Stephen Elop’s task on turning Nokia Mobile phones business to Microsoft compatible has come to end: Microsoft Corporation and Nokia Corporation today announced that the Boards of Directors for both companies have decided to enter into a transaction whereby Microsoft will purchase substantially all of Nokia’s Devices & Services business, license Nokia’s patents, and license and use Nokia’s mapping services.
Microsoft will pay EUR 3.79 billion to purchase substantially all of Nokia’s Devices & Services business, and EUR 1.65 billion to license Nokia’s patents with EUR 5.44 billion all-cash transaction. Under the terms of the agreement, Microsoft will acquire substantially all of Nokia’s Devices and Services business, including the Mobile Phones and Smart Devices business. Microsoft is acquiring Nokia’s Smart Devices business unit, including the Lumia brand and products. The deal includes, among other things, the Nokia Asha brand.
The transaction is expected to close in the first quarter of 2014, subject to approval by Nokia shareholders, regulatory approvals and other customary closing conditions. Microsoft has agreed to a 10 year license arrangement with Nokia to use the Nokia brand on current Mobile Phones products. Nokia will continue to own and maintain the Nokia brand.
Following the transaction, Nokia plans to focus on its three established businesses: NSN (network infrastructure and services), HERE (mapping and location services and Advanced Technologies (technology development and licensing).
Stephen Elop will be coming back to Microsoft, and he will lead an expanded Devices team, which includes all of our current Devices and Studios work and most of the teams coming over from Nokia. As part of the acquisition, a number of key engineering leaders will be joining Microsoft from Nokia. Approximately 32 000 employees are expected to transfer to Microsoft. Among them, 4 700 in Finland. Microsoft is getting several of the cellphone industry’s better-known leaders in one shot — and Nokia’s remaining leadership will be mostly unrecognizable to long-term fans.
I was fearing that this could happen already two years ago. Now it has happened. Microsoft’s acquisition of Nokia’s Devices & Services business has more implications for Nokia than you might suspect at first glance. Nokia CEO Stephen Elop is stepping down ahead of transition to Microsoft. Nokia’s Chairman of the Board Risto Siilasmaa will be Nokia’s interim director. Timo Ihamuotila will be interim CEO.
Forbes analyst Tero Kuittinen is surprised by Stephen Elop activities: Elop chose Nokia to become Microsoft Windows operating system company and ther operating systems, development stopped completely. Now he’s decided to sell Nokia’s smartphone unit at greatly reduced prices … Microsoft, a company in which he returns, Kuittinen says. Nokia Sells Handset Business To Microsoft At A Shockingly Low Price tells that it cannot be said that Nokia‘s decision to sell its handset unit to Microsoft is a surprise. But what definitely are surprises are the timing and the price. Nokia’s glory days of 110 B euro market cap are long gone – yet it’s a visceral shock to see the Devices and Services unit sold under 5.5 B euros.
Etla research director Jyrki Ali-Yrkön says that Nokia phones sales to Microsoft is a sign of the error from the previous move: “As a result, the company acknowledges that Microsoft’s operating system is not enough to save Nokia” Something similar I was thinking more than 2 years ago at my Nokia future: Windows Phones 
posting. And the current news clearly shows that the previous decision – the Windows Phone operating system transition – was not correct.
The press conference is held today at 11 am in Espoo Dipoli.
This is the end of the Nokia as I used to know it…. Nokia’s importance to Finland has been in 90′s and since the early 2000′s insane. It has pulled the tail of starring in other IT companies in the world, and helped the Finnish international. Now, a big part of it is gone.
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Tomi Engdahl says:
Elop started the company as CEO in September 2010, Nokia made a loss in both 2011 and 2012.
Elop actually earned in the period 2010-2012 a total of 18 938 160, or nearly 19 million euros. Consists of the sum of the years 2010-2012 Elop wages paid, bonuses, share-based awards, stock options, changes in pension and other fees.
Elop’s salary was EUR 280 000 in the final months of 2010, 1.02 million in 2011 and 1.08 million in 2012.
Yesterday was his last day of work.
Source: http://www.iltalehti.fi/talous/2013090417447442_ta.shtml
Tomi Engdahl says:
Microsoft is gambling – but it does not have other options
Nokia’s phone business buying is Microsoft gambling, but the company is not just options. This estimate of analysts.
Microsoft will pay Nokia’s mobile phone business 3.79 billion, and the patents related to the use of the rights of 1.65 billion euros.
“Mobile is currently the world’s fastest growing and largest computer platform. We see this movement with courage, but completely necessary threat to Microsoft as a game, “research director Ben Wood at CCS Insight research firm estimates.
So far, Microsoft has been trying for 15 years to get a foothold in the mobile operating system by developing and offering the manufacturers. However, it is not successful.
If implemented, the trade is a good thing for both companies. The challenge, however, is the integration of the businesses, which can not be underestimated. In particular, when Microsoft has a history of its own, the company’s largest ever disaster.
Wood points out that history is full of similar-sized projects that have gone awry.
Both CCS Insight’s Wood that Gartner’s Milanesi believe that Microsoft is the only Windows Phone manufacturer. At least unless something major happens on Android.
The decisive factor for the future of Windows Phone is how quickly Microsoft is able to buy the Nokia allows the development of new smart phones and to improve the operating system itself. Also, the number of applications need to grow.
“It would be a big mistake if Microsoft would try to merge the companies to each other and to take power, because it does not understand mobile.”
The big question is, what the deal means for the entire industry. Nokia’s decision to sell off the phones came only three weeks after the Blackberry was announced looking for a new strategy.
Blackberry is considering an alternative to, among other things, joint ventures, or from the sale of the entire company.
“This is not just about the phone’s development. This is a very mature market, so the need for strong financial muscle to compete, and if not, enters into trouble. This has happened to Nokia, Blackberry and HTC for “Jeronimo estimates.
Wood believes that the mobile industry will see more consolidation, with bigger gamblers are buying smaller players from the market.
Source: http://www.tietoviikko.fi/kaikki_uutiset/microsoft+pelaa+uhkapelia++mutta+silla+ei+ole+muuta+vaihtoehtoa/a927315
Tomi Engdahl says:
Veijo Ojanperä: There remains a healthy and innovative Nokia
The first reaction of Nokia and Microsoft’s trade is most definitely a shock. Surprise phone sales side can not be none.
The final solution seems to always be just so. A final. From a domestic point of view, the next question is, what the deal means for Finland? What it means for the Finnish engineering know-how in terms of? What does that mean in terms of the Finnish innovation?
Is likely ultimate outcome, the relevant time, the grief-positive. The remaining Nokia, that is, about half the current, is a vibrant, innovative, healthy and money-making enterprise.
Now living in the shadow of Nokia can finally stop. Finnish engineer can focus on what his future really is: new, innovative solutions for industry. Whether it’s machine control, automation and embedded software solutions, these Finnish developer still has a lot to offer.
Nokia’s new models of success does not depend on iron. It is prized by many foreign industry analysts. Success does not even necessarily depend on the operating system, even though most do not want Windows on their mobile phones.
Nokia is not desired, because it is not desirable. Desirability is again something that is very difficult to achieve when it is once lost. In that speech, “the third ecosystem” has not the slightest importance.
All come to an end. Each dynasty crashes.
Source: http://www.etn.fi/index.php?option=com_content&view=article&id=313:veijo-ojanpera-jaljelle-jaa-terve-ja-innovatiivinen-nokia&catid=9&Itemid=101
Tomi Engdahl says:
Technology 13-event in early October, organized by Finnish Fair atmosphere changed in recent Nokia news, because in one fell swoop. Electronics and automation innovations are presented for the first time in Finland, where the mobile phone business has virtually disappeared.
Source: http://www.etn.fi/index.php?option=com_content&view=article&id=310:nokia-puhuttaa-teknologia-messuilla&catid=13&Itemid=101
Tomi says:
Nokia’s main business is now emerging wireless broadband technology products for the gray and the racks to be hidden. The main product is called Flexi radio base station equipment.
- We will do everything that occurs after the user presses the green handset or on your mobile phone to connect to the Internet. We will do our radio networks, which connect the terminal to the network, and core networks where the traffic is always servers [server] up so that the users, then searches for any, says NSN’s Marketing Director Kai Sahala.
In practice, the Nokia is a wireless broadband business for the world’s second or third largest manufacturer. (first-place Swedish company Ericsson and second Chinese Huawei).
Nokia’s strengths in broadband equipment has been kept in different age groups of mobile technologies functionality, base stations, weather-resistant and high-frequency side of the popularly radio features.
The side of the base stations have also been developed new products, such as equipment which can store web pages on servers on base stations.
Consumer preferences rather than Nokia will have more about the six hundred telecom operator customers rely on. Nokia will also make money to on patents, licensing agreements, and map services sales.
The core operations of Nokia is now returning to its roots, that of professional radio network engineering.
- we went back to the good old days of networking business
Source: http://yle.fi/uutiset/kannykkaliiketoiminnasta_luopuminen_pudottaa_rajusti_nokian_asiakkaiden_maaraa/6814959
Tomi Engdahl says:
Junger says Yle: Microsoft was interested on Nokia in the early 2000′s
Member of Parliament, Mikael Jungner (Social Democratic Party), according to Microsoft CEO Steve Ballmer showed interest to Nokia for about ten years ago
“If there is an area in half a year to become a print or a translation, then change the concept. If Nokia’s now sold by the activity does not get to fly, so I think that patience is shorter than it would have been a Finnish-owned, “he says.
Source: http://www.tietoviikko.fi/kaikki_uutiset/junger+kertoo+ylelle+nokia+kiinnosti+microsoftia+jo+2000luvun+alussa/a927407
Tomi Engdahl says:
This was the worst mistake of Nokia
Wednesday’s Financial Times has a relatively fair assessment of what the apportioning of blame may become wet. The newspaper writes that CEO Stephen Elopia is easy to criticize too much. He inherited the company to be in serious trouble, and Nokia could have been much worse.
Many analysts have raised Stephen Elop’s biggest single mistake of his early 2011, wrote, “A burning oil slick,” the memo. Wake up message referred to an internal memo, Elop said Nokia’s devices have moved the battle to war of ecosystems – and Nokia’s own Symbian ecosystem in this war is not worth the ride.
As such memoranda are used to, this one also leaked to the public and received a tremendous amount of attention. There is a general assessment that the memo caused a huge amount of damage to Nokia
But they do not have Nokia’s biggest mistake. Symbian phone sales would have fallen into the ravine soon in any case, so far has had since become practical use Android phones and Apple devices.
No: The crucial mistake was made in February 2011, when the company made the decision to ally with Microsoft and Windows Phone Smartphones use a single operating system – and left the seizing the opportunity to make Android phones.
The decision was confusing at the time and just as confusing now. Google’s Android operating system had already raced past the Symbian market share
Arguments have been consulted many times: Nokia believed it could stand. Microsoft offered better benefits than Google. The operators wanted a third ecosystem.
Nokia’s Stephen Elop has said this year that the company predicted in 2011 that Samsung would rise to dominance of the Android camp, and that Nokia would not be able to challenge it.
Source: http://www.tietoviikko.fi/kaikki_uutiset/tama+oli+nokian+pahin+moka/a927402
Tomi Engdahl says:
A Bloody Ballmer and Stalled Discussions on the Long Road to a Nokia Deal
http://bits.blogs.nytimes.com/2013/09/04/the-long-road-to-nokia-deal-a-bloody-ballmer-stalled-discussions/?_r=0
“We are on different planets.”
That was the response of Risto Siilasmaa, the chairman of Nokia’s board of directors to Steven A. Ballmer, Microsoft’s chief executive, after a team from Microsoft presented an acquisition proposal to Nokia in late April. The morning presentation, led by Mr. Ballmer, took place at the offices of Skadden, Arps, Slate, Meagher & Flom in New York City.
After Microsoft’s pitch, which took about 45 minutes, Nokia’s side huddled in another conference room to consider the proposal. They weren’t satisfied. The price Microsoft was offering for Nokia was a major sticking point, but there were many other ways in which Nokia and Microsoft weren’t seeing eye-to-eye, including who would retain ownership of Nokia’s mapping service.
So went one of several pivotal meetings in Microsoft’s long, on-and-off courtship of Nokia, which finally ended this week with the software giant’s $7.2 billion agreement to purchase the Finnish company’s mobile phone and services business.
The initial discussions about a deal began at the end of January with a five-minute phone call Mr. Ballmer made to Mr. Siilasmaa, in which he asked the Nokia chairman to meet in person so they could discuss an earlier mobile partnership the companies struck in early 2011. The two men met in February at a hotel in Barcelona that Microsoft had taken over during Mobile World Congress, an annual confab for the wireless industry.
But when it came time for Microsoft’s first formal presentation of an acquisition offer to Nokia, it bombed.
Once Microsoft and Nokia were on the same page about those terms, executives from both companies met in early July in New York, where they finally had a breakthrough..
Over the course of a weekend, Microsoft and Nokia gradually edited a set of PowerPoint slides outlining the deal into a set of principles that both companies were happy with. The companies set Sept. 3 as a deadline for turning those slides into a formal deal agreement and conducting due diligence.
Mr. Ballmer and Mr. Siilasmaa shook hands on an agreement that weekend.
At 6 A.M., Helsinki time, on Sept. 3, Nokia and Microsoft finally announced their deal.
Tomi Engdahl says:
What do we learn from Nokia?
Nokia’s rise and fall is Finland’s biggest story in the 2000s. We can no longer boast of the world’s greatest mobile company, even though the peak years of the time only a few years. In today’s Nokia New winds are blowing.
Finnish companies, many of which are operated Nokia’s subcontractors, have to look forward. Could the current Nokia may provide business opportunities? Or is it to leave the world to sell?
As soon as pestinsä early Seppala became familiar with Nokia’s cut-throat “seduce and squeeze”-tactics, which it tiristi sub-contractors as much as possible out of it.
“Nokia’s key message was always that we have been easy to give the business because we know how to do the job. Taking care of us that have to use as much resources as the other tending, “Seppala says.
“This idea also spread to internal meetings.”
Certainly sounds very familiar to many Finnish Nokia’s subcontractors.
“Seduce and squeeze”-tactics
“The cooperation with Nokia was a constant suppliers of humiliation,”
Pry the dinosaur
“Nokia is a company full of unwieldy bureaucracy,” said wished to remain anonymous subcontractor.
“Nokia is very prescriptive, slow and sluggish. Decision-making is a long process and requires all long internal politics, “replied the second, and continues:” The Nokia deals with other companies to subordinates, even in a situation where we are in the same line. ”
And so on. The majority of respondents complain. Someone says Nokia was the “worst customers” while another says there is not ever going to do with Nokia.
Ave Caesar
Nokia’s peak years, many entrepreneurs had difficulty in accepting that had driven the company to a situation where a significant one too, customers have grown to full power. Nokia was in the days of greatness like Caesar. It depended on the position of the thumb, to achieve the Finnish subcontractor fabulous success, or plunged it into bankruptcy.
When the relationship became a problem, the work became personal.
“As early as 2005, it was evident that the business can go down. I still remember the presentation name: Let’s sell our golden egg. I suggested that the merged Nokia account to another company in order to actually change strategically. ”
But it does no come. The top management decided to continue the old strategy. Was it the right decision, it is unlikely to know anyone, but stalling started already be deadly.
Finnish technology industry’s problems were just beginning. Asia injected up factories in size, and Finnish contract manufacturers have been able to defend themselves in any, the Giants rolled into the East Keilaranta to enter into contracts.
“The year 2006 was not good, but the contracts already started to change substantially worse than sub-contractors,” says Timo Seppälä. Nokia began to focus more and more costs. Long-term partnerships and flexibility diminished.
But you bite the hand that feeds you have. Is it?
We Finns feared for Nokia, because it was so rich and all-powerful. In this country, it was difficult to do business, if stigmatized Nokia critic. Suppliers also not supported annoyed by Nokia, since the rage giant would no longer come to invitations to press conferences. The situation was being paranoid. We all went to Finland, the Finnish front, Nokia, and Nokia messed up the front.
When Caesar then fell down, and at best 65 euros price fell to less than two euro.
Autocrats became mortal, even though it was already too late.
But admit it: if someone had written in 2007 that Nokia is collapsing, it would be necessary, as well as supplier management and delivery of a huge guts. It is not from this country were found. Not found me at all.
Source: http://www.tietokone.fi/artikkeli/blogit/tietoja_koneesta/mita_opimme_nokiasta
Tomi Engdahl says:
Destiny is a well-known for it’s irony, and Nokia is no exception. The company’s latest flagship model Lumia 1020 has in fact become the world’s largest e-commerce Amazon.com ‘s sales list of smartphones to the top.
The rise of the top in place just two days after Nokia announced the sale of mobile phone old business to Microsoft. Many a commentator has doubted whether Nokia’s decision makes sense now that the Lumia phones have finally started going to sell.
Source: http://www.iltasanomat.fi/digi/art-1288596338527.html
Tomi Engdahl says:
Nokia’s financial risks are now history
Handelsbanken believes that the loss-making mobile phone business to Microsoft, Nokia gave the financial risks of the past.
HB’s calculations based on Nokia’s earnings per share is now worth 4.5 euros, which is why it has increased as well as the recommendation that the share price target.
The new recommendation is to “add” and target 4.5 euros. Previously, the recommendation was the target and reduce 2.4 euros.
Source: http://www.tietoviikko.fi/kaikki_uutiset/nokian+rahoitusriskit+ovat+nyt+historiaa/a927395
Tomi Engdahl says:
Nokia to set up a veteran Android manufacturer – asks people to Nokia kinds of work
Former Nokia Executive Director Thomas Zilliacus reveals that his investment company, Mobile Future Works tried a year ago to raise funds for Nokia invasion.
“The plan was not successful, but the Tuesday evening announcement opens another interesting opportunity,” Zilliacus says, referring to the decision to sell Nokia mobile phones to Microsoft.
Zilliacus investment company, Mobile Future Works was founded on Tuesday, a new company called Newkia Singapore.
According to him, Newkia plans to offer “the best specialists in the industry,” the opportunity to build a new global mobile industry company. Newkia focus, however, completely dominating the market, but mobile Android.
Newkian plan is to keep the number of operations in Finland, which also has a significant amount of know-how. At the same time the company intends to invest in those parts of the world where business is growing: in particular in Asia.
Thomas Zilliacus will now begin to collect funds for the company. He wants to start a business Newkian end of the year.
“Nokia’s people have incredible skills and know-how. The decision to select the Windows operating system is the only chained them, “Zilliacus sees.
Source: http://www.tietoviikko.fi/kaikki_uutiset/nokiaveteraani+perustaa+androidvalmistajan++kosii+nokialaisia+toihin/a927726
Tomi says:
According to New York Times Microsoft would have preferred to trade in the Nokia maps and spatial data services, that Here business. Its turnover last year was just over one billion euros. Maps and geographic information are an important element of competition from Apple and Google in smartphones.
The solution was licensing the maps
The decisive match was created when the maps lisenssoinnista had been agreed upon.
Nokia has not told where the phone from the sale of the money will be invested.
Source: http://www.3t.fi/artikkeli/uutiset/talous/nyt_microsoft_halusi_myos_nokian_kartat
Tomi says:
The former boss of Nokia HS Journal: Maybe not a particularly good idea to fill in Nokia’s line of non-Finnish
Nokia’s former head of JT Bergqvist said in Helsingin Sanomat , a Finnish company that would be good to have a Finnish top management.
He says the Journal of sophistication that one of the important teaching of Nokia’s ending up in the arms of Microsoft.
Another ex-director Pertti Korhonen,, says for the HS that the maximum errors were made during the period 2005-2010. At the time of new product development began to slow and the software base is not sufficiently renewed.
“With the aging Symbian observed, given up to Microsoft on something that turned out to be a gigantic mistake,”
Source: http://www.tietoviikko.fi/kaikki_uutiset/entinen+nokiapomo+hsssa+ehka+ei+ollut+erityisen+hyva+idea+tayttaa+nokian+johtoa+eisuomalaisilla/a927820
Tomi Engdahl says:
Nokia’s Former Head of Developer Relations on How Microsoft Can Make Acquisition Work
http://allthingsd.com/20130904/nokias-former-head-of-developer-relations-on-how-microsoft-can-make-acquisition-work/?mod=atd_homepage_carousel
Any other changes you’d make?
Lose the name Windows Phone. The Windows name carries a connotation that it’s all about the desktop and that makes it a little like you’re buying your father’s Buick. Lumia is a great brand name. Maybe use that. Call it the Lumia Phone and the Lumia OS or LOS for short. Xbox is not called the Windows Game Box. Its team is relatively independent within Microsoft and it’s successful. Microsoft should do the same thing with the team running the phone business. They need that same level of autonomy. Apple might not have had the same impact with its phone if it had been called the Mac Phone.
Tomi Engdahl says:
Why Microsoft Had to Buy a Phone Company
http://www.newyorker.com/online/blogs/elements/2013/09/why-microsoft-had-to-buy-a-phone-company.html?currentPage=all
Microsoft has been in the computing business for nearly four decades. For a time, it utterly dominated that business as a company that essentially sold software. But over the past several years, personal computing has evolved in a way that Microsoft had not entirely anticipated. Personal computing became very personal, moving from desktops to pockets, from keyboards and mice to sheets of glass, and from hard drives to clouds.
The way that Microsoft traditionally sold its software to most consumers—by licensing it to computer builders, who then sold their wares running Windows to normal people—has fundamentally not worked in this new world. Though its Windows and Office divisions continue to make tens of billions of dollars a year, its market share (and its mind share) of phones, tablets, and search is a fraction of its leading competitors, Apple and Google. It is lagging, and the future is not promising for laggards.
Microsoft has been in the computing business for nearly four decades. For a time, it utterly dominated that business as a company that essentially sold software. But over the past several years, personal computing has evolved in a way that Microsoft had not entirely anticipated. Personal computing became very personal, moving from desktops to pockets, from keyboards and mice to sheets of glass, and from hard drives to clouds.
The way that Microsoft traditionally sold its software to most consumers—by licensing it to computer builders, who then sold their wares running Windows to normal people—has fundamentally not worked in this new world. Though its Windows and Office divisions continue to make tens of billions of dollars a year, its market share (and its mind share) of phones, tablets, and search is a fraction of its leading competitors, Apple and Google. It is lagging, and the future is not promising for laggards.
Launched in October, 2010, Windows Phone software was met with general acclaim in a smartphone market that seemed to be getting stale, design-wise. But it arrived after giving the iPhone and Android a multiyear head start. Plus, none of the phones running it were exciting; Microsoft had again foregone building its own hardware. In February, 2011, Nokia, which was also shut out of the post-iPhone world, inked a deal with Microsoft to become the flagship producer of Windows Phones, and the first interesting Windows Phone, the Lumia 800, arrived that November—a year after Windows Phone was launched.
Microsoft tried to prevent a similar confluence of awfulness from sinking Windows 8, its radical rethinking of Windows designed to cater both to desktops and tablets, by creating its own tablet in-house, the Surface. It has sold about as well as it was reviewed, which is to say poorly
Tomi Engdahl says:
The man that could have been Nokia CEO calls Elop reign ‘a complete failure’
http://www.theverge.com/2013/9/6/4700478/anssi-vanjoki-nokia-ceo-elop-era-failure-microsoft-sale-shameful
When Nokia’s CEO stepped down in 2010, Vanjoki was in charge of the company’s entire smartphone division, and many believed he was set to become CEO. Instead, Microsoft’s head of Business Stephen Elop was installed as CEO, and Vanjoki swiftly resigned his position.
He believes that the sale represents a “complete failure” of Nokia’s regeneration strategy and it’s implementation.
“… Shameful, but unavoidable. This is a complete failure of chosen strategy and its implementation. Nokia was not able to make it work. For Finland’s sake I hope Microsoft will.”
Tomi Engdahl says:
Finns, roamers, Nokia: So long, and thanks for all the phones
The rise and fall of the great Finnish phonemaker
http://www.theregister.co.uk/2013/09/06/nokia_rise_and_fall/
Special Report Finns are in mourning this week after Nokia has sold its mobile phones unit to Microsoft: a decision that weirdly seems both inevitable and shocking at the same time.
But they should be proud, for Nokia had an incredible 15-year run at the top of an entirely new industry, making stalwarts like Motorola and neighbours Ericsson look clumsy and slow. It outlasted both, and gave the world Nordic design and simplicity and top-notch engineering: all influenced by Finland’s world-class education system.
The company also reflected Finland’s outward-looking nature, even if not everyone knew where Finland was.
The affection the Nokia brand retains owes much to creating simple usable technology products in the 1990s and well into the noughties.
Tomi Engdahl says:
Nokia’s decision to withdraw from the mobile phone market place at a time when markets go straight from land to buffer again uphill.
IS told reporters yesterday the Nokia Lumia 1020 smartphone the power a strong foothold in the world’s largest e-commerce Amazon’s sales of smart phones on the list.
Now, the market research firm IDC predicts the global mobile phone market will grow this year, up 7.3 per cent.
In particular, the smartphone market is growing rapidly. Their growth is the IDC estimates that this year 40 percent, and will sell the first time in more than a billion smartphones. In particular, sub-$ 200 smartphones go hot cakes.
Source: http://www.iltasanomat.fi/digi/art-1288596623054.html
Tomi says:
Demos Helsinki researcher Roope Mokka to keep the remaining Nokia business as an interesting piece of game, which can be combined in many different ways. The existing components does not by itself in his opinion, a logical whole.
“This is not here yet. Pieces are sold even more off and new ones take their place, “he says.
Source: http://www.tietoviikko.fi/kaikki_uutiset/mita+tynkanokiasta+tulee/a927732
Tomi says:
For Microsoft and Nokia, fewer secrets
http://news.cnet.com/8301-10805_3-57601766-75/for-microsoft-and-nokia-fewer-secrets/
What can Microsoft do with Nokia in-house that it couldn’t before? Share top-secret plans, says Joe Belfiore, the Microsoft corporate vice president in charge of Windows Phone.
While building new phone hardware and software together, Microsoft and Nokia could once be compared to two ships passing in the night.
The companies often touted their deep partnership on smartphones, but it turns out they still kept many secrets from each other. Sometimes those secrets caused one or the other to scramble to change features before a phone launched, and led Microsoft to rethink core aspects of its mobile operating system.
“There are real-world examples of situations where Nokia was building a phone and keeping information about it secret from us,” said Joe Belfiore, a corporate vice president at Microsoft who’s in charge of the company’s Windows Phone project.
“We would make changes in the software, or prioritize things in the software, unaware of the work that they’re doing. And then late in the cycle we’d find out and say, ‘If we had known that we would have done this other thing differently and it would have turned out better!’” Belfiore told CNET on Friday.
Tomi says:
Windows Phone update detailed in leaked screenshots, includes multitasking changes
http://www.theverge.com/2013/9/7/4703830/windows-phone-8-gdr3-screenshots-features-leaked
Tomi says:
The REAL winner of Microsoft’s Nokia buy: GOOGLE
Beancounters at IDC: Windows Phone is an excellent platform for… YouTube
http://www.theregister.co.uk/2013/09/06/microsoft_nokia_google_money_machine/
Nokia might well boost Microsoft’s smartphone market share, but it won’t derail Android on mobile or thwart Google’s search and ads money machine.
Separate surveys say Nokia will consolidate Microsoft’s third-place status in smartphones while Google, helped by YouTube, will continue to dominate the cash haul from net searches and ads that are served up to mobes running, among other things, Windows Phone.
Beancounters at IDC expect Windows Phone to have 10.2 per cent of the market by 2017, up from 3.9 per cent in Q2. That’ll place its mobile platform behind Android and Apple’s iOS.
One avenue for the sales and marketing people in Redmond will be to consider more low-cost smartphones for use in emerging markets, IDC said.
Nokia is responsible for more than 80 per cent of Windows Phones sold, with Samsung, LG and Huawei a long way behind.
Around half of ads money will go to Google in 2013 and in the near future, according to a separate report by eMarketer.
The analyst predicted 48.2 per cent of all US mobile ad dollars would flow Mountain View’s way this year going to 50 per cent by 2015. The closest rival to Google is Facebook, on 15.3 per cent now but dropping to 13.1 per cent in two years’ time.
Mobile is growing in importance as a percentage of Google’s revenue stream. Nearly a fifth, 19.1 per cent, of Google’s ads revenue will come from mobile search in 2013 – up from 12.3 per cent last year – but rising to 31 per cent by 2015, says eMarketer.
Display ads on YouTube are proving lucrative, too. Money from mobile display ads will hit 3.8 per cent of Google’s net US ad revenue this year compared to 13.8 per cent for desktop display ads. This will change to 9.4 per cent and 16.6 per cent respectively in two years’ time.
“While search drives much of Google’s mobile monetisation, on the display side YouTube is a major reason more mobile dollars are going to Google,”
Tomi Engdahl says:
Old article from Talouselämä 28.4.2011 11:39
Now, I no longer see Kallasvuo, but a new superstar CEO Stephen Elopia, which has come to save Nokia from the morass in which the company over the last few years there has been sunk.
Elop is a compelling performer. He is assertive, speak clearly and are able to take their audience. He almost captivates his audience.
Wow, what a convincing leader in that, I think.
It is easy to forget that charisma and conviction occurring Director of lies always a risk. Such a leader can not get over with the audience, was his message to the contents of any.
History has several examples of how a charismatic leader can even lead to. Stephen Elopia obviously can not be compared with any tyrants, but if you look at the level of the general public charming phenomenon, some similarities can be found.
Fortunately, a large part of the range of nokia bullshit talk alarm is so sensitive that even Elop’s like a skilled performer may not be just about anything through – at least not anymore.
Mr. Elop of Nokia beginning its life as the advantage that the contrast predecessor was so huge. Convincingly set out in fine words was easy to believe. Now, when Elop has been around for quite some time, everything will not go through.
Talking about the new organizational culture and the creation of new patterns of behavior. Sounds great, but what this is really changed?
Well, not exactly nothing!
Nokia is a classic example of a company which is a magnet, attracted to the narcissistic leaders. The number of managers at all levels are huge, and the climber is enough for every occasion. The better you know how to polish your image, the higher you go up.
Errors and problems covered and honor the success of others omitaan for your self. In addition, it is important to lick the big leaders of the back sides of their sentences in their repeating monotonously: “Change … transparency … accountability …”
Now that the organization point to the usual amount of new, leadership roultette is hot. The beasts are fighting over carrion, and the best pieces.
E-mail drops harvase day messages, describing the old leaders of new appointments – while ordinary workers live in constant uncertainty it in their workplace relationship.
At times like this bullshit will rise to record levels. One day, mid-level managers keeps saying he was “committed to implement the project to the end,” we read in the next day to have exchanged their new organization and the team failed to fend for themselves.
When obsoleted by the new leader talks about the new commitment, subordinates, the audience is laughing. Yeah, right!
Source: http://www.taloussanomat.fi/kolumnit/2011/04/28/nokialainen-pitakaa-tunkkinne/20116013/145
Tomi Engdahl says:
Jolla CEO of Nokia selling: “We are now the only genuine Finnish”
Ex-nokia kinds Jolla, a company founded by Nokia and Microsoft’s acquisition can be like winning the lottery.
Nokia’s former employees in a group set up in 2011, the company Jolla. The aim was to develop its own smartphone, based on the Nokia abandon MeeGo operating system.
Last week, Nokia announced the sale of the entire phone business to Microsoft. The whole of Finland was surprised and shocked at the news. But how ex-nokia Jolla types of information were received?
- I’m not surprised at the news. Nokia chose the company’s direction in 2011, when Microsoft announced cooperation. Yes something like this was to be expected Jolla CEO Tom Pienimäki says Iltalehti.
Nokia’s acquisition affects the small hill from the positive Jolla activities, even though the CEO states that “He who has never in competition with Nokia.”
- We are now the only genuine Finnish smartphone option. Which phone is sure to attract the kind of consumers who want and appreciate Finnish. We have received a lot of positive feedback that our work is important, Pienimäki says.
Small Hill points out that the Lumia’s market share has been higher in Finland than anywhere else. This explains his view that the Finns want to continue to favor domestic. This may be Jollalle an important niche.
Nokia’s acquisition does not in itself change the way Jolla plans
Could Jolla do co-operation in the future with Nokia?
- We are the owners of the thing, and they decide to potential cooperation. I do not like the Nokia co-operation impossible.
Source: http://www.iltalehti.fi/talous/2013090917466124_ta.shtml
Tomi Engdahl says:
We are developing a smart map for Mercedes Benz – self-driving car goal
The company announced that its maps and location-based services specializing Here, the unit will start cooperation between the three cars focused operator. Being one of Daimler’s Mercedes-Benz unit, as well as workshops that system integrators Continental Corporation and Magneti Marelli.
Partners begin to build products and services for Nokia’s Here-Service Connected Driving on the substrate.
While self-driving cars may not be on the market for several years, according to Nokia, the requirements must now begin to think about.
Nokia says in a statement that the car connect to the cloud is one of the greatest opportunities today. Cars are able to handle thanks to this information in real time, which allows for completely new services.
Here, according to Nokia, is the well-positioned to help automotive manufacturers and related technology provider to create “in the context of” cars.
Source: http://www.tietoviikko.fi/kaikki_uutiset/nokia+kehittaa+alykarttoja+mersulle++itsestaan+ajava+auto+tavoitteena/a928596
Tomi Engdahl says:
“Microsoft was forced to buy a Nokia”
When Microsoft announced last week to buy the Nokia phone manufacturing, Nokia’s attention focused on the difficult situation. A hint of desperation forced the situation, however, relates to Microsoft. The company threatened to more than 15 years of projects, Death of a phone.
Many in the minds of the store was horrifying news for Nokia, but the stock market’s reaction was different. Nokia’s share price immediately went wild for about 40 per cent increase. At the same time, Microsoft’s share price fell sharply, to about five per cent.
As the reaction gave the impression of Nokia’s trade was a good thing. The price was low, but Nokia was in bad problems. The company’s mobile phone manufacturing is at a loss, and the Lumia smartphone sales weak.
Microsoft for more than 15 years of wilderness journey
Microsoft has developed mobile operating systems in the 1990′s. Windows Mobile platform was released in 2000. However, Microsoft has never had a proper Windows foothold in phones.
The company even tried to develop their own phones. In 2008, Microsoft bought Danger, the company that manufactured some popularity in the United States receiving the Sidekick device. Danger was used to develop two new Windows Phone, Microsoft Kin One and Kin Two.
Kin phones went on sale in the spring of 2010. Phone sales, however, was so poor that they were pulled from the sale just a couple of months
Nokia’s purchase – or Windows phones death
Nokia and Microsoft’s Windows Phone plans failed. One goal was that the Windows ecosystem to attract a strong number of other manufacturers. That did not happen.
Windows phones are introduced such as Samsung and LG, but investments in equipment have been light. Nokia has dominated more than 80 per cent of the Windows Phone sales.
Nokia has not received such a Lumia phone is sufficient demand. Windows smart phone market share has fallen to less than five per cent. Nokia telephone has turned negative, and no quick relief in sight.
This development also drove Microsoft’s in a bad situation. Nokia’s options began to be the company’s sale or exchange of the operating system to Android. A third option would have been a continuation of the current exchange rate, but as a result, Nokia could have to declare bankruptcy.
If Nokia would be sold to any other company than Microsoft, the new owner would probably have finished the Windows Phone unprofitable production.
All of the options would be, therefore, taken from Microsoft for its main Windows Phone manufacturer. It would be practically led the entire Windows Phone ecosystem in death.
The threat of bankruptcy or Android?
Some analysts have estimated that Microsoft’s acquisition timing are two possible explanations. Either Nokia really threatened to change the Android smart phone platform, or the company’s financial situation was heading for a dead end.
Mobile analyst Sameer Singh estimates that the reason is the latter.
Nokia will continue into next year as an independent
It is good to remember that the trade has not yet been confirmed. The approval requires at least Nokia’s shareholders, as well as the United States and the European Union competition authorities. Nokia believes that the sale will be established next year in January-March.
Prior to that, Nokia will continue for six months as an independent company. End of the year there are several new products, to be published in Nokia’s name.
The biggest question mark is rumored Nokia Windows tablet
Source: http://www.tietokone.fi/artikkeli/uutiset/microsoftin_oli_pakko_ostaa_nokia
Tomi Engdahl says:
Would this phone could have been Nokia’s rescue?
In 2003, Nokia introduced the touch-screen phone, which, however, never reached the market, writes The Financial Times.
The Financial Times, Nokia’s future could have been completely different if it had not rejected the 7700 phone in 2003.
When completed in 2003, Nokia’s 7700 model was the company’s first touch screen phone. The model does not, however, never reached the market. The experiment followed the 7710 device model, which ended up to the shops, but even the development was abandoned very quickly.
In 2007, the mobile phone market changed quickly, when Apple introduced the iPhone’s touch screen. Since then, Nokia has long lagged behind Apple in smartphone development.
Last week, Nokia made the historic announcement when it said it would sell the whole mobile phone business to Microsoft for 5.44 billion Euros.
Source: http://www.iltalehti.fi/digi/2013091017469095_du.shtml
Tomi Engdahl says:
FT: Nokia’s head office was known as “the PowerPoint palace”
Although the Nokia 2000 rose early, it stumbled in the end with too much bureaucracy and complacency, to analyze the Financial Times .
According to the newspaper, it is ironic that the headquarters in Espoo, Finland, this has become known as “the PowerPoint palace,” which is full of “middle management staff, which is obsessed with an in-house policy and Microsoft Powerpoint made presentations.”
FT analyze what kind of a loss of a Nokia mobile phone functions for Finland. The magazine pointed out that, on the other hand the output of mobile phones can open you to new growth businesses, for example, and that game companies are going up.
However, Nokia’s mobile phone sales can be the biggest piece for those who are not directly related to Nokia. They are accustomed to the fact that Finland is known elsewhere in the world, at least from Nokia, if for no other.
“Now that the speculation is over the ownership of Nokia, the Finnish might be easier to leave the errors of the past behind and start raking in building the future,” the magazine writes.
Source: http://www.tietoviikko.fi/uutisia/ft+nokian+paakonttorin+tunnettiin+quotpowerpointpalatsinaquot/a928570?s=u&wtm=tivi-10092013
Tomi Engdahl says:
iPhone up, Windows Phone up, Android down in latest mobile marketshare numbers
http://venturebeat.com/2013/09/04/iphone-up-windows-phone-up-android-down-in-latest-mobile-marketshare-numbers/
Sunnebo sees good things ahead for Windows Phone as a result of Microsoft’s recent acquisition of Nokia’s handset business.
Nokia still represents seven percent of feature phone sales, and those buyers will be upgrading at some point. In addition, Nokia has already shown strength with Windows Phone in European nations such as Italy, where it achieved 13.1 percent of new phone sales, and Mexico. In the U.S., the Nokia brand is nowhere near as strong, but Windows Phone’s appeal to first-time buyers, Sunnebo says, will help Microsoft and Nokia.
Tomi Engdahl says:
Finland should not run like what happened to Nokia
Finland has been delighted about the education system of good character and recognized its potential as an export product for a long time. Reputation and success has changed mammon, so far only in words. Now beginning to roll up the sleeves. Rear Travel has run long.
Only the economic outlook worm numbers are vibrant by the public sector. Finland does not go as Nokia: Complacency blinds and makes passive.
Decision-makers must rely on the path to transparency and deepen keskusteluyhteyttään, including game companies with whenever it is possible. Pry the machine can learn a lot from there.
For games and playfulness is part of the official school-Finnish.
Four ten-year-playground equipment manufacturer Lappset has a long history with IT companies, and spoken to play with technology integration perspective – long before Angry Birds parks.
Understanding of information technology in physical contrasts wrecked long ago. Information technology not only stop and deactivation. Equally, it moves and teach.
Finland is now expected to move the world of marketing phrases.
Source: http://www.tietoviikko.fi/blogit/uutiskommentti/suomelle+ei+saa+kayda+kuin+nokialle/a929170
Tomi Engdahl says:
Microsoft’s Concept Videos From 2000 Were Spot-On. So Why Didn’t Ballmer Build Any of It?
http://www.bloomberg.com/news/2013-09-11/microsoft-s-concept-videos-from-2000-were-spot-on-so-why-didn-t-ballmer-build-any-of-it-.html
To regain its place within the vanguard of personal computing, Ballmer’s Microsoft promised to deliver an interconnected set of Web services that could serve up relevant information to users across multiple devices and let them share with family, friends and co-workers. In a statement then, Ballmer said Microsoft would create a “unified platform through which devices and services cooperate with each other.”
Microsoft filmed a bunch of concept videos to illustrate its product ideas.
Cheesiness aside, it’s pretty spot-on, no? There’s personalized content for each family member synchronized across PCs, televisions, tablets, mobile phones and cars; location-aware devices that tell you when friends are nearby; photo-sharing; voice controls — all years before Facebook, Foursquare, or Apple’s iCloud and Siri.
More incredible than the foresight of these videos is how Microsoft failed to execute on nearly all of it. What went wrong? Well, lots of things.
Some of the ideas were simply before their time. Others became bogged down in internecine squabbles between Microsoft fiefdoms, and philosophical debates about whether to keep Windows at the center of this new world or to build a separate platform. And then, the dot-com bubble burst.
The Office group scrapped a planned Internet-based document service called NetDocs. Some of the Windows work in this area got derailed by the late-running train that was Longhorn (later renamed Vista). Microsoft’s early tablet efforts failed, and the company didn’t go back for more until Apple showed them the way.
Business users did get some of the promised technology. SharePoint and Lync provide project sharing, Internet voice calls and teleconferencing. But as Microsoft slapped the .NET name on a variety of products, very few of them fulfilled the initial promise of that first day.
“Had the company executed on even a fraction of its vision, Microsoft wouldn’t be out looking for a new CEO,” said Charles Fitzgerald
Tomi Engdahl says:
This is the new Nokia – three very different parts
When the Nokia sells phone manufacturing to Microsoft, there remains a large and very healthy 56 000 employee in the company. The new Nokia structure is interesting. The company is comprised of three very different parts, especially the one which is shrouded in darkness.
Nokia and Microsoft’s M & A is interesting. Microsoft is taking over Nokia’s mobile phone business, and related services – but not quite completely. Nokia, for example, will develop new technology to the CTO (Chief Technology Office) Unit, as well as the company’s range of valuable patents.
1 Huge part: Nokia’s network company Nokia Siemens Networks
Nokia announced in July that the company will buy out Siemens’ joint network company Nokia Siemens Networks. Nokia paid half of the company’s € 1.7 billion, and the network of the company name was changed to the Nokia Solutions and Networks.
NSN is the new Nokia by far the largest unit. It has about 50 000 employees. NSN is an independent company, which will continue as CEO Rajeev Suri and the Chairman of the Board, Jesper Ovesen.
NSN’s journey in recent years, it has been difficult, but now the company is in excellent condition.
In April-June NSN’s net sales totaled EUR 2.8 billion. The operating profit margin was excellent, almost 12 per cent.
2 Small and promising: Here-mapping
Here net sales amounted to EUR 233 million in the spring, and the result was a 3.4 per cent profit.
The unit is based on Navteq, which Nokia acquired in 2008, a little bit less than six billion euros. Navteq’s website, the company employs approximately 7,000 people.
Here, the unit is still small compared to the NSN network company, but Nokia claims that it is of great strategic importance.
3 The biggest question mark: Technology and Patents
The most unusual Nokia’s new parts of the Advanced Technologies. According to Nokia, it focuses on the development of technology and its licensing.
The unit’s main task is the Nokia more than 10 000 patent licensing. Nokia also suggests that at least some research remains to this new unit.
Patent licensing can bring significant revenue to Nokia over the coming years. Their extent is not known.
Nokia’s new three-unit complex is a profitable and healthy company. Nokia estimates that in the first half of this year, “Nokia’s new” sales would have been € 6.3 billion, and the profit margin would have been a perfect 12.1.
Source: http://www.tietokone.fi/artikkeli/uutiset/tama_on_uusi_nokia_kolme_hyvin_erilaista_osaa
Tomi Engdahl says:
Made in America: a look inside Motorola’s Moto X factory
http://www.theverge.com/2013/9/11/4717796/made-in-america-a-look-inside-motorolas-moto-x-factory
An old Nokia facility has been resurrected to crank out 100,000 new smartphones per week
Motorola partnered with Flextronics to refab a factory in Texas formerly used by Nokia.
Tomi Engdahl says:
Tekes is not charging back to the Nokia support
Tekes is not going to recover from Nokia back to the aid paid to the mobile unit moves to Microsoft. Tekes justification for the Nokia patents remain.
Source: http://www.iltasanomat.fi/digi/art-1288598894712.html
Tomi says:
Behind Microsoft Deal, the Specter of a Nokia Android Phone
http://bits.blogs.nytimes.com/2013/09/13/behind-microsoft-deal-the-specter-of-a-nokia-android-phone/?_r=0
Before Microsoft reached a deal to buy Nokia’s phone business, there was a possibility that Nokia could have switched its smartphones to Google’s Android operating system sometime after late 2014.
And now, it is clear that a Nokia Android phone was more than a possibility. It was real.
A team within Nokia had Android up and running on the company’s Lumia handsets well before Microsoft and Nokia began negotiating Microsoft’s $7.2 billion acquisition of Nokia’s mobile phone and services business, according to two people
Another person said the idea of Nokia using Android wasn’t a part of Microsoft’s discussions with the company about an acquisition, even though that was widely recognized as a possibility.
On one level, Nokia’s Android effort is not shocking. Companies often have “plan Bs” in the works in case they need to change course on strategy or want to help negotiate better terms with partners. Getting Android to run on Nokia’s hardware was not a Herculean engineering effort, according to the people familiar with the project.
Still, a functioning Nokia Android phone could have served as a powerful prop in Nokia’s dealings with Microsoft, a tangible reminder that Nokia could move away from Microsoft’s Windows Phone software and use the Android operating system, which powers more than three out of every four smartphones sold globally.
Tomi says:
Nuclear options: Microsoft was testing Surface Phone while Nokia experimented with Android
http://www.theverge.com/2013/9/13/4728184/microsoft-surface-phone-testing-while-nokia-experimented-with-android
Things might have turned out very differently
Microsoft and Nokia need each other more than you’d expect. While Nokia was testing Android in a variety of different ways, Microsoft was busy experimenting with a Surface Phone. Sources familiar with Microsoft’s plans have revealed to The Verge that the company built a number of prototype devices to test the viability of such a phone.
While Microsoft was busy experimenting with concepts for its own hardware, Nokia was also building its own Android devices. The New York Times reported details of one particular project today, but there were more. Sources familiar with Nokia’s plans have revealed that the company was growing increasingly frustrated last year with Microsoft’s work to push Windows Phone to lower price points. An effort codenamed “Tango” resulted in cheaper handsets with low specifications, but Nokia needed more.
One particular project in testing was codenamed “AOL” according to insiders — “Asha on Linux,” a reference to Nokia’s low-end line of devices that don’t run Windows Phone. Nokia uses a variety of codenames for projects, but this particular one — also codenamed “MView” for Google’s hometown of Mountain View — was designed to use a variant of Android on a low-end handset to maximize margins.
Tomi says:
Analysts: “Nokia wanted to get rid of Windows, as Elop made a huge mistake”
Business Insider cited by analysts Ben Thompson and Benedict Evans believe that Microsoft had to buy Nokia because the company designed to stop the Windows phones to production.
- Stephen Elop made a huge strategic error on the Windows Phone instead of Android. My theory is that Nokia was either transitioning to Android or going bankrupt, Thompson writes.
Thompson also adds that the technology giants Samsung and HTC had abandoned thoughts of Windows phones, Nokia, and without them would have been the end of the story.
Evans, however, sees the money was the main reason for
- Selling phones solve Nokia’s financial problems, and at the same time they are a tactical move from Microsoft. Now, Microsoft’s assurance phones for stay in the market, says Evans.
Source: http://www.iltalehti.fi/talous/2013090317446168_ta.shtml
Tomi says:
Nokia tablet is expensive and works with Windows RT
Nokia may already be published in the coming weeks a Windows tablet is likely to cost $ 499, write to the Windows Super Site site.
Externally, a large snow Below Shown Code carries the name of Sirius.
Size of 10.1-inch Full HD display (1920 x 1080) is based on high-quality IPS panel and it should be bright enough for outdoor use.
Telecommunication got it fast LTE network, and the 6.7-megapixel camera has a Carl Zeiss lens.
Unfortunately, the machine is running Windows RT
Source: http://www.tietoviikko.fi/uutisia/nokian+tabletti+on+kallis+ja+toimii+windows+rtlla/a930131
Tomi says:
Nokia had an Android version of the Lumia phone
According to New York Times Nokia had a functional Lumia phone running on Android OS before mobile phone business was sold to Microsoft.
Ahe agreement between Nokia and Microsoft was the point that Nokia could have ended the Microsoft cooperation at the end of 2014 and started using other operating systems.
Source: http://yle.fi/uutiset/nyt_nokialla_oli_android-versio_lumia-puhelimesta/6831705
Tomi says:
Another Death in Smartphone Bloodbath – Windows Phone strategy so failed, now Nokia handset unit sold – to MIcrosoft
http://communities-dominate.blogs.com/brands/2013/09/another-death-in-smartphone-bloodbath-windows-phone-strategy-so-failed-now-nokia-handset-unit-sold-t.html
Microsoft has just bought Nokia’s total handset unit – not just smartphones but also dumbphones – and the Nokia services business (of what is left of it) and gets it all for a paltry 5.3 Billion Euros. Truly catastrophic. Just before Elop announced his mad Microsoft strategy, in the last quarter of 2010, Nokia’s handset unit – this which was now sold – produced revenues of .. 8.35 Billion Euros – and did this very profitably! For the full year 2010, Nokia’s handset unit generated 27 Billion Euros of revenues and 3.5 Billion Euros of profits!!! Elop wrecked all that in two and a half years and now the loss-making unit is sold for less than its scrap value.
What remains of Nokia, it is now back to its roots as a network equipment provider (NokiaSiemens Networks, that kind of business) competing with Ericsson and Alcatel-Lucent and the Chinese giants Huawei and ZTE.
What becomes of Microsoft? It now is a handset maker. Its Windows Phone gets a new lease-of-life (certainly by now Nokia internally must have wanted to shift away from the dead platform).
Tomi says:
The Full Story of Nokia and Microsoft – How we got here, and why Microsoft will fail with Nokia handsets just like it did with Kin
http://communities-dominate.blogs.com/brands/2013/09/the-full-story-of-nokia-and-microsoft-how-we-got-here-and-why-microsoft-will-fail-with-nokia-handset.html
EXECUTIVE SUMMARY by member ‘caffeine-overclock’ over at Reddit:
Elop killed Nokia twice: First by announcing the move to Windows Phone 9 months before they could deliver, and again by announcing that no more MeeGo phones would be produced the day after the first MeeGo phone was released to extremely positive reviews.
Microsoft’s phone ambitions are similarly doomed because buying Skype caused most if not all of the global carriers to despise Microsoft, and by association Nokia. This will only get worse as time goes on, since Microsoft/Nokia just became Microsoft and any residual good will from Nokia is gone. Without carrier support, Microsoft can’t succeed in those markets.
Definitely worth the read if you have time.
HOW DID NOKIA GET TO THIS POINT?
So, before Elop announced his mad Microsoftian strategy, Nokia ruled the global handset business, more than 50% bigger than its nearest rival Samsung. Nokia did this with massive profits. That is ‘handsets’ ie both smartphones and dumbphones.
he future of the handset business is ‘smartphones’. Contrary to what many recent converts to the smartphone opportunity believe, the smartphone was not invented by Apple with the iPhone – but as I correctly predicted back in 2007, that is how the industry is increasingly seen as now, in two eras, the old era, ‘before the iPhone’ and the modern era, ‘after the iPhone’. So who invented the smartphone if not Apple? Nokia. Literally a decade before the first iPhone was sold. And then you say, but those were like the Blackberry, business-oriented smartphones. Sure. But who invented the consumer smartphone? Nokia. Nokia was the first to be so audacious they called their little pocket devices ‘real computers’ with the marketing of the consumer smartphones under Nokia’s N-Series branding – they were called ‘multimedia computers’
And yes, touch screens, yes, app stores – Nokia did all that years before the iPhone too.
But here is the fact vs the myth. Nokia wasn’t dying because of Apple. Nokia’s smarpthone unit was not dying at all, when Elop announced his bizarre strategy on February 11, 2011. This is the truth. Nokia’s smartphone unit was more than twice the size of its nearest rival (which wasn’t Apple even).
Not only that. Nokia grew more in 2010, yes grew MORE in 2010, in smartphones, than Apple grew iPhone sales or Samsung or Blackberry or HTC or anyone else. Not as ‘growth percentage’ a misleading metric that always favors the smaller guy against the bigger guy, but in absolute growth numbers.
In year 2010, just before Elop announced his new Windows based smartphone strategy, Nokia sold 103.6 million smartphones (the latest, corrected number according to official Nokia documents). Nokia owned 34.8% of the global smartphone market. Nokia sold its smartphones at strong profits
That is the company Stephen Elop discovered, when he was hired to run Nokia in 2010. That is what Elop decided he will torpedo, sink, set on fire, burn to the ground, with his moronic Burning Platforms memo
So poorly were the first Lumia series designed and manufactured, they came with 101 faults. Nokia was supposed to be ‘saved’ by the Lumia running Windows Phone. It wasn’t. One year after the Lumia was launched, by Q3 of 2012, Nokia’s total smartphone sales were down to 6.3 million units per quarter. Nokia’s smartphone market share had witnesssed a world-record collapse and was down to 4%. And nearly half of that sales still came from the older Symbian smartphone business.
After the first Lumia series failed, we were next supposed to be saved by the new Windows Phone version, that which was aligned with Microsoft’s desktop OS, Windows 8.
So, under Elop, Nokia exchanged strongly growing smartphone unit sales for record-setting collapse of smartphone sales. Nokia shrunk literally to one tenth its size in a market that tripled in size. Nokia’s dominating market share of 35% is now 3% and falling. Nokia’s strong revenue growth in smartphones is perennial revenue decline. Nokia’s massive profits from the smartphone unit are now huge losses. And the picture in the dumbphone unit is nearly as dire
CASE KIN
Why do I say dead end. We have a case study. Microsoft wanted its own handset unit. It found a popular high-loyalty youth handset maker, called Danger. It bought it. It then did the Microsoft-magic to the devices and released the Kin series of youth phones. They had big fanfare Microsoftian announcements about how it would be the new revolution in handsets and they claimed many carriers/operators were in line to sell them. Then the launch date came and the carrier support wasn’t there. Six weeks later Kin was killed. The fastest death in the mobile phone handset history. Microsoft’s previous play in making their own branded phones.
The Microsoft Kin phones did not die because the phones were bad. They did not die because the consumer tastes had changed. The Kin phones died because of one reason only – the carrier support vanished. Mobile operators were completely disgusted by Microsoft’s move into handsets and killed the support.
This is a lesson Microsoft has not learned. They are still living the memory of DOS and Windows.
Microsoft believes that it can do that magic somehow now with the handsets. That if it can somehow ‘do it right’ with the Nokia unit, and gain the global dominant position it held with DOS and Windows – then Microsoft can make all the profits and the other manufacturers have to join the Windows Phone world and pay royalties to Microsoft again. They want the smartphone races of the decades of 2010s and 2020s to be like the PC world was in the 1980s and 1990s
The difference is, that in the PC world, there is no national gatekeepers to what brand of PCs are sold.
Tomi says:
Requiem for Nokia Phones – World’s most widely used brand and Europe’s most admired tech company
http://communities-dominate.blogs.com/brands/2013/09/requiem-for-nokia-phones-worlds-most-widely-used-brand-and-europes-most-admired-tech-company.html
Yesterday the dream ended. Nokia’s total handset business was sold, at ridiculously bottom-barrel price, to Microsoft. Well, it was good while it lasted.
This is a love-letter to the world’s most favourite phone brand, ever. Nokia you may be gone but you are not forgotten. First of all, the astonishing numbers. Over its lifetime manufacturing mobile phone handsets under the Nokia brand, the Finnish phone giant sold an unbelievable 3.8 Billion handsets. 3.8 Billion. The planet has 7.1 Billion people. So cumulatively, Nokia’s handset production would reach more than half of the human population alive. This was in 20 years.
It gets even more astonishing in the peak Nokia installed base. At its peak, there were 1.4 Billion Nokia branded phones in use on the planet in 2011. It meant, that for every human alive, not adults, not only in the affluent world, but from babies to great grandparents, globally, there was a Nokia branded phone in the pockets of 1 out of every 5 humans alive. 1.4 Billion simultaneous owners of a Nokia branded phone. This is an unprecedented number and nothing comes close.
What do we do with the phones? You might suggest we make phone calls – that was what original telephone networks were designed for. But it might surprise you, that today more actual telecommunications made on mobile phones are messages than voice calls – most of those are SMS text messages – and more surprisingly, there is a larger number of mobile phone users, who use messaging on their phones, than who use voice calls! Yes, voice calls now are used only by 87% of all mobile phone subscriptions but messaging has reached 90% penetration rate of all mobile subscriptions.
And that brings me to the screen. Nokia made that radical innovation – driven by SMS text messaging – that it expanded the display from one line, to three line display – a massive gain over all rivals at the time.
Color! Can you imagine that as recently as 1997, no handset maker anywhere dared to offer us any colors.
Talking of those ringing tones. A truly massive, radical innovation also happened in Finland, in 1998, when the first downloaded over-the-air paid content was delivered to a mobile phone. Yes, the mobile media was invented. It wasn’t Nokia execs who came up with this, it was a loss-making internet service provider in Finland called Saunalahden Serveri (later Jippii Group). They invented the downloadable ringing tone, delivered via the concept of premium SMS, and only initially functional on five premium Nokia phone models. The ringing tone business was invented. That blossomed to its peak of over 5 Billion dollars per year in ringtone busines
Nokia did publish the world’s first white paper on the mobile internet
Like Symbian. I mean, who else does this in technology? But when Nokia set up the Symbian partnership, it literally invited every other handset maker to join in the Symbian partnership, to co-develop and co-own the smarpthone OS. Who in their right mind does this? Nokia that is who. Yes, they invited their biggest rivals, Motorola, Sony, Panasonic, Samsung, Ericsson, etc etc etc all to join in owning and developing Symbian. Why? So there would not be technology race and war about the smartphone operating systems.
Yes Finland’s Angry Birds additiction has now hit every major country and it the company that developed the world’s most-downloaded videogame of all time, Rovio is not Nokia. But who first put a videogame on a phone as pre-installed software? That truly ‘silly’ idea was from Nokia, and the Snake – the first videogame to have had more than 1 Billion gamers.
Apple did yes, revolutionize the smartphone space, so much so, that the iPhone got the nickname Jesusphone
iPhone was revolutionary because it was a consumer smartphone.
What of the microSD data cards? Nokia offered the first data cards on the Nokia 9110 Communicator model
And what of that usability? Nokia invented the full QWERTY keyboard for phones.
Sharp invented the cameraphone in Japan. But it was Nokia who popularized the cameraphone for the rest of the world. By 2006 Nokia had become the world’s most used camera brand. Not the bestselling new camera brand, the world’s most used camera brand. Today, out of all people who have ever taken a picture, 9 out of 10 people have never used a ‘stand-alone’ type of camera, either digital or film-based ‘real’ camera.
Nokia innovated and delivered ever more astounding cameraphone innovations
What of video recording. Surely not, you might think. Yes. Nokia’s revolutionary N93 was the first cameraphone that shot DVD quality video (and had TV out too, so you could watch those videos on your plasma screen TV).
But what was the first international social media launched on mobile phones. It was Nokia’s LiveBlog.
So of the masses? What do we all do? We all use money. No, Nokia didn’t invent mobile payments but mobile payments were invented in Finland. By… Coca Cola. They decided to install two vending machines that you could buy Coke cans by paying with SMS text messages. Mobile money was invented.
Recently Nokia gave us wireless charging, yet another usability innovation.
So then that mobile internet. The first billion internet users, for most of them, their first intenet experience was on a PC. For the next billion internet users, almost all of them will only know a mobile phone based internet – on a modest ‘feature’ phone, not a top end iPhone or Android. Nokia was the first phone brand to offer the real internet on the original 9000 Communicator. Then Nokia helped bring internet browsing experiences to the masses with the WAP standard
We will miss you Nokia as a consumer brand.
Tomi says:
Thank You For The Smartphone – Some Abba Lyrics Revisited on a Nokia Theme
Thank you for the Smartphone
(some Abba Lyrics with a Nokia spin)
http://communities-dominate.blogs.com/brands/2013/09/thank-you-for-the-smartphone-some-abba-lyrics-revisited-on-a-nokia-theme.html
Tomi says:
Nokia-Microsoft trade analyst background:
“I believe that Android was threatened ‘
The New York Times reported on Saturday that Nokia would have quietly tested the Android operating system on Lumia.
Nokia Evli Bank analyst Mikko ERVASTI argument is not surprising. According to him, it is normal for manufacturers to experiment with a variety of operating systems in their laboratories.
- I do believe that Android is a threat. Microsoft has set alarm bells have started to ring, and this has led to a rapid offer, ervasti says to Iltalehti.
Mikko ervasti believes that the initiative came specifically to trade on behalf of a concerned Microsoft’s operating system side. Nokia deal was a good slot for mobile phone operations to sell in a difficult market environment marked the continuing uncertainty of the exit. In addition, the shareholders were thus realized value.
- However, we must also take into account the value of the destruction of what has occurred in this three-year period.
The analyst does not believe that the operating system would no longer change at this stage of Nokia’s answer to the problems.
- It would have been very difficult to jump on the Android bandwagon, when so much has already been lost. Samsung leads, and other manufacturers (Sony, HTC, LG) go very well.
Ervasti stresses that resulted in the sale of mobile phone operations solutions were actually several years ago, when the strategy was first elected.
- It’s not a bad deal been in a situation where the Windows increase the continuity is very uncertain and Android competition very tough.
Source: http://www.iltalehti.fi/digi/2013091417487990_du.shtml
Tomi Engdahl says:
Nuclear options: Microsoft was testing Surface Phone while Nokia experimented with Android
Things might have turned out very differently
http://www.theverge.com/2013/9/13/4728184/microsoft-surface-phone-testing-while-nokia-experimented-with-android
Microsoft and Nokia need each other more than you’d expect. While Nokia was testing Android in a variety of different ways, Microsoft was busy experimenting with a Surface Phone.
Tomi Engdahl says:
“Nokia had a number of Android projects – Microsoft was in trouble,”
Nokia was running on Android projects, so the Lumia models, the Asha phones, reveals the New York Times and The Verge sources. Nokia had one particular problem: New revelations on the basis of Microsoft was in trouble – and the company knew it.
he timing of the transaction raised doubts that the situation was somehow coming to a head. Nokia should either be intimidated Microsoft to transition to Android or Nokia’s financial situation was rapidly deteriorating.
Many analysts are predicting that the reason was the latter. The New York Times and The Vergen fresh revelations, however, indicate that the background played a hard game. Nokia had already been active in the Android project, and it also had a surprisingly broad.
Information may be Microsoft and Nokia’s marketing a new light. Microsoft was getting into a bad situation.
Source: http://www.tietokone.fi/artikkeli/uutiset/nokialla_useita_android_hankkeita_microsoft_oli_pulassa
Tomi Engdahl says:
Oksaharju: Dreams of Nokia’s brightest minds can not forget about the old days
“Even in 2007, Nokia’s share was around 30 euros per share, which increased the size of the company’s market value of about 100 billion. Nokia investor is no longer useless to dream of past exchange rates, as the company in the demobilization of shareholders losses by handing over the mobile phone business for Microsoft’s takeover,” Oksaharju write.
Pruning ridge, none of the remaining businesses of Nokia does not provide a significant growth option worth ten-fold increase.
Oksaharju ask, why would anyone pay for EUR 30 per share now, when the company’s thrift heman net just over two euros per share?
“From the foregoing it is possible to say that the Nokia demobilization of shareholders losses by giving up the only real growth option or smartphone strategy, the success of the company would be able to possibly return to their former stick price level hitting through the smart phone business, which is the best, contribute significantly to the more profitable business than, for example NSN’s online business.”
Source: http://www.tietoviikko.fi/uutisia/oksaharju+haaveet+nokian+entisaikojen+huipuista+voi+unohtaa/a930566
Tomi Engdahl says:
Credit Suisse, the Swiss has given a favorable recommendation for Nokia.
Credit Suisse has raised the recommendation for Nokia shares “Outperform” level, says news agency Bloomberg. Previously, the recommendation was at “Neutral”.
The recommendation means that the share has the right to expect a better return than the market average. The analyst’s view can be interpreted as a “moderate buy” – or the “add” recommendation.
Bloomberg reports, according to statistics maintained by Nokia, analysts following Nokia recommends that 39 per cent of the share purchase and 41 per cent holding. 20 per cent of analysts recommended selling shares of Nokia.
Source: http://www.kauppalehti.fi/etusivu/credit+suisse+antoi+uuden+arvion+nokiasta/201309509367?utm_source=iltalehti.fi&utm_medium=boksi&utm_content=Versio1&utm_campaign=Boksi
Tomi Engdahl says:
Microsoft does not hesitate – Nokia logo disappeared from phones
In the new ad does not appear in the name of Nokia in Lumia phones.
Nokia logo is used to see at the top of the phone, but the 520 there is only the Windows logo screen. Also, all older phone models Nokia Text is somewhere in the front panel of the phone.
Also, any advertisement presented applications are Microsoft, not Nokia.
Nokia’s name has already been quessed leaving the phones
Microsoft announced in early September to acquire Nokia’s phone business. The transaction is expected to occur in early 2014.
Source: http://www.iltalehti.fi/digi/2013091817502331_du.shtml