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« What Do We Want? Duelling Stats about What Drives Smartphone Purchases (updated) | Main | Local Motors and the radical redesign of business »

February 26, 2015



I love it how you give the impression you really care. Cheers!


...and people wonder why there is intense dislike of microsoft. This is part of the story that NO ONE WANTS A WINDOWS PHONE! ...except those "all-in" waiting for Moore's law LoL!


Are you sure they are closing Beijing factory? As far as I remember Nokia had also older factory in China, in Dongguan. And I think it was being phased out from production already before Microsoft deal. Maybe they closed that one, not the much modern one in Beijing? Besides this Beijing factory and whole campus would employ more than 9000 people I think, so there would have to be more headcuts


Fortunately, China still has a pretty dynamic economy. I'm guessing lots of those employees will be snapped up by the likes of Foxconn and Xiaomi in no time.



Microsoft is actually closing two factories in China: one in Beijing and one in Dongguan.

Per "wertigon" Ekström

Tomi, slightly off topic but what are your thoughts on the recent FCC title II classification vote that went through and basicly now regulates ISPs the same way as telecom companies? It seems like something with the potential to rock the boat in the US markets. :)


21.5 thousands out of 32k to go - sad to see this... :(
Even if it is justified by low volume of Nokia/Microsoft phones.

That happens when something being micro and soft touches something being hard and ware...

And one of the official reasons is "raising labor costs". In China. In China!!! Gosh.
Remains of production go to Vietnam because it is cheaper. Where does it end?!

Ok, cost efficiency rulez but still...


In the 90's people I was privy to general managers from some of the biggest companies meeting to discuss labour price strategies, and they all voiced one thing, that the supply of ever cheaper labour in the world would not run out in their lifetime. So onward and upward wiping out jobs in developed countries and building factories in 3rd world countries and getting subsidies for it. Talk about self interested arseholes getting a bonus for self interested activities screwing the worker. geez.


How the story ends? Well, soon there will be only one Lumina-employee left; Elop. Then, and only then, he finally succeeded in jumping off that burning platform into his own boat filled with millions of cash for him and him only.

A classic gangster epos where the last man standing gets all the profits. To rob his $20 million he just had to kill 50k competitors/jobs. And the sad end is it worked, cops didn't arrest him (yet?) and hes holding the gold in his hands.



"To rob his $20 million he just had to kill 50k competitors/jobs. And the sad end is it worked, cops didn't arrest him (yet?) and hes holding the gold in his hands."

Baron95 makes a good point. How effective is it today if the company has all those factories and lots of facilities for in-house manufacturing process? Apple doesn't need those and they are doing fine.


@Lullz, that's exactly right. China leads the world in contract manufacturing capabilities. Apple is obviously one of the largest and most successful examples of a company relying on contract manufacturing, but it is certainly not alone. There is obviously some risk (such as financing a future competitor the way Apple did with Samsung), but Apple has shown it is not necessary to be vertically integrated as a corporate entity in order to succeed.


@Baron95: having your own factories has positive and negative side. I'm not dare enough the state what is the significant in general...

Especially when a company has to deliver in such volume that its own factories are working 24/7 like Nokia did in its gold time. In this case I hardly see any disadvantage of own factories. Of course, when volume is low and some of them gets idle...

Of course, having nothing real but design only makes you really flexible - but vulnerable, too - if competition is fierce and you have to fight for capacity...

I think there is no absolute truth here. E.g. Intel has its own factories - and it declares want to have them - while others has nothing. Some of therm are successful while others struggling...

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