As most of you will know, Nokia slapped Apple with a patent lawsuit last week. Nokia claims that Apple's iPhone infringes upon 10 patents related to GSM, UMTS, and WiFi connectivity. In its SEC 10-K annual report filing, Apple made its first cautious response to Nokia's claims.
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Member since:2007-03-26
So you're saying Nokia should focus their business on over-priced handsets that pretty much perform the same functions as their cheaper counter parts except for pricing most consumers out of the market?
Member since:2005-11-10
Nokia should focus on continuing to exist and not hemorrhaging cash. If they had to drop their entire consumer line for the sake of becoming profitable, they could do that. In this game, profitability matters, only Apple seem to be succeeding with that, with just one handset. I could not begin to count the number of handsets out there.
Member since:2007-07-11
Member since:2009-05-19
Selling billions of throw away phones isn't making Nokia profitable.
Really? Last time I checked selling millions of throw away stuff can turn into a very nice profit. See all discount retailers as an example. Volkswagen is alive and making profits, even though they are the "throw away Nokias" of the automobile industry, while Ferrari would is the "premium Apples" and are small and insignificant.
Member since:2008-10-23
78% of profits in the Smartphone market of late is going through the iPhone.
Is this US numbers? I've searched google and the highest number I've found is 32%. Most numbers are around 25%, which is already quite a big achievement for Apple with its relatively small market share (in units).
Edited 2009-10-29 15:49 UTC
Member since:2005-09-08
78% of profits in the Smartphone market of late is going through the iPhone.
Is this US numbers? I've searched google and the highest number I've found is 32%. Most numbers are around 25%, which is already quite a big achievement for Apple with its relatively small market share (in units). "
No it is a made up number. The 25% and 32% are the "official" numbers ( from Apple marketing ).
Member since:2006-01-12
Nokia makes good profit on all phones they sell. Actually "smartphones", because there is no clear definition what is smartphone, had highest profits for long time. Nokia makes good profit because it pays less on components, it's active researcher of new techniques, it has one of best logistics and warehouse management in world and big brand all over world. Apple has very low brand awareness in almost every else except North America.
Nokias biggest problem is design and shifting to high computing power phones. As for news I think one line clearly shows that this case is just about money: "and that the Company [Apple] has the right to license these patents from plaintiff [Nokia] on fair, reasonable, and non-discriminatory terms and conditions."
Member since:2006-01-06
For most of the world, Nokia's decision to primarily focus on modest computing devices was the right choice until now. But you're right, times are changing, and it needs to adapt beyond patent licensing.
Yep. Apple and Nokia have probably already talked about licensing previously, Apple didn't get the terms it wanted, so it just went ahead with its product rollout. Apple has done this before, for example i the face of the Cisco claim that it owned the "iPhone" trademark. These cases usually get settled. It will be interesting to see how willing Nokia is to settle.
Member since:2009-02-07
You are so right.
Now Nokia will reorganize their Smartphone business, and they have new managers from Apple and Dopplr. It will also be an separate entity inside the Device division, that will give more freedom and better integration, and on top of all a more accurate ASP. It has superior logistics and huge economics of scale, one of the worlds top R&D companies with a key patent portfolio. Nokia is the top of mind brand on all key markets and has a global brand value of 34 864 MUSD or 5th places.
They have a good line of high powered computer like devices, after all Nokia started the Smartphone revolution back in 1996 with its communicator line. They have key knowledge of power consumption, the coming OMAP 3 phones will have serious power and N900 is a good example of those high end computer like phones. N97 mini and X6 should sell very well, probably better then their predecessors do to free music that comes with them, and the freescale chips is powerful and it has really low power consumption.
Nokia 3Q sales and other facts.
Net sales: 9 810 MEUR. Devices and Services 6 915 MEUR, NAVTEQ 166 MEUR, NSN 2 760 MEUR.
Operating profit: 741 MEUR. Devices & Services 787 MEUR, NAVTEQ 43 MEUR, NSN -53 MEUR.
Operating margin: 7.6%. Devices & Services 11.4%, NAVTEQ 25.9%, Nokia Siemens
Networks -1.9%.
Patents of current standards
GSM 45 percent of GSM standard.
UMTS (WCDMA) 30 percent.
CDMA2000 13 percent.
Edited 2009-10-29 17:17 UTC
Member since:
2005-11-21
Maybe in USA, but over here in Europe the iPhone is still loosing out to Nokia, Sony Erricson and WM powered devices.
Don't get me wrong, for a new comer to the market, the iPhone has had a storming success. But it's still far from being the market leader. "
78% of profits in the Smartphone market of late is going through the iPhone.
Selling billions of throw away phones isn't making Nokia profitable.