Tuesday, September 3, 2013

How Nokia has fallen - Aftenposten

press release leaves no doubt. Nokia selling its mobile business to Microsoft 44 billion.

About 32,000 Nokia employees joins over, and Nokia CEO Stephen Elop goes by.

The Finnish mobile adventure is ubenhørlig Finally, over thirty years after Nokia launched its first mobile phone.

Perhaps no big surprise the recent sale rumors taken into consideration, and many analysts believe Microsoft and Nokia partnership agreement signed in 2011 was the first step.

Since then, Nokia’s share price has more than halved.

But what really happened with the Finnish mobile giant that was once the world’s largest manufacturer of mobile phones?

Taken by surprise

The nightmare began in January 2007. Then one balding 51-year-old in jeans and black sweater on a stage in San Francisco with a new phone in hand.

Steve Jobs had already saved Apple with fresh design and popular music players. This January day as iPhone the light, and from this day mobile phone is never the same.

Since we have the Internet, email, games and applications in your pocket. Finns’ world domination was shaken to the core.


– A burning platform

Four years later downturn wreaks havoc on your patience. In January 2011, the Nokia CEO Stephen Elop the following encouragement by email to all its employees: “We are standing on a burning platform.”

One can perhaps understand the frustration. In four long years have Nokia managed to come up with a single real competitor to the iPhone. And that despite the fact that the Finnish research budget of nearly 50 billion – four times larger than Apple’s.

class=”quote”> The two have now danced together for over two years without getting particularly fast on their feet, and I can hardly see how things could become very different with Microsoft’s acquisition. Telecom Analyst Tore Aarønæs.

few days after the dismal email Elop sends out press release that now spreads horror around the Finnish forests: Nokia reject their own operating systems, Symbian and MeeGo in favor of Microsoft’s Windows Phone 7 on their smartphones.

Elop announced massive job cuts. The same day the message went out, Nokia’s share price fell 14 percent.


– Do not gained momentum on legs

Telecom Analyst Tore Aarønæs believe that the cooperation between Nokia and Microsoft have not been particularly successful, and can hardly believe the news of the acquisition creates major shock waves in the mobile industry.

– The two now have danced together for over two years without getting particularly fast on their feet, and I can hardly see how things could become very different with Microsoft’s acquisition. Samsung has hardly lost sleep, to speak.

He believes that both Nokia and Microsoft are characterized by having gone behind in the competition.

– It’s been a bit like when the lame try and help the visually impaired, and Microsoft obviously trying desperately to get a foothold in the market for mobiles and tablets, both with its operating system and now their mobiles.

– But it depends if it’s not too late. Had the acquisition been two years since it had probably created far greater furore in the industry.

There are several Aarønes one who is skeptical that a Nokia struggling as it takes to give Microsoft a mobile lift.

– This is too little and too late, and I doubt that it will make Microsoft a mobile phone company, said Chief TripAdvisor analysis Chowdhry of Global Equities Research to CNBC.

More than scrapping

The Finnish glasses, think Aarønæs Nokia after all have come right out of it.

– The price of 44 billion is in no way a scrappage even if it is not sky high. Nokia goes on set and if returning to its mobile roots, namely to create a mobile infrastructure, as they did before they started making mobile phones.

think Aarønæs may want.

– Instead of wearing heavily on two areas, Nokia has a greater chance of success now they can focus on a core area. And it is needed in the fight against Huawei and other competitors in the tough market, says Aarønæs.

Changes

little

Telecom analyst John Strand believes the acquisition does not change at the challenges both Nokia and Microsoft faces.

– The question is whether Microsoft purchase a sound business or an insurance against a Chinese buying up partner who ensures to develop and sell Microsoft-based phones.

On the other hand, believe that Strand HTC, Samsung and Huawei will consider carefully whether they will continue to make phones running Windows Phone at Microsoft now also becomes the hardware manufacturer. It is always difficult to start going to compete with his party ones, concludes Beach.


– Elop has been a disaster

Beach is very critical of the way the former Microsoft employee Stephen Elop has steered Nokia captaincy on after he took over the helm.

– Today is the day Nokia’s Board of Directors must recognize that Stephen Elop failed to deliver the goods, the day Elop gets on the plane to the Microsoft headquarters in Redmond, where hardly have occurred to the man that he has been a disaster for Nokia.

– Elop dreams enough to take over the helm from outgoing Steve Balmer, but for shareholders, he could easily become a “CEO from Hell,” says Strand.

READ ALSO:

Six questionable decisions from Nokia in the period 2001 to 2005.

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