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Nokia Turns To Android To Regain Share In Emerging Markets

puddingebola writes "Nokia is preparing to release its first Android phone, as the lost market share in emerging markets from the death of Symbian has never been recovered. Windows Phone could never be adapted to the entry level devices that have driven growth in these markets, necessitating the move. From the article, 'Nokia was once the king of cellphones in emerging markets. But it has lost ground because it was slow to respond to Android's popularity in many countries. In India, where Nokia's Symbian-powered phones held a big share of cellphone sales just a few years ago, Android was installed on 93% of new smartphones shipped there last year, according to estimates from research firm IDC.'"

29 of 146 comments (clear)

  1. And another pointless phone by Kjella · · Score: 5, Insightful

    Seriously, who's going to buy a Nokia Android phone when you know they've been bought by Microsoft and won't care one bit about supporting it? Same as the Maemo/MeeGo based phones that Nokia released after the Nokia/Microsoft deal was announced, it's stillborn. And unlike those who might have some unique features this is yet another Android phone that you can get from other companies, so it makes even less sense. Nokia must be running out of feet to shoot itself in.

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    1. Re:And another pointless phone by JoeMerchant · · Score: 2

      My perspective, the terrible decisions and more damaging, lousy execution of plans were already done when Elop took over - the biggest terrible decision of course being to give Elop the job.

      They had a rough go with Qt/Maemo, then they changed course, to a dead end street.

      I've read elsewhere that Windows is embracing Android, both on the desktop and in their phones, so a pure Android Nokia phone isn't 100% off base, especially if it can do something clever with MS Office and Exchange integration.

      Personally, I still want to be able to write phone apps in Qt, but am learning Android in the meantime.

    2. Re:And another pointless phone by interkin3tic · · Score: 4, Insightful

      Seriously, who's going to buy a Nokia Android phone when you know they've been bought by Microsoft and won't care one bit about supporting it?

      Possible customers include anyone who doesn't follow mobile phone news very closely. Which is most people. Tech business news is not exactly gobbled up by the public. Most slashdotters won't buy, but mobile nerds aren't common. AND I might buy one if the hardware's nice enough and I can root it. What do I care about support for it if I can just install cyanogenmod?

    3. Re:And another pointless phone by squiggleslash · · Score: 3, Interesting

      I'm guessing they're not going to waste enormous effort on this to produce a me-too Android phone that they have to discontinue. The relationship between Nokia and Microsoft being what it is, I suspect this is a face-saving way Microsoft has of adopting Android in some shape or form.

      Something the summary didn't highlight: this isn't GMS/Android (GMS - Google Mobile Services, the apps and infrastructure that make up Google Play and that are bundled with most modern Android devices), Nokia are building this from AOSP in much the same way as Amazon have with the Kindle Fire version of Android. It will have no Google Play Store nor any of the underlying Google non-AOSP infrastructure, and apps written for GMS (an increasing body of work that grows by the day) will need a fair amount of work to make them available in the Nokia app store.

      Windows Phone hasn't exactly been a roaring success. Maybe it should have been, perhaps Windows 8's failure to take off has hurt it, but it hasn't been, and at some point Microsoft is going to look for options. I think it's a pretty major change of direction to jump on a third party product and tweak it for their own needs, but it's not impossible or unheard of - Microsoft tried to do that with Java. Hey, they even had Xenix once. With the exceptions of Linux and Busybox, AOSP has the kind of FOSS licensing Microsoft isn't scared of.

      And Amazon's made a success of the strategy. There are only two popular alternatives to iOS, one is Google's Android, the other is Amazon's.

      If nothing else, allowing Nokia to use a version of Android that's under Nokia/Microsoft's control lets Microsoft buy time.

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    4. Re:And another pointless phone by Sockatume · · Score: 3, Interesting

      As an S60 fan from their glory days, this is a traditional Nokia mistake. You'd be amazed at the incredible products Nokia has managed to render obsolete or irrelevant by competition between different business units.

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    5. Re:And another pointless phone by tuxrulz · · Score: 2

      I'm sure only the 4% "Geek Audience" of the whole billions of phone users world wide knows Nokia sold to Microsoft.

      Nokia have done very good phones in the past, and even some Lumias (taking the WinPhone 8 away) are nicely designed. I know they can do a good, if not great Android phone. Probably not in the first try, but neither LG, Samsung, HTC made awesome phones in their 1st try.

      My doubt is about the company itself.... Do they sold to Microsoft? Microsoft has the exclusive rights to the Lumia design? Do we have 2 Nokias, one MS controlled, one independent making Android phones?

      I only hope Nokia don't become the Atari of the 2010+ era. Where only their respective employees knew which company do what, since both have the same logo and name.

    6. Re:And another pointless phone by JoeMerchant · · Score: 2

      I never kept up with the names - beyond Qt at least. They always seemed like pre-beta not ready for wasting my time on projects.

      If I had gotten Elop's job at Nokia (which I wouldn't have, because I don't have ties to Microsoft, but just fantasize), I would have continued the Linux on phone development with Qt as the UI, put serious resources into a desktop phone emulator that works (unlike my current experience with Eclipse and Android simulation), and focused on making developer friendly software that works and works well. I am completely unfamiliar with the top level corporate politics at Nokia, but I bet impatience was a big factor in the choices they have made lately.

      I thought they were close - they certainly seemed closer to success (with Linux or Windows) when Elop was announced than they do now.

    7. Re:And another pointless phone by Lisias · · Score: 3, Interesting

      They had a rough go with Qt/Maemo, then they changed course, to a dead end street.

      I have a hilarious history from the time I used to work to a Nokia partner. :-)

      Nokia had given us a free QT for Mobile workshop for our team. We attended the workshop, and we enjoyed it very much.

      However, roughly one year later, someone on Nokia had called us bitterly complaining why in hell our shop didn't released any APP using QT yet.

      Our answer? "Because YOU had hired us to develop APPs for you, and YOU had NOT asked for it!"

      The funny thing is that in that year, we were called to develop APPs (or prototypes) on J2ME, Symbian, Android, iOS and even BADA (serious! I made a APP for BADA!! Honest!). But nobody on Nokia had asked us for anything using QT.

      Go figure it out - I couldn't.

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    8. Re:And another pointless phone by TheRaven64 · · Score: 3, Interesting

      From what I've heard from ex-Nokia people, it wasn't just senior management that lacked direction. They had internal teams all developing complete stacks in isolation and competing for resources. Elop wasn't completely wrong: making them all focus on a single platform was probably the only thing that could have saved Nokia, and Windows Phone wasn't a completely ludicrous choice, as they did want something to differentiate themselves from the competition and there weren't any other significant Windows Phone vendors to compete with.

      Pushing ahead with Linux + Qt might have worked, but only if they'd fired about 90% of middle management and reorganised the teams. Even then, there would likely have been a lot of resentment from the various teams that had their work discarded in favour of another's. Remember that Nokia didn't have a Linux + Qt platform, they had several, all with mutually incompatible frameworks built atop Qt, none of which was compellingly better than the others.

      It's a shame that the Qt on EKA2 project was killed. The EKA2 kernel was a much better fit for mobile devices than Linux (it still amazes me after all of Google's investment how few of its features Android has), and Qt would have given them the base of a modern development environment that would have competed well with other platforms.

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    9. Re:And another pointless phone by celtic_hackr · · Score: 2

      Nokia is dead.
      Long live Winkia.
      There are way more uninformed, uncaring, give me something shiny, consumers out that will buy Nokia phones than there are tech savvy ones, if and only if they make something that gets advertising, and reviews, and sparks the consumer's interest.
      But between LG, Samsung, and iPhone phones how are they going to do that?
      However, the reviews are written by people who do actually pay attention and thus, the only great reviews Nokia is likely to see will be the ones they pay for. Nokia has to climb a Mt. Everest tech world to get back. That's what happens when you fire off a cannon in the high mountains and get blown off the mountain by then ensuing avalanche.
      Nokia is so far gone, it'll take a mircale or billions and billions to rise again. That doesn't mean they can't scrape out a living with Andriod and Windows phones, as a bit player.

      However, Nokia does have one advantage. They won't be paying the Microsoft Android Tax and will be able to undercut ever so slightly other phones with Android.

    10. Re:And another pointless phone by TheRaven64 · · Score: 2

      Intel does the former quite successfully, but it does cause problems internally. Promotions and so on are often linked to project success, yet projects can be cancelled simply because Intel had 5 guesses about what the market would want a few years down the line and your group was given one of the ones that didn't turn out to be accurate to work on. This leads to resentment and competent engineers realising that they have more prospects for advancement if they go and work for competitors. It's hard to get right: you often do want multiple teams working on different solutions to the same problem, because it gives you a fallback, but no one wants to be working on the one that gets cancelled (this is increasingly a problem at Google too).

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    11. Re:And another pointless phone by Curate · · Score: 2

      Go re-read the GP's post again. I understood it just fine. Nokia had hired them to write apps, and had asked for apps for the J2ME, Symbian, Android, iOS, and BADA platforms; but not for the QT platform. So naturally they didn't spend any time developing for the QT platform. You quoted the first half of a sentence, but the second half of that sentence is important too.

  2. Microsoft caused it ... by gstoddart · · Score: 5, Insightful

    But it has lost ground because it was slow to respond to Android's popularity in many countries.

    And just how much of this can be laid at the feet of Microsoft?

    Because once Stephen Elop got in there, he took what was a profitable company and turned it into a dog by changing their focus.

    Microsoft doesn't care about Nokia, they care about having a division which makes Microsoft phones.

    That Nokia is now realizing they might need to embrace Android to turn things around means it's going to be interesting to see when Microsoft finishes buying them. Because there's no way Redmond is going to allow them to make phones running anything but Microsoft stuff.

    Microsoft has been nothing but bad for the viability of Nokia, and I don't see that changing in the future.

    Because, really, these are appalling numbers:

    During Elop's tenure, Nokia annual revenues fell 40% from 41.7 Billion Euros per year to 25.3 Billion Euros per year. Nokia profits fell 92% from 2.4 Billion Euros per year to 188 Million Euros per year. Nokia handset sales fell 40% from 456 million units per year to 274 million units per year. Nokia share price which was at 7.12 Euros on the day Elop was hired, had fallen to 81% to a bottom level of 1.44 Euros two years later, after which it began trading at 4.14 Euros, up 36% on the day.

    Elop was either grossly incompetent, or was there to lower the price of the company for the take over. Because he sure as hell failed to actually grow the company or do anything good for it.

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    1. Re:Microsoft caused it ... by gstoddart · · Score: 2

      Any corporation contemplating to go bankrupt... I can help you to get there in less time and for 1/10th of the fees that Elop charges. He's kinda slow and overpriced.

      Oh, bankrupt is easy ... bankrupt and bought by Microsoft takes a little more work and planning.

      The massive case of "Not Invented in Redmond" and the ensuing choices were either planned, or he was so lacking in objectivity as to be incompetent.

      I think the shareholders of Nokia more or less got robbed, and Elop more or less drove the company into the ground.

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    2. Re:Microsoft caused it ... by Sockatume · · Score: 3, Informative

      Nokia's revenues were already falling dramatically; they peaked in 2007:

      http://www.wikinvest.com/stock...

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  3. ...and the high end? by Richard_J_N · · Score: 4, Interesting

    If I can get a high-end Lumia and have Android, that would be amazing.

  4. Probably a false alarm by DMiax · · Score: 2

    It's very likely that Nokia tested Android on its phones when it wanted Microsoft to close the deal, this is probably a false alarm born from those prototypes.

    It makes no sense at all for MS to release an Android phone, and I doubt Nokia can release it and sell it in numbers before April (aquisition date), so I don't expect it to happen.

    If it actually does come out, I see only two explanations. 1) Nokia is trying to scare MS from sealing the deal. 2) it's a thinly veiled attempt at saying "we tried Android but our customers would not want it". Most likely the former.

    Whoever let this happen is going to be fired first thing in the new regime, I guess. If MS does not stomp it hard, it would look clueless. Unless MS wants to go Android, which I won't believe until I see it.

  5. Which goes to show how much you know... by cjjjer · · Score: 2, Interesting

    Sorry but if you think that Android is free I have some land on the moon I'd like to sell you. I doubt that Nokia can just build a device and throw Android on it and it works out of the box. Nothing is that easy...

    1. Re:Which goes to show how much you know... by Sockatume · · Score: 5, Insightful

      Android's super-open, it just turns out people are more interested in the idea of having Google services on a phone than in Android itself. And that part is certainly not open. If you want to find your own supplier for maps, email, calendar, and browser, then you can launch your own Android gizmo; Microsoft has all those things.

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  6. Hey Nokia.... by Lumpy · · Score: 5, Insightful

    Do it right. your flagship phones, rip that garbage Windows OS off of them and install Android. I would LOVE your 900megapixel phone with a nice clean Android 4.4 on it.

    you could get it to market in 30 days, no hardware to change. Want it faster?? contact the Android hackers and tell them how to unlock the bootloader and give them full details on the hardware. You will have android ported to it within the week.

    You will INSTANTLY gain market share.

    --
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    1. Re:Hey Nokia.... by Type44Q · · Score: 3, Interesting

      Want it faster?? contact the Android hackers and tell them how to unlock the bootloader and give them full details on the hardware

      Easier said than done? Seriously, with the amount of 3rd-party IP you're likely talking about, six to twelve months sounds more like it...

  7. Re:Hmmm. by 93+Escort+Wagon · · Score: 3, Informative

    Well, it's not going to work well to capture emerging markets. Most windows phones are pretty high end, and not in the price range of consumers in emerging markets.

    Microsoft hasn't exactly cornered the high end market either...

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  8. Re:Too Late by tuxrulz · · Score: 2

    That is all.

    Is never too late, and with the vast amount of crappy Android phones in mid/low markets, the have a couple of segments where they can be a hit.

    And even in the high end, I'm sure many of the Samsung Galaxy, and HTC users are already bored of the lines and want something fresh.

  9. No entry level Windows phone? by kamapuaa · · Score: 2

    TMobile has sold the Windows-based Nokia Lumia 521 for $100 (non contract) for half a year or a year now. It's supposed to be a pretty decent phone for the low-end. $100 is already pretty low, and surely with the continual progress of hardware they could install the phone OS on $50 hardware.

    Android has become the de facto standard, and people would have to have some compelling reason to choose Windows phone over the system everybody else has.

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    1. Re:No entry level Windows phone? by adolf · · Score: 2

      TMobile has sold the Windows-based Nokia Lumia 521 for $100 (non contract) for half a year or a year now.

      So you're telling me that I can walk into a T-Mobile store and walk out with a completely paid-for Nokia Lumia 521, for $100, cash and carry?

      Because if I can't do that, then it's not a $100 device.

    2. Re:No entry level Windows phone? by kamapuaa · · Score: 2

      But your link isn't to a 521. Here is a Lumia 521 for $90 off Amazon

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  10. Should have done this years ago by DrXym · · Score: 2

    It was corporate suicide for Nokia to go with Windows Phone. Maybe Microsoft waved a large wad of money under their noses. Maybe Elop's intention all along was to drive the corp into the ground and clean up from its sale. Whatever happened, they really fucked up big time with their choice.

  11. Re:Actually, it IS that easy by thegarbz · · Score: 3, Insightful

    I don't understand. They have a completely open source operating system. Why should that automagically give everyone unrestricted rights to all of Google's services?

    Just because I needed to buy a copy of a program doesn't make Linux any less free and open source. And by extension there are several other Android platforms out there which don't have any of Google's Services including the app store, (see Amazon, B&N etc)

    It hasn't moved any functionality out of Android. Just because the Google Play Music app exists doesn't mean the old app has stopped working. Just because Google Cards is now the default search on their phones, doesn't mean the old Google Search stopped, and by extension just because Google is forcing man+dog to the G+ platform won't mean that the SMS app suddenly stops sending SMSes. In fact I'm willing to bet that the apps will happily interact.

  12. Potential MS Tactics (& Strategic drawbacks) by neibwe · · Score: 2

    Short Term:
    - Start by making near stock (all Google app.) phone.
    - Raise patent licensing fees for all Android phone makers other than MS/Nokia.
    - Use cost advantage + internal Exchange/Office interoperability to grow userbase of consumers and businesspeople respectively; make MSNokia _THE_ brand to get for users that concurrently like Android & MS Windows.
    - Start user conversions by first running MS apps alongside Google ones and giving incentives {free MS docs, Exchange, web storage, MS Live single sign on.}

    Long term:
    - Wholesale replacement of all Google apps.
    - Integrate maps to gain data collection. Nokia already had mapping dept. that MS bought earlier.
    - Bing (Cortana???) voice search for greater user base & data mining.
    - Increase MS patent fee on other Android OEMs.
    - Sell license to MSNokia "Android" at sweetheart price.
    - Use market share to introduce & push new MS specific features/products.

    I'd like to imagine there will be heavy growth in augmented reality; the above tactics could ostensibly help MS capture a signfiicant smartphone user base , but strategically may leave market wide open for Apple/Google/Samsung to gain first mover advantage in emergent non-phone continuously/immersively-networked consumer field...
    -- The Walter Gretsky quote "skate where the puck's going, not where it's been" would be partially applicable in that case leaving MS playing catchup WRT creating, integrating, and tuning new communication/computing usage modalities. If MS focus must be split between native MS os phone, Nokia Android, and emergent markets; the combinatorial use cases could result in significant user-experience consistency issues along with QA & time-to-market headaches for MSNokia product management.