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Where does Nokia go after posting a $1.2b loss?

Where does Nokia go after posting a $1.2b loss?

Nokia $1.2b lossNokia posted a stunning $1.2b loss for Q1 today. We were on hand to discuss the news with Al Jazeera English. The discussion was quite frank; can Nokia even survive in a world that is increasingly dominated by iOS and Android?

Nokia’s household name status, most prominent in Europe, is rapidly fading  away as consumers purchase more popular devices from Apple, Samsung, and HTC.

Their flagship Lumia device is not doing as well as hoped, either. One aspect of the problem is that it runs Windows Phone 7, which is a mobile OS that has failed to inspire around the globe. Reuters reports that a representative for a European mobile carrier says, “No one comes into the store and asks for a Windows phone.”

Will Nokia remain relevant? Perhaps only the success or failure of Windows Phone 7 and the upcoming Windows RT can decide that.

Comments

  1. Tushon
    Tushon Seemed like he had a snarky idea setup well before your interview. Oh well, nicely done anyways.
  2. UPSWeezer
  3. PirateNinja
    PirateNinja valid, seriously you look thin.
  4. ardichoke
    ardichoke *sigh* It's a real pity Nokia went down this road. Meego was a promising platform and the N9 was a promising (if slightly flawed) phone. I would gladly have bought one if it wasn't clear they have no intention of supporting it.
  5. cola
  6. PirateNinja
    PirateNinja My personal opinion .. the world will be surprised by a moderately successful Microsoft/Nokia comeback. Microsoft has a vastly different culture than RIM, and you won't see the same fate of a financial dynasty gone to hell in 1.5 years here. Instead you will see an amazingly successful comeback..Metro is awesome and it has become the face of an intricate and diverse Microsoft platform that integrates everything from Xbox to PC to mobile.

    We will wait and see, but if you ask me the real losers in mobile are HTC, RIM, and Sony. Apple, Motorola, and Nokia--that is the future, and Google is going to lose. Google's platform is not a platform and they stole too many technologies.
    In the next 3-5 years we are going to have a Apple vs Microsoft battle, anything after that is too hard to predict but Google and Mozilla of all things have a serious chance post 2016.

    Of course, I could be way off. We shall see. I can't wait for the next twelve to twenty-four months to develop.
  7. Thrax
    Thrax My prediction:

    RIM goes bankrupt or sells its hardware division to someone else (my bet's on Samsung) by 2014.

    Motorola, now owned by Google, gets broken up and sold piecemeal. It was an acquisition for patents, not hardware. I bet Huawei or Samsung walks away with most of the hardware. The hardware division is already being shopped around, so I'm not certain how anyone can say they have a place in the future of mobile.

    Microsoft keeps shoveling money into WinMo, giving the platform enough momentum to cement a third place victory, hastening RIM's exit from the market. Whatever smartphone OS comes of the innovations in Win8, currently codenamed "Apollo," gives WinMo another big shot in the arm.

    Sony and HTC keep manufacturing smartphones, but Sony produces less models and HTC focuses solely on beating Samsung. All of these players continue on Android.

    Nokia becomes the #1 hardware vendor for WinMo, because nobody else will do it, because they all have Android, which makes infinitely more money.

    Android goes nowhere, continues dominating the market in share, but does not substantially increase that share. Too big to fail, and the various patent claims by Microsoft and Oracle are incredibly specious upon analysis.

    Apple continues to dominate on revenue and margin.

    Oh, yeah: Huawei and ZTE get big in the west. MIPS becomes a viable architecture for mid-range handsets.
  8. BuddyJ
    BuddyJ Funny you mention Huawei. IIRC, their presence at CES this year was actually pretty impressive with a booth full of TVs and other attractive consumer electronics items. They looked more like Samsung and less like an obscure, lower tier vendor.
  9. Thrax
    Thrax China is the Next Big Thing in every electronics market, I think. After the rite of succession from the USA to Japan, and Japan to Taiwan, China is fighting hard to make a name for itself. In every respect, the flagship phones coming out of GC this year have been an equal to what the big names have been doing.
  10. Cliff_Forster
    Cliff_Forster I won't play expert, but I'll tell you this from my recent cell phone upgrade shopping experience, Nokia and Windows phones are a no show on Verizon's shelves. There is one Windows phone model, it's 3G, it was not an option. I did play with the Nokia Lumia 900 in a AT&T store, it's a good enough phone, and if somehow you could get past the two year commitment and market uncertainty I'd bet more consumers would roll the dice on it, but that's the problem, it's a real crap shoot as far as to what market support will be six months from now, much less two years.

    If I'm making a two year commitment, like most mobile consumers do, I want to know my platform will be supported two years from now. IOS and Android are the only two platforms that consumers have that much faith in. Nokia is betting on a long shot, and it's not because the Microsoft OS is bad, the software is actually pretty nice, it's just not established and nobody wants to be saddle bagged with an unsupported product for nearly two years.
  11. AlexDeGruven
    AlexDeGruven HTC Trophy is the only WP7 device I've seen on shelves. I have yet to see one of any flavor in the wild. Even our Windows guys here all rock iPhone or Android. I've also heard anecdotally that, out of all the smartphone OSes out there, WP7 is the WORST with Exchange, which is pretty hilarious if true.

    Currently, all of the Nokia WP7 devices are GSM-only, so you won't be seeing them outside of T-Mo and AT&T stores.
  12. midga
    midga LAAAAAAAAAAAAAAAAG
    Great job, though, Prime. You bring honor to community!

    I foresee WinRT catching on, though likely slowly, as the phone-of-choice for businesses (especially with RIM out of the race) because they have one really big thing going for them: the .NET Framework. Applications that people use in industry settings are largely based on the .NET platform (especially here in energy), and if M$ plays their hand right making the .NET Framework just as viable on mobile devices as it is on x86 and x64, then we're going to see a lot of developers building mobile versions of their .NET-based software because it's easy and opens up a new market for them. If the software a company uses goes mobile and the company sees a benefit to it, they're going to use the devices (especially tablets) that support it. This coupled with easy integration into their pre-existing Windows domains will make the choice seem a no-brainer.
  13. MiracleManS
    MiracleManS @Midga is right, I know there's a non-small contingent of mobile developers using MonoTouch due to familiarity and ease of use. It's possible these developers would be easy to acquire for first pass at applications.

  14. primesuspect
    primesuspect Yeah that 2-3 second satellite delay to Qatar is killer.
  15. midga
    midga So, you get called for Quatar TV often?
  16. primesuspect
    primesuspect This is my fifth AJ appearance. I wouldn't say "often", but regularly.
  17. csimon
    csimon Well done as usual Brian. Yes the lag does complement the "long-distance interview" effect. Very well done indeed.
  18. pseudonym
    pseudonym Tiny Brian is Tiny.
  19. primesuspect
    primesuspect This is a totally non-ironic tweet from our old friend Danball:

    primesuspect Why did you choose to do the interview on a network that supports Al Quaida and other terrorist groups?

    — Daniel (@kusanagisama) April 20, 2012
  20. DogSoldier
    DogSoldier Fixt
    @Midga is right, I know there's a non-small contingent of mobile developers using ManTouch due to familiarity and ease of use. It's possible these developers would be easy to acquire for first pass at applications.

  21. Tushon
    Tushon
    This is a totally non-ironic tweet from our old friend Danball:

    primesuspect Why did you choose to do the interview on a network that supports Al Quaida and other terrorist groups?

    — Daniel (@kusanagisama) April 20, 2012
    The chuckles escaped me. :P
  22. Komete
    Komete Way to go Brian and Icrontic. Proud of you guys. I'm addicted to Al Jazeera English on my droid. One of the best news sources available as far as I'm concerned.

    Personally I think Nokia's future with MS will be a bright one. MS has rarely lived up to its potential. With the rise of IOS/android smartphones and tablets, I think MS has finally gotten the kick in the arse it has needed to get things going.
  23. TheAlertHusky
    TheAlertHusky Honestly I quite like the windows phone OS. And from the group of people I talk to regularly it seems to be a rising interest.

    My first phone was a nokia so it holds a special place in my heart, especially since it survived a 2 meter drop.
  24. AlexDeGruven
    AlexDeGruven With marketing like this, I can't believe they're having such a hard time...



    /sarcasm
  25. primesuspect
    primesuspect Nerds, turds, fanboys
  26. Cliff_Forster
    Cliff_Forster Apparently the Nokia Lumia 900 fails at cleaning dishes?

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