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Nokia doesn't want that though. Nokia leadership views "just a phone hardware manufacturer" as a doomed fate in a commodity business, much like PC manufacturer
by brown 16y ago
Nokia doesn't want that though. Nokia leadership views "just a phone hardware manufacturer" as a doomed fate in a commodity business, much like PC manufacturers have been a commodity for the past 10-20 years. Granted, Dell has done alright in that space, but overall that market still represents a commoditized business.
Instead, Nokia wants to control the stack. That means having an integrated hardware + software solution. That creates real competitive advantage, which creates real profits. Apple has 25% margins. Dell has single digit margins.
- JulianMorrison 16y agoNo-one else can be Apple. It's questionable how long Apple can continue to be Apple. They got to own a stack because they started way ahead of the competition and haven't slacked or hit any technological walls. Upon the inevitable moment they lose momentum, the clones baying at their heels will eat them. This happened before, with classic Mac before the Jobs renaissance. As for Nokia, the market has reached a point of consolidation on standards comparable to the collapse of competing computer types in the early 90s from Atari, Commodore, Acorn, Amstrad etc to PC and Mac and nothing else. So they can either sell hardware or die.
- PakG1 16y agoIt's interesting to note that Apple was in a very similar position back in those days. They were dying, and made the decision to buy NeXT to change OS directions. The primary consideration was the OS, not Jobs; they were apparently very close to buying BeOS instead. Jobs being the catalyst for strategic change happened to be a pleasant surprise. He didn't even become the CEO of Apple again until much later. So, to be clear, even Apple wasn't Apple. Apple didn't reinvent itself. Apple bought NeXT to try to go a new direction; that is, innovation was acquired, not developed in-house. Looks like Nokia would be forced to do the same, judging from the mood around meego (or in this case, simply partner with an outsider).