Nokia and RIM: dead cats bouncing?

The share prices of both Nokia and BlackBerry maker Research in Motion have leapt higher in recent weeks. Is it a case of dead cats bouncing or genuine turnarounds for the troubled handset manufacturers? By Craig Wilson.

Canada’s Research in Motion (RIM) and Finland’s Nokia have both taken a beating in recent years. The former’s share price has slumped 89% in the past five years; the latter’s is down by 91%.

Yet, in recent weeks, both shares have bounced up significantly, prompting questions about whether new products, in the case of Nokia with its new Lumia phones, or promises of them, as is the case with the devices that will soon be running RIM’s upcoming BlackBerry 10 operating system, signal that the worst is over for the two companies.

Nokia’s share price has added more than a third in the past month and 21% in the past week alone. The surge has come after it released its latest flagship smartphone, the Microsoft Windows Phone 8-powered Lumia 920.

RIM’s stock has gained just over 30% in the past week and an amazing 58% in a month. In three months, it’s added 73%. The stock has been helped higher by news that it has a firm deadline for the release of BlackBerry 10, its make or break attempt to catch up with the rival Windows Phone, iOS and Android platforms. It’s tried all sorts of measures, some of them quite wacky (see video below), to reassure the crucially important developer community that the company isn’t going anywhere.

Early indications are that the Lumia 920 is living up to the prerelease hype. The first shipments of the device have already sold out in the US, Germany, the United Arab Emirates and Australia, although actual sales figures are not yet available.

With no supply problems reported, it appears the demand is genuine rather than Nokia limiting quantities to give the appearance of rampant demand.

Nokia and partner Microsoft have deep pockets so they can afford to invest heavily in a third mobile operating system and play a long game of attrition against market leaders Apple, with iOS, and Samsung, whose flagship smartphone, the Galaxy S3, is powered by Android from Google.

The strong performance in RIM’s share price recently is a little more difficult to make sense of given that, although BlackBerry 10 has a launch date, it comes after numerous delays. RIM has also not announced details about its 2013 handsets yet.

Hardware aside, RIM’s greatest challenge is convincing developers to write for BlackBerry 10. It’s betting the farm on the new operating system and hoping it’s good enough to keep current BlackBerry users loyal and even win back people who have defected to the iPhone and other platforms.

It appears that investors believe either that RIM is on the verge of a big turnaround or that the share had simply fallen too far too fast and that a technical correction was overdue. Have these companies turned the corner or are we watching a couple of dead cats bouncing on the pavement? The next few months should answer that question.  — (c) 2012 NewsCentral Media

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  • teklemon

    Blackberry might bounce back (depending on how good BB10 is) but Nokia, I doubt, unless they adopt multi OS strategy and enter the tablet space. Ofcourse from the manufacturers side only Samsung and Apple remain. HTC, LG, Sony all can be beaten no matter whatever Android junk food version they are on, their phones/customizations are not just good enough. Thats where Nokia and BB should see a chance.
    Will Windows 8 alone help Nokia? I doubt. The OS design is not good enough to make a big shift in what the consumer like now. Right from the aesthetics. Minimalist design, multi screens, good color combinations vs Tiles (post-it notes on a screen that hides everything) and 2-3 screens are not good enough for me. Symbian looked better.
    Prediction:
    Next year : Nokia will go down or will be acquired (may be by HTC or MS)
    Google HW will surge, Blackberry will make a very strong comeback (I will buy one!)
    Apple will lose market share
    Windows 8 will join Windows Vista as a failed attempt.

  • Greg Mahlknecht

    The only problem with your logic is that reality is doing the opposite of what you’re saying. WP7/8 adoption has more than doubled in the last year, and the new devices are selling out all over the world. These consumers you say that aren’t responding, are. Nokia’s more or less bottomed out, Symbian has been dragging them down, and that albatross is almost gone from around their neck, and their Lumia 920 device has all but caught the mindshare to put it alongside the iPhone5 and Galaxy S3 in pretty much every tech report nowdays.

    Multi-OS strategy or Tablet strategy? Didn’t work for Blackberry, didn’t work for HTC. I don’t think it’d be wise for Nokia to commit down that path, when you’re down and out, rather climb out that hole doing what you know you’re good at.

    I think Blackberry has a way to go until they bottom out. Something that I haven’t seen many people address, is that BB is very popular in large part due to cheap devices (R1800 – R2500 for the most popular – the Curve), and the flat rated data plans. By all appearances, it doesn’t look like BB10 will run on those low-end spec devices, and the way BIS is crippled would make it useless as a serious smartphone data plan. They’re going to be trying to sell new devices to a different target market. I can imagine a very large wait-and-see attitude from the market.

    By the way, it’s very apparent you haven’t used Windows Phone 8 (not Windows 8, as you said) much – you can’t see past the launch screen to the entire different way the OS works – it revolves around data, as opposed to iOS/Android which revolve around apps.

  • DOM

    WP8 is pure garbage and BB10 is FASTER then iphones and SG3…YES BB10 will have the FASTEST web browsing. QNX OS is a POWER OS that NASA uses in the SPACESTATION and space shuttle. QNX OS is also does on speed trains and in auto , power plants and one could go on and on. Now this POWERFUL OS will be in phones. No wonder google and apple pay these so called tech sites to misinform. Shame on you and your PATHETIC site that misinforms. You are a paid SHILL …nothing more nothing less.

  • Greg Mahlknecht

    … whereas you appear to be a voice of objectivity.
    Thanks for the laugh!

  • arrow2010

    Define “pure garbage”.

  • teklemon

    Thanks for the comments.
    Briefly:

    Lumia 920 sales – we can only assume till Nokia reveals the numbers. Will it beat Note ii 5 million sales in 2 months? (not Samsungs flagship, still). iPhone figures? Google Nexus demand? Not sure. May be its better than the horrible Mango version Lumias. and how many are being sold on the price factor? if so, will such low margin sales be sufficient to keep Lumias afloat? Will WP8 and Nokia will be the 3rd ecosystem? Where will BB10 go? FF OS? Tizen? Amazon Android? Day after day I see somwhow lesser chance for Nokia. MS might survive on WP9/10, but Nokia..not sure.

    Nokia missed the tablet bus. Surface could have been Nokia tablets. Apart from iPad and Galaxy tabs there are no other tabs that sell. Consumers have no options. Imagine Nokia tabs running windows. The business might not have flown initially, but if the tablet space flourish will Nokia ever be able to enter?

    You are right that I have not seen WP8 for long. But have seen WP7.5 and it was horrible. I thought WP8 would be a drastic change, but whatever chance I got to play with it , I was not impressed to spend my money on it. May be its like you love it or hate it..especially the tiles. To me minimalistic simplified yet intuitive GUI is what that matters. I honestly feel Meego was better than WP7.5 and may be WP8..but its a personal opinion.

    Nokia has no life left in it. Lumia 920 will be an average hit, something like a Samsung Galaxy Ace model. Its only chance is to adopt multi OS. Anyone who worry about quality will never say no to Nokia HW if it is running the correct sw.

  • Greg Mahlknecht

    >Surface could have been Nokia tablets.

    Why does Nokia have to “be on the tablet bus”? It has no track record or proven skill in tablets, and would be up against stiff competition from Samsung, ASUS, Acer and Lenovo. Nokia could make an impact in the WP7/8 world as they were entering as known players with quality products, and leveraged their existing mobile assets. Blackberry, HTC and HP all got whupped by trying to get into the tablet game. Perhaps it’s not a good idea to rush in.

    >The business might not have flown initially, but if the tablet space flourish will Nokia ever be able to enter?

    There is ALWAYS place for another player, however a late entrant they may be, if they have a compelling offering. Case in point: iPhone. Another example: Android. Both late entrants into a market everyone said would crush them.
    In fact, I think it’d be better for Nokia to get in later – let Samsung, ASUS and Lenovo do what they do best – get the numbers up, drive the hardware prices down, break the back of the iPad/Android tablet market, educate the world about Windows 8, and then enter with a product that stands alone in design and quality.

    >To me minimalistic simplified yet intuitive GUI is what that matters.

    You just described Windows Phone? That’s kind of the entire concept behind it. I understand it might not be intuitive to you, but my 4 year old daughter has no problem navigating it and playing her favourite games.
    By the way, what are the “multi OS” you are talking about? I assume it’s WP8/Win8 for Phones/tablets respectively?

  • http://twitter.com/bryanilee2 Bryan Lee

    Yes, that was a pretty funny post – I’m still trying to decide whether it’s sarcastic or not. Spacestation – lol!

    Anyway I think the reason these stocks are bouncing up and down is because of the tremendous unknowns – both companies are on a frightening downward path and yet are trying to turn things around. They could easily go under (stock price of $0), or they could start clawing back market share (stock price $50) – it’s still unclear which way they’re going.

    Nokia is dependent on Microsoft and Windows Phone – early results with the new Lumias seem to be a positive sign, but there’s still a long way to go.

    RIM, please just get BB10 out the door. Hopefully it will not be March 2013 when people can go pick one up at a store. And then it better knock everybody’s socks off. Then RIM has a chance. I hope they do a good job with BB10, but that’s not certain by any means.

    Meanwhile I bought a little NOK at 1.99 so I’m fairly happy with its performance so far…

  • teklemon

    Multi OS : Have WP8, Android Symbian smart phones. If we can take the analogy of a fruit juice vendor, Nokia is a juicer who sells only apple juice, but its competitors sell all juices including apple juice. The additional problem with Nokia juice (:-)) is that the apple they source is not of good quality (ofcourse they sell it cheaper), so only apple juice aficionados or price sensitive guys buy from them, even though they have the best juicer/blender/tables/glasses in their store. Its competitors make huge profits on orange and pineapple juices, but sells apple juice as well just to be complete in their offerings.
    Now Nokia has two choices. Sow a better quality seed for good apples and wait till it grow, blossom and ripe, or start selling other juices to compete effectively and may be the best infrastructure they got in store might help them beat others.

    Tablets: If MS has windows tab offerings I dont think anyone else would be successful in that space. Even if it is Samsung. Who will buy a samsung made laptop that runs Apple OS X? My point was Nokia could have leveraged on the relationship that they have with MS to make WIN8 tablets..may be exclusively. That would have aided the 3rd ecosystem that MS and Nokia are talking about. RIght now it will be an MS ecosystem, not Nokia one. (I can buy a windows phone from Samsung, windows Ativ from Samsung..why go for different brands?)

    GUI is purely subjective. Only time will tell. Lets wait one more year and see where Nokia will end up.

  • Greg Mahlknecht

    >Multi OS : Have WP8, Android Symbian smart phones

    They already have Symbian smartphones, and are still improving the OS and the hardware, but you can’t get away from the fact that Symbian has run its course. They’re losing marketshare to Android at a startling rate. Consumers just don’t want Symbian anymore. Just like Windows Mobile 6 was the end of the line of that OS, the time has come for Symbian to give way to new OSes.

    I think considering what’s happened to HTC when the Galaxy range of Android smartphones hit the market, Nokia’s feeling pretty happy about not going that route! Samsung isn’t who you want to fight for marketshare right now.

    As for your analogy – it was a little convoluted, I didnt really get it.

    >Nokia could have leveraged on the relationship that they have with MS to make WIN8 tablets..may be exclusively.

    Nokia’s relationship is on the mobile side. They have no leverage on the Windows 8 side of things – that leverage belongs to Lenovo, Samsung, Dell, HP – the guys who bring in orders of magnitude more profit into MS year after year.

    I still don’t get why people assume that Nokia could come out with a tablet that just blows everyone away. They might well be able to do it, but chances are their first effort won’t be great. Their designers aren’t used to the form factor, and the chipsets and architecture is new to them. The jury’s still out on which Win8 tablets are going to be popular – ARM, Atom or i5 … The PC makers are already geared up to release all 3 with relatively little work, by using their existing products/expertise/production facilities.

  • URNumber6

    Every quarter right up until last quarter NOKIA’s Symbian devices continued to outsell their WPx devices despite Lumia’s having huge marketing budgets lavished on them by NOKIA, Microsoft and AT&T. Symbian on the other hand has no marketing budget and Symbian devices are not even available any longer in many of NOKIA’s traditionally strong markets so they could potentially have sold even more.

    Last quarter NOKIA’s gross margin in smart devices was minus 3.5%, so they were giving their handsets away at less than cost. Before adopting WPx NOKIA had a very healthy gross margin on smart devices. At the start of this quarter NOKIA were having a fire sale of the Lumia 800 so we can expect poor margins again.

    When NOKIA had Symbian as their primary platform they sold more smart devices than Apple and Samsung combined, they were by far the biggest smart device manufacturer on the planet, now they are in danger of slipping out the top ten. Their WPx induced collapse has been astounding.

    Since publicly deprecating Symbian and announcing they would exclusively offer WPx smartphones their sales have plummeted, their margins have plummeted, their share price has plummeted, their credit rating has plummeted, they have lost carrier support, they have lost retailer support and they have lost key functionality in their smart devices because WPx is lower functioning than Symbian.

    The reason Android is so huge is because it’s currently the only viable replacement to Symbian, the only available OS that compares in terms of functionality. The reason Samsung is so successful is because it’s hoovering up all the business that would have been NOKIA’s if NOKIA hadn’t exclusively adopted a proven failure of an OS.

    WPx has proven itself as a failure and an albatross to every manufacturer that’s tried it. It’s market share is laughable for an OS that has had such an enormous marketing budget lavished upon it and its sales feeble when you consider the quality of the hardware Samsung, LG, HTC and now NOKIA have provided it.

  • Greg Mahlknecht

    It’s clear your a bit of a Symbian lover, and you’re welcome to your opinions about it. I prefer to look at hard numbers and facts. And the fact is that there’s only 2 smartphone OSes that have gained marketshare in the last year: Windows Phone and Android (Well, Bada too, but nobody really expects that to be a long-term player).

    If gaining marketshare proves Windows Phone is a failure, then Symbian’s massive marketshare decline must prove that Symbian’s doing incredibly well – so that should make you happy.

  • teklemon

    Symbian is out because Mr Elop killed it. Not that it was great in 2008, but with some massive updates (likes of Anna, Belle and all the other pretty lady ones that dint happen) and promise to support and develop Symbian it wouldnt have met with this horrible slow death. Elop sold off Qt as well. Not to mention Meego, with my N9 I am totally satisfied and the out of support OS is still almost comparable to the latest Android, it falls behind terribly only on the app side, but thats Mr Elop’s strategy to give away everything for the MS partnership. Though it is a lil late to rejuvenate Symbian, if Nokia can still adopt Android on different product line (say midrange to low end, keep WP8 on premium), they must do it. Right now they have all their phones in one basket and even though they speak of ecosystems they concentrate only on one component of it (phones) which to me is a very weak strategy.

    Tablets are important part of the ecosystem and are extension of your phones rather than extension of the notebook/PCs. That’s why mobile phone manufaturers have a better chance to win that segment than conventional PC makers such as Dell and HP. That’s why I strongly feel Nokia has spoiled their first chance of entry

  • teklemon

    Symbian’s demise has more to do with bad exec strategy than Android’s merits. Ofcourse it would have lost market share to Android (till it was rejuvenated/renamed as Meego (remember Meego and Symbian both supported Qt to develop apps), by taking the WPx strategy, Nokia has lost everywhere, atleast till now.

  • Greg Mahlknecht

    >Symbian is out because Mr Elop killed it

    Actually, no – - I see this said often, and it’s just not true. Search for a smartphone marketshare graph and you’ll see the Symbian decline started long before Elop came along. Nokia’s problem is that they didn’t react earlier. By the time Elop came in, Android had already overtaken Symbian in sales, and Symbian had shed half its marketshare from its peak. Symbian was beyond saving. They needed a stable platform, and fast. Android and Windows Phone were their only realistic options.

  • teklemon

    > Symbian was beyond saving. They needed a stable platform, and fast

    In its original form yes. But what Nokia did was to ditch symbian and the possible upgrades and the Meego which was their best bet at that time. These alternatives were definitely worth a try, the announcement made by Elop in Feb 2010 (?) to shut down symbian caused millions moving to Android. He surrendered without a fight. Symbian beyond saving was his conclusion but it was not. If BB could fight back, Nokia definitely could. Smartphones were a new segment, but thanks to ditching symbian, Nokia has lost all segments. And in terms of stable platform, windows 7.5 is another dead end and not upgradable to Windows 8, so much for stability. All those oaks who bought Windows 7.5 devices are ruing about their choice and future. And tomorrow when WP 10 comes, who knows what will happen to WP8 devices? The problem is Nokia is relatively powerless in deciding what MS brings as their strategy..by virtue of being just a WP8 phone maker (though Mr Elop will defend its not like that..)

    Yes, people will use phone+tablet combo. That is what I meant by tablets being extensions of smartphone. So to have both offerings in the market could be advantageous. I am not sure how it will be to have Nokia Lumia phones and Samsung Ativ tablet if I am an WIN8 fan…I would prefer the Apple kind of complete ecosystem from a single vendor together with HW, Nokia and MS could do it, but MS dint allow it or Nokia was too terrified of the future! I think its all slowly getting clearer that Nokia (Lumia division )will end up as MS mobile division very soon.

  • Greg Mahlknecht

    >the announcement made by Elop in Feb 2010 (?) to shut down symbian caused millions moving to Android

    PLEASE take the time to check your facts; I tool 30 seconds to do that. Sep 2010 was when Elop did his burning platform memo, and by that time Symbian had started on its downward trajectory. That trajectory has held constant; Elop’s announcement didn’t cause people to abandon Symbian any faster than before he came to the company. He didn’t kick out Symbian because he didn’t like it, he saw it was dying and planned a migration away from it (in his initial announcement he said he still expects Symbian to ship on 1 billion+ devices before it dies out)

    > I think its all slowly getting clearer that Nokia (Lumia division )will end up as MS mobile division very soon

    Now that the Symbian purge is going well, I think the Nokia smartphone division is close on break-even. The move to Symbian isn’t just about the OS, it’s an entire shift from the low-cost, low-margin Symbian phones, to the more expensive higher-margin premium smartphone market segment. WP7 will be used to displace Symbian at the bottom-end of the market where buyers don’t worry about upgrade paths (the fact people still buy dead-end Gingerbread Android devices in the tens of millions is testament to this)

  • teklemon

    Feb or Sep, thats not the point. mr Elop played into MS hands, as a previous MS employee he felt MS would be the safe option..best for MS but disastrous for Nokia. Imagine if they have gone with Android..it would have been another story altogether.

    By the way did you know Nokia smart phone numbers had grown by 7% from Q3 2010 to Q4 2010?On Symbian 3? Its only after Elops foolish announcement that the sales collapsed.
    There are plenty of materials showing Nokia collapse which clearly shows what caused the destruction of this scale.

    Windows phones successful as low end devices? Its just another Elops dream.

  • Greg Mahlknecht

    >Feb or Sep, thats not the point

    It’s exactly the point. You can’t brush aside the fact that invalidates your entire argument, and then start grasping at more incorrect facts. It’s the difference between it being Elop’s fault, and not being Elop’s fault. If Elop had taken the post in February, I’d agree 100% with you it’s his fault as that coincides with the start of the massive Symbian decline, but history shows another story.

    >By the way did you know Nokia smart phone numbers had grown by 7% from Q3 2010 to Q4 2010

    Where are you getting your numbers from? I’m looking at the historical graph on the “smartphone” entry on Wikipedia (Gartner report of actual sales). That shows a 5% per quarter decline in the 2 quarters before Elop came. That was with Nokia promoting Symbian as its main platform, with all its marketing might behind it.

    The actual number of unit shipments might have increased, as it’s an expanding market, but you have to look at market share %ages to see the trends. Marketshare down = bad.

    >Imagine if they have gone with Android..it would have been another story altogether.

    Yup, I agree. Very different. It’d probably have been much worse. HTC, LG, Sony are all strugging in the face of Samsung.

  • teklemon

    Sorry, cant elaborate on Elope effect which is discussed in business schools these days which is a combination of Ratner effect and Osbourne effect :-)
    Google Elop effect and you will get all stats.

  • Greg Mahlknecht

    Oh lord, that’s a term by by that “Communities Dominate Brands” guy … sorry, he’s well known as an anti-MS blogger, without much substance. He’s just a troll. When I googled “Elop Effect” I found more links disproving it and pointing out how that blogger uses FUD, than sites supporting it.

    And, no – it’s certainly not discussed in business schools, it’s just a term raised in a little blog post then shot down and disproven by the wider community as BS.

  • teklemon

    could you please point how to get to the places where this Elop effect is disapproved? I googled and none of them was more credible than that person himself. dont agree with some of the points in that blog , but some figures wrt what happened around that foolish announcement is infact correct.
    Nobody questions that Nokia and Symbian was in trouble. They were, because of Nokias complacency. But was WPx the right way to fix it is thr question. Going back to the original thread, the so called best “Windows Phone ever” should prove it right/wrong beyond any discussions shortly.

  • http://twitter.com/d4v3g Dave Gale

    Word to the wise… don’t argue with Greg on this topic – he tracks this sh*t on a large spreadsheet! ;)

  • Lalo

    A little bit unnecessarily harsh mate. I don’t think you can enforce your opinion on everyone. I don’t think this article misinforms, and I along with millions buying the Nokia Lumia don’t think WP8 is “pure garbage”. On BB10, you cite browsing speed yet it’s only one of many factors when comparing mobile OS systems.

  • jinndq

    p, li { white-space: pre-wrap; }

    Of course Nokia stocks will bounce a few more times before its final demise. But the reality remains that it is a triple certified junk status stock with no future. It is a dead stock bouncing.

    What makes it so attractive to shorting is that for the short term, Microsoft will pay large sums of money to try to prop Nokia stocks up while it tries desperately to prevent catastrophic loss with Windows 8.

    This translates to a sure bet for hedge funds and they know it. They smell blood and when the bounce happens, the profit margins will be massive.

    It well be a happy Christmas for many. Its time to put the Finns out of their misery.

  • http://www.facebook.com/mgcineni.j.martins Mgcineni Joel Martins

    Hay Dom you don’t have to sound dom really lol. I like the way you toot your horn for BB cuz it’s really looking good and respectable with what BB10 appears to be. We don’t know how the consumer experience is gonna be and yeah just because it’s a glove doesn’t mean it’ll fit, I won’t go about condoms lol you get the picture anyway.

  • VaughanLund

    if BB10 is so good, why does no one outside of the third world use it?

  • Greg Mahlknecht

    For the same reason nobody inside of the third world uses it. Because it hasn’t been released yet.

  • URNumber6

    Symbian was publicly deprecated in Q1 2011, in that context it is doing incredibly well.

    Right up until it was announced end-of-life Symbian’s sales were still increasing. In 2010 NOKIA’s smart devices sales grew 36% year on year, they had a healthy gross margin and the smart devices division was making healthy profits. In fact Symbian was the best selling smartphone OS is every single quarter ever and NOKIA’s smartphone division had never made a loss in any quarter ever.

    Ever since that announcement NOKIA have collapsed. Their sales, margins, share price and credit rating have all plummeted. Last quarter NOKIA actually had a negative gross margin on smart devices. The smart devices division is now making substantial losses quarter after quarter.

    So far Windows Phone has been an absolute and unmitigated disaster for NOKIA.

    Those are verifiable hard numbers and facts.

  • URNumber6

    MeeGo was not in any way based on Symbian. Qt might have provided a common development environment but MeeGo was a Linux based OS that had nothing of Symbian in its DNA.

  • Greg Mahlknecht

    >Ever since that announcement NOKIA have collapsed

    I think this is where the disconnect is. Elop didn’t make the “burning platform” announcement because things were all peachy and he saw a great future carrying on like they were. Their sales might have been increasing slowly, but this is a rapidly expanding market and by the time the announcement you speak of happened, Symbian had been in its market-share death-dive for a year already. This was why the previous management was thrown out, the writing was on the wall. The market turned on Symbian in Q1’10. Android killed it. That’s a verifiable hard fact.

    Nokia should have had Meego devices on the market in Q1’10 when Symbian’s goose became cooked, but they didn’t. They’re now trying to make up for that year they didn’t react fast enough, and we’ll know in a month if that’s worked for them, when they announce Q4’12 results.

    Do you still live under the impression that Nokia should have stayed with Symbian and things would have kept going well for them? Blackberry’s going to have some AWFUL quarters next year while they push BB10 into the market, but nobody will be silly enough to suggest they stick with their current OS offerings!

  • URNumber6

    “By the time Elop came in, Android had already overtaken Symbian in sales”
    That’s simply not true, Android was gaining but it hadn’t passed Symbian. Furthermore Android was being used by multiple manufacturers many of whom had previously used Symbian but jumped ship partly because Android made hardware integration easier and partly because they felt NOKIA was exerting too much control over the Symbian Foundation.

    It was balancing the reduced efficiency of using Android against the increased ease of hardware integration. Processors and RAM had reached the point they could take up the slack of a less efficient OS and so the manufacturers understandably plumped for ease.

    “Android and Windows Phone were their only realistic options.”
    At the time Elop killed Symbian NOKIA’s smartphones were outselling Samsung’s (who are now Android’s biggest player) by 4 to 1. How are the two performing comparatively now? So much for Windows Phone being a ‘realistic option’.

    “Symbian was beyond saving. They needed a stable platform, and fast.”
    Symbian’s microkernel architecture is inherently more stable and secure than a monolithic kernel like Android’s.

  • URNumber6

    Please check your facts: Burning platforms was Q1 2011, NOKIA’s sales of Symbian devices were growing right up until the end of Q4 2010. They had a healthy gross margin too.

    In terms of sales there was no downward trajectory for Symbian until Elop publicly announced it end-of-life.

    Since changing to Windows Phone NOKIA’s margins have significantly decreased. Last quarter it was minus 3.5%, the quarter before plus 1.7% Tiny margins on pitiful sales and quarter after quarter of losses.

    NOKIA’s accounts are freely available on their web site, you really should check your facts.

    NOKIA now only makes healthy margins on its Series 40 phones!

  • Greg Mahlknecht

    >That’s simply not true, Android was gaining but it hadn’t passed Symbian.

    Q1’2011 … Android: 36mil sold, Symbian: 27mil sold. For the previous year, Android was gaining marketshare, Symbian losing. The market had spoken by the time Elop came.

    >Symbian’s microkernel architecture is inherently more stable and secure than a monolithic kernel like Android’s.

    They needed ANOTHER platform. As I’ve pointed out a number of times, the market was moving away from Symbian. For a year before Elop came on the scene.

  • URNumber6

    Much worse?

    Again check your facts, NOKIA have collapsed so badly they are now only the tenth largest smartphone manufacturer

    Sony, HTC, ZTE, etc… might all be struggling against Samsung but they are now all bigger than NOKIA.

  • Greg Mahlknecht

    >NOKIA’s accounts are freely available on their web site, you really should check your facts

    I have, and you keep banging on about absolute number of phones sold. That’s meaningless if your competition is increasing their sales at many times that rate! You have to look at market share to see what’s happening. Do yourself a favour and go to the Wikipedia page for “smartphones” and look at the gartner-sourced graph of market share. See that Symbian line that took a dive in Q1’2010? THAT’S the problem. THAT’S why Nokia pushed out their previous Symbian-loving CEO, and THAT’S why it was absolutely essential for Nokia to get away from Symbian.

    I have no idea if Windows Phone will save Nokia. I hope so, they’re a great company. What I am pretty sure of, is if they’d have gone with Android, Samsung would have crushed them, and if they’d stayed with Symbian their market share would have kept declining (there’s no reason to think after a solid year of decline, they could have magically turned it around), and they’d be right where they are right now.

  • URNumber6

    You’re obssessing over market share which is meaningless.

    NOKIA’s sales were increasing, they had healthy margins and they were profitable.

    Now their sales have plummeted, both in money and units, their margins have plummeted and they are making huge losses.

    NOKIA have gone with Windows Phone and Samsung HAS crushed them. If they’d gone with Android they might have had a fighting chance.

    Windows Phone 7 was a proven failure, even Samsung couldn’t make it sell in substantial numbers despite giving it much the same hardware as their Android devices. Lots of other manufacturers also tried and failed – HTC, LG, Sony, etc..

    Windows phone 7 was already a categorically proven failure before Elop sacrificed Symbian for it.

  • URNumber6

    Symbian was deprecated in the quarter you’ve chosen to quote figures for.

    NOKIA did have another platform, it was much more functional and powerful than WP7, it was called MeeGo.

  • Greg Mahlknecht

    >You’re obssessing over market share which is meaningless

    If you honestly believe this, and can’t understand the simple maths and market dynamics of a plummeting graph over time, I won’t even bother replying to you anymore. I hope you have a really fun time replying to all my posts with your anti-Elop waffle.

    Good day.

  • URNumber6

    36% year on year growth from an already enormous base is ‘increasing slowly’?

    NOKIA’s sales were growing with Symbian that’s a verifiable fact.
    Numerous manufacturers had produced really nice harware running WP7 before NOKIA and none had been successful, that’s a verifiable fact.
    NOKIA’s sales collapsed with WP7, that’s a verifiable fact.
    NOKIA’s margins have collapsed with WP7, that’s a verifiable fact.

    Adopting WP7 was a strategy that was never likely to succeed. NOKIA’s collapse was entirely predictable, in fact it was by far the most likely outcome of adopting an OS that was already a well proven failure in the market place.

    Current BlackBerrys are just J2ME feature phones, you can’t make a meaningful comparison to Symbian. BB10 is huge advance for RIM.

  • Marcus Bryant

    The quality of the product is a moot point in the case of RIM. In the vast majority of countries (the exception being South Africa, where RIM are doing very well) you need to buy your Blackberry BIS/BES services on top of your unlimited data plan. This makes a BB significantly more expensive to use than any other Android or IOS device. Until the service providers change this model, RIM is doomed, no matter how good their product becomes.

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