Linked by Thom Holwerda on Thu 17th Oct 2013 13:30 UTC
PDAs, Cellphones, Wireless

Jorma Ollila, ex-chairman of Nokia, admits Windows Phone was the wrong choice.

While Nokia brought in Elop and focused on Windows Phone, Ollila admits Microsoft's software hasn't helped the company. "We were not successful in using Microsoft's operating system to create competitive products, or an alternative to the two dominant companies in the field", he says, while noting it's "impossible to say what would have happened to the company if different decisions had been made in early 2011 or at some other time."

As if failing sales, a terrible financial situation, and a sale to Microsoft weren't enough evidence to conclude Windows Phone was the wrong choice for Nokia, we now have it straight from Nokia itself.

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RE[2]: Nelson?
by hamster on Mon 21st Oct 2013 07:09 UTC in reply to "RE: Nelson?"
hamster
Member since:
2006-10-06

I do believe we are lucky to have someone like you Nelson. Someone who can predict how Nokia will do and even so much that you can make a buck of it.

If i am not mistaken the Nokia share really took of when they sold the mobile division. Why would that be if the lumia are such a huge success?

Now i am no specialist in predictions and shares like you but i would think that selling the goose that laid the golden eggs would kill the share insted of giving it life...

Reply Parent Score: 2

RE[3]: Nelson?
by Nelson on Mon 21st Oct 2013 10:02 in reply to "RE[2]: Nelson?"
Nelson Member since:
2005-11-29

It has to do with risk and making NOK ab attractive bet. It wasn't the selling off of D&S as much as it was receiving 7 billion dollars in capital, 2 billion available right away to pay down debt.

To a less significant extent, selling off D&S took away the drag on earnings, couple this with a phasing out of restructuring in 2013 and you have a company that's all upside, no downside. They own 100% of a profitable venture, they have a 10 year mapping licensee, they offloaded the severance and retirement liabilities of 32,000 employees, had a golden parachute 70% financed for Elop, and kept their arsenal of patents they can assert without repercussion.

D&S had potential, it was a long game. The WSJ today has run a piece where they're expecting north of 8 million devices shipped which confirms Nokia's guidance and my predictions. That's steady progress and Nokia could've very well seen it through, it just felt that Microsoft cash and reinventing itself was more of a sure bet.

In the hands of a rich company like MSFT though the Lumia line gets to live on and is still spearheaded by Elop (who has a good shot at CEO). Its a win win.

This is similar to how spinoffs unlock shareholder value. A company is more than the sum of its parts.

Anyone who didn't see that Microsoft had implicitly purchased Nokia back in 2011 is daft, they always had solid financial backing in the event they needed an extra push. Microsoft once offered Yahoo 60 Billion dollars, they'd pay anything for the company that now sells 90% of all Windows Phone devices.

Reply Parent Score: 2

RE[4]: Nelson?
by hamster on Mon 21st Oct 2013 10:52 in reply to "RE[3]: Nelson?"
hamster Member since:
2006-10-06

It's been said a million times that ms has been planing on buying the mobile devision from nokia since nokia startet betting on wp.

As far as i remember you guess was 10 milllion but now it's down to 8 million?

Reply Parent Score: 2