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Forums - Microsoft Discussion - Nokia Boss is in charge of Xbox Division

kowenicki said:
HumdrumPie said:

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Those facts alone arent enough.  Nokia was a dinosaur and it was in meltdown when he arrived.  If they hadnt done what they did, it would now be bankrupt.

No, it wasn't. Its featurephone business was healthy and in fact growing. Cool =/= healthy.

He sunk all his existing healthy businesses via the Burning Platform memo and pipeline cancellations, well before any new products could have made up the revenue. True inaction would have given them far more time to let the new business become profitable.



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Soleron said:
kowenicki said:
HumdrumPie said:

..


Those facts alone arent enough.  Nokia was a dinosaur and it was in meltdown when he arrived.  If they hadnt done what they did, it would now be bankrupt.

No, it wasn't. Its featurephone business was healthy and in fact growing. Cool =/= healthy.

He sunk all his existing healthy businesses via the Burning Platform memo and pipeline cancellations, well before any new products could have made up the revenue. True inaction would have given them far more time to let the new business become profitable.

Huh? He had nothing to do with feature phone failing in the market. 

Feature phone strategy and performance in 2012 was one of the few things that helped their bottom line and helped their stock recovery. The Asha/Symbian line of phones performed great. 

By 2013 though it was all over in the develiping world as Samsung had the distribution and platform to scale low end Android smartphones at feature phone prices. The phones were horrible but you could have them for 50 bucks. 



disolitude said:
Xen said:
DirtyP2002 said:
Xen said:
DirtyP2002 said:

good choice, but isn't that old news?!
He saved Nokia and has a proven track record. It just makes sense.

Lol, sure. He just made it tank harder.

I would say that Xbox division should be really afraid with him around, but given that he was sent to Nokia by MS to destroy it so MS can buy it off cheaply, it just shows that he has no shame and won't stop at anything - which would be good for promoting Xbox.



A strong phone brand sticking to windows phone only while anyone and everyone was asking for a droid phone from Nokia so they'd pick one up? It's the hand of Microsoft in Nokia's dealings and management. Even in their home country of Finland, where %-wise windows phone was strongest among all, Nokia now lost in marketshare to Samsung. Can you guess why? I'll save you the need: Nobody wants windows phone. They wanted Nokia. Now that Nokia is not even all that Finnish anymore, it's gonna lose out there, also. If it should expand, it'll be in developing countries, thanks to the persisting strength of the Nokia brand there.

It's not a conspiracy, it's fact. No company can WATCH itself tank like Nokia did.

You have absolutely no clue what Elop did for Nokia but instead you are just sumarizing the Nokia fanboy point of view. The argument of "Android would sell more!" doesn't comprehend the business side of things what so ever...

The year where Nokia decided to switch to WP, they sold 77 million Symbian Smartphones(down from 100 million previous year). They had sub 200 dollar margins on each phone at the time. They also had an R&D bill of 10 billion dollars. 10 BILLION DOLLARS! Most of that went in to keeping Symbian on life support and their famous camera research. 

The ship was sinking fast and they knew they would suffar massive losses at this rate if they don't make a switch. They would be a dead company in 2013 had they stuck with Symbian.

Now fast forward few years to 2013 and with WP they have sold 30 million WP devices at above 200 dollar margins and with an R&D expense of 2.5 Billion and with $2 billion per year from Microsoft on top of that.  Let's break things down:

1. First of all, simple math of things indicates that they would have to sell an additional 40 million Android phones at 200 dollar magins (on top of 30 they already have) to get 2 billion extra income per year that Microsoft was giving them.

2. They would have to put much more R&D in to Android to keep it competitive with Samsung and rest, which means they'd have to sell even more phones to get same amount of revenue. Another billion or two $ more worth of R&D easily. 

Could Nokia have sold 100 million smartphones in 2013 with Android with a margin of 200 bucks per phone? That is what they would need to do to generate same amount of income as they did with WP. If you're Samsung, 100 million is peanuts but everyone else other than apple isn't even close.

2013 Smartphone sales:

1. Samsung 313.9 million 

2. Apple 153.4 million 

3. Huawei 48.8 million


well said buddy.



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