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July 29, 2009

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I think you failed to notice that Nokia is still the strongest player in developing countries because no other vendor is able to produce so cheaply low-end models. That gives them a lot of time to reclaim the position in high-end market.

Nokia have the time to reclaim their position I agree. Their economies of scale and growth in the developing markets gives them a lot of runway (as does the fact they have $9bn in cash, and continue to have a very profitable, well run business).

I'm interested to see if Nokia can adapt to the changing (software and services led) world as well as they hope. Their traditional (telco like) structures, platform approaches and teams may not be best suited to the more dynamic, niche focussed activities required - producing solid, reliable, low cost mobile phones is an advantage that others will try to replicate - and in the long term of all the technology markets to date the markets have evolved to be led by the software & service companies - that change is continuing to happen in the mobile phone market (and was led by Nokia when they introduced the first open OS smartphones in 2002)

It's strange but right now, I can't think of the last Nokia phone I actually wanted (or knew how to) use.

> With small teams, focussed, and with the freedom to drop more features than they add to platforms
> Nokia could bring new devices to market in volumes that other manufacturers could only aspire to in
> 2011.

I think that this is more of a cultural problem for Nokia than anything. They have been engineering driven - with an almost autistic obsession with long lists of features - for too long. If they can't change that quickly, they are on a crash course.

Their success in the low-end emerging markets is a by product of their broad portfolio and manufacturing capacity. Keep the winners around and sell them at lower margins. cf the RAZR which didn't save Mot either.

Parallels are misleading. How about Nokia being the FIAT of mobile phones? i.e. A sort of mixed bag of offerings, but leading world-wide sales in its chosen areas.

Or maybe (thinking European terms) it's the BMW or Mercedes, offering a whole range of products, with the top of the line model being somewhat less than desirable.

Yes, I find the UI stilted, but it's similar to what I've been using for years, and as a rule I know it will work, and it will have all the facilities I wanted at the time of purchase.

That sounds like a good deal.

I feel a better european analogy for cars might be Volvo. Boxy, boring, safe, the sort of car that your grandmother would choose to drive.

Atleast General Motors had the US Government to bail them out. While for Nokia, I don't think Finland will help them if ever they go bankrupt.

This is such a beautiful image! Is that what you call Digital Painting? It looks stunning.

The problem is that Nokia quickly degenerates in value. The company is always releasing new, updated versions in a short span of time. But if you look closely at the specs, the new model works similarly with the last. You couldn't really say that there's an 'update' in the phones.

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