Reaping the Whirlwind

Nokia made a deal with M$ to phase out Symbian. The world knows it and won’t buy Symbian phones… Nokia’s margins have plummeted as a result and M$ is not coming to the rescue. While Android is eating Nokia’s lunch I expect Nokia will come to regret the deal. They could have simply migrated to Android but they wanted to be paid… Nokia is reaping what it sowed. They have frozen their own market while Android is on fire.

see Dailytech – Nokia Left Scrambling as Customers Abandon Symbian Platform

About Robert Pogson

I am a retired teacher in Canada. I taught in the subject areas where I have worked for almost forty years: maths, physics, chemistry and computers. I love hunting, fishing, picking berries and mushrooms, too.
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13 Responses to Reaping the Whirlwind

  1. Contrarian says:

    Nokia’s problems predate Windows Phone 7 by a long period. The real question is whether or not selection of Windows Phone 7 will result in some resurrection of their fortunes. I personally think that Nokia could not hope to recover by switching to Android since they would just be another ‘Droid phone with nothing to distinguish it from Samsung, Motorola, and others. They would be late to the party even then.

    With the Microsoft partnership, Nokia has a chance to distinguish itself from the herd and put itself into a separate classification where it could maybe rebuild its glory. It has the basic patents to add to Microsoft’s arsenal to carve out some sort of niche that might be able to expand into a leadership position ala’ iPhone.

    It’s a longshot, but it could happen. Don’t underestimate what Microsoft can do when it gets a chance, either. They have scooped up Skype and people have sneered at their wasteful ways, but consider the weight of the Microsoft and Nokia brands added to Skype and used to push some sort of initiative in the phone market.

    Remember 99% of the world isn’t all that technically minded and people follow trends in a heartbeat, which is what Nokia needs. With Microsoft’s cash going into the game, it’s not over until it’s over.

  2. Ray says:

    Huh, the exact same people, Trefis viewed Nokia to be bullish.

  3. Well, it’s not hard to exceed Phoney “7”‘s attractiveness for malware since no one wants it but the recent “waves of malware” for Android/Linux have affected few machines:
    “AVG adds that 25 rogue Android apps were discovered on the Android marketplace over the weekend that contained a variant of the DroidDream trojan. Google purged these apps but more rogues have since reappeared, it adds. AVG is working with Google’s Android security team in dealing with the fresh threat. It estimates a combined total of 15,000 handsets have been hit by the DroidDream outbreak.” see The Register

    Let’s see, they are activating 300K per day and altogether 15K are infected… 15K out of 100 million is pretty good odds. I imagine tightening up the app store (dig at Apple is deliberate) will cure most of that.

  4. The Other Dave says:

    It’s easier to ship realware than vapourware.</b.

    And yet Windows Phone 7 is shipping and is ready. Wrong again Robert.

  5. It’s easier to ship realware than vapourware.

  6. The Other Dave says:

    Nokia could have been shipping units if they had chosen Android/Linux.

    Could have, should have, would have, blah, blah, blah. Nothing like a good tin foil hat and some irrational paranoia huh?

    Symbian is dying because they let it die. They neglected the platform and now it’s in a self-induced coma.

    Nokia did the smart thing and jumped aboard a platform that is a tightly controlled eco-system – unlike that hodge podge of random turds of code modules known as Android where viruses and bugs (like random emails being deleted) are common.

    Android has more viruses than iOS and Windows Phone 7 put together.

  7. oldman says:

    “Nokia could have been shipping units if they had chosen Android/Linux. ”

    Unfortunately Pog, based on what is known of how the management at Nokia has worked, this statement is probably in error.

  8. Strange. I put this site on my resume. People hire me for my knowledge and experience. I have a lot of that.

    Nokia could have been shipping units if they had chosen Android/Linux. One of the big advantages of shipping realware rather than vapourware is that you can do it immediately.

  9. The Other Dave says:

    Symbian is being left to die because Nokia chose Phoney “7″

    There’s absolutely no correlation between Windows Phone 7 and the fall of any profitability. This could have happened if they chose Android, iOS, or any other choice that was non-Symbian.

    That’s your inability to see reality and use rational thought; it’s due to your religious fanaticism with “open sores”.

    Gotten any work yet? I’d imagine any school board or school hiring committee representatives would look into your religion and be very afraid of allowing you into the classroom. I know I’d be going straight to the school board and pointing them to this site as an example of your inability to use rational thought.

  10. Richard Chapman says:

    Oh Dave, you gave me a real good laugh. Reality is a B. Expect to be forced into more strained explanations for Microsoft’s failures.

  11. Symbian is being left to die because Nokia chose Phoney “7”.
    “The company’s brand, once one of the coolest in the world, is battered. In a ranking of global brands by Millward Brown Optimor this year, Nokia ranked No. 43, dropping 30 places in 12 months. Its profit margins have been shrinking, along with the average price of its phones and its market share.
    True, it still has more than one-third of global mobile phone sales. But it looks stranded in the middle of the market. Korean electronics manufacturers such as Samsung Electronics Co. are leading the main consumer market. Apple’s iPhone and Research In Motion Ltd.’s BlackBerry dominate the upscale, smartphone industry.”

    see Bloomberg – Nokia’s Downfall Holds Three Lessons for Europe: Matthew Lynn

    “Nokia’s mobile device operating margins have fallen from about 20% in 2007 to about 11% in 2010. For 2011, we now expect that full year margins will come in around 5.5%, below the company’s initial 6-9% target range, and we forecast that margins will improve slightly over our forecast period to nearly 6% as a result of improved cost control.”

    I would call a decline from 20% margins to 5.5% a drop. So would Forbes.

  12. The Other Dave says:

    Nokia’s margins have plummeted as a result and M$ is not coming to the rescue

    This is false. Their “margins” have not plummeted due to any sort of relationship with Microsoft, their margins (or whatever you’re referring to which in your case could be anything) have dropped due to the Symbian platform being left to die.

    With your zealotry and low EQ I would be one of the first parents complaining to the school board that you’re twisted religion is a hazard to the children that you would infect. Thankfully you’re not in that position.

  13. ray says:

    Ah, I believe that changing to any OS would have customers scrambling.

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