& cplSiteName &

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        ADD A COMMENT
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.
Sarah Thomas
50%
50%
Sarah Thomas,
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: Light Sabre
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
This week in our WiC roundup: Cell C's CEO under fire for radio show comments; Clinton plays the woman card; Intel discusses diversity backlash; and more.
WiC is proud to have Cisco, Hitachi Consulting, Infinera, Netcracker, Redknee, NetNumber and Open Networking Foundation joining our cause.
This week in our WiC roundup: a father-daughter war of words; a new face for the $20; a look at venture capital firms; and more.
2016 finalists for WiC's inaugural Leading Lights -- Most Inspiring Woman in Comms, Female Tech Pioneer of the Year and Female-Led Startup to Watch -- are revealed.
This week in our WiC roundup: entry-level women ask for more money – and get it; Verizon workers demand better contracts; 4-H refocuses around STEM; and more.
From The Founder
Download our complete guide to de-risking NFV deployment in 2016, including:
  • An eight-step strategy to deploying NFV safely, based on input from the companies that have already started virtualizing their production networks.
  • Interviews with leading executives at Colt, AT&T, Deutsche Telekom, Cisco, Nokia, ZTE, Ericsson and Heavy Reading.
  • Flash Poll
    Live Streaming Video
    Prepping for the Future: Upskill U Explained
    During this short kick-off video, Doug Webster, Vice President of Service Provider Marketing, Cisco, and Light Reading’s CEO & Founder Steve Saunders give an overview of Upskill U.
    LRTV Interviews
    AT&T Expert on the Key Pillars of UC

    4|29|16   |   03:58   |   (0) comments


    Vishy Gopalakrishnan, AVP of product marketing at AT&T, talks about the three developments that are making unified communications and collaboration secure and reliable for enterprise users.
    LRTV Documentaries
    LRTV Report: Mobile Core Innovation

    4|28|16   |   25:32   |   (0) comments


    Hear from multiple industry experts from Deutsche Telekom, SK Telecom, Heavy Reading, Huawei, Cisco, Ericsson, Nokia, NEC and many more about developments in the mobile core as operators virtualize their IMS and evolved packet core systems and prepare for a 5G world.
    LRTV Huawei Video Resource Center
    NFV World Congress Highlight

    4|26|16   |     |   (0) comments


    The highlight of the NFV World Congress contains exciting telecom news. Join us for an inside look at Huawei's ICT 2020 plan and its latest collaboration with industry leaders.
    LRTV Interviews
    Unified Comms Finds Its Voice

    4|25|16   |   03:44   |   (0) comments


    Peter Quinlan, VP of UCC Product Management at Tata Communications, talks about the evolution of the unified communications and collaboration services sector and how voice is now a big part of current developments.
    LRTV Documentaries
    So... What Do We Do Now?

    4|25|16   |   03:24   |   (0) comments


    After a long hiatus, Max Dingman, the CEO of a GeeGhiz, returns for a motivational board room pep talk.
    LRTV Documentaries
    NAB 2016 Highlights

    4|21|16   |     |   (0) comments


    Light Reading's Cable/Video Practice Leader Alan Breznick climbs down from the slots to tell us about the latest news in broadcast technology at NAB 2016 in Las Vegas.
    Between the CEOs
    CEO Chat: Deepfield's Craig Labovitz

    4|21|16   |     |   (0) comments


    In this latest installment of the CEO Chat series, Craig Labovitz, co-founder and CEO of Deepfield, sits down with Light Reading's Steve Saunders in Light Reading's New York City office to discuss how Deepfield fits in with the big data trend and more.
    Shades of Ray
    Leading Lights 2016: Shortlists Announced

    4|20|16   |   0:53   |   (0) comments


    The judging is over and the Leading Lights 2016 shortlists have been published -- you can see who made the cut by clicking on this link.
    LRTV Custom TV
    Introducing MulteFire – Qualcomm at MWC 2016

    4|18|16   |   3.29   |   (0) comments


    MulteFire is the latest option for using LTE in unlicensed spectrum. As oppose to its close 'siblings', LAA and LTE-U, MulteFire operates solely in unlicensed spectrum, which enables it to offer the best of two worlds – LTE-like performance with WiFi-like deployment simplicity. In this interview, Sanjeev Athalye, Sr. Director, Product Management at Qualcomm ...
    Between the CEOs
    CEO Chat: Grant Van Rooyen of Cologix

    4|18|16   |     |   (0) comments


    Grant van Rooyen, president and CEO of Cologix, sits down with Steve Saunders, founder and CEO of Light Reading, in the vendor's New Jersey facility to offer an inside look at the company's success story and discuss the importance of security in the telecom industry.
    LRTV Huawei Video Resource Center
    ONS 2016 – Demonstration of Huawei's NetMatrix Multi-Vendor SDN Orchestrator

    4|15|16   |     |   (0) comments


    This demonstration shows how Huawei's NetMatrix SDN Orchestrator (SDN-O) addresses an operator's core service agility needs for services spanning multi-domain, multivendor networks: it includes a demonstration of:
    - Rapid New Service Design: using YANG to model a complex example of multi-domain, multivendor L3VPN network connectivity service that ...
    LRTV Custom TV
    AT&T Wants to Own North Carolina

    4|15|16   |     |   (1) comment


    Venessa Harrison, president of North Carolina for AT&T, tells how the company will expand its GigaPower service beyond the seven N.C. cities it already serves.

  • This blog, sponsored by AT&T, is the second part of a ten-part series examining next-generation broadband technologies titled "Behind the Speeds."
  • Upcoming Live Events
    May 23, 2016, Austin, TX
    May 23, 2016, Austin Convention Center
    May 24-25, 2016, Austin Convention Center, Austin, TX
    September 13-14, 2016, The Curtis Hotel, Denver, CO
    December 6-8, 2016,
    June 16-18, 2017, Austin Convention Center, Austin, TX
    All Upcoming Live Events
    Infographics
    A new survey conducted by Heavy Reading and TM Forum shows that CSPs around the world see the move to digital operations as a necessary part of their overall virtualization strategies.
    Hot Topics
    Ultra-Broadband Summit, Hong Kong
    Iain Morris, News Editor, 4/27/2016
    WiCipedia: Woman Cards & Bitch Switches
    Sarah Thomas, Director, Women in Comms, 4/29/2016
    FCC Poised to Re-Regulate Wholesale Access
    Carol Wilson, Editor-at-large, 4/28/2016
    Mitel Asks: What Time of Day Do You Shower?
    Mitch Wagner, West Coast Bureau Chief, Light Reading, 4/25/2016
    GoT Fans Curse HBO (Not Right) Now
    Mari Silbey, Senior Editor, Cable/Video, 4/25/2016
    Like Us on Facebook
    Twitter Feed
    BETWEEN THE CEOs - Executive Interviews
    In this latest installment of the CEO Chat series, Craig Labovitz, co-founder and CEO of Deepfield, sits down with Light Reading's Steve Saunders in Light Reading's New York City office to discuss how Deepfield fits in with the big data trend and more.
    Grant van Rooyen, president and CEO of Cologix, sits down with Steve Saunders, founder and CEO of Light Reading, in the vendor's New Jersey facility to offer an inside look at the company's success story and discuss the importance of security in the telecom industry.
    Animals with Phones
    Live Digital Audio

    Of all the tech companies in the Valley, Intel has made the most aggressive commitment to building a diverse and inclusive workplace culture. It's doing so by taking concrete, measurable steps, making a large financial investment and through a commitment to complete transparency about its progress. In this radio show, WiC Director Sarah Thomas will be joined by Shlomit Weiss, Intel's Vice President, Data Center Group, and General Manager of Networking Engineering, who will share with us why Intel is tackling this huge challenge, how and to what effect. She will also discuss her unique experiences leading development of Client SOC development in the past and today leading development of all of the chipmaker's silicon hardware for networking IPs and discrete devices and managing a team of 600 engineers across Israel, Europe and the US.