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Nokia CEO: Nokia is "standing on a burning platform"

513 points by ldayley 16y ago

nazgulnarsil 16y ago
idea for how to create value in your brand when you're "just another android phone". 1. create a really awesome skin like HTC has. 2. create a suite of really awesome apps and release them on the apps market, but give them free to users of your specific phone.
- akgerber 16y ago
  3. Create some of the best hardware out there, as Nokia does.
Jayasimhan 16y ago
This is exactly where Steve Jobs found himself in 1997. He stood by and did what he wanted to [or may be not yet]. Hope Elop does it as well.
- foobarbazetc 16y ago
  Unfortunately for Elop, there's only one Steve Jobs.
  - shadowfox 16y ago
    There can only be one hero?
    - rilindo 16y ago
      There can only be one!
  - jarek 16y ago
    Would it be better for Elop if he was competing with more than one Steve Jobs?
bambax 16y ago
I worked for Accenture (then Andersen Consulting) in Paris in 1995 when a new team of Englishmen were brought in from London to "turn the French practice around". Their theme? "Burning platform". The exact same story that opens the memo was their story too. Maybe this Mr Elop is really an original thinker that will do great things; but the "burning platform" analogy is the most tired image EVER. Oh, and did it work in Paris in 1995? Not really. It was not an absolute disaster, but in the end (two years later) the British threw the towel and went home, and the French partners who were there before stayed on (are still there to this day).
- aik 16y ago
  Where else have you heard it? What makes it a tired image beyond the fact that you heard it once in Paris?
  - bambax 16y ago
    I didn't hear it "once"; it was a central theme of the transformation story; there were posters everywhere, email campaigns, leaflets, etc. all based on the "burning platform" standard playbook. The reality is that the "burning platform" metaphor is a classic story repeated ad nauseam in business schools and business books; see this for example (from 2005): The term “burning platform” is a mainstay in business lexicon for many years. For those not familiar with its origin, the story goes something like this: A man working on an oil platform in the North Sea awakened suddenly one night by an explosion. Amidst the chaos, he made his way to the edge of the platform. As a plume of fire billowed behind him, he decided to jump from the burning platform even though jumping is a risky option for the following reasons: It was a 150-foot drop from the platform to the water. There is debris and burning oil on the surface of the water. If the jump into the 40°F water did not kill him, he would die of exposure within 15 minutes. Luckily, the man survived the jump and hauled aboard a rescue boat shortly thereafter. When asked why he jumped, he replied, “Better probable death than certain death.” The point is the literally “burning” platform caused the radical change in his behavior. http://www.imakenews.com/cppa/e_article000368179.cfm http://www.imakenews.com/cppa/e_article000368179.cfm (Please read the rest of this article to know how the story should be used in a business context; it really seems to describe the email, and it's prophetic since it was written six years ago). Where do you think Mr. Elop heard this story in the first time? What's more likely, that he met an actual burning platform survivor, or that he read about this very common story in a business book?
quannum 16y ago
The idea of a Nokia device running Android is pretty appealing. They've always had good hardware, but Symbian has become a develpment dead-end, and Meego isn't yet here.
- ldayley 16y ago
  Android on Nokia hardware is an appealing idea, but given Stephen Elop's Microsoft background I wonder if they won't shift to WP7. Or both.
  - balakk 16y ago
    Nokia on WP7 would mean they would have to cannibalize their OS teams, their app.dev stack(QT), existing software etc. gutting a huge part their workforce. It is far more easier to have Meego adopt an Android personality, since they're the same kernel inside. They could add Nokia flavor on top. The far more important decision is positioning; they would've to leave the low-end phone market to chinese, and focus on the midrange.
    - gonzo 16y ago
      a) not quite the same kernel. You appear to be unaware of what Google has done to the internals of linux b) having an OS team has turned into a liability for Nokia. CEOs normally don't care about 'gutting' workforces. In fact, I predict that Elop will cut the 'deadwood' of the old company as soon as he announces whatever on Friday. c) (edit) Elop has to pay attention to Oracle having sued Google over Java in Android. No, this is Microsoft establishing a brand in the phone space via take-over of Nokia. Watch and see.
      - balakk 16y ago
        I understand Android is quite different from vanilla Linux - I meant Android is closer to the Meego platform than WP7. Moving from Meego to Android is less of a stretch. For example, porting QT to Android should not be too difficult. I really hope Nokia doesn't follow the SGI way.
kooshball 16y ago
wow, that is one way to motivate the troops. The lack of mentioning of WP7 at all and the re-emphasis of Andriod as a competitor makes me think it's unlikely they will be running Andriod any time soon.
- SwellJoe 16y ago
  I don't follow your logic. Windows 7 isn't much of a competitor. It had a smaller debut than Android and iPhone, by a large amount, and is being outsold by both so the gap is widening. If I were Nokia, I wouldn't be worrying about fellow also-rans in the industry, like Microsoft. I'd be worried about the products that were eating my lunch, and I'd let Microsoft figure out how to protect their own lunch. If Nokia chooses Windows for their next generation, I'd wager they'll keep dropping like a rock. How could they generate any excitement over a Windows phone? Nobody likes Windows phones, even people who like Windows on the desktop.
  - jarek 16y ago
    > Nobody likes Windows phones That's a bit categorical, no? I know at least two people who quite like their Windows Phones. Before you ask, not all of them work at Microsoft.
    - SwellJoe 16y ago
      "Before you ask, not all of them work at Microsoft." This leads me to believe that 50% of the people you know who like their Windows phone do work at Microsoft.
      - jarek 16y ago
        50% of the people I know that I know like their Windows phones do work at Microsoft. Even if it was 100%, this still invalidates your original claim.
        SwellJoe 16y ago
avner 16y ago
Stephen Elop has finally put in writing what the market has said about Nokia ever since the iPhone came out. Props to him for finally initiating this intervention at Nokia; it has been long overdue. Someone has finally said "we have fucked up, its now time to get back on the horse and make it right" to the Nokia management. Less than a decade ago, nobody could touch Nokia in the mobile handset market, Nokia defined quality... and then they got complacent and instead of innovating, they stuck to old principles. Its like Nokia witnessed the age old fable of the tortoise and the hare firsthand.
- lamby 16y ago
  Your comment and Engadget's article seem to imply that Nokia failing in the smartphone market means that Nokia is failing generally. But wouldn't Nokia still be making a lovely profit even if they stuck to the more vanilla phones? Don't forget that only a fraction of people can afford these >= £500 devices and only a fraction of those buy them without financing.
  - kenjackson 16y ago
    Nokia used to be up around 60% of the mobile phone market (in terms of profit). Now they're around ~20%, while Apple is more than 50% (on less than 5% marketshare). Nokia is still making money, but pretty much all new profit is going to everyone else (especially Apple). http://www.freerepublic.com/focus/f-chat/2666565/posts http://www.freerepublic.com/focus/f-chat/2666565/posts
    - ergo98 16y ago
      Do you think there is a fixed "profit" out there for the taking? Apple's profit margin is an extreme aberration, and it isn't sustainable. Any comparison that relies upon profit numbers is...disturbed.
      - kenjackson 16y ago
        Do you think there is a fixed "profit" out there for the taking? Definitely not. But I do think that there's been incredible growth in Nokia's core business, and they haven't seen any of the growth. Apple has been able to do this in four markets now: 1) iPhone -- a carrier subsisized market. 2) iPad -- see (3) 3) iPod -- Large margins based on industry leading large volume. 4) Computers -- Expensive niche product with huge margins. I believe the are the single most profitable computer company (if you look just at their computer division). Why is a comparison based on profit disturbed? In business that's pretty much the only thing that matters. Profit yesterday, today, and tomorrow.
vessenes 16y ago
This is an excellent, really excellent call to arms from a new CEO. I have a few takeaways -- first: the board brought Elop in for a four to seven year turn-around. He's going to make enemies, but that's okay. If he executes the turn-around, they'll put someone more finnish back in to sooth the old guard after they're making money again. Second -- this guy has the Microsoft internal criticism DNA, through and through. This isn't quite a Gates-level memo, but it's in the ballpark. I'd love to see some leaks of him reviewing his experience using different phones, Gates style. Third -- he's totally correct. Nokia f-ed this up, all by themselves. I STILL miss my Nokia E-90; it had 7mb up and down, a beautiful keyboard, video chatting, first-class SIP phone account support, and an 840x320 screen in 2007, for God's sake! The UI sucked, the apps weren't there, and there was no touch interface. Apple cleaned Nokia's clock. Then Android did it again. One reason HN readers should care: Nokia is probably the only carrier in the world with the balls to just go ahead and release unlocked phones with things like VOIP accounts built in. They may be the only company who doesn't have to play nice with US carriers around; innovation from them will be excellent for consumers.
- semanticist 16y ago
  Nokia regularly cripple features, specifically including VoIP, at the demands of carriers. Perhaps not US carriers, but it happened frequently in the UK. I took the calls of people angry that their 'top end' handset couldn't do VoIP because they bought it from Vodafone. The carriers were always Nokia's customers, not the consumers, I can't see how that's going to change.
  - metageek 16y ago
    >Nokia regularly cripple features, specifically including VoIP, at the demands of carriers. Perhaps not US carriers, Oh, definitely in the US—look at the difference between the E71 and the E71x, the AT&T version. The GP was talking about unlocked phones. I have an N86 which I bought on Amazon, and it's got SIP and other features which AT&T would hate me to have. >The carriers were always Nokia's customers, not the consumers Yeah, but that's the case with every phone manufacturer.
donaldc 16y ago
I thought that this was the most interesting part of the article: and that Elop would start looking to Nokia's new Silicon Valley campus as its center of gravity, with execs and senior management expected to start spending more time outside Finland. That's quite an endorsement of Silicon Valley as a tech hub...
- jsnell 16y ago
  And also the part of the rumors that makes the least sense. Hack through the middle management and bureaucracy with a chainsaw, cut off all the incredibly inefficient contractors, clean all the dead wood from R&D, kill one or both of the in-house operating systems, give up on building services and just start preloading every phone with Bing services for big money, etc. One might not agree with those actions, but at least one could plausibly argue that they'd be beneficial to the future of the company. But how exactly is moving the heart of the company into Sunnyvale going to help? Nokia isn't exactly in the position to compete for the best people in those horribly over-fished waters, especially soon after a round of brutal layoffs. Are the dregs of Silicon Valley really going to be that much better than the talent elsewhere? Does the world even need one more company centered around that echo chamber?
  - rdl 16y ago
    I agree -- I think the best thing Nokia could do is probably to relocate somewhere more central within Europe (Berlin? London?) and become the strongest European mobile phone option, vs. trying to compete for talent in SFBA. Arguably they could also try NYC or another major city with lots of development expertise but no strong mobile company.
  - ponzi 16y ago
    At least in the US they'd be free to fire the dead weight. The laws in Finland are made to protect the workers, and a previously fired employee must be considered before hiring somebody new. This might be a reason why Nokia have so many external contract workers.
andrewljohnson 16y ago
A well-written email is more powerful than many people comprehend. We used to call them letters, and they were powerful then too. You can change a person's or a group's mind about something, even after a decision appears to have been made. You can clinch a job, win a contract, stop a lawsuit, regain a friend, woo a lover, and change history itself with just a few words. I'm not sure if people realize quite how powerful an email can be, directed at the right audience, at the right time, with the right message. And the flip-side is true too. A badly written, poorly directed, or mis-timed email can have terrible consequences. You can make or break a company with a single email. Regarding this memo, it's a truly inspiring, and well-timed. I think this will be a Gettysburg moment for the CEO, and may mark a turning point for Nokia.
- rm445 16y ago
  Very well said. It's a great memo, but its main effect is to lay the groundwork for a strategy change. This means we're going to have to decide how we either build, catalyse or join an ecosystem [...] When we share the new strategy on February 11, it will be a huge effort to transform our company [...] 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. This may be a turning point for Nokia, but in the end it will come down to just what this new strategy is and how effective it proves to be.
  - regularfry 16y ago
    No matter how good the strategy looks on paper, it's useless unless everyone buys in. Its effectiveness will depend to a great extent on how well the new strategy, and more importantly the need for it, can be sold internally.
- Alex3917 16y ago
  Well said. If writing is like talking on paper, then a good email is like looking someone in the eyes on paper. As someone who isn't always the most articulate in real life, I feel like some of my greatest accomplishments have been largely attributable to a handful of ridiculously well-written emails.
SandB0x 16y ago
> 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. Please, please, Nokia, adopt Android and put your efforts into making great hardware to go with it, without ruining the interface like so many other manufacturers do.
- Geee 16y ago
  War of ecosystems.. Google is their worst competitor. They either join smaller ones like WP7, WebOS, Bada etc. or keep on their own.
- robryan 16y ago
  This is the way forward, a company that wants to develop native apps for mobile must already work with so many different systems. A new startup is going to focus on an iphone app, if they are successful or well capitalized from the start then they will look at android. The third choice in the market is shaping to be windows 7 phone. Expecting companies to develop for then yet another platform, one which seems to be redefined often, is asking a lot and will result in getting only the really big players and lower rate developers trying to cash in on the under exploited platform. In a way it's similar to Yahoo outsourcing their search to Bing, advertisers focused most of their attention on adwords and then also rolled some Bing campaigns, but only so much attention can then be given to the third player in the market for even less ROI for time spent due to the lower search volume.
  - Geee 16y ago
    Not really, Nokia's Ovi Store is now third in downloaded apps per day. However, in many countries such as in China, Ovi Store is the most popular app store. http://www.forum.nokia.com/Distribute/Ovi_Store_statistics.xhtml http://www.forum.nokia.com/Distribute/Ovi_Store_statistics.x...
Geee 16y ago
That's really interesting read, but doesn't tell anything about specifics. I'm not really sure what they will announce on Friday. As we can see however, it's about ecosystems, not about the OS. 1. Qt is really valuable asset, they are keeping it. Actually they are keeping everything they have now. 2. Joining WP7 or Android as an OEM would cut Nokia out of their ecosystems, not going to happen. 3. Adopting WP7 or Android as is would require Nokia to cut back some custom hardware features and make differentiation harder. My best guess is WP7 with Qt allowing Nokia's services and apps on those phones. This would be additional to Symbian and MeeGo devices. However, I'm pretty sure they are starting to ramp Symbian down.
- wslh 16y ago
  WP7 with QT doesn't seem an option. QT is C++ and WP7 is oriented to work with .NET and not native applications. (don't try to port QT to C++.NET...) and it's a bit redundant to have QT together with Silverlight/.NET
- metageek 16y ago
  >My best guess is WP7 with Qt allowing Nokia's services and apps on those phones. This would be additional to Symbian and MeeGo devices. If they adopt any third-party OS, I can't see them keeping MeeGo. That'd be stupid; it'd leave them having to build a MeeGo ecosystem instead of just taking advantage of the one they join. And I don't see Microsoft allowing Qt on WP7; it'd undermine their whole .Net-based story.
  - Geee 16y ago
    On the other hand, I'd believe Microsoft would want Nokia to "catalyse" their ecosystem, because of the lacking success of WP7. The ecosystem of WP7 is now very weak, and not much of an asset for Nokia, except MS services like Bing. But, Nokia doesn't want to give up Qt apps and their own services.
deleted 16y ago
[deleted]
elehack 16y ago
Hopefully they're able to restore competitiveness, but I hope they don't do it by simply adopting WP7 or Android. I'd really like to see them make something like MeeGo viable. IMO, the mobile space could use an open ecosystem without the Google tie-in.
foobarbazetc 16y ago
The only way forward is to embrace WP7 and become the WP7 phone. Build apps and an ecosystem around that. Hell, get Microsoft to acquire Nokia and make WP7 exclusive. WP7 is a much better platform than Android anyway (in a couple of OS updates at least). There is no way that Nokia will ever win using Symbian/MeeGo or Android. If they stay the course then Nokia's dead and will never recover.
- lotusleaf1987 16y ago
  I agree with everything you said except I think there's a 0% chance of Microsoft buying Nokia, it doesn't fit their business model. Companies would not be as willing to license WP7 if MSFT were competing directly with them and able to undercut their competitor's prices.
  - foobarbazetc 16y ago
    The point is that Microsoft would no longer need to license WP7 (and quite frankly, I doubt they really care about those licensing fees when ecosystem market share is a far bigger revenue source). Both companies are at a point where they're about to enter irrelevance in the mobile space (Nokia actually entered irrelevance as soon as the iPhone launched, but it took them a while to figure that out due to pride and thinking all that matters is how many widgets you ship -- they're about to hit the bottom of the abyss). The problem Microsoft has is that all the existing licensees don't care at all about their platform. Samsung, HTC and LG all have their hands in multiple pies, not willing to commit to any platform because they don't care about who wins, as long as they make money. They need someone to focus exclusively on WP7, delivering the best integrated experience the platform can offer. Nokia's not going to go exclusive unless Microsoft does too. There are issues on both sides though: * Nokia used to build great hardware. They need to start doing that again to convince Microsoft it's worth acquiring. * Microsoft needs to recognize that WP7 isn't going to go anywhere unless something major changes. The upcoming announcement might be a precursor to the above scenario.
  - regularfry 16y ago
    The Xbox doesn't fit MS's business model either. If MS were to go that way I think they could make a decent go of it.
cookiecaper 16y ago
A good memo and he's certainly correct about the phone market. I hope that Trolltech/Qt makes out OK.
callahad 16y ago
I would work for that man.
- tjmc 16y ago
  I used to (at Macromedia). He's a great guy. Very approachable and down to earth, but certainly not afraid to make the hard calls as you see here. I sometimes wonder where Microsoft might be if he'd replaced Balmer, but it's great to see him take on Nokia. Talk about a tough gig!
kefs 16y ago
In case anyone is curious about the full story behind Mike Williams and the "burning platform", watch the following video. You won't be disappointed. http://www.youtube.com/watch?v=83EwglrnvlU http://www.youtube.com/watch?v=83EwglrnvlU edit: part 1 for those interested http://www.youtube.com/watch?v=XgkZtklS6xE http://www.youtube.com/watch?v=XgkZtklS6xE
- kefs 16y ago
  downvote? not sure why as i was only trying to provide context. :/
edderly 16y ago
Ignoring the problems with WP7, if Nokia were to produce phones with other 'external' OSes why would they stick with just one? No one criticizes Samsung and they are pretty much a mobile-OS whore: SHP, Bada, WP7, Symbian (albeit a year or so ago), Android, Limo, etc. N.B. Regarding SHP: I can't remember the name properly but this was the old/existing Samsung feature phone platform, it probably has got rolled into Bada, although Bada has two configurations (with and w/o the Linux kernel).
- lotusleaf1987 16y ago
  IMO, that's because Samsung doesn't have a clue and would rather hedge their bets. Most people I know who has a Samsung Galaxy, Captivate, etc have complained endlessly about the wait for updates. Samsung's business is in selling phones, not developing a software platform and therein lies the problem. They make their bread and butter on planned obsolescence and in the process screw over their customers.
  - edderly 16y ago
    But this points out a potential weakness with the model of taking someone else's OS and slapping it in your device. Once the operators (typically) have added their crap on top it leaves you little margin to extract extra cash until you get someone to buy another device.
    - potatolicious 16y ago
      Seems to work alright for Apple - even though they're doing gangbusters on App sales, it seems the majority of iPhone's profitability comes from hardware sales themselves, and this is without any real shades of planned obsolescence. Nokia is renowned for their hardware build quality - well in advance of LG, Moto, or Samsung. I think the market has spoken that they want the full experience - solid software, beautiful hardware, and impeccable integration of the two. Samsung IMHO has fumbled that ball up until now, producing cheap-y hardware coupled with lazy software integration. There's a lot of room for someone who knows what they're doing with Android to come and eat their lunch.
nl 16y ago
I think they might be looking at Android rather than WinMo7 (ok, maybe I'm just being hopeful...) The memo repeatedly mentions innovation and market leadership. With WinMo7 locked down as tightly as it is it is very difficult for a company to be innovative in that market. OTOH, Android already has quite a diverse ecosystem, and would allow Nokia the opportunity to do it's own thing while still supporting an active developer community. If Nokia was interested in WinMo7, why would they invest heavily in a Silicon Valley Engineering office (as opposed to a Seattle office)? Finally, there is already a (very active, community) port of Qt to Android (http://code.google.com/p/android-lighthouse/ http://code.google.com/p/android-lighthouse/). If Nokia got behind that it would give them a roadmap that would avoid alienating app developers who were hoping to support MeeGo.
- deleted 16y ago
  [deleted]
laujen 16y ago
A strong Nokia is good for smart phones. I hope Elop is smart and doesn't get bogged down in the tablet fight. Nokia needs to focus on doing smart phones well. Plenty of market there as 6 billion people will be buyers.
ylem 16y ago
I'm very curious how this will effect QT...
allenbrunson 16y ago
compare and contrast with this statement from the company, several months ago: http://news.ycombinator.com/item?id=1481354 http://news.ycombinator.com/item?id=1481354 this new memo makes me think better of them. if Nokia can get out of the new CEO's way and let him execute, then maybe they can turn it around.
elboru 16y ago
absolutely agree
gamble 16y ago
This is the point where someone argues that Nokia is doing just fine, since they still have 110% market share in Tanzania...
oconnore 16y ago
I'm predicting an HP-Palm/Nokia combined effort. HP and Nokia already collaborate, and webOS is the closest Nokia will get to an existing "ecosystem" that they could thrive in. Palm has crappy hardware, and awesome software. Nokia has excellent hardware, but crappy software. Both of them are getting slammed by Apple/Android. The solution is obvious. Also, Nokia's work on Meego would transition well to webOS, since they are both linux based.
- jallmann 16y ago
  Nokia should have bought Palm when they had the chance. The former has solid hardware and crappy software, the latter an inverse problem. It would have been a perfect match.
cloudmike 16y ago
Nokia is standing where Nintendo once stood: struggling to hold market share against powerful juggernauts, and in dire need of a bold product that eschews conventional wisdom, challenges consumer's expectations, and tickles developers' imaginations. The problem is that Apple already did that recently. The iPhone was Apple's Wii, and now it seems incredibly difficult for Nokia to innovate that much that quickly without creating something the world might not be ready for, like the N-Gage. I hope they pull it off though. Respect for the candor in the memo.
- teyc 16y ago
  I love the analogy. They were great, but they need to redefine the platform and what it means to be a smartphone again.
Peaker 16y ago
I think Nokia have repeatedly been making really dumb decisions about both their marketing and implementation. Some examples include: * Code-naming their phones obscurely, making it nearly impossible to remember and later buying a phone you like. Compare "Galaxy S" and "iPhone 3G" with "N6310". * Not bothering to place the phone's name anywhere remotely visible on the phone, so you have to yank the battery out if you want to know your friend's phone model. * Repeatedly implementing really dumb design decisions without ever fixing them: When calling someone, the "Speaker" button temporarily means "End Call" in addition to the "End Call" button. What possible purpose does this serve? It means you need to bother your eyes and hands with the phone when explicitly need an eyes/hands-free experience! Many more of Nokia's decisions seem simply stupid. Does anyone see justification for these dumb practices?
- dirtyaura 16y ago
  Code-naming their phones obscurely, making it nearly impossible to remember and later buying a phone you like. Compare "Galaxy S" and "iPhone 3G" with "N6310". Nokia's phone naming strategy was certainly not dumb at the time. They built brand around 'Nokia', not around specific models. You had 'Nokia' phone regardless of the model, similarly as you currently have 'iPhone' regardless of the exact model. (And current iPhone numbering i.e. 2G, 3G, 4 is easy to remember just because there are so few models) It was an integral part of Nokia's strategy that there were many many models to choose from, any single strong model brand could have been hindrance for that strategy. Now, we can argue that in smartphone era, building strong model brands might be wiser strategy (Galaxy S), but that's another discussion. Nokia's model naming strategy was definitely not stupid in earlier times.
adsr 16y ago
This is interesting, but wouldn't a move to say Android or Windows make them "just another Android or Windows phone". I understand the reasoning behind this but it seems to me that they would also lose something here.
hook 16y ago
Is it obvious to everyone that he is preparing Nokia for a transition to Windows?
bni 16y ago
Nokia had something good gooing with Maemo on the N900, they should just have pushed on with that. They had a software platform that was competitive with iOS, technology wise. Lighter, smaller and sexier phones with the Maemo software, it would have been awesome. But instead they decided to start over with Qt and a partnership with Intel. They ripped all progress out from under them.
erikpukinskis 16y ago
This memo is spot on, except for the optimism at the end. I think Nokia is toast. At the end of the day, you can't create a best-of-breed product out of nowhere. You need the core competencies to be already present in your company's DNA. Palm came back out of nowhere and created in the Pre a phone with great usability fundamentals, and an incredibly innovative contact/data management layer. But that didn't come from nowhere.... those are exactly the things that the Palm Pilot excelled at. Apple created a phone with incredible industrial design that pushed the boundaries of what was possible in a category of device. These things, also, have lots of precent at Apple, in the Macintosh, the iPod, OS X, and the iTunes music store. Google, in Android, built a phone OS that has incredible integration with networked apps, and is built on a well run open source project. But before they started, they already had the best network app development teams in the world, and many world class open source developers and evangelists on staff. What does Nokia have? I'm honestly not that familiar with their history, but they appear to have had (at one time) world class supply chain management and global distribution. And solidly built hardware? Is that it? Honestly, I think Nokia had the right DNA to make a huge contribution to cell phones when they were a brand new, untested product with limited global reach. But now that those issues have been nailed, the distribution channels are in place, and everyone's phones, from Motorola's Android phones to LG's crappy feature phones are "good enough" for the people who buy them. My guesses for the big future developments in phones are the web maturing as a development platform (Google seems positioned to ride that wave), powerful new software APIs (social, location, augmented reality, AI, etc), new media distribution models (Netflix, iTunes, Shopify, etc), and of course design-driven expansion of the user experience (Flipboard, FaceTime, Google Maps, etc). I don't see product teams at Nokia who appear to be executing in any of these areas at the level that would be necessary to dominate in them. And they would need to dominate in two or three to stop hemorrhaging customers. I think they're toast.
- wisty 16y ago
  Nokia already produces some of the best phone hardware there is. If they got Android onto it, I'd upgrade in a heartbeat. They also know how to differentiate without creating fragmentation. Most Android products suffer because of fragmentation - different OS versions, different hardware, etc. Nokia should know to create a core platform or 2 (standard screen size, hopefully upgrade support), and then make money on marketing prettier models to the people who'll buy them. It's obvious that they need Android, maybe with some "value added" features tacked on (but not in a tacky way). OK, crappy feature phones may be "good enough", but mobile phones has always been something of a fashion business. Nokia is good at this game, they just got blindsided by the iPhone and Android.
erikstarck 16y ago
I worked for Sony Ericsson when the iPhone was revealed. My job was to translate the thousands of pages of operator requirements that came in (within my technology area: Java) to a technical roadmap for the coming 2-5 years. So I have a fairly good picture of how the market for mobile phones work wrt to the interplay between operators and manufacturers. It's hard to grasp just how revolutionary the iPhone was. There are so many tiny things that's not by itself a revolution, but adding them all up and you're going disruptive. I tried to compile some of it in a list here: http://blog.opportunitycloud.com/2011/01/21/what-apple-did-wrong-with-the-iphone/ http://blog.opportunitycloud.com/2011/01/21/what-apple-did-w...
- recoil 16y ago
  Apple releases iPhone, from the well-thats-not-very-exciting dept. ... No 3G, no MMS, no video calling, shitty camera & bluetooth. Lame.
paganel 16y ago
IMHO, this does nothing else than hurt morale. It's not that the Nokia engineers were so stupid as to not know where their platform stands. This memo only contains lamentations over lamentations, with only a small, general call to action towards the end: "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. " The way I see these types of memos work is like this: spend the first part of it describing the problem, and the second part should include the suggested solutions. I know a former boss of mine who , if I didn't do that in my "lamentation" emails, i.e. not suggest solutions, would have smashed my head against the nearest desk.
lhnz 16y ago
This is a great PR campaign from Nokia. :)
grego 16y ago
If they don't want to alienate existing developers, a logical choice would be official Qt support for Android. Meego could also be tweaked to run Android, as it is already being done by others, see for example http://www.aavamobile.com/ http://www.aavamobile.com/
- nextparadigms 16y ago
  They could run Myriad's Alien Dalvik engine. I also agree that official QT support for android would be great as well. I think 2 open source mobile OS's rising at the top of the mobile market would be a great thing for wold. I think Apple will provide enough contrast with their closed iOS platform to balance things out.
juffior 16y ago
I don't know anything about the future, but the future is accelerating, innovation happen unexpectedly (Egypt revolution, Google, Ipad ...). So let's expect some new agent to appear and dominate the market.
msh 16y ago
There are at least one reputable source that claims it is false: http://communities-dominate.blogs.com/brands/2011/02/the-nokia-ceo-burning-platform-memo-at-engagdget-doesnt-ring-true-to-my-ears.html http://communities-dominate.blogs.com/brands/2011/02/the-nok...
jasonkester 16y ago
A helpful tip for those arriving late: Skip the entire article and read the email directly. The article is longer than the mail, says less, and says it less eloquently.
np3000 16y ago
http://twitter.com/#!/vicgundotra/status/35182523650801664 http://twitter.com/#!/vicgundotra/status/35182523650801664 Looks like Nokia is going with Windows Phone 7
meemo 16y ago
Is anybody else thinking "Manchurian candidate"? I mean if he decides to go with Windows phone 7.
deleted 16y ago
[deleted]
mhartl 16y ago
It's worth noting in this context that Nokia has reinvented itself before; for instance, the company started in 1865 as a pulp mill and paper manufacturer. They've pivoted a few times in the years since.
ramanujan 16y ago
Nokia should ally with Facebook to make the Facebook phone. That is the only thing I can think of that would put them back in the game. The downside is that MS probably has the inside track on that with Windows Phone 7/8.
Unosolo 16y ago
Not really impressed, yet. And here is why: Zero points for coming out: Mr Elop was brought in by the board exactly with the goal of rescuing Nokia in mind. Looking from that angle the memo is a bit overdue. Zero points for opening the letter with a metaphor - this is the way someone steering a major technologic corporation is expected to convey the direction - by projecting a vision. Negative ten points for picking wrong metaphor. It broke down immediately. See for yourself: should Mr Elop's best employees take his advice literally and jump the burning platform? Followed with a change in behaviour meaning never again joining a severely fragmented bureaucracy ridden company? What was the lesson learned by the oil rig worker? What could he have done differently in the situation when he woke up on a burning platform in a middle of a sea? I’d award one point for openly enumerating the challenges. But these are the symptoms of Nokia demise, he hasn't dug deep enough, the list is known at this point to every man and his dog. Negative ten for the actual lack of a credible vision at this point. Let’s wait till the strategy comes out.

513 points by ldayley 16y ago

idea for how to create value in your brand when you're "just another android phone". 1. create a really awesome skin like HTC has. 2. create a suite of really awesome apps and release them on the apps market, but give them free to users of your specific phone.

akgerber 16y ago
3. Create some of the best hardware out there, as Nokia does.

Jayasimhan 16y ago

This is exactly where Steve Jobs found himself in 1997. He stood by and did what he wanted to [or may be not yet]. Hope Elop does it as well.

foobarbazetc 16y ago
Unfortunately for Elop, there's only one Steve Jobs.
- shadowfox 16y ago
  There can only be one hero?
  - rilindo 16y ago
    There can only be one!
- jarek 16y ago
  Would it be better for Elop if he was competing with more than one Steve Jobs?

bambax 16y ago

I worked for Accenture (then Andersen Consulting) in Paris in 1995 when a new team of Englishmen were brought in from London to "turn the French practice around". Their theme? "Burning platform". The exact same story that opens the memo was their story too. Maybe this Mr Elop is really an original thinker that will do great things; but the "burning platform" analogy is the most tired image EVER. Oh, and did it work in Paris in 1995? Not really. It was not an absolute disaster, but in the end (two years later) the British threw the towel and went home, and the French partners who were there before stayed on (are still there to this day).

aik 16y ago
Where else have you heard it? What makes it a tired image beyond the fact that you heard it once in Paris?
- bambax 16y ago
  I didn't hear it "once"; it was a central theme of the transformation story; there were posters everywhere, email campaigns, leaflets, etc. all based on the "burning platform" standard playbook. The reality is that the "burning platform" metaphor is a classic story repeated ad nauseam in business schools and business books; see this for example (from 2005): The term “burning platform” is a mainstay in business lexicon for many years. For those not familiar with its origin, the story goes something like this: A man working on an oil platform in the North Sea awakened suddenly one night by an explosion. Amidst the chaos, he made his way to the edge of the platform. As a plume of fire billowed behind him, he decided to jump from the burning platform even though jumping is a risky option for the following reasons: It was a 150-foot drop from the platform to the water. There is debris and burning oil on the surface of the water. If the jump into the 40°F water did not kill him, he would die of exposure within 15 minutes. Luckily, the man survived the jump and hauled aboard a rescue boat shortly thereafter. When asked why he jumped, he replied, “Better probable death than certain death.” The point is the literally “burning” platform caused the radical change in his behavior. http://www.imakenews.com/cppa/e_article000368179.cfm http://www.imakenews.com/cppa/e_article000368179.cfm (Please read the rest of this article to know how the story should be used in a business context; it really seems to describe the email, and it's prophetic since it was written six years ago). Where do you think Mr. Elop heard this story in the first time? What's more likely, that he met an actual burning platform survivor, or that he read about this very common story in a business book?

quannum 16y ago

The idea of a Nokia device running Android is pretty appealing. They've always had good hardware, but Symbian has become a develpment dead-end, and Meego isn't yet here.

ldayley 16y ago
Android on Nokia hardware is an appealing idea, but given Stephen Elop's Microsoft background I wonder if they won't shift to WP7. Or both.
- balakk 16y ago
  Nokia on WP7 would mean they would have to cannibalize their OS teams, their app.dev stack(QT), existing software etc. gutting a huge part their workforce. It is far more easier to have Meego adopt an Android personality, since they're the same kernel inside. They could add Nokia flavor on top. The far more important decision is positioning; they would've to leave the low-end phone market to chinese, and focus on the midrange.
  - gonzo 16y ago
    a) not quite the same kernel. You appear to be unaware of what Google has done to the internals of linux b) having an OS team has turned into a liability for Nokia. CEOs normally don't care about 'gutting' workforces. In fact, I predict that Elop will cut the 'deadwood' of the old company as soon as he announces whatever on Friday. c) (edit) Elop has to pay attention to Oracle having sued Google over Java in Android. No, this is Microsoft establishing a brand in the phone space via take-over of Nokia. Watch and see.
    - balakk 16y ago
      I understand Android is quite different from vanilla Linux - I meant Android is closer to the Meego platform than WP7. Moving from Meego to Android is less of a stretch. For example, porting QT to Android should not be too difficult. I really hope Nokia doesn't follow the SGI way.

kooshball 16y ago

wow, that is one way to motivate the troops. The lack of mentioning of WP7 at all and the re-emphasis of Andriod as a competitor makes me think it's unlikely they will be running Andriod any time soon.

SwellJoe 16y ago
I don't follow your logic. Windows 7 isn't much of a competitor. It had a smaller debut than Android and iPhone, by a large amount, and is being outsold by both so the gap is widening. If I were Nokia, I wouldn't be worrying about fellow also-rans in the industry, like Microsoft. I'd be worried about the products that were eating my lunch, and I'd let Microsoft figure out how to protect their own lunch. If Nokia chooses Windows for their next generation, I'd wager they'll keep dropping like a rock. How could they generate any excitement over a Windows phone? Nobody likes Windows phones, even people who like Windows on the desktop.
- jarek 16y ago
  > Nobody likes Windows phones That's a bit categorical, no? I know at least two people who quite like their Windows Phones. Before you ask, not all of them work at Microsoft.
  - SwellJoe 16y ago
    "Before you ask, not all of them work at Microsoft." This leads me to believe that 50% of the people you know who like their Windows phone do work at Microsoft.
    - jarek 16y ago
      50% of the people I know that I know like their Windows phones do work at Microsoft. Even if it was 100%, this still invalidates your original claim.
      - SwellJoe 16y ago

avner 16y ago

Stephen Elop has finally put in writing what the market has said about Nokia ever since the iPhone came out. Props to him for finally initiating this intervention at Nokia; it has been long overdue. Someone has finally said "we have fucked up, its now time to get back on the horse and make it right" to the Nokia management. Less than a decade ago, nobody could touch Nokia in the mobile handset market, Nokia defined quality... and then they got complacent and instead of innovating, they stuck to old principles. Its like Nokia witnessed the age old fable of the tortoise and the hare firsthand.

lamby 16y ago
Your comment and Engadget's article seem to imply that Nokia failing in the smartphone market means that Nokia is failing generally. But wouldn't Nokia still be making a lovely profit even if they stuck to the more vanilla phones? Don't forget that only a fraction of people can afford these >= £500 devices and only a fraction of those buy them without financing.
- kenjackson 16y ago
  Nokia used to be up around 60% of the mobile phone market (in terms of profit). Now they're around ~20%, while Apple is more than 50% (on less than 5% marketshare). Nokia is still making money, but pretty much all new profit is going to everyone else (especially Apple). http://www.freerepublic.com/focus/f-chat/2666565/posts http://www.freerepublic.com/focus/f-chat/2666565/posts
  - ergo98 16y ago
    Do you think there is a fixed "profit" out there for the taking? Apple's profit margin is an extreme aberration, and it isn't sustainable. Any comparison that relies upon profit numbers is...disturbed.
    - kenjackson 16y ago
      Do you think there is a fixed "profit" out there for the taking? Definitely not. But I do think that there's been incredible growth in Nokia's core business, and they haven't seen any of the growth. Apple has been able to do this in four markets now: 1) iPhone -- a carrier subsisized market. 2) iPad -- see (3) 3) iPod -- Large margins based on industry leading large volume. 4) Computers -- Expensive niche product with huge margins. I believe the are the single most profitable computer company (if you look just at their computer division). Why is a comparison based on profit disturbed? In business that's pretty much the only thing that matters. Profit yesterday, today, and tomorrow.

vessenes 16y ago

This is an excellent, really excellent call to arms from a new CEO. I have a few takeaways -- first: the board brought Elop in for a four to seven year turn-around. He's going to make enemies, but that's okay. If he executes the turn-around, they'll put someone more finnish back in to sooth the old guard after they're making money again. Second -- this guy has the Microsoft internal criticism DNA, through and through. This isn't quite a Gates-level memo, but it's in the ballpark. I'd love to see some leaks of him reviewing his experience using different phones, Gates style. Third -- he's totally correct. Nokia f-ed this up, all by themselves. I STILL miss my Nokia E-90; it had 7mb up and down, a beautiful keyboard, video chatting, first-class SIP phone account support, and an 840x320 screen in 2007, for God's sake! The UI sucked, the apps weren't there, and there was no touch interface. Apple cleaned Nokia's clock. Then Android did it again. One reason HN readers should care: Nokia is probably the only carrier in the world with the balls to just go ahead and release unlocked phones with things like VOIP accounts built in. They may be the only company who doesn't have to play nice with US carriers around; innovation from them will be excellent for consumers.

semanticist 16y ago
Nokia regularly cripple features, specifically including VoIP, at the demands of carriers. Perhaps not US carriers, but it happened frequently in the UK. I took the calls of people angry that their 'top end' handset couldn't do VoIP because they bought it from Vodafone. The carriers were always Nokia's customers, not the consumers, I can't see how that's going to change.
- metageek 16y ago
  >Nokia regularly cripple features, specifically including VoIP, at the demands of carriers. Perhaps not US carriers, Oh, definitely in the US—look at the difference between the E71 and the E71x, the AT&T version. The GP was talking about unlocked phones. I have an N86 which I bought on Amazon, and it's got SIP and other features which AT&T would hate me to have. >The carriers were always Nokia's customers, not the consumers Yeah, but that's the case with every phone manufacturer.

donaldc 16y ago

I thought that this was the most interesting part of the article: and that Elop would start looking to Nokia's new Silicon Valley campus as its center of gravity, with execs and senior management expected to start spending more time outside Finland. That's quite an endorsement of Silicon Valley as a tech hub...

jsnell 16y ago
And also the part of the rumors that makes the least sense. Hack through the middle management and bureaucracy with a chainsaw, cut off all the incredibly inefficient contractors, clean all the dead wood from R&D, kill one or both of the in-house operating systems, give up on building services and just start preloading every phone with Bing services for big money, etc. One might not agree with those actions, but at least one could plausibly argue that they'd be beneficial to the future of the company. But how exactly is moving the heart of the company into Sunnyvale going to help? Nokia isn't exactly in the position to compete for the best people in those horribly over-fished waters, especially soon after a round of brutal layoffs. Are the dregs of Silicon Valley really going to be that much better than the talent elsewhere? Does the world even need one more company centered around that echo chamber?
- rdl 16y ago
  I agree -- I think the best thing Nokia could do is probably to relocate somewhere more central within Europe (Berlin? London?) and become the strongest European mobile phone option, vs. trying to compete for talent in SFBA. Arguably they could also try NYC or another major city with lots of development expertise but no strong mobile company.
- ponzi 16y ago
  At least in the US they'd be free to fire the dead weight. The laws in Finland are made to protect the workers, and a previously fired employee must be considered before hiring somebody new. This might be a reason why Nokia have so many external contract workers.

andrewljohnson 16y ago

A well-written email is more powerful than many people comprehend. We used to call them letters, and they were powerful then too. You can change a person's or a group's mind about something, even after a decision appears to have been made. You can clinch a job, win a contract, stop a lawsuit, regain a friend, woo a lover, and change history itself with just a few words. I'm not sure if people realize quite how powerful an email can be, directed at the right audience, at the right time, with the right message. And the flip-side is true too. A badly written, poorly directed, or mis-timed email can have terrible consequences. You can make or break a company with a single email. Regarding this memo, it's a truly inspiring, and well-timed. I think this will be a Gettysburg moment for the CEO, and may mark a turning point for Nokia.

rm445 16y ago
Very well said. It's a great memo, but its main effect is to lay the groundwork for a strategy change. This means we're going to have to decide how we either build, catalyse or join an ecosystem [...] When we share the new strategy on February 11, it will be a huge effort to transform our company [...] 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. This may be a turning point for Nokia, but in the end it will come down to just what this new strategy is and how effective it proves to be.
- regularfry 16y ago
  No matter how good the strategy looks on paper, it's useless unless everyone buys in. Its effectiveness will depend to a great extent on how well the new strategy, and more importantly the need for it, can be sold internally.
Alex3917 16y ago
Well said. If writing is like talking on paper, then a good email is like looking someone in the eyes on paper. As someone who isn't always the most articulate in real life, I feel like some of my greatest accomplishments have been largely attributable to a handful of ridiculously well-written emails.

SandB0x 16y ago

> 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. Please, please, Nokia, adopt Android and put your efforts into making great hardware to go with it, without ruining the interface like so many other manufacturers do.

Geee 16y ago
War of ecosystems.. Google is their worst competitor. They either join smaller ones like WP7, WebOS, Bada etc. or keep on their own.
robryan 16y ago
This is the way forward, a company that wants to develop native apps for mobile must already work with so many different systems. A new startup is going to focus on an iphone app, if they are successful or well capitalized from the start then they will look at android. The third choice in the market is shaping to be windows 7 phone. Expecting companies to develop for then yet another platform, one which seems to be redefined often, is asking a lot and will result in getting only the really big players and lower rate developers trying to cash in on the under exploited platform. In a way it's similar to Yahoo outsourcing their search to Bing, advertisers focused most of their attention on adwords and then also rolled some Bing campaigns, but only so much attention can then be given to the third player in the market for even less ROI for time spent due to the lower search volume.
- Geee 16y ago
  Not really, Nokia's Ovi Store is now third in downloaded apps per day. However, in many countries such as in China, Ovi Store is the most popular app store. http://www.forum.nokia.com/Distribute/Ovi_Store_statistics.xhtml http://www.forum.nokia.com/Distribute/Ovi_Store_statistics.x...

Geee 16y ago

That's really interesting read, but doesn't tell anything about specifics. I'm not really sure what they will announce on Friday. As we can see however, it's about ecosystems, not about the OS. 1. Qt is really valuable asset, they are keeping it. Actually they are keeping everything they have now. 2. Joining WP7 or Android as an OEM would cut Nokia out of their ecosystems, not going to happen. 3. Adopting WP7 or Android as is would require Nokia to cut back some custom hardware features and make differentiation harder. My best guess is WP7 with Qt allowing Nokia's services and apps on those phones. This would be additional to Symbian and MeeGo devices. However, I'm pretty sure they are starting to ramp Symbian down.

wslh 16y ago
WP7 with QT doesn't seem an option. QT is C++ and WP7 is oriented to work with .NET and not native applications. (don't try to port QT to C++.NET...) and it's a bit redundant to have QT together with Silverlight/.NET
metageek 16y ago
>My best guess is WP7 with Qt allowing Nokia's services and apps on those phones. This would be additional to Symbian and MeeGo devices. If they adopt any third-party OS, I can't see them keeping MeeGo. That'd be stupid; it'd leave them having to build a MeeGo ecosystem instead of just taking advantage of the one they join. And I don't see Microsoft allowing Qt on WP7; it'd undermine their whole .Net-based story.
- Geee 16y ago
  On the other hand, I'd believe Microsoft would want Nokia to "catalyse" their ecosystem, because of the lacking success of WP7. The ecosystem of WP7 is now very weak, and not much of an asset for Nokia, except MS services like Bing. But, Nokia doesn't want to give up Qt apps and their own services.

deleted 16y ago

[deleted]

elehack 16y ago

Hopefully they're able to restore competitiveness, but I hope they don't do it by simply adopting WP7 or Android. I'd really like to see them make something like MeeGo viable. IMO, the mobile space could use an open ecosystem without the Google tie-in.

foobarbazetc 16y ago

The only way forward is to embrace WP7 and become the WP7 phone. Build apps and an ecosystem around that. Hell, get Microsoft to acquire Nokia and make WP7 exclusive. WP7 is a much better platform than Android anyway (in a couple of OS updates at least). There is no way that Nokia will ever win using Symbian/MeeGo or Android. If they stay the course then Nokia's dead and will never recover.

lotusleaf1987 16y ago
I agree with everything you said except I think there's a 0% chance of Microsoft buying Nokia, it doesn't fit their business model. Companies would not be as willing to license WP7 if MSFT were competing directly with them and able to undercut their competitor's prices.
- foobarbazetc 16y ago
  The point is that Microsoft would no longer need to license WP7 (and quite frankly, I doubt they really care about those licensing fees when ecosystem market share is a far bigger revenue source). Both companies are at a point where they're about to enter irrelevance in the mobile space (Nokia actually entered irrelevance as soon as the iPhone launched, but it took them a while to figure that out due to pride and thinking all that matters is how many widgets you ship -- they're about to hit the bottom of the abyss). The problem Microsoft has is that all the existing licensees don't care at all about their platform. Samsung, HTC and LG all have their hands in multiple pies, not willing to commit to any platform because they don't care about who wins, as long as they make money. They need someone to focus exclusively on WP7, delivering the best integrated experience the platform can offer. Nokia's not going to go exclusive unless Microsoft does too. There are issues on both sides though: * Nokia used to build great hardware. They need to start doing that again to convince Microsoft it's worth acquiring. * Microsoft needs to recognize that WP7 isn't going to go anywhere unless something major changes. The upcoming announcement might be a precursor to the above scenario.
- regularfry 16y ago
  The Xbox doesn't fit MS's business model either. If MS were to go that way I think they could make a decent go of it.

cookiecaper 16y ago

A good memo and he's certainly correct about the phone market. I hope that Trolltech/Qt makes out OK.

callahad 16y ago

I would work for that man.

tjmc 16y ago
I used to (at Macromedia). He's a great guy. Very approachable and down to earth, but certainly not afraid to make the hard calls as you see here. I sometimes wonder where Microsoft might be if he'd replaced Balmer, but it's great to see him take on Nokia. Talk about a tough gig!

kefs 16y ago

In case anyone is curious about the full story behind Mike Williams and the "burning platform", watch the following video. You won't be disappointed. http://www.youtube.com/watch?v=83EwglrnvlU http://www.youtube.com/watch?v=83EwglrnvlU edit: part 1 for those interested http://www.youtube.com/watch?v=XgkZtklS6xE http://www.youtube.com/watch?v=XgkZtklS6xE

kefs 16y ago
downvote? not sure why as i was only trying to provide context. :/

edderly 16y ago

Ignoring the problems with WP7, if Nokia were to produce phones with other 'external' OSes why would they stick with just one? No one criticizes Samsung and they are pretty much a mobile-OS whore: SHP, Bada, WP7, Symbian (albeit a year or so ago), Android, Limo, etc. N.B. Regarding SHP: I can't remember the name properly but this was the old/existing Samsung feature phone platform, it probably has got rolled into Bada, although Bada has two configurations (with and w/o the Linux kernel).

lotusleaf1987 16y ago
IMO, that's because Samsung doesn't have a clue and would rather hedge their bets. Most people I know who has a Samsung Galaxy, Captivate, etc have complained endlessly about the wait for updates. Samsung's business is in selling phones, not developing a software platform and therein lies the problem. They make their bread and butter on planned obsolescence and in the process screw over their customers.
- edderly 16y ago
  But this points out a potential weakness with the model of taking someone else's OS and slapping it in your device. Once the operators (typically) have added their crap on top it leaves you little margin to extract extra cash until you get someone to buy another device.
  - potatolicious 16y ago
    Seems to work alright for Apple - even though they're doing gangbusters on App sales, it seems the majority of iPhone's profitability comes from hardware sales themselves, and this is without any real shades of planned obsolescence. Nokia is renowned for their hardware build quality - well in advance of LG, Moto, or Samsung. I think the market has spoken that they want the full experience - solid software, beautiful hardware, and impeccable integration of the two. Samsung IMHO has fumbled that ball up until now, producing cheap-y hardware coupled with lazy software integration. There's a lot of room for someone who knows what they're doing with Android to come and eat their lunch.

nl 16y ago

I think they might be looking at Android rather than WinMo7 (ok, maybe I'm just being hopeful...) The memo repeatedly mentions innovation and market leadership. With WinMo7 locked down as tightly as it is it is very difficult for a company to be innovative in that market. OTOH, Android already has quite a diverse ecosystem, and would allow Nokia the opportunity to do it's own thing while still supporting an active developer community. If Nokia was interested in WinMo7, why would they invest heavily in a Silicon Valley Engineering office (as opposed to a Seattle office)? Finally, there is already a (very active, community) port of Qt to Android (http://code.google.com/p/android-lighthouse/ http://code.google.com/p/android-lighthouse/). If Nokia got behind that it would give them a roadmap that would avoid alienating app developers who were hoping to support MeeGo.

deleted 16y ago
[deleted]

laujen 16y ago

A strong Nokia is good for smart phones. I hope Elop is smart and doesn't get bogged down in the tablet fight. Nokia needs to focus on doing smart phones well. Plenty of market there as 6 billion people will be buyers.

ylem 16y ago

I'm very curious how this will effect QT...

allenbrunson 16y ago

compare and contrast with this statement from the company, several months ago: http://news.ycombinator.com/item?id=1481354 http://news.ycombinator.com/item?id=1481354 this new memo makes me think better of them. if Nokia can get out of the new CEO's way and let him execute, then maybe they can turn it around.

elboru 16y ago

absolutely agree

gamble 16y ago

This is the point where someone argues that Nokia is doing just fine, since they still have 110% market share in Tanzania...

oconnore 16y ago

I'm predicting an HP-Palm/Nokia combined effort. HP and Nokia already collaborate, and webOS is the closest Nokia will get to an existing "ecosystem" that they could thrive in. Palm has crappy hardware, and awesome software. Nokia has excellent hardware, but crappy software. Both of them are getting slammed by Apple/Android. The solution is obvious. Also, Nokia's work on Meego would transition well to webOS, since they are both linux based.

jallmann 16y ago
Nokia should have bought Palm when they had the chance. The former has solid hardware and crappy software, the latter an inverse problem. It would have been a perfect match.

cloudmike 16y ago

Nokia is standing where Nintendo once stood: struggling to hold market share against powerful juggernauts, and in dire need of a bold product that eschews conventional wisdom, challenges consumer's expectations, and tickles developers' imaginations. The problem is that Apple already did that recently. The iPhone was Apple's Wii, and now it seems incredibly difficult for Nokia to innovate that much that quickly without creating something the world might not be ready for, like the N-Gage. I hope they pull it off though. Respect for the candor in the memo.

teyc 16y ago
I love the analogy. They were great, but they need to redefine the platform and what it means to be a smartphone again.

Peaker 16y ago

I think Nokia have repeatedly been making really dumb decisions about both their marketing and implementation. Some examples include: * Code-naming their phones obscurely, making it nearly impossible to remember and later buying a phone you like. Compare "Galaxy S" and "iPhone 3G" with "N6310". * Not bothering to place the phone's name anywhere remotely visible on the phone, so you have to yank the battery out if you want to know your friend's phone model. * Repeatedly implementing really dumb design decisions without ever fixing them: When calling someone, the "Speaker" button temporarily means "End Call" in addition to the "End Call" button. What possible purpose does this serve? It means you need to bother your eyes and hands with the phone when explicitly need an eyes/hands-free experience! Many more of Nokia's decisions seem simply stupid. Does anyone see justification for these dumb practices?

dirtyaura 16y ago
Code-naming their phones obscurely, making it nearly impossible to remember and later buying a phone you like. Compare "Galaxy S" and "iPhone 3G" with "N6310". Nokia's phone naming strategy was certainly not dumb at the time. They built brand around 'Nokia', not around specific models. You had 'Nokia' phone regardless of the model, similarly as you currently have 'iPhone' regardless of the exact model. (And current iPhone numbering i.e. 2G, 3G, 4 is easy to remember just because there are so few models) It was an integral part of Nokia's strategy that there were many many models to choose from, any single strong model brand could have been hindrance for that strategy. Now, we can argue that in smartphone era, building strong model brands might be wiser strategy (Galaxy S), but that's another discussion. Nokia's model naming strategy was definitely not stupid in earlier times.

adsr 16y ago

This is interesting, but wouldn't a move to say Android or Windows make them "just another Android or Windows phone". I understand the reasoning behind this but it seems to me that they would also lose something here.

hook 16y ago

Is it obvious to everyone that he is preparing Nokia for a transition to Windows?

bni 16y ago

Nokia had something good gooing with Maemo on the N900, they should just have pushed on with that. They had a software platform that was competitive with iOS, technology wise. Lighter, smaller and sexier phones with the Maemo software, it would have been awesome. But instead they decided to start over with Qt and a partnership with Intel. They ripped all progress out from under them.

erikpukinskis 16y ago

This memo is spot on, except for the optimism at the end. I think Nokia is toast. At the end of the day, you can't create a best-of-breed product out of nowhere. You need the core competencies to be already present in your company's DNA. Palm came back out of nowhere and created in the Pre a phone with great usability fundamentals, and an incredibly innovative contact/data management layer. But that didn't come from nowhere.... those are exactly the things that the Palm Pilot excelled at. Apple created a phone with incredible industrial design that pushed the boundaries of what was possible in a category of device. These things, also, have lots of precent at Apple, in the Macintosh, the iPod, OS X, and the iTunes music store. Google, in Android, built a phone OS that has incredible integration with networked apps, and is built on a well run open source project. But before they started, they already had the best network app development teams in the world, and many world class open source developers and evangelists on staff. What does Nokia have? I'm honestly not that familiar with their history, but they appear to have had (at one time) world class supply chain management and global distribution. And solidly built hardware? Is that it? Honestly, I think Nokia had the right DNA to make a huge contribution to cell phones when they were a brand new, untested product with limited global reach. But now that those issues have been nailed, the distribution channels are in place, and everyone's phones, from Motorola's Android phones to LG's crappy feature phones are "good enough" for the people who buy them. My guesses for the big future developments in phones are the web maturing as a development platform (Google seems positioned to ride that wave), powerful new software APIs (social, location, augmented reality, AI, etc), new media distribution models (Netflix, iTunes, Shopify, etc), and of course design-driven expansion of the user experience (Flipboard, FaceTime, Google Maps, etc). I don't see product teams at Nokia who appear to be executing in any of these areas at the level that would be necessary to dominate in them. And they would need to dominate in two or three to stop hemorrhaging customers. I think they're toast.

wisty 16y ago
Nokia already produces some of the best phone hardware there is. If they got Android onto it, I'd upgrade in a heartbeat. They also know how to differentiate without creating fragmentation. Most Android products suffer because of fragmentation - different OS versions, different hardware, etc. Nokia should know to create a core platform or 2 (standard screen size, hopefully upgrade support), and then make money on marketing prettier models to the people who'll buy them. It's obvious that they need Android, maybe with some "value added" features tacked on (but not in a tacky way). OK, crappy feature phones may be "good enough", but mobile phones has always been something of a fashion business. Nokia is good at this game, they just got blindsided by the iPhone and Android.

erikstarck 16y ago

I worked for Sony Ericsson when the iPhone was revealed. My job was to translate the thousands of pages of operator requirements that came in (within my technology area: Java) to a technical roadmap for the coming 2-5 years. So I have a fairly good picture of how the market for mobile phones work wrt to the interplay between operators and manufacturers. It's hard to grasp just how revolutionary the iPhone was. There are so many tiny things that's not by itself a revolution, but adding them all up and you're going disruptive. I tried to compile some of it in a list here: http://blog.opportunitycloud.com/2011/01/21/what-apple-did-wrong-with-the-iphone/ http://blog.opportunitycloud.com/2011/01/21/what-apple-did-w...

recoil 16y ago
Apple releases iPhone, from the well-thats-not-very-exciting dept. ... No 3G, no MMS, no video calling, shitty camera & bluetooth. Lame.

paganel 16y ago

IMHO, this does nothing else than hurt morale. It's not that the Nokia engineers were so stupid as to not know where their platform stands. This memo only contains lamentations over lamentations, with only a small, general call to action towards the end: "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. " The way I see these types of memos work is like this: spend the first part of it describing the problem, and the second part should include the suggested solutions. I know a former boss of mine who , if I didn't do that in my "lamentation" emails, i.e. not suggest solutions, would have smashed my head against the nearest desk.

lhnz 16y ago

This is a great PR campaign from Nokia. :)

grego 16y ago

If they don't want to alienate existing developers, a logical choice would be official Qt support for Android. Meego could also be tweaked to run Android, as it is already being done by others, see for example http://www.aavamobile.com/ http://www.aavamobile.com/

nextparadigms 16y ago
They could run Myriad's Alien Dalvik engine. I also agree that official QT support for android would be great as well. I think 2 open source mobile OS's rising at the top of the mobile market would be a great thing for wold. I think Apple will provide enough contrast with their closed iOS platform to balance things out.

juffior 16y ago

I don't know anything about the future, but the future is accelerating, innovation happen unexpectedly (Egypt revolution, Google, Ipad ...). So let's expect some new agent to appear and dominate the market.

msh 16y ago

There are at least one reputable source that claims it is false: http://communities-dominate.blogs.com/brands/2011/02/the-nokia-ceo-burning-platform-memo-at-engagdget-doesnt-ring-true-to-my-ears.html http://communities-dominate.blogs.com/brands/2011/02/the-nok...

jasonkester 16y ago

A helpful tip for those arriving late: Skip the entire article and read the email directly. The article is longer than the mail, says less, and says it less eloquently.

np3000 16y ago

http://twitter.com/#!/vicgundotra/status/35182523650801664 http://twitter.com/#!/vicgundotra/status/35182523650801664 Looks like Nokia is going with Windows Phone 7

meemo 16y ago

Is anybody else thinking "Manchurian candidate"? I mean if he decides to go with Windows phone 7.

deleted 16y ago

[deleted]

mhartl 16y ago

It's worth noting in this context that Nokia has reinvented itself before; for instance, the company started in 1865 as a pulp mill and paper manufacturer. They've pivoted a few times in the years since.

ramanujan 16y ago

Nokia should ally with Facebook to make the Facebook phone. That is the only thing I can think of that would put them back in the game. The downside is that MS probably has the inside track on that with Windows Phone 7/8.

Unosolo 16y ago

Not really impressed, yet. And here is why: Zero points for coming out: Mr Elop was brought in by the board exactly with the goal of rescuing Nokia in mind. Looking from that angle the memo is a bit overdue. Zero points for opening the letter with a metaphor - this is the way someone steering a major technologic corporation is expected to convey the direction - by projecting a vision. Negative ten points for picking wrong metaphor. It broke down immediately. See for yourself: should Mr Elop's best employees take his advice literally and jump the burning platform? Followed with a change in behaviour meaning never again joining a severely fragmented bureaucracy ridden company? What was the lesson learned by the oil rig worker? What could he have done differently in the situation when he woke up on a burning platform in a middle of a sea? I’d award one point for openly enumerating the challenges. But these are the symptoms of Nokia demise, he hasn't dug deep enough, the list is known at this point to every man and his dog. Negative ten for the actual lack of a credible vision at this point. Let’s wait till the strategy comes out.