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Nokia CEO: Nokia is "standing on a burning platform"

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Re: Nokia CEO: Nokia is "standing on a burning platform"

#21
idea for how to create value in your brand when you're "just another android phone".

1. create a really awesome skin like HTC has.

2. create a suite of really awesome apps and release them on the apps market, but give them free to users of your specific phone.

Re: Nokia CEO: Nokia is "standing on a burning platform"

#23

A well-written email is more powerful than many people comprehend. We used to call them letters, and they were powerful then too. You can change a person's or a group's mind about something, even after a decision appears to have been made. You can clinch a job, win a contract, stop a lawsuit, regain a friend, woo a lover, and change history itself with just a few words. I'm not sure if people realize quite how powerf…

Very well said. It's a great memo, but its main effect is to lay the groundwork for a strategy change.

This means we're going to have to decide how we either build, catalyse or join an ecosystem [...] When we share the new strategy on February 11, it will be a huge effort to transform our company [...] The burning platform, upon which the man found himself, caused the man to shift his behaviour, and take a bold and brave step into an uncertain future.

This may be a turning point for Nokia, but in the end it will come down to just what this new strategy is and how effective it proves to be.

Re: Nokia CEO: Nokia is "standing on a burning platform"

#24
post #7

This is an excellent, really excellent call to arms from a new CEO. I have a few takeaways -- first: the board brought Elop in for a four to seven year turn-around. He's going to make enemies, but that's okay. If he executes the turn-around, they'll put someone more finnish back in to sooth the old guard after they're making money again. Second -- this guy has the Microsoft internal criticism DNA, through and through…

Nokia regularly cripple features, specifically including VoIP, at the demands of carriers. Perhaps not US carriers, but it happened frequently in the UK. I took the calls of people angry that their 'top end' handset couldn't do VoIP because they bought it from Vodafone. The carriers were always Nokia's customers, not the consumers, I can't see how that's going to change.

>Nokia regularly cripple features, specifically including VoIP, at the demands of carriers. Perhaps not US carriers,

Oh, definitely in the US—look at the difference between the E71 and the E71x, the AT&T version. The GP was talking about unlocked phones. I have an N86 which I bought on Amazon, and it's got SIP and other features which AT&T would hate me to have.

>The carriers were always Nokia's customers, not the consumers

Yeah, but that's the case with every phone manufacturer.

Re: Nokia CEO: Nokia is "standing on a burning platform"

#25
post #3
post #2

The idea of a Nokia device running Android is pretty appealing. They've always had good hardware, but Symbian has become a develpment dead-end, and Meego isn't yet here.

Android on Nokia hardware is an appealing idea, but given Stephen Elop's Microsoft background I wonder if they won't shift to WP7. Or both.

Nokia on WP7 would mean they would have to cannibalize their OS teams, their app.dev stack(QT), existing software etc. gutting a huge part their workforce.

It is far more easier to have Meego adopt an Android personality, since they're the same kernel inside. They could add Nokia flavor on top.

The far more important decision is positioning; they would've to leave the low-end phone market to chinese, and focus on the midrange.

Re: Nokia CEO: Nokia is "standing on a burning platform"

#26
post #13

That's really interesting read, but doesn't tell anything about specifics. I'm not really sure what they will announce on Friday. As we can see however, it's about ecosystems, not about the OS. 1. Qt is really valuable asset, they are keeping it. Actually they are keeping everything they have now. 2. Joining WP7 or Android as an OEM would cut Nokia out of their ecosystems, not going to happen. 3. Adopting WP7 or Andr…

WP7 with QT doesn't seem an option. QT is C++ and WP7 is oriented to work with .NET and not native applications. (don't try to port QT to C++.NET...) and it's a bit redundant to have QT together with Silverlight/.NET

Re: Nokia CEO: Nokia is "standing on a burning platform"

#28
post #13

That's really interesting read, but doesn't tell anything about specifics. I'm not really sure what they will announce on Friday. As we can see however, it's about ecosystems, not about the OS. 1. Qt is really valuable asset, they are keeping it. Actually they are keeping everything they have now. 2. Joining WP7 or Android as an OEM would cut Nokia out of their ecosystems, not going to happen. 3. Adopting WP7 or Andr…

>My best guess is WP7 with Qt allowing Nokia's services and apps on those phones. This would be additional to Symbian and MeeGo devices.

If they adopt any third-party OS, I can't see them keeping MeeGo. That'd be stupid; it'd leave them having to build a MeeGo ecosystem instead of just taking advantage of the one they join.

And I don't see Microsoft allowing Qt on WP7; it'd undermine their whole .Net-based story.

Re: Nokia CEO: Nokia is "standing on a burning platform"

#29

Earlier quoted context omitted.

Nokia regularly cripple features, specifically including VoIP, at the demands of carriers. Perhaps not US carriers, but it happened frequently in the UK. I took the calls of people angry that their 'top end' handset couldn't do VoIP because they bought it from Vodafone. The carriers were always Nokia's customers, not the consumers, I can't see how that's going to change.

> Nokia regularly cripple features, specifically including VoIP, at the demands of carriers. Perhaps not US carriers, Oh, definitely in the US—look at the difference between the E71 and the E71x, the AT&T version. The GP was talking about unlocked phones. I have an N86 which I bought on Amazon, and it's got SIP and other features which AT&T would hate me to have. > The carriers were always Nokia's customers, not the…

> Yeah, but that's the case with every phone manufacturer.

That's exactly my point. In this regard Nokia are not in a special position to stand up to the carriers.

Unlocked handsets don't count: almost no one is paying that much for a phone. Even Apple had to accept carrier subsidies for the iPhone to get the end purchase price down.

Re: Nokia CEO: Nokia is "standing on a burning platform"

#30
post #20

Earlier quoted context omitted.

Nokia used to be up around 60% of the mobile phone market (in terms of profit). Now they're around ~20%, while Apple is more than 50% (on less than 5% marketshare). Nokia is still making money, but pretty much all new profit is going to everyone else (especially Apple). http://www.freerepublic.com/focus/f-chat/2666565/posts

Do you think there is a fixed "profit" out there for the taking? Apple's profit margin is an extreme aberration, and it isn't sustainable. Any comparison that relies upon profit numbers is...disturbed.

Do you think there is a fixed "profit" out there for the taking?

Definitely not. But I do think that there's been incredible growth in Nokia's core business, and they haven't seen any of the growth.

Apple has been able to do this in four markets now:

1) iPhone -- a carrier subsisized market.

2) iPad -- see (3)

3) iPod -- Large margins based on industry leading large volume.

4) Computers -- Expensive niche product with huge margins. I believe the are the single most profitable computer company (if you look just at their computer division).

Why is a comparison based on profit disturbed? In business that's pretty much the only thing that matters. Profit yesterday, today, and tomorrow.

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