“Just as Nokia’s rise held lessons about how Europe could succeed, its downfall tells us much about why European enterprises—and large companies worldwide—so often stumble,” Matthew Lynn reports for Bloomberg Businessweek. “In the past three years, the news out of Nokia has only been bad. Since Apple introduced its iPhone in January 2007, Nokia shares have fallen 49 percent. In a ranking of global brands by Millward Brown Optimor this year, Nokia was No. 43, having dropped 30 places in 12 months. Its profit margins have been shrinking, along with its market share and the average price of its phones.”
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“True, it still has more than one-third of global mobile-phone sales. But it’s stranded in the middle of the market,” Lynn reports. “Korean manufacturers such as Samsung Electronics are leading the main consumer market. Apple’s iPhone and Research In Motion’s BlackBerry dominate the upscale smartphone industry. Recognizing the scale of its challenges, Nokia hired Stephen Elop, the Canadian head of Microsoft’s business unit, to turn the company around. Everyone will wish him well… But if the guy knows so much about phones, he’s kept it a secret. Microsoft has never made any progress in that industry.”
MacDailyNews Take: If BlackBerry is upscale, so are typewriters and bowler hats. They’re as behind as Nokia. Antiquated and hopelessly behind are not the characteristics that most upscale buyers covet.
Lynn continues, “The cruel truth is that for all its residual market share, Nokia looks like a has-been. The company misread the way the mobile-phone industry was merging with computing and social networking. And it’s probably too late to turn that around.”
Read more in the full article here.
MacDailyNews Take: The shockwaves from Apple’s iPhone will continue to reverberate for years.
[Thanks to MacDailyNews Reader “iWill for the heads up.]
Supeior Being:
That was deliberately targeting your superior plumbing.
breeze,
It looks like today just isn’t your day….
Perhaps we could say:
“Sounds like something Microsoft tried something in the same vein, in vain?”…
This thread is positively going nowhere at a breakneck speed…
@breeze
Or perhaps something Microsoft tried in ‘vain’…unless you’re just punning about MS as junkie.
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I’ll be in my basement room, (comma) with a needle and a spoon…
It’s over Apple the new “kid on”. The block took the throne.
breeze,
now, that was very funny. You have a healthy sense of humour!
Some would say humor…
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Late to the party:
That was probably the most amusing example of completely changing the meaning of a phrase by creative usage of punctuation. It looks like this thread still has some juice in it…
“Some would say humor… “
I know… Too many years of the Queen’s English instruction to change now.
@ Predrag
RIM is hiding a lot of bad news in these numbers.
1) They’re having success in the pre-paid end of the spectrum. Low margins, unsustainable.
2) They aren’t giving out average sales price per phone from now on – this is a key figure for cell phone companies. What this means is that their prices are cratering.
3) Also, accounts payable were up huge – looks like they are pretending to sell lots of stuff but aren’t.
This is exactly a replay of what Nokia did two years ago. If I were in a position to short RIM, I would.
Does accounts payable mean that big companies with annual subscription service contracts with RIM aren’t paying? In other words, if some of these go belly up, RIM will have to write off solid chunks of these outstanding monies?
Predrag:
It means RIM is cooking the books just like Dell.
I see… In the US, that would technically be illegal (and I presume in Canada, too), right…?
Someone might reply: “It’s not illegal unless they catch you”
@ Predrag
For a non-native English speaker, your spelling, punctuation, and syntax are excellent.
As for post #1, I read it as “It’s over: Apple, the new kid on the block, took the throne.” (colon) (apostrophe added)
So far, we had altogether six versions of the (by now notorious) phrase (including the one where the block took the throne).
Perhaps I should seek out some English grammar forum instead of kindling the discussion here…
I like your suggestion, Predrag, but it needs to be extended a little:
“It sounds like Microsoft tried something in the same vein, in vain. Regardless of whether the weather vane was pointing in their favour, the attempt was fruitless.”
I keep returning to this thread, even though almost nobody is discussing Nokia, the debate is alive and bouncing.
Don, your contribution clearly adds to that bounce.
Suggestion of drug use – RIM’s cooking something up – there’s positive learning, enjoyment and bouncing – tell you what, let’s have a party ……….. what a pleasant change to have an amusing and well behaved thread!
Gold stars to all concerned and let’s see if we can spread the love to the other threads that degenerate into bear pits.
In the meantime, it will be good to see Nokia use the breathing space of upper management change to rethink where they want to be in the mobile market. There are holes they can fill, I’m sure otherwise Apple would not have been able to insert the iPad so easily.
Being a poor sod who can’t afford an iPhone (cue violins), I’ve put up with Nokias for some time and found them generally ok, if your needs are simple- I can make and receive phone calls, text, listen to the radio etc… The thing I hate about them is that their so-called ‘media player’ is just dreadful. I drag over a bunch of MP3s from iTunes which play ok if listening to albums but largely refuse to play at all in shuffle mode, which generally I prefer when out on long walks with the dog.
Emails about this to Nokia have always remained unanswered.
Oh, two more Nokia pluses occur to me- the battery life on my current model is a heck of a lot longer than any iPhone, days and days. I got flipped out of my canoe by the wind recently and dumped into the lake. My phone dried out and worked fine after a day or so. I wonder what an iPhone’s chances would be of surviving this?
@ Superor Being:
Your used the customary mode of enclosing quotation marks, and wrote “mea culpa.” But the customary mode is often logically wrong, so I would recommend using quotation marks this way: “mea culpa”. The exact string you were stating is not “mea culpa period”. It is “mea culpa”.
The customary mode of enclosing a punctuation mark within quotation marks can lead to serious errors of interpretation, especially in scientific and technical literature.
Pedantics, arise. The revolution is at hand!
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Wish I could edit my post above. I would change “Your” to “You”.
I had started to write “Your use of” and decided naaa, that’s too pedantic.
Some days I really love this site.
LoL what a gucking junk article.
Its essentially an article how good America companies are and how bad Europe and European companies are.
I guess USA needs some self motivation now after almost destroying the world economy and now will suffer for years to come because of it.