Either Nokia and Microsoft really are trying to conspire the demise of Android (as B&N claim) or the Finnish Phenom (Nokia CEO Stephen Elop) is getting played like a fiddle by HTC CEO Peter Chou. The DowJones Newswires say Nokia’s head honcho is happy they didn’t choose Android because Android manufacturers are worried about their outlook.
“I have discussed it with for example HTC [Corp.’s] Chief Executive Peter Chou. He and many other handset makers are worried that the Android device manufacturers’ profit margins are getting reduced,” Elop said at Nokia’s annual general meeting on Tuesday, according to the newspaper.
I guess Mr. Chou didn’t show him this graph from BoomBustBlog:
Author Reggie Middleton follows that graph with the following statement, probably something Chou didn’t tell Elop either:
You see, Android is a money printing machine, and those who don’t jump on the Android bandwagon will get steamrolled by those who do.
Skyrocketing revenue doesn’t mean skyrocketing profit, but Nokia must have been looking at the wrong memo concerning margins:
And if Nokia missed the boat on these simple facts, they were probably in la-la land (AKA Steve Ballmer’s office) when HTC reported Q1 earnings that included 9.7 million units shipped, 174% year-to-year revenue growth, 162% year-to-year gross profit growth, and 11 to 11.5 million shipments expected in Q2.
Either Nokia is in denial, trying anything it can to drag down Android, or getting played like a fiddle by HTC’s Peter Chou.
Let’s face it: the LAST thing HTC wants is for Nokia to enter the inner Android circle currently occupied by Motorola, Samsung, LG, and HTC. While they might move like a slug in terms of tech innovation, Nokia is still an absolute gorilla, and adopting Android would certainly eat into HTC market share. And apparently the last thing Nokia wants is to wake up from its day dream after dominating the mobile market for years:
Nokia announced in February its new strategy to use Microsoft Corp.’s Windows Phone Software in a new line of handsets in a bid to regain market share
Let us know how that works out for you. The only thing HTC seems worried about his having a big enough rake for all that money.