Light Reading

Nokia on the Road to Hell?

Sarah Thomas
5/7/2013
50%
50%

Nokia shareholders are politely asking the Windows Phone maker to pick a new path, not the road to hell it's currently on.

On Tuesday, shareholder Hannu Virtanen told the hell-bound company's CEO Stephen Elop, "You're a nice guy ... and the leadership team is doing its best, but clearly, it's not enough," according to Reuters. He then asked, "Are you aware that results are what matter? The road to hell is paved with good intentions. Please switch to another road."

I think Elop is well aware of the importance of results, but I have to admit that it's easy to wonder if he's lost his way. I was thinking the other day that I hadn't heard a peep from Nokia in quite some time when I saw Microsoft's latest Lumia 920 commercial making fun of the fanboy war between Apple and Samsung. The problem was that I didn't realize it was a Lumia commercial until the very end. All the attention was on Apple and Android.

That's how the market is, too. It seems that Nokia's big Windows Phone push hasn't really been that big at all. The Finnish company sold 5.6 million Lumia handsets in its first quarter, up from 4.4 million in the previous quarter, but only giving it 5 percent market share. (See Euronews: Nokia Devices Still on the Slide.)

The problem is, it's going to be quite hard to "switch to another road" at this point. I do think Nokia is smart to stay on the sidelines of the Apple and Android fight, but it has to find its niche elsewhere. Crawling back to Android is a lost cause -- it's too little, too late. At this point, its options may be to either focus on taking down BlackBerry, a tricky proposition given their relative enterprise offerings, or to become the champion of the cheap phone.

If it can capture the first-time buyers and emerging markets, where it already has inroads, Nokia may have a chance of escaping purgatory. It seems to realize this, as it's holding an event in India on Thursday where it will unveil a low-cost smartphone targeted at emerging markets. It also just appointed a new general manager for China, Erik Bertman, who takes over June 1.

At the same time, Nokia is not giving up on the high end. Its oft-rumored Lumia 928 is expected to come soon to Verizon. (See Nokia Flagship to Sail Onto Verizon in May?)

I don't know if the emerging markets will be enough to save Nokia, but just staying the course doesn't seem like the best move. I wouldn't be as dramatic as Virtanen to say Nokia is headed to hell, but things will certainly get heated where it's going.

— Sarah Reedy, Senior Editor, Light Reading

(15)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View
Page 1 / 2   >   >>
lanbrown
50%
50%
lanbrown,
User Rank: Light Sabre
5/14/2013 | 6:07:24 PM
re: Nokia on the Road to Hell?
WP was a sinking ship long before Nokia boarded. Nokia was seeing double digit growth with Symbian. 2010 showed a 34% increase over 2009; 134 million units compared to 100 million, so an increase of 34 million units. Nokia is not even selling 34 million Lumia handsets a year. WP has been a failure and Nokia needs to move on before it is too late. If a 34% increase in sales is a burning platform; then what is WP? There is no hope for WP; there never was.
f133972
50%
50%
f133972,
User Rank: Light Beer
5/9/2013 | 6:57:21 PM
re: Nokia on the Road to Hell?
Enough to save Nokia??? What??? That's a bit bold to say. Maybe you didn't realize it was a Lumia commercial until the end because that was the intent of the commercial...? You talk about market share, isn't that what the commercial is eluding to?
Are we going to make more speculations on the direction of Nokia with little injections here and there -- or can we at least give more "light" perhaps unbiased depth to the article? KK THX
lanbrown
50%
50%
lanbrown,
User Rank: Light Sabre
5/9/2013 | 2:01:54 AM
re: Nokia on the Road to Hell?
Nokia wants to use some of its own products like their Map software, which is something Google doesn't like. Google doesn't need Nokia, Nokia needs Google though.

The strategy for Nokia is simple. They supposedly already convinced Microsoft to also support more than just Qualcomm chips. Of course, the company they picked is in the process of a de-merger. Microsoft does need to support more than just Qualcomm chips. Once that is done, then Nokia can start to compete with the likes of Samsung and HTC. Nokia can continue to sell WP but that also means they can easily support others. Sailfish will finally be available soon. Firefox will have an OS as will Ubuntu. If people buy the FaceBook phone, maybe Nokia could produce the next model. Nokia can succeed, they just canGÇÖt rely (trust) Microsoft to be the one to do it.
lanbrown
50%
50%
lanbrown,
User Rank: Light Sabre
5/9/2013 | 2:01:30 AM
re: Nokia on the Road to Hell?
They did but the phones just do not sell. AT&T spent more on advertising on the Lumia 900 than they did the iPhone. Essentially they spent around $400 or so per phone to sell a $99 phone. AT&T didn't see an increase in customers, just a lot of money spent for nothing. For the $150 to $200 million they spent, they could have had a great promotion. Renew or sign-up for a new contract and you are entered in to win $1 million. Each day there would be a new winner and they could do that for six months. Guess what, they would have been farther ahead than jumping on-board the WP train wreck.

Look at WM, where did that end up? Microsoft abandoned it but that was long before the milked it. How about the Kin. That was followed by WP. Microsoft abandoned every WP customer out there with WP8. Up until WP8 handsets that couldn't run the next OS were still being sold. Great way to alienate your small customer base and inform potentials to stay away.
dineshk913
50%
50%
dineshk913,
User Rank: Light Beer
5/8/2013 | 5:33:00 AM
re: Nokia on the Road to Hell?
Or they can virtualize the phone and allow either of OS work ! ...
vinod nanapan
50%
50%
vinod nanapan,
User Rank: Light Beer
5/8/2013 | 12:47:22 AM
re: Nokia on the Road to Hell?
Android is Junk. iPhone is costly. Windows phone is moderately costly and better than iPhone. So choice is clear !!!!
Jeff Anttila
50%
50%
Jeff Anttila,
User Rank: Light Beer
5/7/2013 | 11:54:26 PM
re: Nokia on the Road to Hell?
I'm Finn, and really want to see Nokia succeed, but Apple should be a use-case in "First Mover" or "First to market" advantage.

Even though Nokia had smartphones years before Apple did, Apple localized the software so developers could write the software once.

I remember on Nokia/Ericsson and their first Smartphone platform.
MordyK
50%
50%
MordyK,
User Rank: Light Sabre
5/7/2013 | 10:51:07 PM
re: Nokia on the Road to Hell?
I don't see why they can't go the Android route at any time. AT the end of the day the only major difference between Android and Windows Phone are the apps and the interface, but Nokia can create a signature interface layer on top of Android (inspired by Symbian?) which is an area where they have a ton of experience and add some of their unique stuff such as Pureview. IMHO Its really just a question of marketing and dealing with an overlap of OS's which will also need an good migration app/tool to make it seamless for transitioning customers.
SarahReedy
50%
50%
SarahReedy,
User Rank: Blogger
5/7/2013 | 10:17:47 PM
re: Nokia on the Road to Hell?
Do you think they could really adopt Android at this point and stand a chance against others like Samsung and HTC? It has stiff competition no matter what it does, but it seems like a tough road with Android too.
rgrutza600
50%
50%
rgrutza600,
User Rank: Lightning
5/7/2013 | 9:03:21 PM
re: Nokia on the Road to Hell?
I forgot to add that Windows Phone 8 is the best smartphone OS on the market. I own two iphones, two androids and two windows phones...
Page 1 / 2   >   >>
More Blogs from Que Sera Sarah
There is progress being made as tech firms begin to make women a priority, but there's still a long road ahead to redress the gender balance.
Swiss giant Tag Heuer has teamed up with Google and Intel to take on Apple with a smartwatch of their own as the wearables category starts to heat up.
New commercials boast that AT&T has the 'strongest 4G LTE signal strength,' as the big four US carriers shake up their marketing messages and marketing execs.
Verizon reiterates plans to use small cells in markets where it didn't acquire AWS spectrum, while AT&T has reportedly scaled back plans to deploy 40,000 small cells this year.
More than 1,720 of you voted in our poll on MWC's biggest trends, letting us know that while SDN/NFV were originally expected to be the hottest topics, 5G dominated the show floor.
Flash Poll
From The Founder
Networks of the future will rely on "white box" switches and servers rather than proprietary hardware and that's going to alter the shape of the communications industry. Who says so? John Chambers.
LRTV Huawei Video Resource Center
eLTE Rapid Meets the Need for Speed

3|26|15   |   4:45   |   (0) comments


Designed especially for emergency and dedicated ad hoc local mobile communications coverage, Huawei's eLTE Rapid solution can deliver trunked voice, video and data coverage for multiple users over a 6km range and be set up in just 15 minutes, explains Huawei's Norman Frisch.
LRTV Huawei Video Resource Center
On Videos: Challenges & Opportunities

3|26|15   |   5:56   |   (0) comments


Most everything is now connected. And along with 4K and 4G technologies, everyone could be creating and broadcasting video contents. Users are expecting better video experience with any screen, anywhere and anytime. Operators will meet new challenges, but also see some big opportunities.
LRTV Custom TV
JDSU: Delivering Dynamic Networks for a Personalized Experience

3|26|15   |   5:59   |   (0) comments


Light Reading speaks to JDSU at Mobile World Congress 2015 about new solutions in the areas of HetNets, VoLTE, backhaul, virtualization, big data analytics, and real-time intelligence.
LRTV Custom TV
Smarter Service Chaining & New Ways to Benefit From Qosmos Technology

3|25|15   |   03:11   |   (0) comments


David Le Goff, director of strategic and product marketing at Qosmos, explains how the company has added application awareness to subscriber information to make service chaining more efficient and reduce costs for networking and infrastructure. In addition, Qosmos technology, which has been delivered as C libraries, is now also available as a virtual machine, ...
Between the CEOs
Qosmos CEO: The Changing Face of DPI

3|24|15   |   13:53   |   (0) comments


LR CEO and Founder Steve Saunders sits down with the head of Qosmos to talk about the changing state of the art in deep packet inspection technology, including its role in SDN and NFV architectures. Also, how the comms market is becoming more like the automotive industry.
LRTV Huawei Video Resource Center
FC Schalke Scores With Its Agile Stadium

3|24|15   |   6:23   |   (0) comments


Top German soccer club FC Schalke 04 has deployed a new, agile WiFi network from Huawei in its Veltins-Arena stadium and is reaping the benefits in terms of customer satisfaction and business opportunities, explains marketing chief Alexander Jobst.
LRTV Huawei Video Resource Center
Huawei’s Insights on Mobile Video

3|24|15   |   7:51   |   (0) comments


More people than ever are now watching videos on smartphones. Seventy percent of mobile traffic will be video traffic until 2018. In this video, Huawei's exports give their insights on mobile video in terms of business model, network planning and 4G network construction.
LRTV Documentaries
The Rise of Industry 4.0

3|24|15   |   02:26   |   (8) comments


Are you ready for the fourth industrial revolution? It's a big deal for influential operators such as Deutsche Telekom.
LRTV Huawei Video Resource Center
Getting Connected With eLTE

3|23|15   |   06:04   |   (0) comments


Trunked radio communications have entered the 4G LTE world, and with Huawei's eLTE solution, can now deliver a full range of data and video services as well as push-to-talk voice, explains Huawei's Norman Frisch.
LRTV Huawei Video Resource Center
Funkwerk’s on Track With Huawei

3|19|15   |   3:23   |   (0) comments


GSM-R technology specialist Funkwerk and Huawei have forged a partnership that is benefiting both parties, notes Funkwerk's Gottfried Winter.
LRTV Documentaries
How EANTC Tested Cisco's Virtualization Solutions

3|18|15   |   5:49   |   (0) comments


Carsten Rossenhövel, managing director of independent test lab EANTC, tells Light Reading founder and CEO Steve Saunders about the innovative approach his team had to take when validating Cisco's service provider virtualization and cloud solutions.
LRTV Huawei Video Resource Center
Converged Communications: Working Simply & Smartly

3|17|15   |   03.24   |   (0) comments


Edwin Diender, CTO of Huawei's Enterprise Switch & Communications division, outlines the four main pillars of Huawei's unified communications portfolio and explains how the addition of 4K video capabilities has helped Huawei develop a groundbreaking videoconferencing solution.
Upcoming Live Events
April 14, 2015, The Westin Times Square, New York City, NY
May 5, 2015, Hyatt McCormick Place, Chicago, IL
May 6, 2015, Georgia World Congress, Atlanta, GA
May 12, 2015, Grand Hyatt, Denver, CO
May 13-14, 2015, The Westin Peachtree, Atlanta, GA
June 8, 2015, Chicago, IL
June 9-10, 2015, Chicago, IL
June 9, 2015, Chicago, IL
June 10, 2015, Chicago, IL
All Upcoming Live Events
Infographics
Hot Topics
Women in Tech Coming Into Focus
Sarah Thomas, Editorial Operations Director, 3/20/2015
Will Open Source Groups Keep Windows Open?
Carol Wilson, Editor-at-large, 3/20/2015
Google Hires Wall Street's Most Influential Woman as CFO
Dan Jones, Mobile Editor, 3/24/2015
The Rise of Industry 4.0
Ray Le Maistre, Editor-in-chief, 3/24/2015
Net Neutrality Suits: Only The Beginning?
Alan Breznick, Cable/Video Practice Leader, 3/24/2015
Like Us on Facebook
Twitter Feed
Webinar Archive
BETWEEN THE CEOs - Executive Interviews
LR CEO and Founder Steve Saunders sits down with the head of Qosmos to talk about the changing state of the art in deep packet inspection technology, including its role in SDN and NFV architectures.
Chattanooga’s EPB publicly owned utility comms company has become a poster child for how to enable a local economy using next-gen networking technology. Steve Saunders, Founder of Light Reading, sits down with Harold DePriest, president and CEO of EPB, to learn how EPB is bringing big time tech to small town America.
Cats with Phones
More Is More Click Here
T-Mobile's Buy One Get One Free deal was too much for Fluffy to pass up. He decided more was more.
Latest Comment