Why Nokia Is Toast

CWmike writes "It's hard to remember now, but there was a time when Finland was at the center of the cell phone universe. No more. Nokia is being killed by complexity. Along comes Microsoft with Windows Phone 7, delivering more complexity. My view is that Microsoft doesn't matter, writes Mike Elgan. Although Windows Phone 7 is a way better operating system than Symbian, Nokia's problem isn't Symbian, and the solution isn't Windows Phone 7. Nokia's problem is that it follows the losing strategies of the other losers in the market, and rejects the only two known winning strategies. There are way too many Nokia phones. This causes either choice paralysis, sending buyers screaming to Apple for relief, or buyer's remorse. Nokia should take the advice Steve Jobs gave to Nike CEO Mark Parker: 'Just get rid of the crappy stuff and focus on the good stuff.'" And maybe Nokia isn't toast at all: reader high_rolla points out an interesting bit of speculation that the Nokia-Microsoft pact is part of a grand plan "to become the exclusive manufacturer of hardware for MS phones and tablets."

Comments

m$'s 8th largest individual shareholder is happy

[phonewebcam]

He loves it when a plan comes together

This is way over the top

[DesScorp]

I'd be shocked if Nokia were "toast". They're still one of the biggest handset makers in the world, and their name recognition alone is worth billions in the market. And while guys like Steve Jobs are going "simplify!", there are millions of customers going "Really? This is all you've got? Where are all the choices?". Just because Apple's strategy is good for Apple doesn't mean it'll be good for Nokia, just like Mercedes isn't going to pursue the same strategy as Ford. They're both still going to make a lot of money.