Opinion: The Fall of Nokia
Conservatism is at the core of Nokia. Nokia is a company run by engineers, very talented ones at that, but they have a view of the mobile market which is closer to RIM and Microsoft than to Google and Apple. And right now, Apple and Google are on the ascendency.
I had an insight into Nokia and their view of the world having worked and kept in touch with their designers and engineers over the years. They think the way engineers and programmers think. They don’t see the world from the view of the consumer. This is why Nokia were the default choice for phones at the start of the century, just as Windows PCs were the default choice in large corporations. Nokia were never about changing the world, but incrementally designing new steps to help sales people, architects, accountants and the rest of the corporate market.
But while they slowly improved the design of their handsets, Apple launched the iPhone in 2007. How did Nokia react? They didn’t. Nokia does not jump, they evolve, and that is their main problem. While they produced the N95, Apple released the iPhone and knew how to bring the smartphone to the consumer. Nokia’s high-end handsets never set the high-street on fire. You needed an IT degree to sync your contacts and comprehend using a Nokia smartphone, where the iPhone swept in and was an iPod with talk time. We all knew how to use an iPhone after about five minutes. This is not and never was the case with a Nokia smart phone.
Today, Nokia can see the writing on the wall. They still have a large market share, but the tide is heading out and Nokia has no response. In the leaked letter from Nokia’s CEO Stephen Elop, he says to staff that “the first iPhone shipped in 2007, and we still don't have a product that is close to their experience”. But the problem with Nokia is not the handset; it’s the mindset.
Nokia need to change the way it works, the way it invents, and to get out there and see the world from the consumer point of view. Their brand is cold, clinical and out of touch with the evolution of the smart phone into an every man and woman’s device. They are still designing for executives.
The next step from Elop to watch is the choice of OS. Will Nokia continue to develop an operating system for their phones of will they adopt the newer Android or Windows 7? The brave decision would be Android, as this is not what people expect Nokia to do. They are closer to Microsoft in terms of mindset and culture, and Windows 7 is the easier choice. However, choosing Windows 7 will solidify Nokia’s failing brand image; conservative and unable to adapt to the new world it faces.
Simon Spence/2011
I had an insight into Nokia and their view of the world having worked and kept in touch with their designers and engineers over the years. They think the way engineers and programmers think. They don’t see the world from the view of the consumer. This is why Nokia were the default choice for phones at the start of the century, just as Windows PCs were the default choice in large corporations. Nokia were never about changing the world, but incrementally designing new steps to help sales people, architects, accountants and the rest of the corporate market.
But while they slowly improved the design of their handsets, Apple launched the iPhone in 2007. How did Nokia react? They didn’t. Nokia does not jump, they evolve, and that is their main problem. While they produced the N95, Apple released the iPhone and knew how to bring the smartphone to the consumer. Nokia’s high-end handsets never set the high-street on fire. You needed an IT degree to sync your contacts and comprehend using a Nokia smartphone, where the iPhone swept in and was an iPod with talk time. We all knew how to use an iPhone after about five minutes. This is not and never was the case with a Nokia smart phone.
Today, Nokia can see the writing on the wall. They still have a large market share, but the tide is heading out and Nokia has no response. In the leaked letter from Nokia’s CEO Stephen Elop, he says to staff that “the first iPhone shipped in 2007, and we still don't have a product that is close to their experience”. But the problem with Nokia is not the handset; it’s the mindset.
Nokia need to change the way it works, the way it invents, and to get out there and see the world from the consumer point of view. Their brand is cold, clinical and out of touch with the evolution of the smart phone into an every man and woman’s device. They are still designing for executives.
The next step from Elop to watch is the choice of OS. Will Nokia continue to develop an operating system for their phones of will they adopt the newer Android or Windows 7? The brave decision would be Android, as this is not what people expect Nokia to do. They are closer to Microsoft in terms of mindset and culture, and Windows 7 is the easier choice. However, choosing Windows 7 will solidify Nokia’s failing brand image; conservative and unable to adapt to the new world it faces.
Simon Spence/2011
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