Jakamisen arvoisia asioita

The Fall of Nokia Corporation

Kirjoitettu englanniksi kansainvälistä yleisöä ajatellen.

 

On 11 Feb 2011, right after Elop's "Burning Platform" speech where he announced the Microsoft strategy, I told my friends that Nokia will fall. I've kept saying that until today, especially every time that someone thought that the stock price was low enough for making quick profits. I've consistently said that Windows Phone has no real future and that Nokia could have overtaken both Apple and Android, had it made MeeGo (N9) its primary product and kept developing that in co-operation with Intel.

Nokia N9 was available earlier than Lumia, it was better and frankly it even had a better "ecosystem". But Nokia didn't launch it in any of the key markets, they hardly marketed it at all, they didn't bribe AT&T or other operators to sell it, they didn't price it aggressively and most importantly they published the product already pronounced dead. Still the N9 outsold Lumia for quite a while.

During Autumn 2011 I kept speculating that Microsoft might be wishing to buy Nokia while it still had a good market position. And surely enough, just a few days ago we did receive confirmation on Microsoft actually planning to buy the company around the end of 2011 - and then rejecting the deal.

Saying that I told you so even when a few would listen could be satisfying if the situation wasn't so serious: killing the best mobile operating system, killing a company that used to be a Finnish success story, a company that still was the market leader by a good margin until Elop took action. By now it is clear that there is no turning back. There is no plan B for when Windows Phone fails. It is clear that Elop has the full support of the board and of the big owners of the company even if he will bring it down to ruins.

Nokia will leave Finland and everyone still working for the company should be prepared for losing their jobs in the coming years. The company will waste its remaining assets while selling parts of itself to keep financing Windows Phone marketing and the sales of underpriced devices in a futile effort to create market share for a failing system. I will not recommend buying Nokia stocks for long term investment no matter how cheap it gets.

However, there is hope for Finland. Now there is a huge amount of IT engineers without jobs both from Nokia and from its subcontractors. Some of the new companies founded by these people will become success stories, taking Finland to a new rise. In this sense we might even see the fall of Nokia as a bliss for the greater good.

 

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Käyttäjän Jouni kuva
Jouni Tuomela

So true. Mr. Elop did some basic mistakes from the begining, like saying Symbian will die soon, even when most sales were coming from that platform then. Discontinuing MeeGo was a major mistake.
Should Mr. Elop go, I think so.

Luckily technology is not limited to mobile phones. New innovations are possible, and there are no limits what we finns can accomplish.
Nice example is Raspberry Pi -computer, costing 25$, and being able to connect to screens with HDMI.

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