Linked by Thom Holwerda on Mon 29th Jul 2013 21:19 UTC
PDAs, Cellphones, Wireless Nokia's vice president Bryan Biniak: "We are trying to evolve the cultural thinking [at Microsoft] to say 'time is of the essence'. Waiting until the end of your fiscal year when you need to close your targets, doesn't do us any good when I have phones to sell today." Later Biniak adds: "As a company we don't want to rely on somebody else and sit and wait for them to get it right." There was a simple solution to this problem.
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Nokia's true tech scandal
by jphamlore on Tue 30th Jul 2013 00:17 UTC
jphamlore
Member since:
2011-02-15

It's incredible to me how little coverage has been given to the true tech scandal of Nokia: Nokia was brought low by under-investment years before Elop was even hired. Nokia's core technical competence, what distinguished it from almost all other companies, was Nokia's expertise across the entire wireless hardware stack. And then Nokia stopped investing in its core hardware competency.

http://www.nytimes.com/2010/07/07/technology/07nokia.html?_r=0

"As handset manufacturing has evolved, wireless modems are increasingly being included in larger, multifunction chipsets along with the phone engine, applications processor, power manager and software."

Nokia failed to invest in a modern ARM SoC unlike Qualcomm, Samsung, Apple, etc. Nokia failed to invest in an LTE chipset unlike Qualcomm, Samsung, Huawei, etc. Nokia knew by 2008 they were going to lose their fab partner Texas Instruments. Nokia also knew a patent cross-license agreement with Qualcomm was going to expire, was drawn into litigation, and eventually had to make a payment of around $2.3 billion USD to Qualcomm to settle the case.

http://articles.latimes.com/2008/oct/17/business/fi-qualcomm17

So the one company that just a few years ago could have gone toe-to-toe with Qualcomm in IP, and was an existential threat therefore to Qualcomm's IP licensing business, was suddenly left at Qualcomm's mercy having to buy its chips from Qualcomm.

Nokia also had the brilliant idea to ally with Intel promoting WiMAX instead of developing LTE compatibility with Verizon like Ericsson did. Great timing to advocate a technology WiMAX that was hyped to possibly disintermediate the carriers in the decade following 9/11.

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