The IHT has a good piece today on Nokia. The Finns are roaring ahead, dominating the handphone market, and in particular are being very successful at penetrating developing markets.

This is particularly important for them because this is where adults are buying their first ever phone, and mindshare is established. That’s a valuable asset; in a recent catchup with Niti, I found myself noting that “I speak Nokia” - which is to say that because I started off with a Nokia I now find their interfaces intuitive, and Moto and Sony-Ericsson (for example) are now slightly less so. Of course, consumers are pretty sophisticated, and will choose according to their specific needs, but that “mental lock-in” isn’t to be dismissed. That’s especially relevant in the developing markets where a new phone may be a significant investment, and someone who finds a brand reliable may well stick with it faithfully rather than experiment.

However… as the article suggests, Nokia can’t rest on their laurels. There are lots of hungry competitors out there. The IHT mentions Korea’s LG, and uses Shenzhen-based ZTE as an example of the many Chinese phone manufacturers who are innovating like crazy.

Nokia, and the other phone companies, have two ways forward - more innovative design, and mobile services. This is why Jan Chipchase’s work is so fascinating - to go into the rough, developing parts of the world, look at how people live, and sift out insights into how phones and services might fit in. A research lab on its own is no longer enough, mixing it up with the people is needed - perhaps phone R&D will develop into an anthropological/sociological discipline of its own, like something from a William Gibson novel…

Jan gave a fascinating talk at the TED conference, at which he shared some of what he’s learned. His slides from this presentation are available on his personal website.

Another example of Nokia’s approach to R&D was given at the recent LIFT08 conference in Turin, where Younghee Jung (is she a member of Jan’s team, or working elsewhere in Nokia? I think so, but I’m not sure…) gave a presentation on a design project Nokia ran with communities in the developing world.

Both videos are worth spending a bit of your time on.

What, I wonder, are the ZTEs and Meizus doing along these lines? And if they’re not, why not?