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Nokia CEO: we are a "burning platform"
CoolboyA
09-02-2011
Nokia in great trouble?
This news won't come as a surprise to anyone who has been following the mobile phone companies over the last few years, but I guess all our thoughts and opinions have now been set in stone by Nokia's new CEO.

He stated that they were wrong to ignore the threat posed by iOS and Android and that, in the areas where they were strong, they should have considered price and phone technology more:
Quote:
“Mr Elop's leaked memo also suggests that Nokia is also being squeezed at the lower, non-smartphone end of the market by Chinese manufacturers.

"They are fast, they are cheap, and they are challenging us," he wrote.”

Nokia's market share dropped to 28% last year, due to the upsurge in interest in iOS and Android devices.

Quote:
“'we are not in a good position, we have been outgunned and if we are to recover we are going to have to take some drastic decisions' - Nokia CEO”

For what it's worth, I have never though of Nokia as pioneering. When you walk into a mobile phone shop and look about, Nokia seems to dominate the PAYG area with relatively few phones in the Contract section. Of the few that you see, they are nowhere near as good as their competition, a la Samsung, HTC etc. They have always been too busy concentrating on the disaster of an OS that is Symbian and disregarding their competition.
Pencil
09-02-2011
Symbian and pride will bring Nokia down.

A Nokia device with USB ports, that also allows users to install whatever mobile OS they choose is the way forward for Nokia (I think).

Imagine if you could buy a mobile OS in PC World for say £29.99? That's the future of mobile phones - flexibility.

It didn't do the computing industry any harm.
Rossby41
09-02-2011
I personally think Nokia should push Maemo a bit more forward.
LostFool
09-02-2011
Sad to see put hardly suprising. Nokia were the world's leading mobile phone company but they got complacent while others innovated.

From 1997 to 2006-ish all of my phones were Nokia. Since then I haven't had a single one. The only people I know with Nokias at the moment are the technophobes and refusniks still using 4 year old handsets.
clonmult
09-02-2011
Originally Posted by Pencil:
“Symbian and pride will bring Nokia down.

A Nokia device with USB ports, that also allows users to install whatever mobile OS they choose is the way forward for Nokia (I think).

Imagine if you could buy a mobile OS in PC World for say £29.99? That's the future of mobile phones - flexibility.

It didn't do the computing industry any harm.”

Hahahahaha.

Sorry, but thats almost ridiculous, although in a way a nice idea.

Where are the majority of desktop OS sales from - the high street stores or from new PC sales and corporates?

I'll give you a clue, people generally don't call into a high street store to buy a new OS. The lions share is pre-installed or corporates.
clonmult
09-02-2011
Originally Posted by LostFool:
“Sad to see put hardly suprising. Nokia were the world's leading mobile phone company but they got complacent while others innovated. ”

Er, hate to say this to you, but no-one has truly innovated in mobiles for years.

Innovation is generally something totally new. There hasn't been anything really new or radical in mobiles for a long time. Everything is more of a gradual evolution.
whedon247
09-02-2011
nokia have always amde the best phones imo,but now its smart phone era and im being forced to leave them when my free upgrade comes lol
MP34L1fe
09-02-2011
I had a Nokia n97 mini possibly one of the worst phones I have ever had, it kept freezing it was slow and kept losing connection, Now I have a Xperia X10 now this is how a Nokia should be (IMO)
clonmult
09-02-2011
Originally Posted by MP34L1fe:
“I had a Nokia n97 mini possibly one of the worst phones I have ever had, it kept freezing it was slow and kept losing connection, Now I have a Xperia X10 now this is how a Nokia should be (IMO)”

The X10? Wasn't that one of those devices that "suffered" from SE's lack of support? It took them an eternity to upgrade it from 1.6 to 2.1.

Android devices tend to only get the truly decent support from third parties, like those at Modaco or XDA devs. Thats an utterly ridiculous situation.

The N8 is more like what Nokia should be producing. Reliable, easy to use, cracking specs, a camera that beats all the competition by a fair margin. And its getting fairly regular updates ....
Columbo Fan
09-02-2011
Nokia have themselves to blame with their dumb OS - if they really want to bounce back time to for them to run Android and claim their rightful place at the top.
Everything Goes
09-02-2011
Nokia are going the same way Motorola did. They were once the King Of The Hill now they are just Stig Of The Dump

Nokia rested on their laurels. They failed to take on new Operating Systems from Google (Android) and Microsoft (Windows Mobile). They should have been licencing these OS's but their own pig headedness got in their way. They have become the creators of their own downfall and have no one to blame but themselves.


Full transcript here (just read the bit in italics):

http://www.engadget.com/2011/02/08/n...honest-burnin/
BT@home
09-02-2011
It must be awful to be selling so many phones .... I imagine apple will be moving to android soon and rim as they sell so few phones.
flagpole
09-02-2011
Originally Posted by Columbo Fan:
“Nokia have themselves to blame with their dumb OS - if they really want to bounce back time to for them to run Android and claim their rightful place at the top.”

the problem is this may not bring them the greatest revenue. Even if it does bring them sales.

This statement is strategic before Friday's.
TheBigM
09-02-2011
I have studied corporate strategy in the past. This type of memo is classic corporate recovery strategy where a shock missive is required to "unfreeze" the corporate culture so the organisation can change.
flagpole
09-02-2011
quite. After they've had a couple of days to sweat it out he will then present the solution on Friday.
Columbo Fan
10-02-2011
Originally Posted by flagpole:
“the problem is this may not bring them the greatest revenue. Even if it does bring them sales.

This statement is strategic before Friday's.”

In what respect? Not having a powerful OS like Android is a drawback if anything. Revenue comes from shifting those handsets and if they want them sold they need to get a popular OS that many people Identify with to compete on a level playing field.
coolmark18
10-02-2011
At least Nokia arent kidding themselves that they are doing well.

I think they need to offer some handsets with Andriod, and some with an (extremely) improved Sybmain.
clonmult
10-02-2011
Originally Posted by Columbo Fan:
“In what respect? Not having a powerful OS like Android is a drawback if anything. Revenue comes from shifting those handsets and if they want them sold they need to get a popular OS that many people Identify with to compete on a level playing field.”

Symbian is probably a more powerful OS that Android.

And then there's the potential for S^3 devices to run Android natively - the Alien Dalvik software recently announced will allow Meego devices (when/if they appear) to run Android apps as if they're running on an Android device. As the Alien Dalvik application is written in QT, it should (in theory) be relatively easy to run on S^3.

One interesting comment I read - if Nokia are going to be announcing something ridiculous like a WP7 device, surely something would have leaked by now?
TheBigM
10-02-2011
Originally Posted by Columbo Fan:
“In what respect? Not having a powerful OS like Android is a drawback if anything. Revenue comes from shifting those handsets and if they want them sold they need to get a popular OS that many people Identify with to compete on a level playing field.”

Revenues but not profits. Selling Android phones will allow them to offer only minimal differentiation compared to competitors with strong price competition bringing profits down. Also what do they have to offer in the face of Samsung's S-AMOLED screens and hummingbird processors?

Also, everyone now wants a slice of that third-party app revenue pie. Apple probs makes more money through that than selling iPhones.
grumpyoldbat
10-02-2011
Originally Posted by clonmult:
“Symbian is probably a more powerful OS that Android.

And then there's the potential for S^3 devices to run Android natively - the Alien Dalvik software recently announced will allow Meego devices (when/if they appear) to run Android apps as if they're running on an Android device. As the Alien Dalvik application is written in QT, it should (in theory) be relatively easy to run on S^3.

One interesting comment I read - if Nokia are going to be announcing something ridiculous like a WP7 device, surely something would have leaked by now?”

According to a number of websites, their Meego phone has already been cancelled. We'll know tomorrow if that's true.
flagpole
10-02-2011
Originally Posted by Columbo Fan:
“In what respect? Not having a powerful OS like Android is a drawback if anything. Revenue comes from shifting those handsets and if they want them sold they need to get a popular OS that many people Identify with to compete on a level playing field.”

you kidding me?

you must be able to see how shipping android phones would decrease margin?
finbaar
10-02-2011
Originally Posted by clonmult:
“The N8 is more like what Nokia should be producing. Reliable, easy to use, cracking specs, a camera that beats all the competition by a fair margin. And its getting fairly regular updates ....”

So what if the camera is the best? Most people would want a better OS environment rather than the best camera (best camera, it's a throw back to 2006). The N8 shows how Nokia have lost their way. It is way behind Apple, Google, HTC and Samsung rivals in the desirability stakes. I won't be suprised Nokia announce tomorrow if MeeGo is dropped and Android is adopted, they can't afford to wait another 12 months.
flagpole
10-02-2011
Originally Posted by finbaar:
“So what if the camera is the best? Most people would want a better OS environment rather than the best camera (best camera, it's a throw back to 2006). The N8 shows how Nokia have lost their way. It is way behind Apple, Google, HTC and Samsung rivals in the desirability stakes. I won't be suprised Nokia announce tomorrow if MeeGo is dropped and Android is adopted, they can't afford to wait another 12 months.”

to be fair you are making sweeping statements. i don't know how you know exactly what people want. personally i want i good camera. it's really not for you to tell me that i don't.

it is possible that they want to go for a different sector. why compete with the iPhone at being an iPhone.

the problem with going for android is that you become just another OEM. and it wont be long until the cheap chinese manufacturers are able to knock out a decent $100 android phone and it will be very hard for Nokia to differentiate from them.
clonmult
10-02-2011
Originally Posted by finbaar:
“So what if the camera is the best? Most people would want a better OS environment rather than the best camera (best camera, it's a throw back to 2006). The N8 shows how Nokia have lost their way. It is way behind Apple, Google, HTC and Samsung rivals in the desirability stakes. I won't be suprised Nokia announce tomorrow if MeeGo is dropped and Android is adopted, they can't afford to wait another 12 months.”

So what if the camera is the best? The N8 is pretty much the only mobile phone that can better most dedicated compact cameras on image quality. Thats definitely a useful ability. Maybe not to you - but that doesn't mean you should just ignore its ability.

I can just take one device with me, and its camera is usable under almost all conditions, unlike 99% of other mobiles which are basically useless in anything other than ideal conditions.

The N8 isn't way behind on desirability stakes. Its physical design is as good as anything else out there, its build quality is amongst the very best.

And it also happens to be a better music player (albeit with no gapless playback without additional apps) than damn near everything else on the market.

Originally Posted by flagpole:
“the problem with going for android is that you become just another OEM. and it wont be long until the cheap chinese manufacturers are able to knock out a decent $100 android phone and it will be very hard for Nokia to differentiate from them.”

Thats going to be a huge problem for the "higher end" devices, as they're not going to be able to directly compete against the cheaper chinese produced devices.

ZTE have a good chance of pulling the rug/floor/whole house out from under HTC and Samsungs feet.
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