Nokia Plan I - 20 Jul 2011

Nokia has now made the necessary changes into its products and organization. With the introduction of its first and unfortunately its last but very impressive Meego phone, Nokia will miss the opportunity to make it into a product line, because of letting all the Meego people go, and focusing on Windows.

So, we only need to wait for the Windows Phones to kick in? This will take some time, however. The Windows Phone 7 is also limited with some of its functionality, e.g. it can only support cameras up to 8 Mpixel.

In the mean time, we want to share some preliminary info about the upcoming results for Q2 and Q3 of 2011. According to our collected information, the Q2 has been really bad, and on Q3 the Symbian market share is expected to seriously plunge. Nokia's only substantial profit currently comes from the S30/S40 phones, and they have also been hit hard in that category by the increasing. Nokia's best phone selling time has always been Q4, and we should not focus on the very bad Q2 and Q3, but rather put all of the focus on Q4. Will Nokia have enough of the high-end products to sell for the Christmas time? The Meego phone and the first Windows Phone will most likely be ready for Q4. However, it looks like to be very difficult to convince the customers to adopt the Windows Phone, when there are more lucrative Android phones available for a lower price range. Our firm belief is that Nokia will recover, but this will happen in H2 2012, when they get their portfolio into a better shape with more phone models.

Nokia Plan I - 16 Feb 2011

Here is a suggestion for Nokia about what to do. However, let's first go back a few years to see what happened there...


Nokia was developing their mobile sites and Club Nokia to sell content to the phones. The download codes were more successful, and Club Nokia was closed in 2003. The business was just getting profitable, when the management pulled the plug. The reason was that Nokia's market share started declining, so the management wanted to stop all activities that threaten or seem to threaten the operators' business - including the selling of downloadable content. This very successful predecessor of the iPhone shop was teared down in 2004.


R&D had created an internal report stating that the Symbian Operating System should be replaced with Linux as soon as possible. Alledgedly the report listed several issues and conerns about the Symbian OS. Symbian OS was originally not designed for a modular approach, and there was serious concern about its capability to perform in a complex environment. In the meantime the Symbian OS software team was growing in the numbers. Finally it got so large and influential that it became larger than life. It was able to obtain all the necessary resources it might require. However, there were some irritating voices speaking on behalf of the Linux OS. So, the Symbian OS team hired a resource to fight it off with BSD. The job of this BSD fighter was to battle the Linux people and give the working space for Symbian to focus on its growth. The right course of action at this point would have been to outspin the Symbian OS software unit into a separate company, but the management was unable to see or do this. The Symbian OS unit was the master of the company.


New CEO, Mr. Stephen Elop is chosen for Nokia. He coming from Microsoft realizes that Nokia will need a fully functional operating system as soon as possible. Microsoft Windows Mobile is his obvious choice. Convincing the board of directors requires time, but finally they agree to the CEO's persuasion with devastating results on the stock market.


As everyone has already pointed out, the cooperation has huge risks for Nokia and only upside potential for Microsoft. So far Nokia was paying for the Symbian OS development, and now when moving to use Microsoft Windows, guess who again will be the only company paying for the OS development. Even though Microsoft has deep pockets, and has paid all the OS development so far, there is little belief that MS will continue sinking huge sums into the Windows development. They now have a wealthy paying customer. Also, how does this MS case differ from using Android? Nokia will be a device manufacturer in either case. Then, about the mobile advertizing income. If MS does not have mobile advertizing customers, then it will be veri difficult to obtain them. Nokia getting a portion of little money is even less little money.

Corrective actions

Nokia could use the MS Windows in some of its models if an operator is specifically requesting the Windows OS. Nokia has always wanted to be in the business that grows faster than the average market. Ring any bells which OS is growing faster than the market. At this point it seems that Nokia believes it can still dominate the market and therefore has become larger than life.

Updates will be added soon...

Sources and disclaimer

This article is based on the interviews and views of the former Nokia employees and might contain some inaccuracies. However, the information here is believed to be true.