Tag Archives: Stephen Elop

Nokia and Microsoft Collaboration

February 11th: Nokia & Microsoft, Allied!

Lately, we heard a lot of rumors that Nokia could cooperate with Microsoft, so finally, at February 11th, the two giants are going to work together on the Windows Phone 7. These are very good news and we’re looking forward to have the chance to see the first WP7 running Nokia device, introduced at MWC 2011.

Nokia and Microsoft Collaboration

Stephen Elop was a Microsoft director, that’s why this day’s purpose could’ve been foreseen even from the day when Nokia’s CEO has been changed. Looks like Microsoft saved Nokia from the freezing Ocean, related to the letter’s meaning. According to Steve Ballmer’s and Stephen Elop’s letter, Windows Phone will be the primary strategy on the high-end market for the Finn company.

Additionally, Bing is going to be the principal search engine on WP7 supported Nokia handsets, while Microsoft AdCenter will be the ad publisher. Nokia Maps will be integrated in the Bing’s search engine and both companies will focus mainly on cloud services.

Vic Gundtora Versus Stephen Elop (Twitter)

Vic Gundotra from Google wrote a pretty rough tweet regarding to the Nokia & Microsoft alliance: “Two turkeys don’t make an eagle“. Of course, Stephen Elop replied to this “attack“, mentioning the following: “Or this: Two bicycle makers, from Dayton Ohio, one day decided to  fly.”  (Wright brothers). Nokia’s CEO is right, who knows, maybe they are going to change something.

via: mobilissimo.ro

Nokia CEO: Stephen Elop

A letter from the Nokia CEO: Stephen Elop!

Lately, Nokia’s fresh CEO, Stephen Elop, sent a letter to all employees writing about the situation what Nokia is in right now. According to the stuff he wrote, the CEO seems to be sincere, because he confessed that since the first iPhone (2007), Nokia wasn’t able to release a smartphone that’s better than the Apple’s beauty.

Nokia CEO: Stephen Elop

The chairman used a metaphor, describing a situation of an employee who works on an oil platform which one day suffers an explosion and sends the entire platform on fire. The man has to either remain and die or he could jump in the freezing Atlantic Ocean to save himself. In that case, Nokia is a “burning platform“, according to the letter.

Stephen Elop is concerned about the fact that “Made in China” low-end mobile phones are becoming a challenge to Nokia’s production, because they are fast and cheap while on the other side – the high-end devices – , iPhone is dominating the market and Android is just taking what’s left from Symbian.

Finally, he believes that February 11th will be the day when changes will take place, a possible Windows Phone 7 or Android adoption. Let’s just hope that Nokia will be saved from the freezing ocean by Google or Microsoft.

The letter can be found below:

“ Hello there,

There is a pertinent story about a man who was working on an oil platform in the North Sea. He woke up one night from a loud explosion, which suddenly set his entire oil platform on fire. In mere moments, he was surrounded by flames. Through the smoke and heat, he barely made his way out of the chaos to the platform’s edge. When he looked down over the edge, all he could see were the dark, cold, foreboding Atlantic waters.

As the fire approached him, the man had mere seconds to react. He could stand on the platform, and inevitably be consumed by the burning flames. Or, he could plunge 30 meters in to the freezing waters. The man was standing upon a “burning platform,” and he needed to make a choice.

He decided to jump. It was unexpected. In ordinary circumstances, the man would never consider plunging into icy waters. But these were not ordinary times – his platform was on fire. The man survived the fall and the waters. After he was rescued, he noted that a “burning platform” caused a radical change in his behaviour.

We too, are standing on a “burning platform,” and we must decide how we are going to change our behaviour.

Over the past few months, I’ve shared with you what I’ve heard from our shareholders, operators, developers, suppliers and from you. Today, I’m going to share what I’ve learned and what I have come to believe.

I have learned that we are standing on a burning platform.

And, we have more than one explosion – we have multiple points of scorching heat that are fuelling a blazing fire around us.

For example, there is intense heat coming from our competitors, more rapidly than we ever expected. Apple disrupted the market by redefining the smartphone and attracting developers to a closed, but very powerful ecosystem.

In 2008, Apple’s market share in the $300+ price range was 25 percent; by 2010 it escalated to 61 percent. They are enjoying a tremendous growth trajectory with a 78 percent earnings growth year over year in Q4 2010. Apple demonstrated that if designed well, consumers would buy a high-priced phone with a great experience and developers would build applications. They changed the game, and today, Apple owns the high-end range.

And then, there is Android. In about two years, Android created a platform that attracts application developers, service providers and hardware manufacturers. Android came in at the high-end, they are now winning the mid-range, and quickly they are going downstream to phones under €100. Google has become a gravitational force, drawing much of the industry’s innovation to its core.

Let’s not forget about the low-end price range. In 2008, MediaTek supplied complete reference designs for phone chipsets, which enabled manufacturers in the Shenzhen region of China to produce phones at an unbelievable pace. By some accounts, this ecosystem now produces more than one third of the phones sold globally – taking share from us in emerging markets.

While competitors poured flames on our market share, what happened at Nokia? We fell behind, we missed big trends, and we lost time. At that time, we thought we were making the right decisions; but, with the benefit of hindsight, we now find ourselves years behind.

The first iPhone shipped in 2007, and we still don’t have a product that is close to their experience. Android came on the scene just over 2 years ago, and this week they took our leadership position in smartphone volumes. Unbelievable.

We have some brilliant sources of innovation inside Nokia, but we are not bringing it to market fast enough. We thought MeeGo would be a platform for winning high-end smartphones. However, at this rate, by the end of 2011, we might have only one MeeGo product in the market.

At the midrange, we have Symbian. It has proven to be non-competitive in leading markets like North America. Additionally, Symbian is proving to be an increasingly difficult environment in which to develop to meet the continuously expanding consumer requirements, leading to slowness in product development and also creating a disadvantage when we seek to take advantage of new hardware platforms. As a result, if we continue like before, we will get further and further behind, while our competitors advance further and further ahead.

At the lower-end price range, Chinese OEMs are cranking out a device much faster than, as one Nokia employee said only partially in jest, “the time that it takes us to polish a PowerPoint presentation.” They are fast, they are cheap, and they are challenging us.

And the truly perplexing aspect is that we’re not even fighting with the right weapons. We are still too often trying to approach each price range on a device-to-device basis.

The battle of devices has now become a war of ecosystems, where ecosystems include not only the hardware and software of the device, but developers, applications, ecommerce, advertising, search, social applications, location-based services, unified communications and many other things. Our competitors aren’t taking our market share with devices; they are taking our market share with an entire ecosystem. This means we’re going to have to decide how we either build, catalyse or join an ecosystem.

This is one of the decisions we need to make. In the meantime, we’ve lost market share, we’ve lost mind share and we’ve lost time.

On Tuesday, Standard & Poor’s informed that they will put our A long term and A-1 short term ratings on negative credit watch. This is a similar rating action to the one that Moody’s took last week. Basically it means that during the next few weeks they will make an analysis of Nokia, and decide on a possible credit rating downgrade. Why are these credit agencies contemplating these changes? Because they are concerned about our competitiveness.

Consumer preference for Nokia declined worldwide. In the UK, our brand preference has slipped to 20 percent, which is 8 percent lower than last year. That means only 1 out of 5 people in the UK prefer Nokia to other brands. It’s also down in the other markets, which are traditionally our strongholds: Russia, Germany, Indonesia, UAE, and on and on and on.

How did we get to this point? Why did we fall behind when the world around us evolved?

This is what I have been trying to understand. I believe at least some of it has been due to our attitude inside Nokia. We poured gasoline on our own burning platform. I believe we have lacked accountability and leadership to align and direct the company through these disruptive times. We had a series of misses. We haven’t been delivering innovation fast enough. We’re not collaborating internally.

Nokia, our platform is burning.

We are working on a path forward — a path to rebuild our market leadership. When we share the new strategy on February 11, it will be a huge effort to transform our company. But, I believe that together, we can face the challenges ahead of us. Together, we can choose to define our future.

The burning platform, upon which the man found himself, caused the man to shift his behaviour, and take a bold and brave step into an uncertain future. He was able to tell his story. Now, we have a great opportunity to do the same.

Stephen.

via: intomobile.com

There is still Hope! Nokia might adopt Windows Phone 7!

Nowadays, we know that Nokia is facing a crisis, just because they don’t really want to accept any other OS on their precious smartphones, except the old Symbian. Let’s be honest, which one would you choose: an iPhone 4 or a Nokia N8? I held and used both devices, so my final decision was, of course, iPhone 4. I’m not an Apple fan, neither a Nokia one, I personally like the Android, and that’s what I’m daily using.

Okay, so we cleared out that Nokia proved us that their Symbian smartphones failed so far. We also know, that on February 11th Nokia might just announce that they will use Windows Phone 7 on several devices of theirs.

A letter from Adnaan Ahmad says, that if they adopt WP7, the actions will increase at least with 1.5%, and that’s only until Thursday:

Get access to their Windows Phone 7 (WP7) intellectual property scot-free and access to the US market where your share has dived to the low single-digit level, and in so doing cut your bloated handset business R&D budget by at least 30 percent.

About the US market, I have to point it out that Nokia made a new headquarters in the United States, more exactly in Silicon Valley. This could lead to a strong possibility that Nokia will concentrate on the US market as well, meaning that they will use WP7.

Nokia HeadQuarters in the US

Additionally, the same analyst says that MeeGo is one of the biggest joke in the mobile industry:

Get rid of your own proprietary high-end solution (MEEGO)-–it’s the biggest joke in the tech industry right now and will put you even further behind Apple and Google.

Creating a Windows Phone 7 based smartphone would make sense, because the Nokia CEO, Stephen Elop was hired from Microsoft. Let’s hope that Nokia will choose the right way, to adopt Windows Phone 7 and let Symbian rule the world of the low-end devices.

via: gizmodo.com