Lawton and Raice report, “The X7 would have been the first Nokia smartphone launched exclusively with a U.S. carrier since former Microsoft Corp. executive Stephen Elop took over as Nokia’s CEO last September.”
MacDailyNews Take: Microsoft DNA.
Lawton and Raice report, “The unexpected cancellation leaves Nokia further behind in its effort to correct a major strategic weakness—its poor showing in the lucrative U.S. market, where it lags Apple Inc., BlackBerry maker Research in Motion Ltd. and phones powered by Google Inc.’s Android software.”
MacDailyNews Take: Lagging Android is bad enough, but if you’re lagging BlackBerry, you’re doomed.
Lawton and Raice report, “Nokia decided to pull the phone because it believed the X7 wasn’t going to receive enough marketing and subsidies support from AT&T, said one person close to the company. Nokia still plans to launch the X7 in other markets, this person said.”
MacDailyNews Take: Time for Stricken Flop, er… Stephen Elop to pull an Olli-Pekka (ha!) and announce yet another iPhone killer will be “coming along real soon now, ya hear?”
Lawton and Raice report, “While Nokia continues to stumble in the U.S., other handset makers are aggressively moving ahead with new smartphones… Moreover, Verizon Wireless will begin selling the iPhone 4 in February.”
MacDailyNews Take: Moreover? “More so” is more like it.
Lawton and Raice report, “Nokia’s Symbian operating system, which powers the X7, is seen as cumbersome and outdated. The company is building its new high-end smartphones around a platform called MeeGo, developed with Intel Corp., but that effort has been delayed as well.”
MacDailyNews Take: Nokia: MeeGo belly up.
Full article here.
MacDailyNews Take: Deer in the headlights run a very high roadkill risk.
The development of mobile phones will be similar in PCs. Even with the Mac, Apple has attracted much attention at first, but they have still remained a niche manufacturer. That will be in mobile phones as well. – Anssi Vanjoki, Nokia’ Chief Strategist, November 2009
Right, Nokia is doomed. They’re the number 1 manufacturer of mobile phones in the world.
They have, in some regions, some 80% marketshare, where iOS has but a fraction of 1%.
Stop fanboying and look at the data. They’re not doomed. They have made mistakes, but because they aren’t as dominant in the US doesn’t mean they’re doomed.
Imagine, a whole world outside the US. Oooooooh, awwwwww.
For years Nokia scoffed at having any real presence in the US. They didn’t need any business from those stupid Americans, they were mighty Nokia and could get along just fine without us.
Now, after the iPhone, America is the most lucrative cell phone market because we’re the top destination for smartphones. Whereas America used to often get the hottest phones last, now we get first dibs and distribution to other nations is secondary. Low and behold, Nokia can’t get into the party because they spent the past decade ignoring those stupid Americans.
dffddf:
um, have you been living in a cave for the past 4 years?
@dffddf
Well, Nokia may not yet be out of business but anyone with a brain can see that they will be when they can’t keep up. I give them 5 years.
Were you dribbling when you typed “dffddf”?
Nokia are DOOMED!
Stephen Elop to Nikia board of directors:
“Using android will not different us from the rest, let’s be unique… let’s make our own copy of iOS and not use the copy that google and palm already did.”
“Lagging Android is bad enough, but if you’re lagging BlackBerry, you’re doomed.”
Hilarious!
@dffddf
Yeah, I know, like Indian, where they have like 60% market share … oh wait … uhm … not anymore … that is halved to 30%
Yes, but we could really give a sh!t about what phones the rest of the world uses…
USA! USA! USA!
Nokia is carrying an enormous debt load for a company with a low single digit profit margin and single digit return on Assets. Their revenue fell 18% last year causing a 75% drop in earnings.
I don’t know whether or not they are doomed, but this company is in serious trouble if they cannot boost their profitability. Selling a gazillion cheap phones to penniless masses is not going to do it.
What’s really going to be sad (for Nokia) is when these types of articles say, “where it lags Apple Inc., BlackBerry maker Research in Motion Ltd., phones powered by Google Inc.’s Android software, and Microsoft’s Windows 7 Phones.”
THAT’s when you may as well pull the plug.
Nokia the is number 1 manufacturer of mobile phones in terms of what, marketshare? That doesn’t mean jack without a healthy profit margin to go along with it, which is something Nokia doesn’t have.
And its strategy is going nowhere.
How do you spell Nokia? I-B-M.
@dffddf
Look my Friend,
IOS & Even Android is Growing at a “Out of this World” Pace,
Mark my Word. After 2011 Nokia will never again Lead the Most Lucrative segment in the Mobile Phone Business,
The (Smartphone Segment) & there is where the Money is.
So they can sell the Most Phones just as long as it is not the most Smartphones.
Nokia is like Microsoft they are Yesterday’s News Anyway.
(Apple Kicks Arse) Yeaaaaaaa
dffddf,
Dell proved that market-share means little when you are racing to the bottom of the market in terms of unit price and profit.
As someone else so succulently put it “selling (more like giving away at this point) entry level phone to penniless masses” will net you market-share, but little else.
To purport that Nokia is not in deep, deep trouble would be the “fanboy with blinders” position, not the reverse.
Apple doesn’t want Nokia completely out of the picture. Apple doesn’t want RIM completely out of the picture. Apple doesn’t have the capacity to make 100% of the world’s smartphones. And since a higher percentage of all mobile phones sold are “smartphones” each year, that total number required keeps going up.
The key point is that, while Nokia and RIM are still firmly “in the picture,” they are no longer major threats to Apple. The Android platform has done as much (perhaps MORE) to marginalize Nokia and RIM as Apple, thanks largely to Apple staying off of Verizon (until now). And the Android platform is not a major threat to Apple; it’s a collection of relatively small hardware makers who rely on a third party (Google) to deliver the key software for their mostly indistinguishable products. The “collective Android” just copies whatever Apple does, AFTER Apple does it, with no central leadership. Apple wants its strongest “competitor” in smartphones to be the fragmented and predictable Android platform.
Apple cannot, and does not even want to, make 100% of the world’s smartphones; someone else has to make the rest. That “someone else” might as well be the combination of Nokia, RIM, and the gaggle that makes phones using Android (and maybe Windows Phone 7). In that environment, Apple rules the market and can sell as many iPhones as it wants to make every year, optimizing unit sales, total profit, and profit per device.
Just another ex-Microsoft genius doing what he does best. Sold them his snake oil talk and then took Nokia for slow ride down beleagured street.
I expect his bonus this year will be substantial just like the good old days in Seattle.
@dffddf
If being reduced to the low margin commodities market of cell phones is not “doomed”, then what is? That is a living hell for a company like Nokia.
People need to understand that market share is MEANINGLESS!
Nokia has lost 75% of its market cap over the last 3 years.
If it carries on, it will not exist in another three…
@ dffddf
sfrfa gvdg s gg dzfs ar g rgafdh adrg ad ergh aer x edv vv
And furthermore,
s fsdsdf sdfas f sdc s we s dc.
…AND SEE IF I DON’T!
Nokia is not doomed, unless or until Apple starts making iPod mini dumb phones with the ability to play iTunes music, videos, sync contacts lists, and other dumb phone tasks.
If Apple were to ever do that, then the “dumb phone” manufacturers would be in serious trouble. I am not sure that Apple wants that business though…..
You guys should pay a little more respect to the company that invented GSM, text messaging and many other mobile techniques. Remember where Apple was 10 years ago? Even 5 years ago they belonged to the also-run-league.
“Nokia decided to pull the phone because it believed the X7 wasn’t going to receive enough marketing and subsidies support from AT&T”
Are they the biggest cellphone maker or aren’t they? If they are, why don’t they act like they’re the biggest? Apple does all the marketing for the iPhone, they don’t depend on any marketing support from AT&T. Microsoft supposedly budgeted $500M for marketing for WinPhone7. Why can’t Nokia market its own products? Have they thought maybe that’s the problem? Letting other people control the marketing message?
As for subsidies, how did Apple, with no background in phones negotiate the most lucrative phone subsidy in the industry, when the supposedly all-powerful, all-mighty Nokia can’t get anyone to help them? Anyone? Beuller?
As for dffddf, you my sir, are in the wrong part of town. We all know Nokia’s marketshare, but we also know that marketshare without profit is useless. Who cares if Nokia is #1 with 80% share in Uganda?
Nokia is sucking in the most important markets in the world. Nokia is sucking in North America. Nokia is sucking in Japan. Nokia is sucking in South Korea. Nokia is known in China for making cheap phones, where brand means everything. Nokia’s strategy in these critical markets are a failure.
@Nokia fan, people show respect, when those people show respect to them. Oli Pekka and Antsi are on record for dissing Apple. They got what they deserve.
Apple fans know exactly where they came from 10 years ago, that’s why they care so much about the crap that Nokia and Dell and others have thrown at them.
There’re not doomed. The markets are changing, so they have to change. But they’ll still be dominant in other regions making cheaper phones. Money is money. They’ll survive.
They could also come out with something really good with MeeGo. They have many loyal customers in Europe, Asia Proper, and Africa.
The Hokia called Nokia is a Jokia