backtop


Print 55 comment(s) - last by ClownPuncher.. on Feb 16 at 7:57 PM


Nokia CEO Stephen Elop

"S**t just got real"
Nokia CEO Stephen Elop tells his troops that it's time to face the music

It appears that Nokia's CEO has come to the realization that many of us came to months, if not years ago: Nokia's smartphone efforts are in trouble. The company has been a bit lacking on the innovation front and has never quite made its way back into the hearts of the consumer -- especially in North America -- since the arrival of the iPhone in 2007.

Stephen Elop, a former Microsoft Business Division executive, took over Nokia's CEO position back in late September. It didn't take long for him to see the writing on the wall when it comes to Nokia's position in the market, and he fired off a memo (which was obtained by Engadget) to state the sad position that the company is in. In fact, Elop says that the Nokia is standing on a "burning platform" and that the company must decide what it wants to do to stay relevant.

Here are a few highlights from the 1,300+ word memo:

In 2008, Apple's market share in the $300+ price range was 25 percent; by 2010 it escalated to 61 percent. They are enjoying a tremendous growth trajectory with a 78 percent earnings growth year over year in Q4 2010. Apple demonstrated that if designed well, consumers would buy a high-priced phone with a great experience and developers would build applications. They changed the game, and today, Apple owns the high-end range… The first iPhone shipped in 2007, and we still don't have a product that is close to their experience. 

Love 'em or hate 'em, it's true that Apple really turned the smartphone market on its head. Apple knows how to create buzz for its products, and while the iPhone may not have the most dazzling array of hardware at any point in time compared to its competitors, the user experience (hardware + software ecosystem) is hard to fault.

Elop goes on to praise Google's Android platform which has taken a few short years to topple Nokia from the top of the worldwide sales charts:

Android came on the scene just over 2 years ago, and this week they took our leadership position in smartphone volumes. Unbelievable…

Android came in at the high-end, they are now winning the mid-range, and quickly they are going downstream to phones under €100. Google has become a gravitational force, drawing much of the industry's innovation to its core.

Elop continues in his memo talking about the company’s unhinged efforts with MeeGo, troubles with Symbian, and the fact that Chinese OEMs are able to crank out low-cost smartphones at a rapid pace. Basically, Nokia is being assaulted from all sides and isn't taking enough action to stay relevant. 

Nokia's CEO even goes so far as to say that the answer to Nokia's problems may be to adopt smartphone platform which has a strong ecosystem (Android, Windows Phone 7 perhaps?). Windows Phone 7 seems like a good choice given Elop's past ties to Microsoft, but we'll hear a little more about Nokia's plans for the future on February 11. 

You can read Stephen Elop’s full memo here.



Comments     Threshold


This article is over a month old, voting and posting comments is disabled

RE: ?
By bah12 on 2/9/2011 11:24:32 AM , Rating: 3
Yah that was more aimed at his response, but I agree 100% if you can afford it they are WELL worth it. IMO if used to their full potential they are not strictly a luxury.

Assuming you are doing all the things you listed, I assume you may want to keep tabs on those investments. Streamline your bill payment and manage your budgets. Or even more consumerish things like find cheaper gas, or coupons. Not to sound cliche, but "theres and app for that".

I'd argue that the $$ people spend on going out to eat or even sat/cable would be better served toward a smartphone.

My contention is that it is far less "pissed away" money that other items in the average US home. Hell just the ability to stay connected with customers/colleagues via Facebook, Twitter, Linked-In, and Sales Force can be a have very positive effects. As the old saying goes its not necessarily what you know but who you know, even if your not in sales, networking has benefits.

I'm sorry but if you and I have the same customer, who do you think will get the job one who responds day or night to an email anywhere in the world, or one with a brick phone that only checks it when he/she is at his computer laptop.

I realise Joe bob teenager does not have this usage pattern, but again there are a far more wasted dollars elsewhere that get very little usage.


"If a man really wants to make a million dollars, the best way would be to start his own religion." -- Scientology founder L. Ron. Hubbard














botimage
Copyright 2014 DailyTech LLC. - RSS Feed | Advertise | About Us | Ethics | FAQ | Terms, Conditions & Privacy Information | Kristopher Kubicki