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« New Twitter Contest - to Guess What Date Elop Will Be Fired (or otherwise removed from office as Nokia CEO) | Main | Q4 Results and other notes from Smartphone Bloodbath - LG, Lenovo, RIM, ZTE, Jolla, Vertu, etc »

January 30, 2013

Comments

Tomi T Ahonen

Sander

Listen to yourself "No sane business person would change the smartphone strategy if it was the dumb phones segment that was crashing."

Nokia smartphone sales grew - GREW - from 67.8 million in 2009 to 103.4 million in 2010. This IS SMARTPHONES. Nokia SMARTPHONES. That is GROWTH of 35.8 million smartphone unit sales. Those smartphones were generating an 11% profit margin and 2 Billion dollars of PROFITS in 2010.

From 2009 to 2010, Apple's iPhone grew 22.4 million units and Samsung's smartphone sales grew 17.0 million units. Nokia's growth was nearly as big, as Apple's and Samsung's growth - COMBINED. Nokia was INCREASING its massive lead over both of these rivals.

Sander, listen to what you said. You wrote 'No sane business person would change the smartphone strategy if it was the dumb phones segment that was crashing.' - the operative word being 'sane'. The FACTS are, that Nokia's smartphone sales were utterly crushing the competition in 2010. No sane Board member would ever agree to this lunacy that Elop was selling. But clearly, the Board is either senile or incompetent, or wasn't paying attention or was in collusion with Elop. The decision IS NOT SANE

Thanks

Tomi Ahonen :-)

SMP

Tomi - you keep reminding us that Elop is a complete idiot, and complete incompetent, a complete failure etc. which is of course correct, and obvious to anyone who has even half a brain.

I can understand Elop fine - there are plenty of other incompetents everywhere, although few have the chance to demonstrate total incompetence as well as Elop. What really puzzles me is why he is allowed to remain in place. Why doesn't the Nokia board do something about him? Why doesn't the Finnish government investigate whether there is collusion and breaching of the corporate veil by Elop and Microsoft? Nokia's Elop orchestrated suicide is severely damaging the Finnish economy. Surely the Finnish government has a duty to investigate. Surely everyone in Finland can't be an idiot like Elop.

Harald Panzeraabe

Have watched this Elop clown and Microsoft trojan horse destroy Nokia and am amazed that the Finns have allowed this idiot to rape the pride of Finland for 3 years now. I can only conclude that the Finns have no balls or are all sadomasochists or suffer from Stockholm syndrome (Tomi Ahonen is the exception- seems to have some Cantonese fire in him). Where is the anger and the outrage ? This Elop clown should be deported immediately and banned from Finland forever; this is a national emergency. Where are the politicians and the army on this issue ?

Wayne Borean


Got interested. Looked up the 808 Pureview. I want one.

Wayne

cycnus

@Harald Panzeraabe

Elop should NOT be deported... he should be BEHEADED.

Sander van der Wal

@Tomi

If Elop is insane, the entiere board of Nokia is insane too, ans as much the culprit as Elop himself. Blaming Elop for everything isn't right, when the people that were responsible for the mess before Elop are still there and helping Elop create an even bigger mess.

The figures show clearly that loosing of key markets, UK, Germany, Spain, Italy, Indonesia, and the USA is indeed happening. Other markets behave differently, and the growth there hides the decline in Western Europe and Indonesia.

And it cannot just be the economy. The USA's economy was in trouble during that entiere period. But iOS grew massively in the USA during that time. Android grew massively during that time.

And Europe is not a single economy. Germany saw maybe a tiny recession, France saw maybe a tiny recession, the UK is in trouble, as are Italy, Spain and some smaller countries. Norway is doing fine, Sweden is doing fine, Poland is doing fine. And both iOS and Android grew a lot during the entiere period.

Again, if your competitors grow during economic bad times and you are not growing, they are overtaking you, then your competitors have a compelling product, and you do not.

winter

Maybe Elop's carreer becomes more understandable if we compare it to a more famous example.

GW Bush also bankrupted every business he ever headed, including the USA. He is still admired by many.

EmmanuelM


Ha ha the litle clown head gave me a good laugth... :-))

Tomi, seriously :
- we know the reason behind the current Nokia critical state and the madness of its CEO and BoD
- we are all thinking (hoping) that Elop will be ousted sometime in H1 2013

What I would like to hear from you are ideas on :
- Do you think Nokia can still survice has an independant company ?
- What do you think the new CEO should do in the next 6 monthes after he takes the job ?

Thanks in advance !

Winter

Just for laughs, about Windows 8 metro interface on the desktop:

https://www.eviscerati.org/comics

Winter

Sorry, this is the permalink

https://www.eviscerati.org/comics/comic/hd/2013/01/Excess-Real-Estate

Spawn

For the "burning platform memo":

When Elop not issued that memo and Nokia would have been keeped silent till first Lumia was ready to be shipped and then go on stage, announce Nokia does offer WP devices too now and they can be bought in shops the day after then...

Then the N9 would still come to market months before. It wouldn't have been EOL on arrival, sold in all major markets.

Now what would have happened if the N9 sales-figures are good? And if then Nokia decides to not abort but keep MeeGo running while continue to offer Symbian (what they did despair the burning-platform-memo for years after anyways) and sell WP devices too?

What would have happened if just one or two quarters later Nokia realized that there Symbian devices still bring in good money, that there MeeGo devices sell better then there WP devices?

Maybe nothing and maybe Nokia would have continued to make WP7 devices, looking out for WP8 devices and give them a try too.

There Symbian cash-cow would have keeped them profitable and healthy. Customers could choose between Symbian, MeeGo, WP.

Remember Samsung, back then way smaller then Nokia, sold Android, Bada, worked on there internal Tizen research-project. 3 very different offerings too. Samsung still does all 3.

For me the central question still is: Why was it needed to kill all options to offer WP Lumia? Samsung not killed there other options AND offered WP devices. So why?

firecracker

So Tomi how do you see the future og GG (Google Glass?)
and by the way Elop is a utterly complete fucking moron!!! I mean why the heck try to force your customers on BING (The worst search engine ever invented) I've actually read a paid article about the lumia where the guys who were reviewing the stupid piece of shizzle said that the only annoyance was the forced bing usage

Spawn

For me it looks as Elop misses a few very fundamental skills or knowledge about companies, products and the market.

* Abort your cash-cow with no reason.
* Doing a hard strategy switch with a period of 1 year nothing in between.
* Go all-in, destroy all alternate options, burn bridges, close exit-strategies.
* Bind the fate of your company forever to another companies good will.
* F*ck up coperate communication on all levels possible.
* Screw partners, customers, sales-channels.
* Fail execution.

And what's his answer why all that resulted in a failure?
* Sales neednto be teached better. Yes, blame them, that gives you extra-bonus points when they decide if they like to support you!
* Tell your carriers (sales-channel) they "need to accept and cannot change anything anyways". Yes, freak them up to be sure they hate you and not trust you!
* Say its cause customers are not aware and you just need a bit more marketing. Yes, blame your customers for being to stupid to buy what you give them. Customers love that!

And to top that extend it with:
* Abort your newest shiny products customers bought in to announce a new shiny product, incompatible, no upgrade possible. Yes, those very less customers who trusted you loved it to spend lots of $ on now outdated products after you told them its the newest and greatest.
* Fire half your employees cause that helps to improve motivation for the other half!
* Close all your R&D cause why would you need R&D for your products? Customers will no note the difference and if they do, who cares? Screw your ex-customers!
* Outsource production cause it saves you some pennies. That quality decreases doesn't matter since who bough ever a Nokia cause of quality? Screw your ex-fans!

I am sure to have forgotten half the things he did and who had effects on products, customers and Nokia.

Winter

@Spawn
"Outsource production cause it saves you some pennies. "

The central question in outsourcing is ALWAYS:
If they can produce and ship my product, why do they need to pay me?

The answer very often is: They don't.

Winter

@Sander
"Nokia saw its cash cow dying, and its replacement wasn't going to be ready in time."

I am missing the reason to kill the cash cow yourself before you have a replacement.

Was it an act of mercy because the cow was suffering so much?

The vastly corrupted Finland

vlad:"Elop created a brilliant cash-machine for the ones who are well informed."

What if the Finnish Prime Minister and Finnish President are trading like Mr Elop? Who knows their ghost trading? No one, who will investigate, no one? At least the Finnish media or journalists.

Just do the math and search for Henry Kissinger and Mr Erkko and their friend Wallenberg.
ALA DINNERS - The American-Scandinavian Foundation
Mr Erkko is the ex Finnish Media Mogul and owner his family is the biggest owner of the Finnish Sanoma Corporation.

foo

@Winter "I am missing the reason to kill the cash cow yourself before you have a replacement. Was it an act of mercy because the cow was suffering so much?"

LOL

foo

Here's a re-interpretation of the last chart, showing that Nokia is under water:

http://oi46.tinypic.com/2ntcwma.jpg

foo

@Harsh "I don't disagree that Elop has been a disaster (if for no other reason than he did not adopt Android over WP) but you should still plot the launch of iOS and Android as key competitive events in the (smart) phone market so as to reflect a more complete and accurate story."

Even if you consider that, there is a fact that makes Elop a disaster.

He *could* have chosen Android instead of Windows Phone.

If Elop had chosen Android, who knows? Nokia could still be the number one. Or maybe it could stay between the top 3. It wouldn't have dropped to #11.

One of the reasons why Elop chose Windows Phone, was because Android "wouldn't let Nokia differentiate itself from the competitors". A big lie!!! Take a look at Samsung and all the differentiation it can do with Android. Now compare to the Windows Phone makers -- every Windows Phone is the same!!!

If Elop wanted differentiation he hand-picked the worst option.

Now imagine Nokia hardware running Android. Given the quality of Nokia hardware, it would be one of the better smartphones available.

Man, I really hope that Tomi will write that book...

foo

Another try... "Nokia under water" or "After Elop jumped from the platform"

http://oi46.tinypic.com/344v98j.jpg


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