Nokia warns on profits as it delays ‘iPhone killer’; shares plunge

[*LTD*]

http://www.guardian.co.uk/business/2010/apr/22/nokia-warns-profits-iphone-killer

Nokia warns on profits as it delays ‘iPhone killer’; shares plunge
Thursday, April 22, 2010

"Nokia has warned on profits as it battles to compete with bitter rivals Research In Motion, maker of the BlackBerry, and Apple, as well as the growing threat from handsets based on Google's Android platform," Richard Wray reports for The Guardian.

"Shares in the Finnish firm plunged almost 14% as it announced worse-than-expected results over the first quarter, when it was forced to slash its prices," Wray reports. "There is speculation that further price cuts could be on the way as it battles to maintain its market share."

"It confirmed the widespread speculation that it has delayed the launch of devices based on the newest version of its Symbian mobile phone software," Wray reports. "The company has yet to produce a handset that can compete directly with Apple's iPhone in the very top end of the smartphone market and there are hopes that the Symbian^3 software platform will enable Nokia to regain some of its former magic."

Wray reports, "But Nokia said in its statement today that while it plans to launch the first smartphone based on the platform in the second quarter of this year, shipments are not expected until the third quarter, three months later than the market had hoped. The phone in question is widely believed to be the Nokia N8, a touchscreen phone that has a mammoth 12-megapixel camera. Nokia hopes it will compete head-on with the next generation of the iPhone – expected in the summer – as well as Android handsets such as Google's Nexus One..."

Wray continues, "Today's results showed how desperately the company needs a so-called 'iPhone killer' ... 'We continue to face tough competition with respect to the high end of our mobile device portfolio, as well as challenging market conditions on the infrastructure side,' admitted chief executive Olli-Pekka Kallasvuo."

Wray continues, "The company warned that it expects operating margins in its devices and services business to be between 9% to 12% in the second quarter of 2010, compared with 12.1% in the first quarter and 15.4% in the last quarter of 2009. There is speculation that the company is planning price cuts of up to 10% in an effort to regain market share."

 

[maflynn]

They do have one ace in the hole.

Their patents to which they're suing apple.

 

[*LTD*]

They do have one ace in the hole.

Their patents to which they're suing apple.

How is that an ace in the hole? Apple's also countersued and it's yet to be determined whether Apple violated anything. Besides, it's not about patents, it's about licensing fees. Fees don't magically create compelling products, unfortunately. Nokia can do absolutely nothing about Apple.

As for the article:

But Nokia said in its statement today that while it plans to launch the first smartphone based on the platform in the second quarter of this year, shipments are not expected until the third quarter, three months later than the market had hoped. The phone in question is widely believed to be the Nokia N8, a touchscreen phone that has a mammoth 12-megapixel camera. Nokia hopes it will compete head-on with the next generation of the iPhone – expected in the summer – as well as Android handsets such as Google's Nexus One..."

What about software? All that hardware is useless unless there's great software and a wonderful UI behind it. Nokia seems set to make the classic mistake all "iPhone-Killers" have made.

 

[Rodimus Prime]

How is that an ace in the hole? Apple's also countersued and it's yet to be determined whether Apple violated anything. Besides, it's not about patents, it's about licensing fees. Fees don't magically create compelling products, unfortunately. Nokia can do absolutely nothing about Apple.

As for the article:

But Nokia said in its statement today that while it plans to launch the first smartphone based on the platform in the second quarter of this year, shipments are not expected until the third quarter, three months later than the market had hoped. The phone in question is widely believed to be the Nokia N8, a touchscreen phone that has a mammoth 12-megapixel camera. Nokia hopes it will compete head-on with the next generation of the iPhone – expected in the summer – as well as Android handsets such as Google's Nexus One..."

What about software? All that hardware is useless unless there's great software and a wonderful UI behind it. Nokia seems set to make the classic mistake all "iPhone-Killers" have made.

The only people using "iPhone-Killer" are apple fanboys like you and then media outlets to try to get fanboys like to go to the sites screaming how product X sucks.

N8 I am guessing will be a lot like the N900 which was not a true cell phone and if you go to Nokia experts sites they pointed out time and time again that it is more of a computer with a phone as an after thought put on to it though. It is the fanboys like you who seem to think that it is trying to be an iPhone killer.

The OS running on these phones has more in common with a desktop OS than a phone OS.

 

[*LTD*]

The only people using "iPhone-Killer" are apple fanboys like you and then media outlets to try to get fanboys like to go to the sites screaming how product X sucks.

There has to be a way to categorize the also-rans that didn't make it, or the ones that are in the running currently. Because Apple *is* the one to beat. Everything invariably gets compared to Apple products, and in this case, the iPhone. This is expected. If Apple didn't make such a great product it wouldn't be happening. That's the nature of the game. Nothing I can really do about it.

The OS running on these phones has more in common with a desktop OS than a phone OS.

Which is probably why it will fail as well. It's happening in the tablet segment, too. A lot of these other tech outfits don't seem to get it.

 

[mags631]

The only people using "iPhone-Killer" are apple fanboys like you and then media outlets to try to get fanboys like to go to the sites screaming how product X sucks.

Suggest we add "fanboy" and its variants to the list of (out-dated) terms which are intended to cause gnashing of the teeth and wringing of the hands.

 

[Rodimus Prime]

There has to be a way to categorize the also-rans that didn't make it, or the ones that are in the running currently. Because Apple *is* the one to beat. Everything invariably gets compared to Apple products, and in this case, the iPhone. This is expected. If Apple didn't make such a great product it wouldn't be happening. That's the nature of the game. Nothing I can really do about it.



Which is probably why it will fail as well. It's happening in the tablet segment, too. A lot of these other tech outfits don't seem to get it.

May be the nature of the game but the Apple fanboy opinon are worth less than dirt because you yourself have already admitted that if it lacks an apple label it is assumed to be crap until other wise shown. If it has an apple label it could be dog crap and you would call it great until some how some one found proof other wise.

But back to the point. If you understood what this phone was designed for it you would understand that it is not in the same ball park as the iPhone. It is more of a computer than a phone and it is designed to function as a computer first and a phone 2nd. If you understand that then you might understand why it is not an iPhone-Killer. Also you called it an "iPhone-Killer" the media did not which goes back to my point before that only Apple Fanboys are the ones calling it that. Really learn how to look at something before comparing it directly to the iPhone.

 

[*LTD*]

May be the nature of the game but the Apple fanboy opinon are worth less than dirt because you yourself have already admitted that if it lacks an apple label it is assumed to be crap until other wise shown.

Well of course. Apple's got quite a reputation. We've come to expect a certain level of polish and usability in Apple products right out of the gate. If Apple puts their name to something, chances are it'll be a great product. It's only natural to expect Apple to continue to produce great products. That's why there's always so much anticipation around rumours about them and their announcements.

If it has an apple label it could be dog crap and you would call it great until some how some one found proof other wise.

I don't think Apple's resorted to "dog crap" yet. Incidentally, most of the products they put out are pretty good. It's unreasonable to expect them to suddenly let go of everything that works, cast aside their vision and release something ridiculous. At least not now or in the near future.

But back to the point. If you understood what this phone was designed for it you would understand that it is not in the same ball park as the iPhone. It is more of a computer than a phone and it is designed to function as a computer first and a phone 2nd.

Sounds too complicated already. Tech-head market material. Not a great sign. Throwing the kitchen sink onto a device like that doesn't bode well for the user-experience, never mind the interface. It's been tried before, and frankly, Nokia doesn't seem like the lean-mean consumer market innovator type. No wow factor. No cohesive hardware-software ecosystem, etc. Nokia is way, way behind the curve.

 

[belvdr]

Well of course. Apple's got quite a reputation. We've come to expect a certain level of polish and usability in Apple products right out of the gate. If Apple puts their name to something, chances are it'll be a great product. It's only natural to expect Apple to continue to produce great products. That's why there's always so much anticipation around rumours about them and their announcements.

While Apple's products may be great, that doesn't automatically mean that other vendors' products are terrible. I think one of the primary factors of the excitement surrounding Apple is the fact they release very few updated products. Case in point, look at the Macbook and Macbook Pro lines. They take so long to update that customers can't wait to get their hands on it.

 

[*LTD*]

Nokia will still manage to move units due to the sheer volume of phones they produce. They make a lot of flotsam and it tends to spread around. Doesn't do wonders for profits, though.

 

[SactoGuy18]

In my opinion, the only really serious competitor to the iPhone is an Android 2.0 or 2.1-based cellphone. I've actually tried out the Motorola Droid with the recent Android 2.1 update and the interface and functionality is slick, to say the least.

I believe that Nokia is working on a Android-based cellphone, too.

 

[djellison]

While Apple's products may be great, that doesn't automatically mean that other vendors' products are terrible.

Quite. I know plenty of people who don't want an iPhone. They just don't like it, or they don't like Apple. They're very happy with a Crackberry on an Android device.

 

[*LTD*]

Quite. I know plenty of people who don't want an iPhone. They just don't like it, or they don't like Apple. They're very happy with a Crackberry on an Android device.

I'm betting they're not in Japan.

 

[rhett7660]

The only people using "iPhone-Killer" are apple fanboys like you and then media outlets to try to get fanboys like to go to the sites screaming how product X sucks.

N8 I am guessing will be a lot like the N900 which was not a true cell phone and if you go to Nokia experts sites they pointed out time and time again that it is more of a computer with a phone as an after thought put on to it though. It is the fanboys like you who seem to think that it is trying to be an iPhone killer.

The OS running on these phones has more in common with a desktop OS than a phone OS.

You have got to be kidding.. can you use the word fanboy any more??? Seriously.....

You are right, because no OTHER freaking internet site/tv commercial/newspaper ad/magazine ad or anything of the like will compare the iPhone to product "X" and say something to the effect, the next iPhone Killer. Right... pull your head out of the sand would yeah, you seem to be so freaking blinded by the "Apple Fanboy" you can't even see straight anymore.

Quite. I know plenty of people who don't want an iPhone. They just don't like it, or they don't like Apple. They're very happy with a Crackberry on an Android device.

That is wonderful and I have done just the opposite. I know plenty of people who DON'T want a crackberry and don't want an Android device. So what is your point?

 

[Rodimus Prime]

You have got to be kidding.. can you use the word fanboy any more??? Seriously.....

You are right, because no OTHER freaking internet site/tv commercial/newspaper ad/magazine ad or anything of the like will compare the iPhone to product "X" and say something to the effect, the next iPhone Killer. Right... pull your head out of the sand would yeah, you seem to be so freaking blinded by the "Apple Fanboy" you can't even see straight anymore.

Well here is what I see time and time again the first person who starts using the term "iPhone Killer" or will change a title of an article that does not even have the word iPhone in it to put it in there are die hard "Apple Fanboys."

There is no getting around the fact LTD is an Apple Fanboy. I think even he will agree to that statement. He is also been guilty of multiple times on this site and other taking article post and changing the titles of them. For example in this post the "iPhone Killer" was added by him. You can find multiple other ones.

It has happen so many times that yes it is the fanboys are the one who start comparing it to the iPhone saying it lacks X so it sucks. The article will not even talk about the iPhone at all.

 

[djellison]

I know plenty of people who DON'T want a crackberry and don't want an Android device. So what is your point?

My point is - there's no 'perfect' phone. No phone is an iPhone killer any more than the iPhone is a Blackberry killer or Android killer.

Note the sudden dramatic focus by LTD on Japan....in direct and predictable response to the DROP in market share by the iPhone in the US in Q4 '09.

 

[*LTD*]

There is no getting around the fact LTD is an Apple Fanboy. I think even he will agree to that statement.

Sure. Apple fans are completely justified in their enthusiasm these days. Blame Apple for rolling out such great gear. Apple commands the kind of loyalty and enthusiasm that other companies can only dream of and *wish* they had.

He is also been guilty of multiple times on this site and other taking article post and changing the titles of them. For example in this post the "iPhone Killer" was added by him.

It was added by The Guardian. Just like it's added by an ocean of other news outlets and journalists. The industry and industry pundits came up with the term. I'm just parroting it back to you. If you don't like it, complain to Google and the also-rans. Hopefully they'll produce something to which "Android-Killers" can be compared. Don't hold your breath, though.

It has happen so many times that yes it is the fanboys are the one who start comparing it to the iPhone saying it lacks X so it sucks.

It's only natural. The newsmedia is usually the first to make these comparisons. Of course everything out there will be compared to the iPhone. Determining the reason for that isn't all that difficult. It starts with what the product itself brings to the table. Not the fans. I don't know who came up with the "killer" term as it exists to describe Apple's relationship to competitors, but it wouldn't exist if Apple didn't keep doing what they're doing. Apple is king of consumer tech, any way you slice it.

My point is - there's no 'perfect' phone. No phone is an iPhone killer any more than the iPhone is a Blackberry killer or Android killer.

Note the sudden dramatic focus by LTD on Japan....in direct and predictable response to the DROP in market share by the iPhone in the US in Q4 '09.

The focus is on Japan for the simple reason that Brian X. Chen and others predicted last year that iPhone will fail in Japan and no one would want it, since the Japanese are so adorably techy addicted to "features." The internets were awash with this prediction. And now look what happened. The critics were proven wrong (again) and you're here trolling about it.