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« If Apple is running away from this strategy, and Samsung growing by opposite strategy, why is Elop trying 'exclusive' carrier strategy for Nokia and Microsoft. He must be mad! | Main | Good Mobile Stories from India - Some Winners and Finalists from mBillionth Awards »

July 23, 2012

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Sid

Sometimes I wonder how Elopologists can continue defending him despite all these FACTS ?
I guess Nokia Board is to blame for all this.

vladkr

@Tomi:

I remember when Stephen Elop was hired by Nokia, you used to say that he got a dream job. Indeed it is!
When he arrived, he got 6M Euros "Welcome" bonus atop his 1M Euro salary, some say he was paid over $10,5M for the whole year 2011 + all little attentions to make his life in Finland easier and sweeter.

All this money and advantages to do... nothing good. Yes, it is really a dream job. If only I was offered the place...

(Sorry, I was to lazy to write a different post)

ejvictor

10+ Tomi... I liked the rant :) Is the Finnish sand very dense? How far has the ostritch buried it's head? Well all I have to say is that I am at least glad that Elops actions have resulted in some Jem's - an 808 to play with until Jolla comes out with a device.

Antti

I read the article in Taloussanomat and came here to find your post.

I don't know who is running this company anymore. Is it Elop? Is it the board of directors? Ballmer? Who? I mean... How can anyone, even Elop, witness this kind of destruction of Nokia? He is afterall the CEO and should take actions.

Tomi, what do you think? Why is Elop still the CEO of Nokia Why is he not fired? Why is the board asleep? We all see what is happening, but WHY is it happening? And who is to blame?

Winter

I read the term Elopcalips somewhere. Seems appropriate.

vladkr

From YLE.fi :

"While we are disappointed with Moody's decision, its impact on the company is limited," Nokia's Chief Financial Officer Timo Ihamuotila said in a statement.

If every bad news has a limited impact on Nokia, everything should be fine then, why do we worry?

Spawn

The start to believe that this action is a move to sideline Lumia and the Windows Phone only strategy.
Nokia may not able to just abort cause of contracts made earlier with Microsoft but then can try to move it out of the way for a plan B offering. Maybe as direct consequence of key carriers like AT&T making clear, that they wan't take the Lumia running WP8.
Maybe Nokia is already in the move to bring alternate offers to all those carriers in a similar way they did for China Mobile.
Maybe the BOD did split off the new strategy to give it room to act outside of Elops influence to finally have an alternate they can bring to market before Elop is killing it off.
Maybe cause of contractual bindings they cannot shutdown Lumia. Maybe that is why Elop is still in the game as long as Nokia keeps plan B secret to prevent future osborning Lumia.
Maybe... or the plan is to have Nokia done.

incognito

"These were, however, activities that Stephen Elop has engaged in. He was hired to fix execution, he has not done anything in that area, rather he's made Nokia execution dramatically worse - each of the four Lumia phones for example shipped with major mechanical and software bugs, some so severe they required total reinstalls of the operating system etc (losing often valuable content and stored files)."

Allow me to disagree with you there. Not only that he has done everything in that area - he executed Nokia quite expertly. A bona fide Terminator would stand in awe watching Elop's execution of Nokia.

vladkr

The only winner in all that is... Samsung :
- They became #1
- they acted as saviours, hiring former Nokia-success makers, that have been fired by Elop
- they hired talents from Nokia
- they stimulate developers' communities promising what Nokia failed to offer when Meego was killed
- their reputation rises as Nokia's dives.

MarcoAustria

@tomiahonen, you forgot one downgrade ;):
Since December, 2011, users graded Lumia as "junk" giving as its reason "The product fails Nokia users in every way possible!"

Rune

Nokia's smartphone business is lost beyond any possible recovery.

So what does it matter whether they don't sell any phones through all carriers, or don't sell any phones through one carrier?

We are at the point where Nokia needs to realize that its days in that business is over. And close it down. (Keep a symbolic presence just to stay within the MS contract). Maybe rebrand a few Huawei phones just to see if they sell.

Elop needs to cut ALL the expenses in that division, and stop worrying about sales. Instead try to see if the other parts of the company can be made sustainable. If not, he should wind the entire company down, rather than causing more losses for creditors.

MIP

I posted this a year ago, but it is every bit as relevant now, unfortunately...:

http://www.mobileinfoplanet.com/2011/08/11/stupid-has-a-new-name-now-and-a-face/

m

Yes, I think you're wrong. Nokia needs a carrier to push WP8. As you've pointed out many times, though Nokia pushed Lumia a LOT with advertising and wasted money, they didn't have carrier support and the result was bad.

One carrier pushing WP8 is better than all carriers ignoring WP8. Nokia can't buy off all carriers, and then let them stop pushing the phones as soon as the money stops.

Exclusivity would allow some hypothetical carrier who is willing to bet on WP8 Lumias, to profit from it. Then such a carrier would actually push WP8, because doing so would benefit themselves.

With WP8 on all carriers, you could have a repeat of Lumia 900 situation, and then none of the carriers would bother to push it and Nokia's downfall would be finalized quickly.

TimoT

Nokia BOD is basically useless and clueless, it has been "americanized". One is an oil man (Statoil ASA), one from cosmetic industry (L’Oréal Group), one from a paper mill company (Stora Enso), one even from Procter & Gamble (personal care, household cleaning, prescription drugs). They got until recently even former prime minister of Finland, Esko Aho on board. That demolition demon squared almost collapsed Finland's economy in the early 90's.

They got their (very busy) day jobs in industries totally different than mobile phone business. There is no synergy, they do not bring any relevant expertise to the table. They just say yes to whatever Mr. Elop says in their quarter meetings and hurry back to airport to catch a plane. Could you imagine that kind of very odd board in a big family owned company?!

It is the same in many big American companies too. One American investor said few years back that he does not need to watch any TV-comedy shows anymore, clueless board meetings are quite enough for him. :)

Zarko M.

There should be resistance on the current Nokia management from Nokia insiders not only outsiders. Especially from employees, they can sometimes "smell" bad scenario better than investors and BOD. Employees on key positions can also impose conditions if they organize themselves well. Where is their voice and reaction? They are too quite in such delicate moments where mistakes cannot be afforded anymore.

I live in Macedonia, I'm not Fin, I'm not Nokia employee and while I work in the telecom industry I'm not influenced on any level by Nokia's future. I'm just a fellow Nokia user who has a hard time seeing Nokia going down.

BB

I think the English word you are looking for is 'apoplectic' - an apoplectic fit.

http://en.wikipedia.org/wiki/Apoplexy#Non-medical_usage

There's an anagram not far away.

tired

@m You ASSume that WP7.5/WP7.8/WP8 is desired by consumers. At The rate the lumia is selling, quite clear that it is unwanted by most ppl. whether Because it sucks or ppl hate msft, your guess is as good as anybodies.

Arnt Karlsen

..engineering firms were hired to streamline the gassing process lines in e.g. Auschwitz-Birkenau, which _is_ a way to "fix execution." So, it appears the Anders Behring Breivik of telecom is delivering "fix execution."

KM

>> whether Because it sucks or ppl hate msft, your guess is as good as anybodies.


If Microsoft actually thinks that people like their products they are sorely mistaken!

I think the vast majority just uses them because they have no other choice. Clearly with such a customer satisfaction they can easily transfer their user base to Windows Phone.

I think many are glad that they don't have to bother with MicroShit on their phones... :D

togga

What you miss Tomi may be that Nokia is trying a new hip 'cloud management' strategy. The results we see is a consequence of Elop sitting in a cloud of bullshit produced by the Microsoft propaganda-machine in which the whole world is defined by Microsoft products. Some people may literally live in this cloud of bullshit (analog to the people in the movie "the Village").

I also think many people just silently are waiting for this infected branch of MS to die (which will bring a feeling of freedom since Microsoft represent years of a Soviet-communist-regime-like situation with 3-year-plans in the IT-sector).

Spawn

@m @tired

http://www.gottabemobile.com/2012/04/16/samsung-windows-phone-8-in-october-with-new-smartphone-models/

Samsung is going to ship its first Windows Phone 8 smartphone in october this year right then Windows Phone 8 is available.
That means in the WP8 segment Nokia is going to compete with Samsung and others.
The other WP8 resellers will not limit themselfs to only one carrier. The will offer on all who like, on Amazon and in the shop next to your room.
Its silly Nokia is not even try to compete. They give up all but one carrier, all online-shops, all offline-shops to there WP8 compitors.
The one carrier very likely will also either be a small one or offer compering products like other WP8 devices, like Android or like iPhone. Or does really anybody believe any of the larger carriers would be so stupid to only offer Lumia? After the AT&T disaster? With a zombie-company like Nokia that may not able to support the product next 2 years (period a contract is running) cause the may not gonna survive next months? I really doubt any larger carrier would be willing to lose customers that way. If my carrier only offers Lumia then what the hell, I would switch to anothet! I doubt I am an exception here. Customers have choice and if the one carrier does not offer choice I chose another. Its a 2 seconds decision. None.of the carriers who used to offer a larger segment to there customers (means all bigger ones) would be so stupid to shut that down for an unproven, no proven to have failed, Lumia company.
That means Nokia WILL sell far less WP8 devices then they sold WP7 devices. There is no doubt about that cause they just offer it to far less potential customers.

Spawn

@B95

Nokia is not Apple. Neither are they ahead of competition nor are they the only offering WP8 devices.

PLEASE provide your sources for Apple's and Moto's success with that strategy. I am very interested to read the whole articles including the "buts..." :-)

LeeBase

Nokia will have to come up with a very compelling phone for the one carrier strategy to work. The iPhone was so in demand, that it even allowed Motorolla's strategy to work. Without Apple's success on AT&T, Verizon would not have been desperately looking for "their iPhone".

Now we have Android and the iPhone both well established. It is not likely that WP8 will be the jump over them that the iPhone was over the field. It's unlikely that WP8 can make other carriers desperate to counter with "our own Lumia"

Also making this impossible are the other WP8 manufacturers. So even in the absurd case of WP8 becoming a must have driving massive defections from Apple and Android...Nokia will be but one company offering a WP8 phone.

This strategy is I'll designed...which shows that even as deranged as Tomi has become, he can't be wrong all the time.

Aviezer

Nokia, Can you hear me?

NO. Nokia is deaf.
Just surf Nokia's web site.
Look at Nokia's LOGO.
Do you see the famous "CONNECTING PEOPLE" line?
No! Gone with the wind.
Gone with the ELOP WIND.

Need I say more?

James G

Tomi - keep the emotion. Someone has to speak for the pain Nokia employees are feeling right now.

When I first read about this new Elop plan, I couldn't believe it either. I think he has run out of ideas and is looking desperately for someone to hand him some marketing money like ATT did. Considering how well that worked out for them, I don't think he will get very many takers, and they sure won't be any big players. This whole plan will just possibly fizzle out and that will be the end of it and then he will think up some new stupid idea.

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    Tomi Ahonen is a bestselling author whose twelve books on mobile have already been referenced in over 100 books by his peers. Rated the most influential expert in mobile by Forbes in December 2011, Tomi speaks regularly at conferences doing about 20 public speakerships annually. With over 250 public speaking engagements, Tomi been seen by a cumulative audience of over 100,000 people on all six inhabited continents. The former Nokia executive has run a consulting practise on digital convergence, interactive media, engagement marketing, high tech and next generation mobile. Tomi is currently based out of Hong Kong but supports Fortune 500 sized companies across the globe. His reference client list includes Axiata, Bank of America, BBC, BNP Paribas, China Mobile, Emap, Ericsson, Google, Hewlett-Packard, HSBC, IBM, Intel, LG, MTS, Nokia, NTT DoCoMo, Ogilvy, Orange, RIM, Sanomamedia, Telenor, TeliaSonera, Three, Tigo, Vodafone, etc. To see his full bio and his books, visit www.tomiahonen.com Tomi Ahonen lectures at Oxford University's short courses on next generation mobile and digital convergence. Follow him on Twitter as @tomiahonen. Tomi also has a Facebook and Linked In page under his own name. He is available for consulting, speaking engagements and as expert witness, please write to tomi (at) tomiahonen (dot) com

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