Linked by Thom Holwerda on Thu 20th Jun 2013 18:29 UTC, submitted by MOS6510
PDAs, Cellphones, Wireless So, The Wall Street Journal is reporting that Microsoft was very close to take over Nokia, but that the talks eventually broke down, probably beyond repair - at least for now. The reasons the talks broke down illustrate something that I have repeatedly tried to make clear for a long time now: Nokia isn't doing well.
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RE[6]: Go ahead and short
by hhas on Sun 23rd Jun 2013 10:40 UTC in reply to "RE[5]: Go ahead and short"
hhas
Member since:
2006-11-28

Elop was absolutely right to pull the plugs on obsolete Symbian and stillborn MeeGo when he did. The problem was he did it without any thought to public image control, airing all of Nokia's stinky laundry in full view of stockholders, customers and news media, which is something no CEO should ever do. Say what you like in private (and roll the heads of whoever disagrees), but in public view everything always smells of roses.

Discontinuing MeeGo, fine: that was new management correcting their predecessors' poor direction/stamping its own mark on the company. Replacing one not-yet-released product with another not-yet-released product doesn't affect existing customers or sales one whit. Companies do that sort of thing all the time and control the PR side no problem.

But Symbian was Nokia's established keystone product representing a large established customer base and a large predictable source of revenue. Yes those customers and income were declining, but not so rapidly it wouldn't tide them by until their new WP platform was ready. That's the point at which Nokia should've been publicly burned Symbian in order to force those users to jump to WP. Even if they lost some percentage to iOS/Android during the transition, it would still have created a huge instant audience for their new WP products, not only securing Nokia's own commercial future, but also going a long way to bootstrapping the WP ecosystem as a whole. That in turn would've made WP a much more attractive proposition to other handset vendors, app developers and potential customers - which in turn would create more new customers for Nokia's WP products; and so on into self-sustaining growth. Publicly burning Symbian too early didn't just cost them all their existing Symbian users, it cost them almost all of those future WP users too.

Like I say, a huge newbie mistake, and one Elop could've avoided if he'd paid more attention in CEO history class.

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