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Nokia Corporation (ADR) (NOK), Apple Inc. (AAPL): Are Camera’s the Epicenter of Smartphones?

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Nokia CorporationWhat is the first thing we usually look at before purchasing a smartphone? Is it the features, specifications, hardware, or software that intrigues us before purchasing these technology filled devices? I guess it would be different depending on the needs of the person purchasing the smartphone.

Well for one smartphone manufacturer the camera seems to be the focal point of its device with 41-megapixels. Is Nokia Corporation (ADR) (NYSE:NOK) setting out to out do the iPhone 5 by Apple Inc. (NASDAQ:AAPL) and the Galaxy S4 Zoom by Samsung (NASDAQOTH:SNNLF) with the Lumia 1020?

The iPhone 5 only has an 8-megapixel iSight Camera, and Samsung’s S4 Zoom only has 16-megapixels. The Lumia 1020 is more than five times as effective as the iPhone 5’s camera, and more than two times as effective as the S4 Zoom’s camera. Almost everyone likes to take pictures but the thrill of the Lumia 1020 is more for photographers than for anyone else. With the camera being the epicenter of this smartphone, will it boost Nokia Corporation (ADR) (NYSE:NOK)’s market share?

The character’s characteristics

Nokia’s Lumia 1020 has the most sophisticated camera ever put into a smartphone because of its photography first approach. It has 41-megapixels with a 1/1.5 inch sensor with a pixel size of 1.12 microns and Carl Zeiss optics. It also has 3 times high resolution lossless zooming and pixel oversampling to decrease noise. It is also equipped with a 4.5 inch (1280×768 pixels) Pure Motion HD+ AMOLED clear black display.

The Lumia 1020 has a Pro Camera app with the ability to modify shutter speed, white balance, focus, and ISO. All of these accommodations let the photographer capture immaculate pictures in distinct lighting positions. The camera includes the Nokia Corporation (ADR) (NYSE:NOK)’s image stabilization technology, and has the ability to take pictures in a “dual capture” mode, that allows for image capture in various resolutions at the same time.

Source: Nokia, July 12, 2013

Apple Inc. (NASDAQ:AAPL)’s iPhone 5 has an 8-megapixel camera with a pixel size of about 1.4 microns and Samsung’s S4 Zoom has16-megapixels 1/2.3CMOS sensor with a pixel size of 1.34 microns and a 10 times optical zoom. The S4 Zoom also has a 4.3 inch (960×540 pixels) qHD Super AMOLED display. Both the Lumia 1020 and the S4 Zoom has a bigger display than Apple Inc. (NASDAQ:AAPL)’s 4 inch (1136×640 pixels) LED-backlit IPS LCD display.

Unlike the iPhone 5, Nokia Corporation (ADR) (NYSE:NOK) offers a Camera Grip shell, which the S4 Zoom is built with. The camera grip shell has a tripod-mount support, physical camera button, and an extra battery, converting the smartphone into a perfect camera supplant. I think this smartphone could be a beginner camera for an aspiring photographer.

Nokia’s poor choice

As for the operating system, or OS, the Lumia 1020 operates on the Windows Phone 8 OS. I think this was a terrible choice on the behalf of Nokia Corporation (ADR) (NYSE:NOK) because the Android OS is by far better than the Windows Phone 8 OS. When it comes to apps, Windows is far behind Apple Inc. (NASDAQ:AAPL)’s apps and Android’s apps. To see how many apps Apple and Android have, let’s take a look at Time’s figures for apps in application store.

Source: Time.com, July 12, 2013

Both Apple Inc. (NASDAQ:AAPL) and Android claim to have around 800,000 plus apps in their app stores, I honestly thought Apple had more than this. Another reason this is a poor choice is because of Windows Phone lagging in market share, which is shown in the graph from NetMarketShare below.

Source: NetMarketShare, July 12, 2013

Apple Inc. (NASDAQ:AAPL)’s iOS is in the lead with 58% of the market share, Android follows with 25%, and Windows only has a meager 1% market share. This alone should have told Nokia Corporation (ADR) (NYSE:NOK) that many people prefer the Android’s OS over the Windows OS. I don’t think giving the consumers what they want is a bad idea especially, when it comes to technology. This will probably hurt Nokia’s smartphone even with the spectacular camera feature.

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