize that the soon to be launched Motorola X Phone is more than just a product. It shows that Google Inc (NASDAQ:GOOG) is deviating from the norm, and, like Apple, targeting a small segment of the market.
So far, the most notable thing in Google Inc (NASDAQ:GOOG) ’s Moto X Phone ads is the ‘all American’ imagery. Google Inc (NASDAQ:GOOG) hits out that unlike Apple which makes the iPhone in China, the Motorola X Phone is made in the U.S. This will win pro-U.S. consumers – especially now, at the thick of geopolitical waves where China has started being viewed as a threat to the U.S.’s economic strength. And the fact that Google Inc (NASDAQ:GOOG) will spend up to $500 million on marketing this phone, while Apple spent $333 million on marketing for the whole of 2012, suggests that this is not just a phone. It is the reinvention and building of a strong brand.
Conclusion
Although Apple’s brand strength has weathered slightly through the year, it will most likely gain strength at the launch of the iPhone 6. Amid the buzz of preorders and consumers lining up from dawn for the iPhone 6, Apple will once again take up its typical pattern of rally after rally. Apple is a good buy at its current relative low price of $427 (as of this writing). It could trend upward to $600 after it launches the iPhone 6.
The article When It’s More About Brand Than Innovation originally appeared on Fool.com and is written by Lennox Yieke.
Lennox Yieke has no position in any stocks mentioned. The Motley Fool recommends Apple and Google. The Motley Fool owns shares of Apple and Google. Lennox is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.
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