Linked by Thom Holwerda on Wed 9th Feb 2011 00:04 UTC
PDAs, Cellphones, Wireless Speaking of Nokia - Engadget got their hands on what is supposedly an internal memo sent to Nokia employees by the company's new CEO. It's... Brutal. As in, brutally honest. There's no sugar-coating here, no unicorns, no glitter. "Nokia, our platform is burning." Update: Android is probably out of the question. Will it be Windows Phone 7, after all? Damn; Palm tonight, Nokia Friday - what a week for mobile! Update: The "Communities Dominate Brands" blog published an in-depth analysis of the memo, which claims with sound arguments that it might well be a hoax.
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It's obvious
by gregthecanuck on Wed 9th Feb 2011 04:18 UTC
gregthecanuck
Member since:
2006-05-30

They have been outspent by Apple, Google and Microsoft.

Would it be wise to attempt to bring up a fourth ecosystem distinct from the three above? I think not.

No doubt in my mind they will go WP7. For now probably only in some high-end phones to test the waters.

No other choice. They cannot outspend Google, Apple or MS. Game over on software.

Microsoft is hungry for WP7 wins and marketshare which is a huge leverage point for Nokia. I would expect Nokia to pay very little for the O/S per phone - perhaps less than $5 per phone - perhaps even zero for some time/quantity. Squeeze MS hard. ;)

All that software money could then be spent making a better phone. Focus on one thing and do it well.

Reply Score: 1

RE: It's obvious
by nt_jerkface on Wed 9th Feb 2011 04:41 in reply to "It's obvious"
nt_jerkface Member since:
2009-08-26

Nokia to pay very little for the O/S per phone - perhaps less than $5 per phone - perhaps even zero for some time/quantity. Squeeze MS hard. ;)


Oh they can do more than that, they should push for a free OS with 50% cut of app revenue.

The problem with using Android is that it only feeds the beast. They should use WP7 to disrupt the market.

Reply Parent Score: 2

RE[2]: It's obvious
by gregthecanuck on Wed 9th Feb 2011 05:36 in reply to "RE: It's obvious"
gregthecanuck Member since:
2006-05-30

"Nokia to pay very little for the O/S per phone - perhaps less than $5 per phone - perhaps even zero for some time/quantity. Squeeze MS hard. ;)
Oh they can do more than that, they should push for a free OS with 50% cut of app revenue. The problem with using Android is that it only feeds the beast. They should use WP7 to disrupt the market. "
Absolutely. Whips and chains for Microsoft. You make a good point - take some app store revenue as well.

Edited 2011-02-09 05:38 UTC

Reply Parent Score: 1

RE: It's obvious
by elsewhere on Wed 9th Feb 2011 05:19 in reply to "It's obvious"
elsewhere Member since:
2005-07-13

They have been outspent by Apple, Google and Microsoft.


Are you familiar with Nokia? They far outspend Apple, Google and Microsoft. Mobility is their core business. Their R&D department is the size of Apple.

Now, as to how effectively they've spent that money, well, sadly, that's an entirely different question and the current situation probably answers it adequately.

Reply Parent Score: 7

RE[2]: It's obvious
by gregthecanuck on Wed 9th Feb 2011 05:35 in reply to "RE: It's obvious"
gregthecanuck Member since:
2006-05-30

"They have been outspent by Apple, Google and Microsoft.
Are you familiar with Nokia? They far outspend Apple, Google and Microsoft. Mobility is their core business. Their R&D department is the size of Apple. Now, as to how effectively they've spent that money, well, sadly, that's an entirely different question and the current situation probably answers it adequately. "
Latest news from appleinsider:

Apple 4Q/2010 phone revenue: $10.5 Billion
Nokia most recent quarter : 9.7 Billion

This is just Apple. Add in Android and WP7 and you can see Nokia's SALES (which must fund r&d) are being eclipsed by Apple and more than likely far more by Android.

They are now paying for a lack of focus in their r&d departments. No vision. Too bad.

Reply Parent Score: 1

RE[2]: It's obvious
by _xmv on Wed 9th Feb 2011 12:14 in reply to "RE: It's obvious"
_xmv Member since:
2008-12-09

"They have been outspent by Apple, Google and Microsoft.


Are you familiar with Nokia? They far outspend Apple, Google and Microsoft. Mobility is their core business. Their R&D department is the size of Apple.

Now, as to how effectively they've spent that money, well, sadly, that's an entirely different question and the current situation probably answers it adequately.
"
Nokia R&D is actually far bigger than Apple.

Reply Parent Score: 2

RE: It's obvious
by Praxis on Wed 9th Feb 2011 06:21 in reply to "It's obvious"
Praxis Member since:
2009-09-17

They have been outspent by Apple, Google and Microsoft.

No other choice. They cannot outspend Google, Apple or MS. Game over on software.


Actually they can, and are http://www.engadget.com/2011/02/03/visualized-nokia-randd-spending-...

They spend more than any tech company except for Microsoft, and thats total so Nokia probably spends more than Microsoft on phones if you break it down.

Though their inability to come up with a shipping modern phone OS in reasonable time period while spending so much money, does not speak well about management. Sure they had to build a new os, but so did Microsoft. They both realized their current offerings needed a revamp at the same time (or they should have).

However, they have the money and they have talented developers, that they can't do anything with them is a management problem, usually too much management. If they can fix that they might have a chance.

Reply Parent Score: 6

RE: It's obvious
by aliquis on Fri 11th Feb 2011 02:34 in reply to "It's obvious"
aliquis Member since:
2005-07-23

Cannot outspend?

Google Nokia R&D spending compared to for instance the iPhone.

Or well, just look at the numbers for the whole company.

Reply Parent Score: 2