The Nokia N78 comes in to replace the Nokia N73, but it is not a simple and clear-cut substitution as it may seem at a glance. It wouldn’t be right to think that the maker strives to withdraw the Nokia N73 from the market, where it is one of the most popular S60-based devices. This model will keep its place on the shelves for a while longer; however the Nokia N78 already has the positioning the Nokia N73 had when it only debuted. What is more, some details about this phone that are not all that striking and eye-catching at first have a paramount importance in the context of Nokia’s S60 line-up.
The first and foremost thing we need to put down here is the updated S60 3rd edition platform – the N78 sports the Feature Pack 2 onboard. There is a ton of changes as far as functionality is concerned, but what if we compare what it has gained with what its predecessor had? That’s where the twist is: the N78’s camera is not up to the top-of-the-line solutions and hasn’t gone too far from the level the Nokia N73 was it. Packing in an FM-transmitter, a hardware GPS receiver, the N78 is still equal to the N73 in the imaging department. So what does this mean, if we ask our common sense? That’s right, the megapixel race, if not over, is at a halt. The centre stage in 2008 is taken up by GPS and online services, while camera no longer plays such a vital role, that’s why the mid-range will be totally dominated by the Nokia N82 as the benchmark in imaging. This device was brought about to raise the bar for photo-savvy solutions, and it will not be moving anywhere from this position up until mid 2009. So another question pops up – if the Nokia N82 is designed to have such a long live span, then what of the Nokia N78, as in effect it copies the former, barring its less potent camera, yet benefits from the FP2 and new abilities under its hood? That’s where it gets even more twisted.
Banking on the Nokia N82 as the bestseller in its segment, Nokia has produced more units of the N82 than the market can take. The recommended price of 450 Euro is observed even for the Russian market, where the premium normally amounts to 25-30 percent. This is all another proof that there are more N82s collecting dust in warehouses than N82 units going off the shelves. Some may get an impression that the device enjoys very poor sales, but that’s not the case. It is a wild success both in its price bracket and compared to the competition. But still, Nokia was more optimistic about the N82’s sales, which is why they are overstocked now.
The Nokia N78’s price tag upon the launch should be in the neighborhood of 350 Euro, turns out that by that time the gap between it and the Nokia N82 will come down to a mere 50 Euro. That’s when Nokia’s line-up will experience sort of sales cannibalism between these two. Is there a way-out? Good news, there are two. Either they roll out new color swatches for the Nokia N82 to keep the market excited about it, or, probably, launch a music-minded edition of this handset. The other way sort of complements these measures – they can try to withhold the Nokia N78's sales at the abovementioned price point, yet be ready for price cuts. All up, the pricing policy for these two models should aim at maintaining a 70-80 Euro difference between them, which would be next to perfect. Should it dip below this level – the sales of either phone will start going down; and if it jumps above it – neither solution will benefit.
Another factor that hasn’t been accounted for (which neither we nor Nokia’s marketers can predict) is whether the FP2 will be the drive behind purchases. Over at Nokia they believe that this update will attract many with its advanced feats, especially the current owners of the Nokia N73. And it doesn’t really matter whether they will go for the N78 or the N82. In the former case they will deliberately go for software, whereas in the latter – for the camera. But as I see it, a consumer consciously picking the FP2 with their new phones is more of wishful thinking. The reality is less complex than they imagine – very few users are actually aware of what they are really buying, of what’s inside. The share of well thought out purchasing decisions is relatively slim in this segment.
That’s why the problem of price cuts for the Nokia N78 will arise very soon; otherwise it will halt and won’t generate considerable sales anymore. Based on the N78’s being so new and the way supply chains operate, Nokia will have around 2.5-3 months in reserve to adjust the N78’s price (they will need to cut off more than they usually do on quarterly basis, otherwise all this would make no sense).
Another consequence is that they won’t be able to roll out an update to the Nokia N82 with new colors and running the FP2. Such a product will become a reality only in mid fall 2008, but if only the stars are right. Nokia is now entering the stage when it churns out skin-deep updates to its products, arming them with like FP2-specific features, whereas their core functionality remains similar to original offerings. A good example of this approach is the Nokia 5710 XpressMusic.
Do you follow? Already today the Nokia N78 has almost every right to claim the title of one of the most widely adopted S60-powered smartphones. The impending price drop will boost its ratings, while the necessity to knock the price down will come along only when more new solutions start hopping on the FP2 bandwagon (Nokia 5710, Nokia N88 etc). Another question that still remains unresolved is whether Nokia will present an N6x handset, which is uncalled-for these days, in my opinion. Today its duties are being perfectly handled by models that are about to die off and therefore go for nothing (250-300 Euro). This whole twist about the Nokia N78 makes you think that this phone is doomed to get its price cut in a year’s time and thus generate some serious sales. If this won’t be the case, then the N78 will simply make a quiet exit from the market, which is a very unlikely scenario, and if you come to think of Nokia’s tactics, I would say that’s not how the N78 will end up.
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Design, size, controls
In many respects the handset’s design is reminiscent of the Nokia N82, although its keypad is different and the front fascia is all glossy, but in general their similarities will strike you at a glance. The N78 in fact is a mix composed of other Nseries-branded phones – the N81-esque black finish and a patterned back cover, just like on the N82. It may look like a mixed bag, but at the end of the day it sports a very recognizable style and shape. I won’t judge it on its looks, but to me it seems a tad cheaper than the Nokia N82.
The N78 comes in a choice of three colors, although it they are not all that different – all differences come down to the rear plate, while the front fascia’s glossy black finish and silvery spines remain intact. The underside, depending on the color scheme you go for, may be brown, blue or white.
The phone measures up at 113x49x15.1 mm and weighs in at 101.9 grams. It is several millimeters skinnier than the Nokia N82, but that becomes apparent only when you put them head to head, as you won’t notice this difference in without a ruler in your hands.
The microUSB socket is probably going to be par-of-the-course element of every Nokia’s phone – the N78 is no exception, look for it on the left-hand spine. . It is used for wired data transfers, while headphones can be plugged in the 3.5 mm audio jack sitting on the top edge alongside the power button. The left side also features the 2 mm charger slot. Unlike the Nokia N82’s design, the N78’s speakers are placed on opposite sides of the casing.
As for other things of note, Nokia has ditched the dedicated Gallery button, so now the right-hand spine houses only the camera shortcut and volume rocker.
The build quality of the N78 was never an issue in our tests – no creaks, no loose-fitting details. However, its front plate is the epitome of “fingerprint-magnet”, in that grease and stains are visible even indoors, so a cleaning cloth is must have. Other than that, we were happy with the Nokia N78 on this front.
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