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Nokia to shed 7,000 staff as part of reorganization

27 April 2011 Last updated at 13:45 GMT

Nokia has been slower than rivals to take advantage of the lucrative market for smartphones Continue reading the main story Mobile phone manufacturer Nokia has announced it will shed 7,000 jobs from next year as part of a plan to refocus the company on smartphones. The firm said 4,000 jobs worldwide would be cut - including a total of 700 jobs from Nokia's UK sites. Nokia will also transfer a further 3,000 employees to outsourcing and consultancy group Accenture, which will take over Nokia's Symbian software. The Finnish firm is moving from Symbian to Microsoft's smartphone technology. The firm recently confirmed the deal with Microsoft last week to jointly develop smartphone technology, which will cut costs by about 1bn euros a year. Under the terms of that deal, Nokia agreed to start using the Microsoft's operating system on its smartphones instead of its own Symbian platform. "This is about keeping focus within Nokia on Windows Phone. It helps to get rid of any doubts on where this company is going," said Carolina Milanesi, an analyst at Gartner. Nokia's response to the smartphone threat from competitors such as Apple's iPhone and phones using Google's Android system has been long been a key investor concern. 'Dark day' In Finland, where Nokia is expected to cut 1,400 jobs, unions said the losses were not as bad as had been feared. "This went slightly better than expected, because Nokia transfers Symbian development," said Pertti Porokari, chairman of the Union of Professional Engineers in Finland. "These 1,400 people to be laid off are mainly MeeGo coders and they should have quite good chances to find new jobs," he added.

However, unions in the UK were not so happy. "This is another dark day for the British economy," said Tony Burke, Unite assistant general secretary. "What is very disheartening is that mobile phones and their associated technology are one of the growth areas in the British economy, yet this still does not stop a successful company such as Nokia throwing people out of work". Nokia hopes that the job cuts and restructuring will also help produce savings of 1bn euros for the firm by 2013. "With this new focus, we also will face reductions in our workforce," said Stephen Elop, Nokia president. "This is a difficult reality, and we are working closely with our employees and partners to identify long-term re-employment programmes for the talented people of Nokia." Mr Elop later told reporters at a press conference near Helsinki that he believed this would be the full extent of the job losses. He added that the restructuring announcement was the "full plan for as far as we can see into the future".

Japan quake to hit supply of Nokia mobile phones
21 March 2011 Last updated at 17:25 GMT

Nokia has been slower than rivals to take advantage of the lucrative market for smartphones Nokia, the world's largest mobile phone maker, has said it expects Japan's earthquake and tsunami to disrupt the supply of some of its products. Many companies are facing supply problems after component factories in Japan shut down after the disaster. However, Nokia said it did not expect the disruption to have any significant impact on its profits in the first three months of this year. The firm said it was looking at alternative sources for components.

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The sheer number of phones it sells means it is likely more vulnerable to unexpected disruptions to component supply than rivals.” Companies that were forced to close factories in the immediate aftermath of the quake included electronics giant Sony and carmakers Toyota, Nissan and Honda. As a result, Nokia rival Sony Ericsson has already said that it faces supply chain issues. 'Vulnerable' "Although a complete picture is not available, Nokia expects some disruption to the ability of its Devices & Services unit to supply a number of products due to the currently anticipated industrywide shortage of relevant components and raw materials sourced from Japan," Nokia said in a statement. "However, Nokia does not expect any material impact on its first quarter 2011 results due to this event," it added. Analysts said the company could be hit harder than other mobile phone makers by Japanese supply issues. "The sheer number of phones it sells means it is likely more vulnerable to unexpected disruptions to component supply than rivals," Ben Wood at CCS Insight. He added that the timing of the disruption was particularly bad. Last month, Nokia announced it was joining forces with Microsoft in an attempt to catch up with rivals that have been far more successful in launching smartphones. This came days after chief executive Stephen Elop sent a memo to staff warning that the company was in crisis, in which he said the company was standing on a "burning platform".

Nokia market share falls but Microsoft deal confirmed
21 April 2011 Last updated at 12:51 GMT Investors have been awaiting news of how Nokia will boost its presence in the smartphone market Continue reading the main story

Consultants Strategy Analytics said that Apple had now overtaken Nokia as the world's largest handset seller in revenue terms. Continue reading the main story Analysis Tim Weber Business editor. I am pleased to report that we signed our definitive agreement with Microsoft and already our product design and engineering work is well underway. chief executive. Investors welcomed the news.4bn $11.5 million handsets in the last quarter ." The Finnish company's slow response to the smartphone threat from Apple's iPhone and the Blackberry handsets has been one of investors' key concerns. Nokia also said that it had struck a long-awaited deal to develop smartphone technology with Microsoft. and said it had sold a record 18. Nokia v Apple (Q1) Noki Apple a Source: Strategy Analytics Handset sales 108.65 million iPhones during the quarter. On this front.Strategy says that the US's firms revenues from its more expensive phones far outstripped its Finnish rival's. we shifted from defining our strategy to executing our strategy.almost six times that sold by Apple . But its market share fell 4% to 29% as cheaper rivals and the popularity of competitors' smartphones ate into Nokia's dominance. Stephen Elop.6m Average wholesale price $87 $638 Handset revenues $9. sending Nokia shares up almost 3%.Mobile phone maker Nokia has posted better-than-expected profits for the first three months of 2011. down 1% to 344m euros (£304m). On Wednesday Apple unveiled a 95% rise in first-quarter profits.9bn Despite shifting more than 108. said: "In the first quarter. BBC News website .5m 18.

analyst at Nordea. when the first Nokia phones sporting Microsoft's Windows Phone 7 operating system will hit the market. Nokia's decline could be swift and brutal. However.Nokia's new-ish chief executive Stephen Elop will be relieved that sales are holding up fairly well. given the current breakneck speed of innovation. If customers don't stay loyal to the brand. But its margins are razor-thin. Nokia's group sales rose by 9% to 10. and it's little wonder that in terms of both revenue and profits Apple is now a larger phone maker.4bn for Nokia. Nokia said that for the full year.9bn (£7bn. Last quarter it sold 583% more phones than Apple.6%.40bn euros. 8bn euros) in the first quarter. Nokia will start using the US company's software on its smartphones instead of its own Symbian platform. The numbers also demonstrate Nokia's Achilles' heel: In terms of handsets sold. Nokia said the deal will enable it to cut annual costs by around 1bn euros. For mobile phones. against $9. So it is crucial for Nokia to retain a hefty market share until its technical turnaround kicks in. Despite the drop in Nokia's market share . . well ahead of analysts forecast of 8. Nokia is still a giant.the first time in a decade it has fallen below 30% Sami Sarkamies. but margin guidance underlines that difficult times lie ahead as it transitions the portfolio. while smartphone sales were up 6% at 7bn euros. 'Under control' Under the Microsoft deal. said: "The first quarter was very strong. that's a delay of half a lifetime. margins would fall to within a 6%-9% range. much better than expected. Strategy estimated that Apple's wholesale revenues for its iPhone division were $11. if network operators start to focus on other handset makers. The company's key phone unit reported an operating profit margin of 9.8% for the JanuaryMarch period." said analyst Geoff Blaber from CCS Insight. "Finalisation of the agreement with Microsoft means Nokia can now focus on execution. Nokia will hope it made the right bet opting for Microsoft rather than Google's Android operating system for mobiles. In a report published on Thursday. That won't be before the end of the year though.

Apple's statement talks of an agreement on "a license covering some of each others' patents. The settlement of the long-running and complex patent battle between the two technology giants is a rare piece of good news for the Finnish company . there were no dramatic changes." But. Nokia’s patent victory against Apple 14 June 2011 Last updated at 12:04 GMT Nokia claimed some technology in the iPhone infringed its patents At last. for all the ideas. They show a couple of concept phones. serving the tiny segment of the market interested in smartphones.it was after all only going to be a niche player. has proved the undoing of a company whose dominance seemed unassailable just four years ago. Just look at two videos." he added. security and encryption. ."It seems the situation is under control. Nokia seemed relaxed about Apple's arrival in the market . But what this story really shows once again is how one phone. Nokia failed to turn the inventiveness of its engineers into one compelling product in the same way that Apple managed with the iPhone. Nokia was the industry's acknowledged leader. A caption says the videos "are exploring futuristic concepts and potential new ideas that may or may not be produced in years to come. the giant of the industry appeared asleep at the wheel." The trouble was. then Google's Android.and its shares hauled themselves off the canvas this morning as a result. put on YouTube a few days after the iPhone launch. As first Apple. as Apple is paying royalties to Nokia. but not the majority of the innovations that make the iPhone unique. showed that easy access to the mobile internet was the future of phones. accusing Apple of trying to get a free ride on its innovation with the iPhone. So in 2009 the Finnish firm launched its patent broadside. Now the patent battle has been sorted. speech coding. apparently promising a far more sophisticated touchscreen future than Apple was offering. a victory for Nokia against Apple. not just in market share but in innovation. the iPhone. Among the technologies it accused Steve Jobs and his team of "borrowing" were wireless data. When Steve Jobs unveiled the touchscreen device in 2007. it seems clear who is the overall winner.

and we should not underestimate just how lucrative the patents on all that technology developed in Finland over the last decade could still prove. You need the design and marketing skills to combine hardware and software into a product that will make people go "wow". . a Finnish newspaper quoted sources inside Nokia saying he had left because of differences over strategy and would not return. But Nokia's CEO should be more focussed on driving home the lesson of the iPhone. However. An official Nokia statement said he had left to resolve a "personal matter" and gave no date for his return. Mr Green was known to champion the MeeGo mobile operating system which Nokia recently sidelined. Now he has won a breathing space. rather than "whatever". Stephen Elop has been struggling to convince the market that his campaign to get Nokia off its "burning platform" and into a profitable future making Windows Phone 7 handsets is on course. Nokia loses another technology chief 9 June 2011 Last updated at 12:06 GMT Continue reading the main story Nokia's chief technology officer Rich Green has taken a leave of absence from the mobile phone giant.Nokia may now hope to reach more licensing agreements with other phone-makers. it's not enough to be able to predict what consumers will want a couple of years ahead. with the Apple deal promising a slight lift in Nokia's dismal financial performance. It's not enough to invent cutting-edge technology.

"It has to execute faster. will take over the post of technology boss. he said.That decision was brought about by Nokia boss Stephen Elop's decision to adopt Microsoft's Windows Phone software for its smartphones. Tech change Finnish newspaper Helsingin Sanomat cited unnamed Nokia sources who claimed that Mr Green's departure was linked to the MeeGo decision. he was Nokia's fourth chief technology officer in five years. Nokia said Mr Green's absence would have "no impact on our product strategy or our expected product launch timelines". When he was appointed. Ian Fogg. In its statement. The company said that Henry Tirri. Mr Green was unhappy with Nokia's decision to abandon plans to produce phones built around the system. Rich Green was known as a keen supporter of the Meego system Rich Green joined Nokia in early 2010 following a 19 year stint at Sun Microsystems where he latterly oversaw the move of Java code onto mobile phones." 10 February 2011 Last updated at 11:00 GMT Share this page • • Facebook Twitter . an independent industry analyst. However. it said." said Mr Fogg. currently head of Nokia's research labs. In particular. Senior management at Nokia have had to make some very hard decisions about its older projects and products. declined to comment specifically on Rich Green's departure but said the transformation Nokia was currently going through was fast and far reaching. explained Mr Fogg. This was essential to ensure Nokia could get on with the job of producing Windows Phone handsets. adding that the strategy switch to Windows had to take the entire company along with it. he expressed concern that the company was moving fast enough. "Nokia has to bring Windows Phone devices to market quickly. The news of Mr Green's departure caps a rough month for Nokia in which it announced that sales of its phones during the second quarter of the year would be substantially below previous forecasts. They need those devices to be shipping.

say insiders Continue reading the main story Related Stories • • • Nokia at crisis point. They include mistakes that have left it "years behind" rivals such as Apple and Google. . His "burning platform" memo . warns boss Nokia warns of weak start to 2011 Nokia reabsorbs Symbian software When Nokia chief executive Stephen Elop laid out the problems facing the company this week. while facing stiff competition from Chinese rivals at the same time.outlined the serious challenges that the business faces.• • • Share Email Print Nokia crisis highlights internal struggle By Bobbie Johnson Technology reporter. BBC News Sauna meetings are a way of life for top executives at Nokia.which was posted for all of the Finnish firm's employees to read . he did not mince his words.

Indeed it is seen as so integral to the company's operation that many of its offices around the world. have had saunas specially fitted in order to accommodate their addiction.despite pumping $3.5bn) into research projects last year alone. has been run almost exclusively by Finnish executives since it started as a paper-milling company in 1865. While the sauna is a way of life for Finnish people. Mr Elop said the firm faced competition from Google and Apple He is also trying to speed up Nokia's approach to developing new products. Many of these senior managers have been with the company for their entire career. . and despite its global presence and large international workforce." one member of staff told BBC News. but that the cracks were papered over by the explosive and seemingly unstoppable growth of the mobile phone industry in general. In private conversations. an area where it has been accused of being unresponsive . The business. is hoping shake up. staff regularly talk about Nokia's overtly masculine culture. it has almost become a religion for Nokia's high-ranking managers. "Our employer is in the biggest trouble now. and we have not succeeded in bringing out new ideas. which span from Afghanistan to Zambia. 'Mere blip' That culture is part of what Mr Elop.9bn (£2. some deliberately keep foreign counterparts at arms' length. which is headquartered just outside Helsinki. and describe a world where important deals are usually brokered during visits to the sauna. Many insiders admit that these structural problems were apparent several years ago.But insiders have told BBC News that Mr Elop's biggest challenge is something different: the battle to open up Nokia's fiercely insular culture. an American who was brought in last September as the company's first non-Finnish chief executive.

. "The first iPhone shipped in 2007. Mr Elop has suggested that the company's shortcomings were brutally exposed when Apple launched the iPhone in 2007 and ushered in an era of touchscreen technology. It dominates the country's finances and is responsible .are merely a blip." But while outsiders agree that Nokia needs to broaden its view of the world. Continue reading the main story “Start Quote Now that the Canadian CEO has lobbed a hand grenade into the quiet. and this may explain why Nokia is seen to be struggling so much more than it actually is struggling.are often focused on short-term domination and quick results. he is a bullish supporter of the company. it is an indestructible company that has become vitally important to the nation." he said in the memo. many Finns reject the idea that Nokia is in trouble. "If you lead the market and are twice as big as your nearest rival. To them. "Ask Toyota or Coca-Cola or Airbus. "Android came on the scene just over two years ago. that is something any market leader would desperately wish for. the issues it faces today . all bets are off” Rory Cellan-Jones Technology correspondent • Read Rory's thoughts in full For those who cannot imagine life without Nokia." Though he admits that Nokia has been slow to make progress in some areas." he says. and this week they took our leadership position in smartphone volumes. understated culture of Finland's mobile giant. says that critics ignore the fact that the company has a greater share of the worldwide phone business than anyone else.characterised in Mr Elop's memo as "unbelievable" ." he says.for a huge number of jobs in a country with a population of just 5 million people. Why? Because US businesses . and believes that the competition from American technology brands will be short-lived. a former Nokia executive who is now a consultant and author.However.driven by the voracious nature of the stock market . "The culture is radically different.directly and indirectly . and we still don't have a product that is close to their experience. Tomi Ahonen.

a respected executive who grew up in Wales and made his name at American TV network CBS." he has said. faster rivals and a business culture that was based heavily around its Tokyo roots. "In a sense. Sir Howard has worked to carefully merge two very different styles of business. Since taking over the leadership of the company in 2005.a Canadian who spent most of his career in senior roles at American software companies. It remains to be seen whether Mr Elop's stewardship can convince them to change their minds and stem the company's long-term slide. the company eventually decided in 2005 that it needed to go outside Japan for its next boss. 'Sound business' Other major technology companies have faced similar problems in adapting to sudden changes. It ended up appointing Sir Howard Stringer. provided I find a way to enlist the support of the employees.only to be met with disdain. "It's easier for me as an outsider to execute.Whether you believe that Nokia's problems are severe or merely a passing phase. they are certainly not unique." Five years after Sony made the decision to break with its tradition. but Mr Ahonen believes that long-term crisis is avoidable. most notably Japanese electronics giant Sony. But one former Nokia manager said that the same idea has been put forward before . Mr Elop's memo likened Nokia's position to like being on a burning platform It also grew massively and led its industry for years. Mr Elop finds himself in a similar position . The desire to shake things up may be why he is said to be considering moving the company's "centre of gravity" to the US. . now running a business where he doesn't even speak the language of its home country. Faced with an inability to keep up with smaller. before hitting a series of stumbling blocks.

" said Andy Lees. The software update. code named Mango. "With Mango. Other features of the updated Windows phone will include a single inbox for all e-mail accounts and deeper social network integration with the addition of Twitter and LinkedIn to contact information. offering to integrate them more directly into the core functions of the phone." he added. Windows Phone take a major step forward in redefining how people communicate and use apps and the internet." Microsoft gives Windows Phone 7 a makeover 24 May 2011 Last updated at 16:19 GMT Microsoft unveils what Windows 7 looks like on Nokia Microsoft has offered a glimpse into an update to its Windows smartphone that it hopes will allow it to gain some ground on market leaders Apple and Google. yes. So." he says. Facebook chat and Windows Live Messenger into the same window. for instance. video and picture hubs on the phone."For all who doubt Nokia. "Seven months ago we started our mission to make smartphones smarter and easier for people to do more. will offer 500 new features. but it is navigating those changes far better than most of its rivals. The new version will feature in the phones Microsoft is making with Nokia and will be available later this year. including Internet Explorer 9 as the browser. "The new chief executive has his challenges. be warned. Currently Microsoft only holds a 4% share of the smartphone market. Mango will integrate SMS. president of Microsoft's mobile communications. allowing them to surface "when and where they make sense". but these are not insurmountable problems since the fundamentals of the business are sound. "It is facing enormous changes. Catch up So far Windows phones have not proved a hit with consumers It also promises to "challenge the way people think about apps". . apps will be more closely linked to the music.

" he said. by 2011. critics claimed that Ovi was an ill-conceived. But with Nokia's support. . Gartner predicts that Microsoft could turn this around and increase its share to 19. rushed reaction to Apple's app store and iTunes. The update will be available free to all Windows Phone 7 owners in the autumn. The changeover was announced on Nokia's Ovi blog by editor Pino Bonetti." Mr Bonetti assured users that the only change to the service would be its name.5% by 2015. followed by Apple with 17%. games and mobile apps. In its early days.and desirable .." he added. Microsoft may find it an uphill struggle to catch its rivals According to figures from analyst firm Gartner. "However. "New features.mobile platform in the market today. Google's Android system accounts for 36% globally.Users will also be able to get real-time information from apps without having to open them.look set to deliver a deeper level of integration between different communication apps (and other apps on the device) than users are so far accustomed to. apps and music Nokia is to stop using the Ovi brand to sell music. its worldwide user base was downloading an average of five million products every day. But integration is a tough concept to sell to consumers even if they may benefit enormously once they've adopted it.. However. Ovum analyst Tony Cripps said it would be a "worthwhile upgrade". Nokia kills off Ovi mobile brand 16 May 2011 Last updated at 13:02 GMT Nokia's Ovi store allows users to download games. He wrote: "The main reason for this change is so we can leverage the high-value of the Nokia master brand to better support future plans to deliver disruptive and compelling mobile experiences globally. Microsoft needs to do better if it is to persuade the market that it has the most user friendly . The company said it planned to wind up the four-year-old project and would be offering services under the Nokia name in future.

" he added. a telecoms analyst with Juniper Research. "The problem was they created a brand out of something that did not need to be branded. the majority of the handsets it makes run on Nokia's own. according to Strategy Analytics. Software for those will continue to be made available through the rebranded Ovi platform." said Dr Windsor Holden.” Dr Windsor Holden Juniper Research Microsoft's Windows Phone allows users to download applications through its dedicated Marketplace store. "If you are going to abandon Ovi." said Stuart Miles." Continue reading the main story “Start Quote It seems a very strange way of going about it at the present time. Its global market share fell from 33% in April 2010 to 29% in April 2011.Confusing brands Industry watchers said that it made sense for Nokia to ditch the Ovi brand following its agreement with Microsoft to use Windows on its smartphones. Although Nokia plans to use the platform for all future smartphones. editor of Pocketlint. That was going to get very confusing.com "With the move to Windows Phone 7 they are not going to be able to keep the Ovi store. "It seems a very strange way of going about it at the present time. . leading some analysts to question whether the new setup will be any simpler. less sophisticated operating system. Business rethink Rory Cellan-Jones asks Nokia's Stephen Elop and Microsoft's Steve Ballmer why they chose to form an alliance Nokia has been forced to rethink its strategy in recent years as it feels the pressure from rival manufacturers. I would imagine you would want to have a single app store offered by both companies.

In an attempt to turn the tide.8% in 2011. According to figures from IDC. the company said. with Apple's iPhone and Google Android-powered devices eroding its long standing dominance. which recently passed the Finnish firm as the leading mobile retailer in Western Europe. BBC News . Nokia will remain "first and foremost.. The deal will see Nokia use the Windows phone operating system for its smartphones. Windows first Continue reading the main story Analysis Rory Cellan-Jones Technology correspondent. competition has come from companies such as Samsung. Nokia's share of the smartphone market fell from 57% in 2009 to 20.a Finnish company. will be inevitable. Finland is our home and will remain our home. it announced a strategic alliance with Microsoft in February 2011.. Speaking at the launch of the partnership." he said. he added. It means that Nokia's existing operating systems will be sidelined. Nokia and Microsoft form partnership 11 February 2011 Last updated at 09:41 GMT Rory Cellan-Jones asks Nokia's Stephen Elop and Microsoft's Steve Ballmer why they chose to form an alliance Nokia has joined forces with Microsoft in an attempt to regain ground lost to the iPhone and Android-based devices. including in Finland.In its core business of producing low end. But job losses around the world. simple handsets. Nokia said that there would be substantial job losses as a result of the deal. The Finnish firm's decline has been even more precipitous in the rapidly growing smartphone segment. Nokia's chief executive Stephen Elop revealed that there would be "substantial" job losses as a result of the tie-up.

. which runs on most of the company's current devices will become a "franchise platform". while Nokia Maps would be a core part of Microsoft's mapping services. although the company expects to sell approximately 150 million more Symbian devices in future. So Nokia is moving from an ailing system Symbian . Symbian. made by a firm with a poor track record in mobile.but you can't fault Mr Elop for his audacity. The cruel verdict from some is that two turkeys don't make an eagle . so far at least." he said. Mr Elop was at Microsoft before joining Nokia "We reserve the right to introduce tablets using other platforms. The new strategy means Nokia's existing smartphone operating systems will be gradually sidelined. His chosen lifebelt is Windows Phone 7. This is a huge moment which could shape the future of an industry." he said. Windows may not be the exclusive operating system for Nokia tablets though.to a fledgling which has yet to prove itself. Why then. Microsoft's chief executive Steve Ballmer was also present at the launch." Speaking about the new partnership with Microsoft."So Stephen Elop has pushed Nokia off that now infamous burning platform he described to staff some days ago and into the unknown. where he worked until joining Nokia. Microsoft's Bing will power Nokia's search services. "It is a transition from Symbian to Windows phone as our primary smartphone platform. underlining the importance of the deal to the computing giant.which still has a large chunk of the market . a new smartphone operating system that has won critical praise but. only a tiny share of the market. software and services. including ones we may be working on internally. did Mr Elop not opt to go with Google's Android." he said." said Mr Elop. "Nokia and Microsoft working together can drive innovation that is at the boundary of hardware. Mr Elop said that "the game has changed from a battle of devices to a war of ecosystems". the operating system with momentum behind it? Perhaps he feels more comfortable with the culture of Microsoft. "An ecosystem with Microsoft and Nokia has unrivalled scale around the globe.

according to experts. an analyst with research firm CCS: Insight. as with any tie-up. illustrating how quickly the deal has been pushed through. published first by technology website Engadget. Mr Elop revealed that the firm did consider a tie-up with Google's Android operating system. "This is a clear admission that Nokia's own-platform strategy has faltered. he said. For Magnus Rehle. The company says it still plans to ship one Meego device by the end of 2011. but there are no silver bullets for either company given the strength of iPhone and Google's Android. said that the mobile giant was standing on a "burning platform". According to the company statement: "MeeGo will place increased emphasis on longer-term market exploration of next-generation devices. Earlier this week Nokia chief executive Stephen Elop sent a memo to staff warning that the company was in crisis. according to monitoring firm IDC." he said. Nokia's share of the smartphone market fell from 38% to 28% in 2010." said Ben Wood. And. "Microsoft is the big winner in this deal. It was also revealed that talks with Microsoft only began in November. Future clashes The move away from Symbian is a brave decision for Nokia. .There was no specific announcement about when the first Windows-powered Nokia phone will be available. "Three platforms is a lot to work with. there could be clashes between the two firms." he said. Nokia may have difficulty juggling its three operating systems: Windows. Nokia's upcoming Meego operating system will also be sidelined." he added. Symbian and MeeGo. The memo. "We spent time with our colleagues at Google and explored the Google ecosystem but we felt we would have difficulty differentiating within that ecosystem." The MeeGo platform was expected to form the core of Nokia's future smartphone and tablet strategy. I'm not sure there is room for so many platforms. the Nordic managing director of research firm Greenwich Consulting.

It must compete against BlackBerry and bada Recently Nokia CEO Olli-Pekka Kallasvuo (OPK for short) was replaced by the first non-Finn to lead the company. Instead. which makes him more palatable to a European company. and this issue overshadowed the rest of his career. and pressure on OPK to resign was growing. as always. see. but for all practical purposes he comes from the US. . head of Microsoft’s business division (mainly Office). This is big news that might change Nokia’s perception as well as its strategy. technically he’s a Canadian. Nokia was perceived as a loser. Republished with permission OPK’s tenure as Nokia chief was not lucky."Elop has to convince the best people to stay and some people will inevitably be jumping off the burning platform. Barely in office he was confronted with the launch of the iPhone." said Mr Rehle. Things came to a head when Elop’s anointment as his successor was announced. and he is an American — well. After four years of doing little except producing one of the worst touchscreen phones in history. Politics The politics of this move are well thought-out. For the full story of OPK. Tomi Ahonen. Elop is a software man. the N97. Nokia’s problem Symbian isn’t supposed to compete with iOS and Windows — that will be MeeGo’s job. Symbian is now firmly aimed at the mid-range market. Stephen Elop.

particularly the 500 VPs with largely radio engineering experience who [. is more explicit: Today. Gruber’s piece contains valuable extra material.. Elop’s appointment is aimed at placating the US financial world and blogosphere. such as Marko Ahtisaari. not to say misinformed and out of touch with reality. who was hired to break open the American market but mysteriously didn’t. A former Nokia software engineer remembers: It was not uncommon for us [software engineers] to give [the hardware engineers] code that ran perfectly by their own test. Ask Apple. Jean-Louis Gassée. Even with plenty of money and management/engineering talent. and the chuckles quickly become groans.. that Gruber makes a curious jump of logic that I can’t follow and he doesn’t explain: Nokia needs to settle on one software platform for mobile devices. and Palo Alto. Google. Elop’s appointment is aimed at the entrenched hardware culture within Nokia.] have responsibility for areas beyond their expertise. Nokia pushes devices that use older Symbian S60 stacks. however. I find this argument distinctly uncompelling. Logic jump It’s at this point. Internally. Nokia thinks it can stay on the field when it’s playing the game in such a disorganized fashion? Others make a similar point. Mary McDowell. and then point the finger back at software when things failed in the field. Software matters nowadays. who released no new technologies in the past two years. and CTO Tero Ojanperä. whose job qualifications are that he’s the son of the former Finnish president and Nobel Peace Prize winner. as they are described in the Risku Manifesto a former senior executive wrote. . Mountain View. only to have them do things like reduce the available memory for the software to 25% the specified allocation. This manifesto calls for the wholesale removal of dead wood in the senior management. newer Symbian^3 and Symbian^4 engines. very soon. That will have to change. Imagine the chuckles in the halls of Cupertino. or HP. That seems to have worked: from John Gruber on down Nokia is cautiously given the benefit of the doubt again.Externally. updating one software platform is a struggle. Bottom Line: Nokia is a hardware company that hates software. as well as a mobile Linux derivative: Meego. The conclusion is that Nokia must embrace either Android or Windows Phone 7. Gruber’s likely source.

although he still sees Android or Windows Phone 7 as potential options. It will serve the high-end market with Android. There’s a definite two-OS strategy at work here. Windows Phone 7 or webOS. It can’t maintain two OSs. Yes.) Two OSs Why on earth wouldn’t Nokia be able to maintain two operating systems? Apple does it: Mac OS and iOS. Nokia’s only sin seems to be that it doesn’t use an OS that the US chattering class has decided is worth chattering about. (But not both. It has S40. of course. And Windows Phone 7. and I wouldn’t be surprised if they have even more OSs for really cheap feature and basic phones. and I haven’t heard any complaints about it. Symbian is a turd. Nokia’s OS strategy Nokia has serious problems. . But talking about S40 is not hip and cool. I haven’t heard any chuckling in assorted US halls about the Samsung Galaxy. I agree. Google does it: Android and ChromeOS. Fine. Vista. and seems poised to do a repeat performance for Windows Phone 7. HTC has become a very strong player in the high-end Android market. the problem lies in execution. Samsung has firmly settled on a two-OS strategy. and not a bug. and maybe even older versions. although they chuckle about it afterwards in their halls. for instance. In penance it should adopt either Android or Windows Phone. And I’m sure HP has a few OS skeletons in the contractual closet.) I’ll let you in on a dirty little secret: Nokia has even more OSs than just these two. and its attempts at running a touchscreen horrendously lousy (so far — I haven’t seen Symbian^3 yet). so let’s not. XP. Symbian Despite everything Symbian is a feature. its architecture is complicated and weird. but they do not include its fundamental OS strategy. So you could conclude that Symbian is no competitor for Android or iOS. actually.(To his credit. Microsoft does it. and the mid-range market with its homegrown bada OS. Its UX was gang-raped by a committee. 7. Rather. after all. Gruber does not draw this conclusion. Only American companies can do that.

Symbian is getting old even in its own market. That takes time. Nokia would have to incorporate the new OS. be my guest. are the MeeGo devices? Isn’t it time one or another of them hit the market? And here we have finally reached Nokia’s true problem: it isn’t fast enough in its software development. then decide on a device to bring to the market. Android? Windows Phone 7? However. I certainly do. That’s a big problem that has to be addressed and solved. and with a lot of effort. But the very fact that Symbian is old means that it can run on low-specced. hence cheap. and Windows Phone 7. it has a problem there. This is a subject we can’t say anything about due to lack of data. And it has one: MeeGo is being groomed for exactly that task. but doesn’t right now. Finally. a N900 descendant becoming a serious competitor to iOS. Android might. time its competitors will use for bringing out even more advanced phones. that much is true. but a lot better than Symbian. you might ask. The Nokia N900. HP doesn’t. Nokia must take MeeGo seriously as a software platform. create prototypes. Feel free to criticise Nokia here. embracing either Android or Windows Phone 7 is nonsense. And Nokia’s ubiquity in the developing countries will make sure that the world’s poor are going to get access to our high-brow mobile ecosystem via Symbian. Android. webOS. too. Symbian isn’t supposed to compete with those OSs — that will be MeeGo’s job.But this conclusion is worthless. Instead. Just remember that something might change after the current shake-up. was released about a year ago. But a year has passed and there is still no successor to the N900. bada is shiny and new — not an iOS-class operating system. And not via one of the more sexy OSs. It’s certainly light years ahead of Symbian. . But where. and I can see. If you want to criticise Nokia for that and hope Elop’s appointment will help here. But what’s wrong with that? Nokia serves the bottom part of the market. hardware. I tested it and it is … not bad. Not to say bloody slow. in time. be my guest. If you want to be skeptical of Nokia’s software strategy. It must compete against BlackBerry and bada. Symbian is in a slide from the top of the market to the bottom. BlackBerry’s OS6 is heading in the same direction. too. It would lead to another year of doing nothing. Yes. Symbian is now firmly aimed at the mid-range market. Apple doesn’t. which runs on MeeGo’s precursor Maemo. Truth to tell. Why on earth is Nokia wrong when it serves a market that the US companies ignore because they’re too busy chuckling in their halls? MeeGo Nokia desperately needs a high-end smartphone OS.

but it will take longer. It also warned that its guidance given at the end of the first quarter. if Nokia would switch to somebody else’s OS it would give away its chance at vertical integration of device. release a MeeGo phone. Before Christmas. That’s not a very good idea.3bn. that has to happen. OS. Nokia’s problems Yes. As business advices go the Android/Windows Phone 7 idea is absolute nonsense. So bad that it might not make any money from selling mobile phones. and app store.Also. But let’s please concentrate on the actual problems at hand. But don’t bother with Android or Windows Phone 7. Nokia has very real problems that will have to be solved. But now it has to actually execute this strategy instead of fooling around. and not invent new ones that have no base in reality. switching OSs would mess up Nokia’s partnerships with Intel and other device vendors such as LG who want to jump on the MeeGo bandwagon. or mobile revenues of between €6. but our calculations show how badly it's getting squeezed and what effect that will have on revenues in the coming quarter. and S40 for the low-end. Yes. these things are dictated by fashion. Photograph: Eric Gay/AP How bad are Nokia's problems really? Nokia warned on Tuesday: very bad. Nokia. (That’ll change. That means that its 6%-9% margins may have been wiped out in the current quarter. Symbian for the mid-range.1bn and €6.) It would become beholden to Google or Microsoft for a crucial part of its platform. What Nokia should do is clean up its MeeGo act and get phones out there. the sea often is too. As to turning the hardware-centric outlook of the company on its head. too. And then what? Oil is burned and skimmed by boats near the site of the Deepwater Horizon oil spill. might be optimistic. When a platform's alight. but for now it’s true. and this integration is currently the Holy Grail in the mobile world. How big are Nokia's problems? Let's work out how small its revenues will be The troubled Finnish mobile maker is resilient. Nokia’s basic OS strategy is sound: MeeGo for the high-end. Finally. these problems should be discussed. .

which would merit Nokia's scared profit warning.4bn. but that overall phone ASPs would be around half what they were as recently as this time in 2006. a possible scenario emerges: Smartphones sold: 21m (Q1: 24m) @ €132 each (Q1: €147) Dumbphones sold: 84m (Q1: 84. Here's why. And Nokia has been selling about 20-24m smartphones. Do the calculation.) Playing around with the numbers. all the way down to breakeven (ie zero).so the margins are being squeezed and the number of handsets is down. . that €6. The company said that its margins are being squeezed.from around €180-190 in 2009 to €147 in 2011 Q1. Let's recast to see if we can get the revenue below €6.in fact the ratio has been edging higher over the past two years. First of all. For smartphones. It would mean dumbphone ASP was down to a level not seen since. Featurephone (or "dumbphone") ASPs have been more steady at around €40 or slightly above. and 86m dumbphones selling at €37. (Nokia gets about half its mobile revenue from smartphones . That gives 24m smartphones selling at €132. per quarter for quite a while. (This might not be the case. OK . these have been falling . But Nokia has said that it's not going to hit that (upper-end) target. a year ago. here at Guardian Towers we have the Nokia results since mid-2006 plugged into the system. We've also got the smartphone and feature phone handset average selling prices (ASP) since 2009 Q2. So let's assume that the selling prices of its smartphones and dumbphones are being reduced by 10% to persuade the carriers to take them on.1bn figure would have been the lowest since the first quarter of 2009 (and third quarter of 2007).88bn . and that gives mobile phone division revenues of €6. hmm. but it's a good enough guess. and 75-85m dumbphones.1bn.Well.3m) @ €37 each (Q1: €42). from 46% to 50% now. while keeping the rough proportion of smartphones to dumbphones about the same.) But the numbers suggest that it's not going to hit those sales figures this quarter. but it's still selling the same number. That gives revenues of around €5.

Apple could pass it for that in this quarter. It is a company that reinvents itself. The third quarter could see just the same pressure on sales. Other data: Nokia. Nokia's chief executive. which did do an effective multi-touch screen where Symbian couldn't. in the first quarter it sold more smartphones than any other manufacturer . Final point is Guardian estimate. what does this mean for my forecast of only last week that Windows Phone will be a success? I think it's still too early to count Nokia out.dismissing Apple's efforts and unable to catch up with Android. So Stephen Elop has jumped off the burning platform . at least in the mobile space.Nokia quarterly mobile revenues (blue) and profits (red) since 2002 Q1. From there. But it may have to live with being smaller. One thing that you shouldn't expect though is that the first "Nokindows" phones will be iPhone (or even HTC or Samsung) killers. selling everywhere. And it missed out on the smartphone market badly . plus the same pressure at the low end from high-volume Chinese manufacturers able to make dumbphones. What I'm hearing from informed analysts is that that first . hitting that target with falling quarterly sales begins to look like Zeno's Paradox. Nokia's lack of a niche is a weakness now: it used to be the behemoth of mobile phones. which will intensify at the high end (expect a new Apple iPhone and even more zillions of Android handsets). Now. what does this mean for Nokia? Its troubles may get worse before things get better. There's quite a possibility that it will make a loss in the third quarter.but it seems that the sea is burning too. rather than the ultra-dominant one. or possibly having smaller revenues and profits. And the 150m high-end Symbian phones that Stephen Elop. Nokia could only really hope to be a large player in the market.but if my calculations are anywhere near correct. Yes. The reason Nokia is in such trouble now is that a threshold was crossed in 2006 when for the first time a billion mobile phones were sold. and Samsung or HTC might not be far behind. Now. said it would sell? That's looking harder and harder.

phone. So the top four sellers had 75% of the market. but made for it by someone else. according to Gartner's release from the time: Nokia: 34. Nokia market capitalisation since 1 Jan 1999. Nokia has plenty of cash for now and could weather a few quarters of losses. there's a risk of being like Sony Ericsson. It's instructive in fact to look at the companies that dominated mobile phones at the end of 2006.4% share (74m phones) LG: 6.) Of course share price doesn't actually matter to a company.1% share (209m phones) Samsung: 11.3% share (62m phones)BenQ: 2. Here they are. with 1.2% (161m). a long-time watcher of the mobile market." But with all the other bad news to be digested. Contrast that with 2010. won't even be built in Nokia's own factories. change the date to get different comparisons. "The last thing that they should want is for people to think that that is going to be the best-ever phone. which was flying high in 2006 and came crashing down into continued losses before reinventing itself (with Android). The shares are now trading at €6. the market has continued to mark it down.6bn units sold: . "It's the device that they've had the least amount of time to work with compared to all the other Windows Phone licencees. It can't really be best in class. it has no effect except if it's trying to raise funds. down 4% on the day and from 8. They need to start dialling down expectations on that ahead of time.2 at the end of Friday.8% share (345m phones) Motorola: 21. a total 18% fall." said Carolina Milanesi of Gartner.4% share (23m phones) Others: 16. But unless it can get everything in order. Source: WolframAlpha.8% share (116m phones) Sony Ericsson: 7.72. to arrive some time after October. and that it will compete with the iPhone.com (You can see the WolframAlpha output on Nokia's market cap.

And Dediu knows about Nokia not noticing. It's the consequence of nobody noticing the beginning that makes the end so shocking. while the stock price doesn't make any difference to the company's day-to-day workings. it does indicate how much profit the market reckons it will make in its life. the company's market valuation is its lowest since May 1998. nevertheless. mobile phone .9% share (461m phones) Samsung: 17.6% share (42m phones) Motorola: 2. without success.6% share (281m phones) LG: 7. February 9th. Writing earlier on Wednesday.4% share (38m phones) "others" made up 30. He was working there when the iPhone came out and disrupted the whole smartphone .threat. yet is perceived as under pressure • Motorola has faded from the picture • Samsung has thrived • Sony Ericsson has dwindled • LG has hung on • smartphone-only makers have begun to infiltrate the top sellers. And research analysts too aren't optimistic. Some market analysts were marking Nokia's stock down to a floor price of $4. He tried to persuade people to listen. where • Nokia is selling more than twice as many phones.1% share (114m phones) RIM: 3. And. Nokia's Problems And the CEO Talks About it Wednesday.6% of sales (488m phones) It's an almost complete change. such as Horace Dediu of Asymco. So he left. he remarked that perhaps the market is right in pricing Nokia's phone business at around $11bn (if you split off its Navteq and Nokia Siemens Network businesses). the markets are now very skeptical that there is much in Nokia to salvage. though only in small amounts • the market is far less concentrated: the top four sellers only have 56% of the market. Remember.Nokia: 28.market. Yet there are some who think Nokia is facing a serious . It ends much more suddenly than it begins.9% share (46m phones) Sony Ericsson: 2. arguably. he concludes Nobody would argue that Nokia is worth more than Facebook so who's to say that Skype or Twitter aren't more valuable than a device company in crisis? I don't try to predict the market's behavior.and. It's perhaps unfair and illogical but this is the end game of disruption.even existential .0% share (47m phones) Apple: 2. 2011 at 4:14 pm | Jaime Blanco .

Stephen Elop. and trainer. Unbelievable. Hopefully this is the case as Nokia's software is really in need for a change. and we still don't have a product that is close to their experience. CEO of Nokia is really. Android came on the scene just over 2 years ago. He was so angry. You can also follow him on Twitter. This is big news that might change Nokia’s perception as well as its strategy." The CEO also attacked the lack of innovation from the company while praising others (like Android and the Iphone) and stated that there is a good possibility they could be latching on another smart phone platform. . He basically states that the company has failed to compete with the rest of the major smart phone players and held nothing back when making comparisons: "The first iPhone shipped in 2007. as always. really angry about the company losing their dominance in the cell phone market to Google and Apple. mobile platform strategist. Tomi Ahonen. Last week Nokia CEO Olli-Pekka Kallasvuo (OPK for short) was replaced by the first non-Finn to lead the company. see.Stephen Elop. Maybe firing a whole staff? Nokia’s problem • • • • Written on 17 September 2010 Categorized in Nokia Previous entry: More about media queries. Barely in office he was confronted with the launch of the iPhone. Nokia has stated that they will discuss their future on Friday. For the full story of OPK. head of Microsoft’s business division (mainly Office). and this week they took our leadership position in smartphone volumes. OPK’s tenure as Nokia chief was not lucky. One has to wonder what their future plans are going to be. mailing list Next entry: What “smartphone” means This is the blog of Peter-Paul Koch. that he sent a 1800 word memo to all his employees about it. and this issue overshadowed the rest of his career. consultant.

however. that Gruber makes a curious jump of logic that I can’t follow and he doesn’t explain: Nokia needs to settle on one software platform for mobile devices. particularly the 500 VPs with largely radio engineering experience who [. the N97. and CTO Tero Ojanperä. but for all practical purposes he comes from the US.After four years of doing little except producing one of the worst touchscreen phones in history. whose job qualifications are that he’s the son of the former Finnish president and Nobel Peace Prize winner. and he is an American — well. That seems to have worked: from John Gruber on down Nokia is cautiously given the benefit of the doubt again. which makes him more palatable to a European company. and pressure on OPK to resign was growing. who was hired to break open the American market but mysteriously didn’t. Elop’s appointment is aimed at the entrenched hardware culture within Nokia. such as Marko Ahtisaari. Elop’s appointment is aimed at placating the US financial world and blogosphere. Externally. That will have to change. and then point the finger back at software when things failed in the field. Last Friday things came to a head when Elop’s anointment as his successor was announced. who released no new technologies in the past two years. only to have them do things like reduce the available memory for the software to 25% the specified allocation.. Logic jump It’s at this point. as they are described in the Risku Manifesto a former senior executive wrote. Elop is a software man. .) Politics The politics of this move are well thought-out. Nokia was perceived as a loser.] have responsibility for areas beyond their expertise. (This article has been translated into Spanish. A former Nokia software engineer remembers: It was not uncommon for us [software engineers] to give [the hardware engineers] code that ran perfectly by their own test. Internally. technically he’s a Canadian. Gruber’s piece contains valuable extra material. Mary McDowell.. very soon. Bottom Line: Nokia is a hardware company that hates software. This manifesto calls for the wholesale removal of dead wood in the senior management. Software matters nowadays.

Rather. and the mid-range market with its homegrown bada OS. Ask Apple. updating one software platform is a struggle. Microsoft does it. I haven’t heard any chuckling in assorted US halls about the Samsung Galaxy. It will serve the high-end market with Android.) I’ll let you in on a dirty little secret: Nokia has even more OSs than just these two. so let’s not. as well as a mobile Linux derivative: Meego. the problem lies in execution. The conclusion is that Nokia must embrace either Android or Windows Phone 7. Mountain View. newer Symbian^3 and Symbian^4 engines. 7. and maybe even older versions. HTC has become a very strong player in the high-end Android market. Google. In penance it should adopt either Android or Windows Phone. . and Palo Alto. (But not both. is more explicit: Today. and I wouldn’t be surprised if they have even more OSs for really cheap feature and basic phones. Gruber does not draw this conclusion. And Windows Phone 7. I find this argument distinctly uncompelling. after all. Even with plenty of money and management/engineering talent. Samsung has firmly settled on a two-OS strategy. Imagine the chuckles in the halls of Cupertino. not to say misinformed and out of touch with reality. Vista. But talking about S40 is not hip and cool. Nokia’s only sin seems to be that it doesn’t use an OS that the US chattering class has decided is worth chattering about. It can’t maintain two OSs. Only American companies can do that. There’s a definite two-OS strategy at work here. but they do not include its fundamental OS strategy. and I haven’t heard any complaints about it. And I’m sure HP has a few OS skeletons in the contractual closet. for instance. Jean-Louis Gassée. Nokia’s OS strategy Nokia has serious problems. of course.) Two OSs Why on earth wouldn’t Nokia be able to maintain two operating systems? Apple does it: Mac OS and iOS. Nokia pushes devices that use older Symbian S60 stacks. although they chuckle about it afterwards in their halls. although he still sees Android or Windows Phone 7 as potential options. and seems poised to do a repeat performance for Windows Phone 7. or HP.Gruber’s likely source. (To his credit. XP. It has S40. and the chuckles quickly become groans. Nokia thinks it can stay on the field when it’s playing the game in such a disorganized fashion? Others make a similar point. Google does it: Android and ChromeOS.

But this conclusion is worthless. Android. But a year has passed and there is still no successor to the N900. Symbian is now firmly aimed at the mid-range market. Yes. It must compete against BlackBerry and bada. Symbian is getting old even in its own market. Feel free to criticise Nokia here. too. Why on earth is Nokia wrong when it serves a market that the US companies ignore because they’re too busy chuckling in their halls? MeeGo Nokia desperately needs a high-end smartphone OS. hardware. you might ask. So you could conclude that Symbian is no competitor for Android or iOS. which runs on MeeGo’s precursor Maemo. not bad. in time. Symbian is a turd. Symbian is in a slide from the top of the market to the bottom. Android might. and I can see. be my guest.Symbian Despite everything Symbian is a feature.. Truth to tell. hence cheap. and its attempts at running a touchscreen horrendously lousy (so far — I haven’t seen Symbian^3 yet). actually. . and Windows Phone 7. Fine. Yes. And Nokia’s ubiquity in the developing countries will make sure that the world’s poor are going to get access to our high-brow mobile ecosystem via Symbian. Symbian isn’t supposed to compete with those OSs — that will be MeeGo’s job. that much is true. it has a problem there. but doesn’t right now.. The Nokia N900. its architecture is complicated and weird. HP doesn’t. are the MeeGo devices? Isn’t it time one or another of them hit the market? And here we have finally reached Nokia’s true problem: it isn’t fast enough in its software development. Not to say bloody slow. And not via one of the more sexy OSs. But where. Instead. But the very fact that Symbian is old means that it can run on low-specced. I certainly do. If you want to criticise Nokia for that and hope Elop’s appointment will help here. But what’s wrong with that? Nokia serves the bottom part of the market. was released about a year ago. That’s a big problem that has to be addressed and solved. and not a bug. webOS. And it has one: MeeGo is being groomed for exactly that task. BlackBerry’s OS6 is heading in the same direction. too. Its UX was gang-raped by a committee. It’s certainly light years ahead of Symbian. Apple doesn’t. and with a lot of effort. Windows Phone 7 or webOS. bada is shiny and new — not an iOS-class operating system. a N900 descendant becoming a serious competitor to iOS. I agree. but a lot better than Symbian. I tested it and it is .

Finally. As business advices go the Android/Windows Phone 7 idea is absolute nonsense. these problems should be discussed. then decide on a device to bring to the market. Symbian for the mid-range. Nokia has very real problems that will have to be solved. be my guest. . too. but it will take longer. But now it has to actually execute this strategy instead of fooling around. and S40 for the low-end. Just remember that something might change after the current shake-up.) It would become beholden to Google or Microsoft for a crucial part of its platform. switching OSs would mess up Nokia’s partnerships with Intel and other device vendors such as LG who want to jump on the MeeGo bandwagon. But let’s please concentrate on the actual problems at hand. Nokia. Before Christmas. create prototypes. Android? Windows Phone 7? However. and app store. OS. If you want to be skeptical of Nokia’s software strategy. but for now it’s true. This is a subject we can’t say anything about due to lack of data. It would lead to another year of doing nothing. That takes time. Yes. and not invent new ones that have no base in reality. embracing either Android or Windows Phone 7 is nonsense. Nokia’s problems Yes. Nokia would have to incorporate the new OS. these things are dictated by fashion. release a MeeGo phone. Also. But don’t bother with Android or Windows Phone 7. if Nokia would switch to somebody else’s OS it would give away its chance at vertical integration of device. (That’ll change.Finally. time its competitors will use for bringing out even more advanced phones. What Nokia should do is clean up its MeeGo act and get phones out there. That’s not a very good idea. and this integration is currently the Holy Grail in the mobile world. Nokia’s basic OS strategy is sound: MeeGo for the high-end. Nokia must take MeeGo seriously as a software platform. As to turning the hardware-centric outlook of the company on its head. that has to happen.