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« Nokia Q2 Results 2011: 15 Years after Inventing the Smartphone, Finally The King Is Toppled: By Who? Apple's iPhone of course | Main | First Look into Microsoft Nokia Smartphones in 2012 and 2013. Expect climb-back to barely 8% markets share by Q4 of... 2013 - best case scenario »

July 21, 2011


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Microsoft was lumbering as well as Microsoft Windows Mobile, until their nemesis, Apple, entered into the device space. And before you decide to could say 'Palm' Microsoft's business is at freefall.. So Microsoft said they'd abandon the Windows Mobile platform, because that's now 10 years old, and to produce completely new operating system truly for smartphones, Windows Phone, which might be completely new, and be optimized for touch-screen phones. Now, since this was 'totally new' it resulted in there were no migration path for developers who had made apps for Windows Mobile.

If you ask me at that time, that seemed truly odd. Microsoft if anyone, needs to have known better. It turned out DOS that built Microsoft. Then came Apple while using the Mac (like now while using the iPhone) and showed a more practical service notebooks than DOS. So Microsoft had to reverse-engineer the Mac OS and continue to make a clone, which we now know as Windows. And from now on DOS is dead. But Microsoft were built with a massive global PC lead in DOS based machines in 1984 once the Mac was announced. Whilst Macintosh PCs were sold, Microsoft based PCs sold more. And Micrsosoft made Windows first just as one add-on over DOS, being a 'GUI' (Graphical User Interface). The very first versions of Windows were horrible, it wasn't until Windows 3.0 that it was at in any manner usable, even so the point was, that all Windows PC's were also using DOS, and any recent DOS machine could be upgraded to own Windows


Is possible that Elop is so incredible incompetent ???

Elop is a CRIMINAL ... he should go to jail !

Why Finland is doing nothing for protect what was their 20% of GDP ????


Come on, Nokia's share of Finland's GDP was never 20%. More like 3-4% and that was years ago.


This has to be the most Exceptionally Enormous Flop in the history of the tech industry - The Eflop.

I just don't get it. Even if Mr. Eflop is working in the interest of Microsoft, why is MS agreeing and sponsoring his actions? This is very bad for them too. The way things are going, not only are they not going to gain any boost for Win Phone's share from the dying Nokia, but Microsoft is going to take a heavy PR hit. It will be remembered that an ex Microsoft manager adopted a Microsoft OS and killed Nokia in about a year...

If Nokia did not discontinue MeeGo, Symbian would not have been viewed as a dead-end ecosystem and sales would not have efloped. Nokia would be much stronger and would be able to push WP much better. They could always target the MeeGo devices to the lower end and keep the WP devices in the high end.
In case of failure, Microsoft would not be seen as the problem and not take a PR hit.

And in my personal opinion, there is no chance Win Phone will sell well - its design is suitable for advertisements, not a personal device - its just too cold.


When this all over.... elop got kicked, sued, beaten by angry bird/mob, i mean angry nokian.

I think that Rumpelstiltskin, I mean Elop would end up just like Rumpelstiltskin in shrek 4 Forever After.... eating from dumpster.

Nokia shareholder must sue elop until his last penny.!!!!!!


Hi Tomi,

Actually Osborne effect and elop effect were different.

Adam Osborne was pre-announcing a replacement product that were better ahead of time.

elop was pre-announcing a replacement product that the current owner of nokia devices would not want it. and also announcing that all the current good product would be dead. So, basically elop was giving a replacement product that were worse than current product to replace current product that were in high demand.


Hi Tomi, do you have any updated numbers of Samsung for Q2. Very much interested to know if they crossed Nokia or not. Definitely Apple's 20M is out of reach. So is it Apple-Samsung-Nokia or Apple-Nokia-Samsung ? Let us know your latest projection given Nokia's numbers.


With such profound love for Mr. Elop, may I suggest the ultimate solution.

Alexey Zimarev

Some pieces of truth but in general this is too emotional. Yes, they should have go slowly descending Symbian and transit to MeeGo as they have planned. Seems that people are more than happy with N9. If Nokia had balls to make their own (patented) tablet on this platform it will sell very well, much better than RIM's device. WP7 wasn't the best choice indeed but I surely don't believe that Nokia would get below 10% of the smartphone market by the end of 2011, this will not happen.


At least Symbian developers will have moved to Accenture before Nokia goes bust. There's still a chance of some severance guys!


@live cricket streaming

I think Microsoft had 2 objectives for Nokia deal. It´s bit hard to say what was priority.
To kill MeeGo was truly top priority. With Nokias global spread combined with Intels push and multi industry cooperation for interoperable core system for multiple purposes was (and partly stil is) real threat to Microsofts core bussines both pc and mobile softs in few years.
To have worlds largest (smart)phonemaker to bow down to take OS and to burn other bridges was also important.
Meego is/was only platform that is not closed and allows every suplier of hardwares, softwares and services to compete with each other, for good of consumer.



I 100% agree with you.
I also have wrote this several times on Tomi blog that the big conspiracy theory by me that MS might just want to kill open source.
Meego with Nokia + Intel support is a REAL THREAT for MS.
and QT by Nokia is also a REAL THREAT for MS.
If Meego become mainstream, QT got lots of developer
that's mean. MS platform (.Net, silverlight) will be less important

and windows will fail.


@Pallo: Please check you facts before starting typing. MeeGo is more closed then Android. Core is open in both cases, but latest goodies (Honeycomb UI in case of Android and Swipe UI in case of Meego) are closed. And while Google publicly promises to open everything in Ice Cream Sandwich (see there are no such promises from Nokia side.

@cycnus: This is plausible explanation for Elop's actions, but he's still the CEO so it's not enough. There were (are?) some additional arguments which convinced the board of directors. WTF are they is anyone's guess.


I cannot understand your position regarding Nokia reducing prices. Actually, I ma more impressed that it has not happen more aggressively. After Februuary announcement, I expected Nokia phone prices to come down very quickly. In front of a retail boycot and PR disaster, it becomes quite important to defend the market in your power rather than letting it go without a fight. Customers that they loose now will be almost impossible to recover, as you have well said. So Nokia needs to reduce prices AND keep their shops! At least until they find a way to appease the retailers.



i agree with you on pricing strategy, but tomi were pointing out that OPK (the CEO before elop) were fired because he's doing a price cut, in which lowering the ASP.



I´m sorry for my weak english writing skills.
About MeeGo from
"The MeeGo project provides a Linux-based, open source software platform for the next generation of computing devices. The MeeGo software platform is designed to give developers the broadest range of device segments to target for their applications, including netbooks, handheld computing and communications devices, in-vehicle infotainment devices, smart TVs, tablets and more – all using a uniform set of APIs based on Qt. For consumers, MeeGo will offer innovative application experiences that they can take from device to device.

The MeeGo project is hosted by the linux foundation"

Core comes with different "reference/example" UX, for different purposes, for example, handheld UX, netbook UX...
All of those can run same software, it´s up to developer to optimize UI for different devices. Idea is that vendors (of hw) creates their own (propietary/closed) UI to differentiate themselfs as Nokia did with swipe UI. Even then same soft runs on all devices idependent from hw or ui, if developer havent done optimazion for spesific ui then asability suffers but code itself stil works.

So every on could compete, no monopolistic walled gardens.

Khim look at evolution of mobiles in last half decade, what a leaps. In few years mobiles can run every trivial desktop tasks with ease(spesific use cases need spesific tools) so why restrict usefulnes of devices to single or few monopoles. With "docking station" mobile changes to desktop when needed other UX. If you go to walled gardens "gate keeper" rules what you can and cannot do.
I don´t like idea of future where I have only three real options to choose Apple, Google and Microsoft. And in that world one can choose only one time without major risk to loose ability to easily change platform or device vendor.


What I just don't understand is why are Elop and (parts of) the Board still not fired. The numbers speak for themselves, there is just no sugarcoating. About 1 Billion loss in Q2 (if you count out Apple's IP payment), market share in free fall, share price down more than 50% since Feb 2011.

Who are the forces keeping these guys on their jobs and what are the reasons they do it? Are some of the major Nokia share holders net short so that they win if Nokia fails? Do major Nokia share holders think they can make more money letting Nokia fail by betting on the competition (MSFT, Apple, Moto, HYC, etc,)?

Is there still a game where somebody gains buying some Nokia assets cheaply while the rest of the company disappears into history?

As i said, I don't understand.


SoVatar, hire a lawyer and sue both Elop and Jorma to Finland Court for the damage they had done to Nokia shareholders. $20B loss should be able to put these two into jail. and Nokia will come back immediately due to short sellers squeeze. Or use class action.


AFAIK incompetence is not a crime, so the fact that Nokia lost $20B market value per se will not be enough to win a lawsuit. Somebody needs to be able to prove intent, and it is here where I am at a loss.

What is the intent behind Elop's / the Boards actions to make Nokia fail? What is the intent behind major shareholder's apparent willingness to to let Elop / Board make Nokia fail?

I cannot believe that it is incompetence on all three levels: CEO, Board and major shareholders. There must be a game somewhere in the dark why these 3 entities do what they are doing.

Granted, I see that 2 of the 3 levels are incompetent (namely Elop & the Board). But all 3?


face it: there is no major investors in Nokia, all small individual shareholders who owns Symbian devices got betrayed by Elop and Jorma.

you have to start the suit to find more fact. just like Murdoch case. more fact will be found each day. Convetion wisdom manifests Elop and Jorma are criminals. They are not Trojan of Microsoft but agents of Wall Street Short sellers.

That's why you have to sue in Finnish court not here in America.

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