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Nokia Will Make a Comeback Claims Beleaguered CEO

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Nokia Will Make a Comeback Claims Beleaguered CEO

The Finnish mobile phone giant will get back to the top of the pile in smartphones, and its upcoming Symbian^3 based N8 will help it get there, Nokia’s chief executive Olli-Pekka Kallasvuo has said.

Speaking to investment analysts earlier this week to explain a 32 per cent drop is operating profits, Kallasvuo was attempting to install some confidence that it can reverse its recent downturn in fortunes.

“Nokia will make a comeback at the higher end of the smartphone market,” he said. “We are approaching the end of this painful product transition at the high end of our product portfolio. Delivering the N8, with a high-quality user experience, will mark the beginning of our renewal. We will achieve our potential and regain high-end leadership in our industry.”

Kallasvuo admitted that Nokia has essentially been too big and slow to compete in the challenging US market. ““Frankly, we have been trying many times {to succeed in the US}, but it has turned out to be a painful experience; but the learning is here. Symbian earlier generations have not been, from a time-to-market point of view, fast enough in getting over that hurdle. It’s meant we have missed some time windows.”

However there is still some potential for confusion for consumers. Kallasvuo believes that Nokia will sell 50 million Symbian phones, but will also use its Meego OS for high-end handsets.

This is in contrast to Apple with its single OS and while different Android manufactures are using different point releases, all handsets are based on the same focused OS.

Will the N8 put Nokia back in the game for high-end handsets – or is it already too late? Let us know your thoughts in the comments.

Via: Paid Content

Link: Nokia N8

Go to comments

Bornesen

July 23, 2010, 2:11 pm

Hmm, I honestly believe Nokia basically lost the OS battle. There will be the Iphone and there will be the Androids. All the other attemps: Symbian3, Maemo, MeeGo, WinPocket7 will have a hard time. The smartphone market will follow what we have seen in PC market. One dominant OS (Android) plus a Mac OS. Nokia needs to switch and make Android phones or they will fade into oblivion earlier or later.

Keithe6e

July 23, 2010, 2:18 pm

I really hope so, believe it or not I still have soft spot for Nokia. Even down to playing Doom on a Nokia 9210 :), fingers crossed they will surprise everybody with a killer OS.

Adam Foreman

July 23, 2010, 2:22 pm

I think to be honest they have been playing catch up and being too narrow minded focusing on one OS all this time. If you take HTC, they have multiple handsets out with multiple OS's. By doing so they have been able to read the market on its direction. You could argue Apple has also one OS, but it was a unique device full stop and had design/gadget geeks alike frothing at the mouth which is still true of Apple iPhone 4. Nokia on the other hand, has been seen designing handsets around their old antiquated OS's which in turn never pushed their smartphones forward enough to gain a good market share. Nokia may need to take a deep breath and try making Windows Mobile 7 or Android based devcies and see if they increase their sales?

Luan Bach

July 23, 2010, 3:10 pm

I've started out being quite down on the N8 as it was a pos to get the prototypes running properly. However, the latest firmware has improved performance a great deal and the front end is a lot slicker than it used to be. So it's hopeful that the N8 can keep them afloat, especially if they priced it right.

Carnex

July 23, 2010, 3:11 pm

If someone can push new OS into mainstream it's Nokia. Don't forget that Nokia is still single largest manufacturer of mobile phones. Only thing is they need to have highly scalable OS to use across most of the range just like Symbian was. Without that it's a lost cause.





Android is crushing everything before it, no prisoners taken. iPhone 4 has shown that Apple alternate reality is stronger then ever and therefore iOS will stay strong. Even WinPhone has little beside HTC to hold on. With that competition any new OS has to get as much exposure as possible and keeping it a proprietary and locked to one manufacturer is not a good way to get exposure. Keeping it just for the high-end phones is pure suicide.

DavidDB

July 23, 2010, 3:25 pm

Great looking hardware I think this may fly off the shelves.








The moment that xda devs announce it's able to be rooted and runs Android ;)

The Doctor

July 23, 2010, 3:32 pm

If Mr Kallasvuo thinks the N8 will rescue the company then I'd start putting some long-term shorts on their stock.





The reason the iPhone has been successful is that it made people go "Wow" when they first saw it. Multitouch and smooth on-screen animations may not made the phone any more functional, but the "surprise and delight" they provided was key in getting people to buy one. Now that they've become standard on high-end devices, it's the applications that keep people want one.





Unfortunately, the N8 has absolutely nothing that is going to appeal to the consumers Nokia desperately wants to claw back - it hasn't got an attractive design, it's interface looks utterly, utterly dated and all the "new" features it offers are pointless (if I want to play HD movies with surround sound on a TV at home I'll use my Blu-ray player, thank you).





The only way Nokia can make a comeback is to offer a phone that is as striking to look at as the Motorola Razr was when it launched combined with a swish animated interface and an utterly unique feature that makes people sit up and take notice. Until then...

stoolz mclingo

July 23, 2010, 3:36 pm

lovely specs, ugly phone ugly OS. Doomed to sell in the thousands rather than millions.

Sam Wright

July 23, 2010, 3:55 pm

What we have to remember is that while nokia sell the largest number of phones, they are all candy bar, and modern smart phones are a new ballpark. All the truly great smart phones have come from manufacturers who's main emphasis when phones are concerned, is smart phones.


As for another os, I doubt it'll survive, devs can't program for ios, android, blackberry, and millions of others. How many pc os's are there?

Luan Bach

July 23, 2010, 4:11 pm

@Sam,


Is it ok for me to plug www.airplaysdk.com ?

lifethroughalens

July 23, 2010, 4:21 pm

I don't think that the N8 will get Nokia 'back in the game'. It will get them a seat *at* the game, but they still have a lot of work to do if they're serious about being a major player in the high end market again. I think that if anyone can succeed then Nokia can, I just wonder if the management have gone far enough in repositioning the company's marketing philosophy and software and hardware product development? Not so sure.





But good luck to them, I like Nokia as a company although their products have become hopelessly hum-drum in recent years, they will always be a sleeping giant. They need a big dose of inspiration.

Neil B

July 23, 2010, 4:25 pm

I think I'm in the minority in that I love Symbian. so long as they keep making phones for me then I'll be very happy indeed. I keep thinking I should join the revolution and go for an Android phone but there are too many features that I just couldn't live without.

HarryGlass

July 23, 2010, 4:30 pm

I tend to agree with everyone here, is there space for more than 2 OS's? Do Nokia have a chance (do Microsoft?).





But I think there's one chance for Nokia, and that's to take an initial hit and market the N8 (and other S^3 devices) very cheaply. They already shift millions of low end phones, if they can get S^3 into the hands of millions of people cheaply then it'll give them the market share they need. Once that momentum has built up they can then increase the margin they make on their phones again. In the meantime the money they'd make from the Ovi Store with Apps, Books and Music would make up (more or less who knows) for the loss in revenue for selling the phones off cheaply.

ffrankmccaffery

July 23, 2010, 5:21 pm

Someone else suggested and on here I believe that perhaps Nokia should consider licensing Microsofts Windows Phone 7. Both are scrapping over the last piece of the pie on the smartphone table. Whereas together they could retake a sizable share of the very pie that they both once did.

bobsta

July 23, 2010, 5:22 pm

Nokia have a long slog ahead of them. They lost the high end of the market as they were arrogant thinking they would always command pole position. Mistakes like the N97 should have convinced them they were off target in terms of usability and quality. Additionally, Nokia have been too slow to respond to the smartphone market and the N8 is too little too late with an outdated OS platform.

Chris

July 23, 2010, 5:41 pm

I think Sam Wright has a point there. All of the best smartphones in recent years have come from companies that specialise in smartphones: Apple and HTC. It seems that the traditional market leaders like Nokia and Sony Ericsson simply don't move fast enough to take on the specialists at their own game. They're always aiming too small and they take too long to get there. Aiming small might work for dumbphones, but the quantum leap that's required for smartphones seems to be beyond their collective imaginations.





So what makes Motorola different? They're a volume dumbphone maker, but they've also turned out a few nice smartphones. Motorola embraced Android, and they didn't try to turn it into something else like SE did with the X10. There may be a lesson in here somewhere...





Of course, neither SE or Nokia want to be just another Android phone maker. They want their unique devices to conquer all others, but perhaps it's too late for that. Hopefully they'll prove me wrong.

LetsGo

July 23, 2010, 5:56 pm

We already have Blackberry Os, Iphone Os & Android os these look like they are here to stay.





I think microsoft will really push windows series 7 and gain market share in time it will rival the above OSes.





BADA will be a niche OS at best.





WebOS looks like being a niche OS unless HP devote a lot of resources to it then it could gain traction.





Maemo/Symbian OS I think will be big just because of Nokia past. Everyone who has had a mobile phone for 10+ years has probably had fond memories of their handsets. They just need to make sure it not buggy and it runs on not too expensive hardware their reputation and global reach will the rest.





the Smartphone Era is more like the 80's battle between Commodore 64, ZX Spectrum & BBC B micro in the Uk being dominant with the Oric, Atari, Dragon, CGL systems being the niche micros.





But this time around we have a much bigger market to sustain the competing platforms.

swift11

July 23, 2010, 9:29 pm

2010 is a lost year for Nokia, but 2011 will be strong with MeeGo at the high-end and Symbian^4 everywhere else !

HarryGlass

July 23, 2010, 10:28 pm

Actually considering how small the smartphone market was and how large it's getting I think there's room for iOS, Android, Blackberry, WM7, Symbian and all to succeed.





Nokia will be fine in a couple of years if they make the right choices now to build up their share again. They just have a slog ahead of them, but I think they at last realise that.

Premfab

July 23, 2010, 11:09 pm

I wish Nokia all the best. People tend to forget that they ARE the market leaders.





They also make 'proper' phones - their smartphones are secure and can handle ms office documents. Apart from Win-mo phones, nobody does office docs better.





With all of Nokia's wealth of experience, I do wish they settled down on a mission and raise the bar - looks like they've realised this too. Best of luck Nokia!!!

rav

July 24, 2010, 1:34 am

I don't think people put things in perspective when they talk about Nokia's decline. They still sell by far the most smartphones and their worldwide share (excluding the US) is massive.





Yes it is on a downward path but just stopping the decline would be a success, let alone getting their share back up. One superhit phone could make a world of difference.





Phones like the E71 and 5800 may not be flash and sexy but they sell by the truckload. I'm not personally a fan of Symbian but I really hope Nokia can pull something out of the bag. More competition is never a bad thing.

Martin Daler

July 24, 2010, 2:03 am

enough about how many OSes can make it out there - what about all the g'zillions of phones with no OS to speak of at all, just ordinary moble phones, you know, for making phone calls with. Ones where the battery lasts a fortnight, ones which really do fit in your pocket. Surely they are what the vast majority of people use - albeit they don't read TR.

Davey

July 24, 2010, 4:58 am

This has been covered elsewhere, but I don't agree that Nokia 'sell the most smartphones', at least not by design: they have sold the most purely because of a loyal customer base that was used to upgrading every 18 months to their latest handset. The fact said customers got a 5800 (which I like BTW) or N97 is neither here nor there; I'd argue many didn't realise there was a revolution going on, with Google and Apple (and HTC in terms of handset quality) leading the way. They just took the latest contract upgrade because it had worked for them before. Most 'real' smartphone users are, in my experience, pretty discerning - Nokia's sales figures fudges this fact.





Nokia may also sell the most handsets, but most of them are cheap, easy to use, well-built but small mark-up devices. This means jack in the new technological order and Nokia knows it. They don't really 'do' modern smartphones, the Symbian platform is great on candy-bar phones, which it was designed for, but it was never made for touchscreens. And this is their great conundrum.





I'd be gutted if Nokia went out with barely a whimper, but I just can't seem them sorting their act out before the American giants yet again monopolise the technological roost.

JK

July 24, 2010, 6:52 am

@Author - "Apple with it's single OS". You could have added: "Apple with it's single handset". You can hardly call it a strategy to have only a single OS, if the company only offers one handset at a time (basically).








I think the reason why the iPhone has become such a success is because there are so many "simple" people out there. It's a smartphone for people who aren't all that smart themselves. With an easy-to-use and intuitive UI and OS, and a sh*t load of apps, Apple has drawn millions of "simple" people's attentions away from the fact that the phone itself (hardware) isn't all that great. For example, the early iPhones didn't even have AF on their cameras (which isn't very "smart"). And just a couple of months ago the iPhone 3G S still only had a 3-Mpix camera, while Nokia launched their first 5-Mpix cameraphone (the N95) a full 3 years earlier. Now when the iPhone 4 finally has a 5-Mpix camera, Nokia is launching the N8 with a 12-Mpix camera! And judging from the sample images I've seen so far, the quality of the camera seems to be superb, much better than existing 12-Mpix cameraphones.





However, I'm not saying that the quality of the camera on a smartphone is the most important thing, it's just an example of the differences in hardware between Apple and Nokia. Usually, Nokia's handsets also have superior call quality, signal strength, battery life etc...





I've never really understood the popularity of the iPhone. What's the point of having a great UI and OS if it can't be used on great features and hardware..? Thankfully I'm smart enough to manage Nokia's phones so that I can take advantage of their superior features and hardware.


Obviously Nokia is staying around since it's still the market leader overall. But I predict they will be serious competitors in the smartphone market as well in the coming years.





Have a good one!

Angus

July 24, 2010, 10:35 am

Nokia's N8 phone sounds like a sumptuous piece of technology, including its onboard camera's large image sensor, Carl Zeiss equipped lense, and Zenon flash. Re screen size, I would have much preferred a 4.1 inch or larger, higher resolution screen in order to better view the N8's beautiful photography results. That the Nokia corporation did not choose to offer a CDMA American version of the N8 will prove, I think, to be a tremendous mistake with regard to the American market. For me the lack of CDMA version knocks the N8 completely out of my reach, as I (and many, many others I know) am locked to a corporate Verizon plan, and, therefore, de facto I am locked to CDMA. I have read that the United States plays a fairly small part in the overall picture for Nokia. But, still, why not consider and play to the many American customers, who are interested in Nokia's upcoming flagship N8 phone. What a shame, Nokia. What a shame.

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