Nokia: Android is Killing Us in China and Europe


The article title is sweet enough, but let’s spell it out anyway. Nokia’s new CEO Stephen Elop, who was largely behind the manufacturer’s decision to partner up with Microsoft after dissing Intel and Symbian, says Android is killing them in China and Europe. Shocker!

For China, he cites “mismanagement” as the reason why Android’s gobbled them up. In Europe, he put it bluntly – Android is just kicking our ass and it’s because some of those phones can be had for cheap. (Though, as I’m sure you’re aware, those were not his exact words.) Here are the quotes for each region respectively:

As it relates to competitive challenges, it is the case that certain competitive forces, particularly Android, are really gaining momentum in certain regions. For example in China, there’s an indication of some very substantial movement in the growth of market share for Android, particularly in some technology areas where Nokia today with our current portfolio doesn’t compete.

A good example of this is the CDMA technology in China, where that technology has seen quite an increase in market share in China. And as you know, we don’t currently have CDMA products, but clearly, that’s something that we’d be considering in the future. So there’s some dynamics like that that we have to deal with.

In Europe, that’s not the case on the management perspective. It’s very much about competitive pressures. We’re seeing, for example, a large volume of Android devices really coming into the market. They’re largely undifferentiated from one another, which is putting pricing pressure thereupon, which in turn affects the overall ranging decisions of the operators; so there’s definitely pricing pressure going on.

The funny thing is that China and Europe shouldn’t be the only regions they worry about. Monthly and quarterly trends show Android phones outpacing onces made by Nokia. Nokia has yet to bring any consumer devices to market with anything other than Symbian OS installed and it’s clearly hurting them. They’re failing to gain developer, consumer and enterprise mindshare in the smartphone sector opposed to Android and iOS.

And even when the Windows Phone 7 venture takes off, we’re not all that sure they’ll be better positioned to take out the current kings of the smartphone operating system war. Although Microsoft has had prior experience in mobile and made quite a reputation back for themselves in the early 2000s, they’re failing to rejuvenate interest in their products as fast as they had hoped.

Things could always change, but the Android boat is clearly the most lucrative one to be on right now when talking about third-party operating systems and Nokia has to suffer the effects of going against the current just like everyone else. [ZDNet]

Quentyn Kennemer
The "Google Phone" sounded too awesome to pass up, so I bought a G1. The rest is history. And yes, I know my name isn't Wilson.

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  1. ” Although Microsoft has had prior experience in mobile and made quite a reputation back for themselves in the early 2000s,”

    I don’t know about you but I’ve only heard bad things about their mobile reputation.

    1. Lately that’s true, but it’s mostly because they never really upgraded their system in the last ten years, before Win Phone 7. Their mobile system was really good, compared to what was available at the time 10 years ago. But they stopped innovating and once there was something better they just looked like dinosaurs.

      1. Really. Before the iPhone came out I think Win Mo was the most sought after smart phone for consumers. 

        Ppl either dont remember or dont know that at one time Win Mo was at the top or #2 in market share.

    2. yeah because windows mobile didn’t progress forever. what was innovative once became ancient & horrible over time as other systems progressed.

      but using windows phone 7 for past six months they have finally produced something decent. the user interface for day-to-day tasks in my opinion is far superior then iOS and Android interfaces. it does lack features but mango will take care of that.

    3. That’s what you get when you sell your soul to the devil. 
      Any company that makes a deal with Microsoft is sure to fail!
      Square Enix, Capcom, Namco Bandai, Nokia etc.

  2. How much did Nokia pay you to write this?

    1. Sorry for the long post. It strains the brain. But this is how it is and your lack of arguments only shows I’m right. 

      1.  Dont mind the cynics bro, I got you. I also did Symbian development, do you remember ActiveObjects?, very powerful stuff. Sweeter than Apple and Honeycomb. Why Elop why ?

        1. No one knows about that or cares. Its in the past now so let it go. Android is the way to go and is the future. And thats what people look at at a glance.

          1. and..THANKS!

          2. No arguments, glurgh yeah future lets go. Sorry but you have no clue of what you are talking about, but then again so many things has been driven without a clue. Don’t get me wrong I love google, but not as much as the others.

          3. Whats funny is that no one has a clue what your talking about. If you want to post something as long and boring as that go to a Dr. Phil Forum and go post there. Dr. Phil rip off.

        2. Yes I do remember active object and two phase object constructers. But as I did my final theses on it I concluded that development would be to expensive since of the vairation between phone models. The alignment between Microsoft and Nokia and the honesty of Steven Elop is in my world a very healthy mix. 

          And though I like the iPhone. Apple technology is very unhealthy for the end-user in the end. Their technology only aligns with them selves and sure right now every other moron on the planet is shouting Apple, but what people don’t anticipate is new technologies won’t interact with Apple because Apple only interact with Apple. And soon other companies has copied the nice user interface, actually already did and are making nice designs.

          The funny thing is that people are hyping the mobile. Everything should be mobile all is going to be mobile and bla bla bla. The thing is people know shit and history proves it. Especially Standard and Poor, they just drive the market in a direction. Because the world is filled with followers and very few movers. The shift can go as quick as any and there are some people who are going to win a lot on the yesterdays drop in shares just not the common man. 

          1. Stop posting. Too long and boring. You think anybody is going to read all that rubbish. Keep it short and sweet. Its should be as simple as this.
            Nokia messed up and now they’re. Getting their ass kicked. Freaking dweeb.

          2. Wow not any of you have anything to say. Your actually commenting on the length. You are just plain stupid and there is no sense in talking to morons.

  3. I feel for Nokia been a local customer for years but they outright refused to move with the times and produce an Android handset.

    Unfortunately it will ultimately all but kill them :-(

    1. The same thing that made Nokia what it is will not be what sustains it, a lot of companies found this out the hard way…Innovate or fall by the wayside

  4. I don’t understand why people are so surprised with the sales decline, since that is
    very obvious when changing technology. When Nokia announced their alliance with
    Microsoft I saw it as very smart move. I guess I’m one of the only ones, but I
    am also a developer. The lack of channels and usability has been the biggest
    problem for Nokia and the alliance cures this, since Microsoft have some of the
    best developer tools, biggest user base and now they have Skype as well. An
    acquisition which I think is not as stupid as many have stated, but lets see.
    Nokia is one of the best at mobile and network technology and still not to forget has the largest mobile user base. And I really don’t understand why people are so
    dissatisfied with Steven Elop, since he is doing everything which is needed.
    Cutting expensive, making a quick shift, fast in executing, targeting the
    developer community and is very aware of the competition he is up against.

    And as I said Nokia technology is good they have the patents to prove it. Moreover as a former Symbian C++ developer I know this technology is good. Very fast, the
    architecture is very well designed and has a low energy use. The problem has
    always been the developer tools, the multiple platforms and the distribution
    channels. I remember trying to get Symbian development to work under Microsoft
    Visual Studio and with no luck, shifting to Borland which is not my favorite.
    It was just a drag. I think most developers will agree.

    Now it’s going to be one platform where there is one of the largest developer bases in the world. I would reckon just a bit larger than iPhone developers. That was
    with sarcasm for those of you who don’t know anything about this, there is lots
    more and I would reckon this is largest developer base in the world. Moreover
    this base is ready to easily push application on a platform where the usability
    and the channels have been radically improved. Just look at the numbers of
    applications in the last period of time. Not to forget that this platform
    actually has gotten a warm welcome from end-users taken into account the

    The problem with this kind of stock is that people don’t anything about these things, which means that it will probably continue to decline and then there the few who are going to make a huge profit. Maybe Microsoft?

    Microsoft in general not doing so bad. Moreover have they made mobile the primary key concern and they have the money to do it, lots of it. Not to forget, how they
    did concerning Internet Explorer not so many years ago, do you remember?

    Google is cool but I must also admit that I am not that impressed with Android. They are already facing the same problems as with Java Microedition – J2ME. With
    different platforms, functionality, different user interfaces, etc. This is
    crap work for developers and ends up making software for the lowest
    denominator. It is not fun now and this is only going to get worse.

    I am impressed with Apple wow! I love my iPhone and had to have it even though I am not an Apple fanboy. Fantastic phone, but they have done their share and it’s
    only to copy now. Moreover when people in the future realizes how closed and
    tightly coupled they are to this platform when new technologies arise they are
    going to be surprised and I don’t think it is going in Apples favor. Look at
    the history it just repeats. 

    Well let’s see, this is very interesting. I’m quite sure that we are going to see some
    long faces once again.

    Believe me I don’t think Nokia will be as big as
    before but to announce that they are done I would believe is very wrong. And how
    fast is the market? what has really happened the last year Apple, adding
    facetime? Sorry, but it is not revolutionary what has happened the last few
    years, only the iPhone when it first arrived.

    1. I wonder if anyone will actually read this.. lol

      1. Nope, skimmed right over it.

      2. hard as it was to read and half true as i believe it is..i did.

      3. I read it.

        But I am not here to crapost single syllable’d phonerd odes to incompetence.

        So you and I, we’re just different.

    2. They didn’t need to make an alliance. They could have made Windows phones, Android phones, symbian phones all at the same time and kept their market shares. And they should have done so 3 years ago. I have have a business partner who just bought a shitload of office equipment from Nokia: Tables, chairs etc. They are downsizing big time. I think a 14 year old teenager could make better strategic decisions than the detached CEO’s at Nokia.

      1. Well it seems like you are that 14 year old teenager with that comment. Do you actually know what you are saying. You don’t need to answer that, just think about it. And no worry I will let you have the last word and leave you in the illusion of a winner. I have better things to do. Like looking at a blank wall.

  5. Not sure about the Chinese market but I know that traditionally, the European market has been one of their strongholds. So if they’re scared of losing it, then they must really be in more trouble than they initially thought. I don’t think W7 will save them either.

    1. Just what I was thinking.  In the US Nokia has a blip of market share, but they owned Europe, so much so they thought themselves untouchable.  They claim that it’s “business pressure” at fault, but the fact is that poor management decisions at the corporate level are what’s killing them.  It’s the same kind of stubborn adherence to doing what they do that almost destroyed Motorola, until they changed out management and woke up.  Nokia may need to do the same.

  6. Google is facing the same problems as J2ME their only advantage is that there is fewer drivers, but still too many.

  7. Nokia, for a long time, made the most dependable phones you could find. I sold a new in box prepaid Nokia 3395 the other day for $24 on eBay at work. The guy who bought it wants another one and/or a Nokia 6010. Some people just prefer the basic phones. But I agree, they haven’t provided much in terms of smartphones. Choosing to go the Windows Phone route isn’t bad, but it certainly isn’t good either. Why don’t they do like Samsung and HTC and offer both Android and Windows Mobile? Along with Symbian, they’d have more OS offerings than either aforementioned companies.

  8. Nokia will go bankrupt in the not so far future due to bad management. They stuck with Symbian way to long and now are only really in feature phones not the smartphone market. It fits they would match the MS model of too little too late.

    1. Nokia won’t go bankrupt…they’ll get gobbled up by Microsoft who will then dump a ton of cash into it and start trying to produce their own phones from start to finish ala Apple.
      The problem is that they want to keep their phone OS and their PC OS in sync. The problem is the phone’s OS will need to move faster innovation wise than the desktop version can ever dream of.

      They (MS) are going to hafta come up off their notions of platform sync. Let the mobile OS go where technology and demand takes it…and stop trying to drive the car with the PC version. My .2 cents. 

  9. Isn’t moto the number 1 Playa in China for Android devices?

  10. Here is a thought! Nokia hardware! Android software!

  11. wp7 will only succeed when they start putting out the best phones on the market.
    if they continue to put out last year tech in a mediocre package they will never get anywhere.

  12. Is Android ACTUALLY lucrative? High volume and razor thin margins of commodity products != lucrative

    1. It’s sad that the only way Microsoft makes money in mobile is through patent extortion through android.

      1. Yep! And that alone is why I have shares of Microsoft.

    2. HTC had record profit last quarter, which they gave credit to Android for.

  13. “Nokia has yet to bring any consumer devices to market with anything other than Symbian OS installed”

    Wrong Quentyn.

    It may not have done very well but the N900 ( ) was released with Maemo, the forerunner of Meego.

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