What Does Nokia Need to Do to Become Relevant Again? Summary of Comments As of 18 September

What does Nokia need to do to become relevant again? Summary of comments as of 18 September 2010.

Voices 17 Isaac Chang 03 Ajay A Jampale 02 kamal vij 07 Carl Whalley 03 Carl Johan Støylen 02 Manish Tharwani 07 Colin Dawkins 03 Kam Rezvani 02 Muzammil Raza 07 Guido Meyer-Arndt 03 Ken Edmonds 02 Robert Stevens 05 Mike Gauba 03 Michael Radanovich 02 Ali Elmi 05 Usman Rafique 02 Chad Blenkin 02 Robert Syputa, robert at Maravedis com 02 Roberto Saavedra 02 Steven Tang Categories 17 Market & marketing 04 Network (see also seamless) 01 Antenna 13 Innovation 04 Seamless (see also network) 01 Batteries 13 OS including OVI 03 Speed of execution 01 Carriers are the enemy 13 Services 03 Perception 01 CEO change (+ many in passing) 12 Humanity needs… 03 Android 01 Commerce (micro payments) 09 Products 03 Ecosystem 01 Conferencing 09 Smart phone 03 Reliability 01 Elop arrives from Microsoft 09 Links 03 Video 01 Fundamentals 08 Hardware 02 Culture 01 Future 09 Software 02 Employee morale & racism 01 GUI 06 Brand 02 Overview (Isaac Chang) 01 Infrastructure 02 Apps 01 Long-term 02 Enterprise 01 Manufacturing price advantage 02 Internals 01 Mindset 01 Partnering 01 Pay as you go 01 Peripherals 01 Quality poor 01 Segmentation 01 Siemens 01 Windows sucks

Robert Steele [email protected] and on LinkedIn Page 2 of 42

Nokia is one of the world's biggest mobile phone makers, but it's falling behind Google, Apple and Research in Motion in the innovation stakes.

AA Overview Isaac Chang • Few points: 1. Nokia taking Android? This definitely is a big NO. Nokia had never taken PocketPC to Windows Mobile. And Android won't be up for sale in any way. So, it's nope. If they do, they would quit.

2. Symbian/MeeToo/Meego/Maemo ... whatever Symbian is still slow and loosing steam, the Guru has left; so pretty much heading dead end. Others, they are in the talks too long and had not made commercial and adoption impacts. Nope

3. Hardware and Content Portfolio Hardware portfolio is great from Nokia, very well defined and segmented; but too many segmentations. For content portfolio, it has never took off as good as its competitors in being a complete ecosystem of hardware and content marriage. Look, Sony has even more, but did not synergize well all platforms and contents into one space and OS for PS3, Bravia, VAOI, laptops, Sony Ericsson mobiles, Walkman, Cybershot, ebook Reader ... and Spiderman. I guess Ovi is not a door, probably is just a window for user to see and unable to attract user to enter even though the meaning of Ovi is ... door.

4. OS Players: Android, Blackberry, Bada, iOS, Symbian, WebOS(Palm), Windows 7 Mobile ... At this time, the most influentials are several. Here's my analysis: - Android: It is/will be the backbone of all mobile devices(phone, pad, pc...) and it is build a strong pyramid from low to high end (imagine with me is a pyramid of low, mid, high end segments). Google aims ALL, it's one for ALL. - Blackberry: yes, it's secure(except UAE for some reasons), fast for business/entrepreneur server IT oriented companies. But, it still stays there. Their latest OS isn't revolution, it's just iPhon-ized the GUI to lure their client conversion to iPhone cult. And, it ain't for all devices. Their pyramid is pretty small. They have to make it cheap for good, and ASP will drop for volume profit. They are commoditizing itself. - iOS: Premium for now, just mid to high end in all devices, pushing OS as backbone for all devices. The low end market would probably the eventual markets. (kids are using iPhone anyway) - Symbian: Just the phone, in all segments. It is really in trouble in getting all devices. I believe they never had thought mobility as connectivity will get into all devices one day and that one day has become sooner than they thought. > Other OS, I believe you can deduce. So, what's gonna be? The one who can play ALL would lead. Leader will eventually wins. It's cassette tape or CD decision, analog camera or digital camera embracement.

5. Social Apps At this time, most OS are using Webkit for their processing. I don't think they need to focus this as main, it will evolve by itself.

6. NFC Japanese led this way for over a decade. They use their i-mode phone for train ride, purchase drinks at street vendor machine, book airline ticket, .... more. It's just an eventual event to take place on GSM worlds.

7. Intel / Infeneon / In-full control Probably you know Intel is acquiring Infeneon wireless chip division for $2bil. It makes full sense as Intel had hired former Palm/Apple staff to develop their mobile division. What's in this blackbox at Intel? It's 'It'. Their processor to be in every mobile device, probably with their OS. So, we have to watch closely. BTW, Apple buys a lot of Infeneon chips for all iPhones.

So, Nokia won't get much help from Intel on Maemo. It's all Intel's, both chips and OS. Nokia just make the shell, rubber keypads and label it.

8. 4G, what a about 3G? SMS price came down tremendously after high volume adoption. So it is gonna be for 3G worldwide. 3G adoption took 3-5 years range with availability of handset and network. 4G, the fights are on between LTE, WiMAX, ... If the infrastructure is not settled, mobile handset manufacturer can't make their proposition firm. AA Overview Isaac Chang • Look all, I used to love Nokia and still do. But, I'll buy new iPhone 4.0 version soon.

Here's the thing: 1. Change leadership, ie. change the C-level leaders. Do a comparison with Motorola CEO, he made a come back (for now).

2. Change organization structures: perhaps they have too many layers, direction and things are set and done in timely manner. Time-to-market. Cut back all redundant org.

3. Keep low end phone: That's what big boys usually play, the massive game, 40-50million units onwards kind of game. This is said sometimes back by Steve Ballmer. But, low end phone would never secure them high margin, given the phone cost is $8- 12. Well, Apple did lesser volume, but made the largest margin and profit in comparison to big boys' volume.

4. High end phone: Nokia smartphone ain't smart anymore.

- I typically hate the 'Option' menu button, I don't know why does it for any reason. - Besides, I don't like 6-8 buttons on top of the keypad. Even LG latest touch phone has only 1 button. - Nokia lagged for 1 year to come out touch screen phone while their competitors from Korea, made exciting touch screen phones. - Nokia doesn't innovate. What is so big deal from E71 to E72? I call that, revision or improvement. It is the same goes with their 'i' naming. They segmented their phones in too many layers, giving too many options and loose the steam to be focused, giving to the right clients with the right phone.

5. Phone software(smartphone): - They are slow, not responsive, not intuitive, not user friendly - OVI: Why iTunes music download spoke louder than Nokia theater on every American Idol show? I don't get it. - Someone from there has to take a dummy(like Jeff Hawkins), and starts to figure out how each software flow to be done, in the simplest way, in the least steps, cool and awesome - to get a task done. - Step back, competitor OS platform allows for multiple types of apps running on it. Yes, it may be just 1 task at a time(multi- tasking coming), but it's a computer like platform. That's what makes consumer excited, that they can add more apps, upgrade OS. Palm was the pioneer, then MS Pocket PC; now all are replaced by iPhone OS, Android, and more to come... - Meego, Moblin - too many headlines on these; but no relevance to us anyhow, today - simple means no impact.

6. Processor - Everyone is going to use 1GHz. It seems marriage between Intel and Nokia, is not working out after a long time as compared to Apple's investment for making A4 - which is just a repacking technology. Smartphones need more processing power at low power. - Samsung would be a great candidate to do well in long run in this business since they manufacture everything from AMOLED, LCD, RAM, ROM, microprocessor, screws and nuts(just kidding), and now working hard on Bada. Not even Sony Eric. can come close to Samsung as Sony always depend on their vendor making their phones.

7. Focus Droid, was a single focus to come back. RIM brought us business tool via their Blackberry. Consumers don't want to be confused with so many models, E, C, X, N, S, whatever series out there. They have to focus, 'Connecting People'.

8. Contents I think, this you all can write. Note, Sony has all contents in the world, you name it.

9. Nokia US

It is a total failure there. They closed their concept stores. Their phones are the cheapest in that country as compared to elsewhere. Their selection at operators are the lowest while being cannibalized by Samsung. American either wants Smartphone or cheap phone; no mid phone.

This is just my opinion, correct me if I'm wrong.

Note, I still like Nokia, I still like Intel; they got to innovate. I refuse to pay a phone/tool with revision; neither will I use a tool that doesn't listen to my comfort and need. I need a phone, well connected and get everything into the palm of my hand. Android Carl Whalley • Nokia would be the absolute world leaders if they used Android. Their build quality combined with iPhone- beating software would instantly make them the company to beat. It's broad enough to let them span a range of handsets, its got the apps, the market loves it and it would let them focus on hardware. Instead, no, its still the same old stubbornness that got them into this mess, even though the market shows it turns big names around right through the depths of recession (Motorola, Sony Ericsson). They prefer to keep tweaking their legacy Symbian stuff hoping it will magically come good, or waste more billions on yet another appless, userless incompatible MeeToo OS which only they will ever use and repeat the tumbleweed failure of OVI. The internet is full of stories of where the last CEO went wrong. In a years time it will all be about the new ones failure to see the Android tsunami staring him in the face. android Jordi Vallejo • I agree with @Mike Ross, Nokia shuold go for Android big time, their best value is their name, people will better buy the same phone NOKIA than SAMSUNG, they have build a reputation that is a huge value still now and @Mike Gauba, I don't think that is throttling innovation, NOKIA still has a lot to do on the hardware and usability side on top of Android, but it definitely needs to get on Android because that will bring sales to their handset division, no doubt about it. android Robert Stevens • where did that 40% number come from? Maybe in Europe Carl thank you for the post to that link "Nokia's Crowd-sourced Design Competition Shows Fans Really Do Want Android" http://ota.cc/5au Its what i have been saying all along! It is their only short term option! Then if they can truly become visionary perhaps they can bring a unique value proposition to the table. But to be honest I haven't seen much from Nokia that really impressed me (other than the brand name) Maybe they will do something with it?? antenna Ali Elmi • There is an interesting ENGADGET article titled "Nokia: 'we prioritize antenna performance over physical design if they are ever in conflict'. May be this explains the design issue. You can read the entire article: http://www.engadget.com/2010/07/16/nokia-we-prioritize-antenna-performance-over-physical-design-i/ Apps Ajay A Jampale • Here are few things that came to my mind that Nokia had to offer in the last few years Ecosystems - OVI services -Music(Ovi music unlimited service) which offers millions of songs for free download till the subscription ends OS and after that the songs are all yours to keep. The songs in each country are locally relevant. -Free Navigation Service: This software comes pre-loaded in all the upcoming Nokia smartphones and available as a software update for the ones that are already there in market. Voice navigation for both driving and walking in more than 77 languages. All of this is all FREE. -OVI mail: Has the highest number of subscriptions already within two years of its launch beating gmail and yahoo. For all those

rural masses in developing countries like India,Indonesia where people are yet to use their personal computers can straight away have an ovi email account from their Nokia devices. -OVI store: Presumably the largest store for applications till date. Coming to the ecosystems: - I think Nokia values its partners(consumers,developers etc.). - QT framework targeted for developers helps them build applications once and deploy them on various platforms like Symbian,Meego, and many more.This was one of many examples. Coming to its operating systems Symbian - The worlds most widely used operating system for smartphones. Its open source now and people are now contributing for its improvements. Meego - This brings the best of Nokia's Maemo and Intel's Moblin operating systems which can be used beyond handheld devices and yes it is open source. Services in the developing economies like Life tools etc.. Lastly lets not forget about some spectacular devices like E71 E72 N900(This has the best browsing capabilities than any other smartphone in the industry) and many more in the mid range segments. I think the company has in it to do and prove:-) Apps Guido Meyer-Arndt • Nokia needs apps – approximately 100.000 of them – and an app store – and a tablet computer with WiFi and 1 GHz for US-$ 400 – and deals wit the NYT and Time and a book store – in short: just copy Apple as a media service company … and Nokia does have the potential to improve Apple - be open! batteries Rajesh Mondal • Check out the latest Nokia batteries from China...... THEY ARE JUST HORRIBLE ! Brand Carl Whalley • @Tibor You can bet Motorola, Samsung, Sony Ericsson etc don't want a Nokia Android handset as they know they would be in with the best chance to dominate them. Until its too late, that is. Once Nokia lose their crown there will be no chance of getting it back no matter what they do. Brand Jason Craven (LION) 4C Telecom • Hi all, i agree that we should not loose Nokia as a brand but do you not think that now the market has changed and become more segmented into groups, you have your techies who all ways like the lastest device, ie iphone, andriod handsets, then you have your businesses who like the Blackberry and to some extent the iphone too. Then you have the younger generation that want music / video / face book as this group dont e mail they twitter. I think Nokia have seen this and have decided that there will always be young ones and this is their market, after all not many young kids can afford an iphone! but thats a different conversation. Brand khaleeque khan • Nokia is still a leading brand; lets not forget the amazing E-series and N-Series.. but yes hats of to I-phone which has changed the handset world setting new trends; which if continues surely Nokia will stay relevant ONLY for the basic users.. Brand Muzammil Raza • lot of ppl keep disagreeing with me but i think Nokia will do fine in times to come. They seem to have started to find their way too. They're a smart company but they need to do a bit smarter on branding. I think the most important thing they need to do is to come up with smarter brand names for their smartphones rather than trying to use Nokia brand everywhere. People associate Nokia brand with a company that makes good phones, not smartphones. They need to give better brand names rather than E & N series etc. They seem less rigid now in their approach, which is another sign of improvement; that will help them in making better phones and working with distribution & operator partners better. I think working a few things like these out will take them in the right direction.

Brand preetika narula thakur • When it comes handsets, its NOKIA I trust. I think its the same case with many of us. The reason why we have landed up to this discussion is that somewhere down the line, they have missed on OUT OF THE BOX INNOVATION and seems that they have not focussed on their softwares. There battery backup is superb but the softwares are just not good enough. Brand Chandan Singh • If any one thinks of a handset then his first word to shout will be NOKIA. That's the brand which is already registered in the minds of the consumer behavior and is widely accepted across the networks. Nokia still has the strength of its infra and distribution which will certainly lead its role if only few corrections are made in terms of the innovative product lines by mapping the segment and requirement of the consumer rather than mixing up the complete scenario by putting up so many variants on the consumer platter with some missing focus on exact market choice/taste/preference in line with revolutions of the changing technology. It has to go with segment wise launch schedule rather than putting up all variants in all markets. Today the consumer pattern is fully different than the 90"s, which is believed to be the dawn of the GSM technology. As per the top five Global markets, Nokia still plays its vital role of existence, acceptance and fully believed to be the best handset if we look at the South East Asian Consumer pattern and noted to be one of the most competitive and leading market share of the Globe. We can never deny that innovation may not exist with this product; it was the one which took first mover advantage in most of the markets where in the SIM based phones have started, marked its dominance and had captured its market share. The followers always have chance to innovate as a differentiator to mark their space in the most competitive platforms. One classical example I could share was the market share of the largest Scooter manufacturer- Bajaj Scooter was at talk in late 80’s when Yamaha, Honda & Suzuki’s rolled out their plans in the largest pop consumer country-India. At beginning it was a hiccup but Bajaj’s distribution strength could turn out the game plans within short period with its top position for two wheeler market shares. Its market shift with innovation toward Bikes has maintained its credibility and consumer satisfaction. Nokia has still the same charm in the mid and low segment consumer and might be a challenge to be in the premium segment but still has equal strength to roll back its game plan and "CAN DO" only if few innovations are drawn on the smart phone platforms as the choice of the consumer tend to be inline with the new versions of the technology and need of the consumers. Today the Challenge for any Operator is consumer acquisition; similarly the consumer challenge is to decide the handset with best reliability, long time existence and affordable price structure without getting outdated quickly and that is the strength of NOKIA and only needs some smart phone applications to be looked at. Nokia already has the momentum of its operation with direct to the consumer touch in terms of service reach and it will certainly rule the markets as it is still at the #1 position and the handset to believed by masses. Carriers are the Michael Radanovich • Ajay makes a point that I think is lost on those who are talking about Nokia's platform fragmentation. enemy Henceforth, an app developer can simply re-compile to support Symbian, Meego/Maemo, and for that matter PC's, with perhaps a few #ifdef's to support vastly different screen resolutions. Speaking as someone who has devloped for QT, I can attest that it is an excellent environment. And open-source, too. If Nokia plays their Meego strategy right (admittedly a big "if"), they can undercut Apple by commoditizing apps: Who wants to sign a soul-sucking service contract with AT&T and be locked out of your own hardware when you get just as many yummy apps elsewhere? Undercutting Google won't be as easy,

but if they can commoditize services (an even bigger "if"), then who will want to be locked in to Google's services, and their ads and their privacy policies, when there are alternatives? In a world of commoditized apps and commoditized services, advantage goes to the best hardware maker, and that plays to Nokia's historical strength. This, I think, explains why we haven't seen Android devices from Nokia. It also explains why Nokia does so poorly in the carrier-subsidized US market. Nokia is now at odds with the carriers who emphatically dislike the idea of commoditized services. AT&T would rather smash its network to pieces under the bandwidth load of stupid iPhone apps (trying to control network load by controlling what apps are allowed) than allow open-source SIP VOIP (which would require transparent pricing of data usage, treating all bytes equally regardless of the app that uses them). Can they do it? As an antenna engineer, I have seen a whole string of startup companies develop tiny, tiny cellphones, only to be cut off from the market by the carriers' stranglehold on the retail channel. Many people want tiny phones, and don't give a $^|% about a camera, but cameras sell picture messaging services, and that's what the carriers want. Today you can't buy a phone without a camera. But Nokia is a much bigger player. What happens when the unstoppable force of Nokia's bet-the-company strategy meets the immovable object of the carriers' retail distribution? Ceo change Isaac Chang • Yes, exactly, that was what Moto tried to do, exactly what Nokia tried to do. After Nokia CEO went on board in 2006, things went off track and off guarded with players like Blackberry and Nokia, and now Google. Probably, Nokia's roadmap(5-10 years), might be off track. Hey, Nokia has many problems. Now, their technology is lagged and off tracked. Being a technology company that can't be 'go-to-market'(GTM) if they can't even go-to-technology. Whichever way, they are still loosing. Just like traditional camera transition to digital camera. Many camera players wouldn't be able to transit fast enough and many of them dropped out. Many more to do, tape to CD? Perhaps fuel powered car to EV? The race is always ON. This is a game that Nokia has to double up or tripple up. I have commented before, they have to focus with fewer segmentation and focus team with less management structure to enable their double/tripple up effort. Besides, they have to have better alternative in terms of OS and hardware; and change the CEO ASAP. commerce Guido Meyer-Arndt • The next big thing for mobile phones: Electronic Cash & the Near Field Communication chip – see New York Times, Aug. 17th 2010: “Apple Hires Expert on Mobile Payments”. This does not say much about how e-money services will work on your mobile phone – i.e. How do you get the money on your phone in the first place? Does it costs as much as PayPal? This might be o.k. for daily anonymous payments. But there is an easy way to substitute this service: Real Cash. For bigger payments you get an invoice for and payments you like to account for – i.e. your auto mechanic – it is common place in Europe to order your bank to make a payment to the bank account of your auto mechanic. This service does have an undo button and is far less expansive then PayPal. You need transaction numbers to do this. A public- / private key encryption might ensure the authenticity even simpler then transaction numbers. For that kind of encryption money services the BlackBerry might have a competitive advantage. But one thing is for sure: The mobile phone will develop into an electronic wallet. In case public- / private key encryption will be used for mobile payments the encryption technology will become as usual as the mp3 technology on your mobile phone. This is why PGP might become an industry standard and is a good investment today. The encryption technology is a key for Digital Rights Management as well. The Digital Rights Management is a key for the

publishing industry which Apple thinks it owns. Nokia might adopt the encryption technology for its small device, the wallet phone, and the DRM for the bigger device, the tablet screen, Nokia might develop. conferencing Guido Meyer-Arndt • Devices like the iPad develop into a commodity – view China wholesale online shops like >lightinthebox.com< which advertises on the NYT a 10.2 inch 1GHz Android tablet for as low as USD 166 – even cisco.com announced the “Cius” which is a Tablet with a 7”screen, Android 2.1, Wi-Fi 802.11n, 3G/4G, Bluetooth 3.0 with video conferencing … right – video conferencing made by cisco.com! Software and services are increasingly important. Nokia might offer VOIP and video conferencing as an app. It`s not just hardware. John – yes, Nokia definitely needs a fresh marketing. It`s not because Nokia`s products are wrong – but the market is moving that fast and competition is growing that Nokia need to create some momentum ... culture Isaac Chang • Having cultures might be just one of the puzzles. Apple had technology development different from others. You need to have both to be a technology company. They started this in their garage. Today, their cultures and technology development are still intertwined, making them a different kind. Just like Intel in the 80s, under the leadership of Andy Grove, Intel was at its best. So is Microsoft and other great companies. Perhaps the third important element is leadership to align/drive both cultures and technology development. Culture and Ken Edmonds • Hi Murali, thanks for the links to the Nokia case study. Very revealing. convergence Firstly, the conclusions drawn are quite classic and to be expected for an MBA or similar course. Done many myself. They fit naturally wth a Telecoms and Digital Business course where the long term cultural thinking from the Telecom sector is readily apparent. Again, done many myself.

If you step outside that cultural group or sector, however, you get a totally different viewpoint and a completely different set of conclusions. Where I am now coming from is after having taken that large cultural change (and have the scars to prove it) and viewing the market from a different perspective.

If you dump notions of telecom, technology, mobile handsets and products with technical release codes as names, and enter the FMCG game, you get a picture of Nokia (and many other of the old telecom companies) as dinosaurs quietly dying in front of our eyes.

What I am trying to do in these discussions is to encourage us all to think along new lines. Particularly to think about the marketplace as not having anything to do with voice and data. Nothing to do with so called smartphones. In fact nothing to do with anything called a phone at all. Its all about delivering exciting experiences to the customers and nothing to do with techy stuff.

You have to get to that state to begin to understand where the market is going and why some players are succeeding and

some not. Unfortunately the market statistics are savaged by the current distribution system which is itself a hangover from the old telecom network operator days and has a set of imperatives that are in direct conflict with the desires of the consumers.

So if we ask ourselves "what are the consumers really trying to do?" then we immediately have difficulty - because even the consumers don't really know and this is a journey that we have to take together. What we currently have is consumers starting to get a glimpse of new ways of handing media and information - note the reactions to the new Apple products in particular.

We could witter on for hours about this subject but let's come back to Nokia and what it all means. I rather hope that the Nokia organisation represented in your linked presentation is not real - but nevertheless, let's use it as an example. That organisation reflects the thinking of a technically driven and managed company. Take a look at FMCG companies and you will get a completely different picture -one which clearly shows their imperatives and urgencies are totally different. For Nokia to evolve in linked step with the market they are serving, they need to import a lot of non-technical thinking and when they do they will inevitably have to modify their organisation to bring the consumer (customer) elements up to the topmost level.

Nokia will need to either become a technology provider to other consumer-based companies (in effect, take a step back and continue their technology based focus) or make the change to a consumer oriented and driven company. One thing is sure, continuing to be a technology company and pretending to be a consumer based company is not cutting it and they need to make a move one way or the other. ecosystem Carl Whalley • @Saif The worry is who else will use MeeGo? Even if it turns out to be brilliant, it will eventually die without good external support. I fear the battle to build an ecosystem consisting of developers, app stores, carriers etc will be too much now, as Microsoft will find out if they get around to shipping anything new this year. Ecosystem J Fouladian • Nokia needs to build its market place. Create a ecosystem like android, apple and even Rim (finally they even noticed the power of an ecosystem) The thing is, the others all have a springboard to build on, Apple used it ipod & laptop echo and Google used its web, Rim is moving in using its enterprise network to extend its ecosystem. If Nokia does not move fast it will fall behind from others like Samsung, HTC, and others. On the +ve side Nokia is producing its own Os, Msoft and Android, but still lacks the penetrating effect of its brand as being "Hip", compared to others Ecosystem Satyan Namdhari • Nokia was able to beat then incumbent market leader Motorola mainly because of its easy to use phones and its ability to project phones as fashion statement. Apple is now seen to lead the market and hold promising future mainly because of these same abilities. Moreover ease of use was embedded in Apple's DNA even before it started making phones. Nokia still makes some of the best phones in the industry. But the phones are now just one of the features on what has become mobile computer market. In this changed picture market leader needs to be a very good system integrator. Apple has created a powerful ecosystem with iTunes to streghten its position as the market leader and system integrator. Apple is

closely regulating its ecosystem and ensuring that its DNA is seen and felt in its ecosystem. Its partners are only too happy to follow the rules that Apple lays down. What Apple has achieved with thousands of partners in its ecosystem is incredible. Everything in its ecosystem appears to be strategically planned and synergistic piece of the whole. Is it easy to do what Apple has done? No. If anybody can challenge Apple in its own game then it is Nokia with its Sisu. http://en.wikipedia.org/wiki/Sisu Elop arrives Colin Dawkins • In case you haven't heard, Nokia have broken with tradition and appointed a NON Finnish person to head the company. His name is Stephen Elop and he is/was the Microsoft Business Unit Manager. This is one of those steps a number of commentators have been saying should be done in order to give the company more vision. Nokia's shares went up 5% on the news. Employee Usman Rafique • What I know of Nokia is that they don't like short term thinking, a little bit uneasy seat to be when financial morale (racist markets demand growth and good quarterly results. I think Finns hate short term thinking as well as tunnel view. It takes time management) for a giant to turn back and hit again. Most of people here get jittery during this time when a giant is taking turn and make wrong conclusions. BTW i hope Nokia become a little less racist inside the company for their own good. enterprise Chandra Shekhar Tekwani • Nokia should re-invent itself the way they did a few times in the past. This time move from making just consumer phones to focusing in enterprise mobile solutions and services in addition to devices. That would be one option. Instead, they have been selling off their enterprise business units! enterprise Robert Stevens • Ok I guess I'm having difficulty remaining a professional grown up. Hey guys, no nd bottom lines is nokia must evolve with the consumer/business user. A far as what I see in the US most have forgotten that nokia exists. blackberry is even struggling as corporate mobility environments are managing Iphones and android devices. Fundamentals Marinko Tarlać • Don't forget that Motorola was almost forgotten until they present Droid. Now they have very nice product which is very popular. Nokia owns many hardware and software patents and they will be in business always... Future Usman Rafique • Having worked in Nokia and having lived in Finland, I tell you guys one thing, in 2015 Google, Microsoft, Apple, Motorola, samsung and others will be losers and will be getting jealous of position of Nokia. Although I no longer work with them, but I trust them a lot. If they are thinking what i have in mind, they are in safe safe ride towards leadership. GUI Isaac Chang • N8 is still on Symbian. The Guru of Symbian, Charles Davies left Nokia recently. http://eu.techcrunch.com/2010/06/25/nokia-loses-top-technologist-and-former-symbian-cto-charles-davies-to-tomtom/ So, what can we deduce? The GUI, flows, steps, functions on Symbian platform are currently slower in response and consist of many steps to achieve a function completion. A newer thought through GUI must be developed with the use of fingers or other senses to accomplish faster processing of a function, which must be more superior than those of Apple, Android, Blackberry or Bada? So, I guess, N8 might be the last of Symbian kind if it fails to capture consumers' hearts. Perhaps Nokia has a backup plan. Hardware Cosmin Vilcu • i disagree with John Garabadian. After a N95, a N96 and a N97 but this one in the family, not mine, i give up hope for Nokia. They are not making good phones anymore. I personally moved to Samsung. They have a different approach. Nokia stopped making good phones. they are still number one because of the good name they still carry but that will not last for long. I don't think that Apple is the company to follow. I think that Samsung will have a word or two to say in the future.

Their last flagship is beyond any phone from Apple or Nokia. And i am talking about Samsung Galaxy S, the most advanced phone in the world. Hardware Isaac Chang • That's the problem with companies like Nokia, even Intel, AMD, ... they are doing evolution, not even revolution and innovation, they are lost, they aren't leader with roadmap that makes sense. Apple won't buy Nokia 'cos Nokia is less superior than Apple's roadmap (roadmap is usually 10 years ahead). Apple doesn't follow others, but it charts direction. Today, 3D TV, 14MP cam, 1080HD cam, virtual assistant, tablet, ... more; they took so long to be relevant? Look, they are not new term; they were around long time. Just my opinion again. Hardware John Garabadian • New Management! New Direction. They still make good products.....Need a "Revolutionary" product. Forget the networks side of the business, they have lost the plot a long time ago. Hardware Manish Tharwani • With BlackBerry, Apple and Google Android hogging all the headlines when it comes to mobile phones, it’s easy to forget about the still-mighty Nokia. But to regain the initiative in the smartphone market, the company has real work to do. It’s been through two rounds of restructuring recently; here are five suggestions for the new team: 1) Get with the design programme 2) Stay in touch 3) Ditch Symbian for smartphones 4) Focus on price 5) Build on the N8 Hardware Rajamani Natarajan • I agree with Chang, Nokia has to review their current approach. They need to think in terms of future technologies and how a phone will be perceived. That's precisely what Apple is doing. They are not aspiring to give what another competitor is giving neither are they adding flimsy things just in the name of technology. Above all being open to look at innovative business models. My few pennies.. Hardware Roger Schafer • Not sure they can come back. Apple changed the handset world, is now the leader and there is only room for maximum 4 major players there and do not see how Nokia can reachieve leadership and major market share. Other hungry players such as Samsung are growing and with incredible technology. What else does Nokia have? Real question for Nokia: who are they and what are they for now and next 10 years. Where is their product and technology leadership? They remind me as a Company of Nortel who was a leader and then basically imploded. Nokia is at or near ready stage to implode. Perhaps they can foster up a venture with a Chinese company with destiny as a cheap hand set supplier. Isacc Chang"s comments above are right on point. Hardware Rohit Tandon • change the form factor - phones need to look better crack the touchphone space. Hardware Tibor Nagy • I think Nokia is trying to find a new way, but without consistence. They have some good handsets, like N97 mini or the new C5, but can't give something outstanding to the market. Sony Ericsson was in a real problem in the past quarters, but they introduced a Vivaz (with S60 Symbian) and the X10 series, which handsets has made an extreme boom in sales volume everywhere. We can mention iPhone or Samsung Omnia as well... They have to find out something, like the 6110 was in the past. Without it, they won't stop iPhone's growth and soon will be just the second or third after Apple and Samsung. Humanity needs Carl Whalley • They could consider listening to their customers for a change: http://ota.cc/5au Humanity needs kamal vij • Let's break down the problem in 2 projects. 1.) How should Nokia bring back it's customers who migrated to

Cheaper vendors ( Micromaxx, Maxx, Lemon, Lava, Wynncomm etc.) All these phones can be put under one label " QWERTY PHONE UNDER 100 Euro", "DUAL-SIM" etc etc. 2.) How should Nokia bring back it's customers who migrated to iPhone, HTC, Blackberry and high-end android phones. Humanity needs Shrutam Vijay Desai • Hello Manish, when you are a market leader and you see that your market share is loosing momentum, you ask this question. Being a telecom professional following are my comments :

01) low cost handsets - Nokia dont require to do much over here. they got tremendous economies of scale and they are doing the right things over here. they are also launching some low cost dual sim handsets in markets. 02) low cost touch fones - thats where nokia is loosing. they dont have any attractive touch fones at the entry level price points. Samsung has did wonders with CORBY handsets and its varients in indian market with attractive price points. i think, nokia must look at the strategy over here. 03) enterprise fones - nokia doing right. but business fones cant give you overnite success. 04) apps world - what indian customers are looking at the emails/messangers - just provide them well and get the job done. apart from it, nokia has really not aggressively push the ovi music services in the indian markets - the market, which look forward to music (loud music) all the time. besides, you just require to copy the apps from one platform to another to build your portfolio and need to give away free. 05) operator pricing in US : thats where nokia is loosing hard. unless until you dont sell good numbers of high end fones you will never able to replicate the success world wide. its been months, we have not seen any nokia super sales fones in US. thats what is hurting the nokia in a big way when it comes to market share in US, which is second largest smart fone market after JAPAN (where nokia has already exited). brands like samsung & motorola are scoring there just because of greater operators' supports even their fones are looking alike (thanks to android fones). 06) more focus over design of the fones : why people shift to android? because nokia didnt provide them the variety in interface. similiarly, people will get bored with android because, every fone is same if it has got the android. you get the same menu options, you get the same applications, you get the same web experience and i think, days are near, where people will start looking again at the asthetics of the fone. nokia can really do better at this space. 07) relaunch the success models : this may sound weird but when you know, you need to make shot you got to have your trusted allies. many fones of nokia has did well, but in quest of making them more superior, nokia replaced them with better versions but they tanked. people were really looking upto the same nokia experience. if nokia can do this for select models, we may see better outcomes. 08) revitalize the brand : time has come. brands are like human beings. they become young, they become old. nokia is actually a old brand now and thus the new decision makers (esp youth) is driving away from it. they feel like nokia is their parents' brand. same thing everytime kinda feeling. revive the brand again. put energy into it Humanity needs Adnan Qureshy • My opinion as I'm also in the same industry:::::::: Nokia should focus on the following point to enhance their global market share as they are falling on daily basis: 1. how to cater chineses phone specially in MEA region, as chineses

phone have good features equiped in low price bracket. 2. nokia should reduce the prices and enhance the features as per customer demand. 3. I agreed with different above professional's comments to change the top management and come again with new vision as they are not following their strategy "connecting people" in MEA region. 4. in MEA region they should work on low price bracket to get more and more marekt share. Humanity needs Aune Asad • It is quite interesting debate,Yes guys the Handset market has now become very techy and innovative.The most key part of all is the user experience and expaction,The one who meets it is the leader,and to keep this momentum is now not easy because of high numbers of brand and Mix of market strategy. The next challenge that I see is that now no barrier in between the Common Man and the Professionals, In Indian subcontinent user are much advanced and would always love to have all feature with low cost. Humanity needs Isaac Chang • Nokia will continue to fall based on their current direction. They have lost track from their fundamentals that they started out in the 80s, which is 'Connecting People'. Both they hardware and software are no long doing the 'Connecting' well. It's just my opinion. Humanity needs Marko Poutiainen • Nokia will need to start thinking what people will want in the next few years and even to create those needs itself. Now it feels like they are just improving on the existing, bit like Microsoft. Neither doesn't create anything truly new. Nokia just makes things smaller, cram more stuff in the same device and make them faster. I struggle to think of anything truly innovative from them in the past five years. I would think they have think-tanks for this, why do we not see any results? Look at their latest devices, what's new in them? Humanity needs Sebastiaan van den Berg • Like many other people have stated is Nokia used to connect the people and their phones were something to talk about now they have totally fallen of the map and it's all about HTC, Blackberry, Samsung... The Android platform & Blackberry OS are outstanding platforms to built on if only Nokia would go with the Android platform and build on that instead of building on Symbian which is getting outdated. Some of their newer phones look nice but have nothing else to offer. Nokia needs to look back at their past and see what they did right back than and revolutionize that Humanity needs VAIDYANATHAN GOURISHANKAR • Gourishankar.NOKIA brand image as NSN is affected very much due to management failure at the middle and top level especially in INDIA may be due to some vested interest groups within acting wrongly. "Connecting People" the tharaka mantra of NOKIA where the value for PEOPLE is not seen.This is because the managers at the top lacks empathy in the current booming scenario of outsourcing which blinds them to connect with people. This syndrome affects them in all segments be it Manufacturer or MS or Designer Humanity needs Gregory Kane • ....they could offer everything that you need for business, entertainment, and search in a handset that is comfortable to use, easy to use, and tough enough for all users. Humanity needs Robert Syputa, robert at Maravedis com • IO am of the opinion that it was not at all "hard to say if Apple's transformation was No to bloatware strategised or accidental." Sure the lack of a quick counter-punch was perhaps too much to have hoped for, but Apple had a 'field of Daisies' open field to romp around in until the environment continued to shift to create a more open and ready market for Google to then step onto.Step back to the year or two period before the iPhone was introduced: We surveyed department heads and though leaders at MOTO, Nokia, Samsung and several major operators to question what they thought

would be the prospects for the introduction. The universal opinion was that Apple would be lucky to capture 3%-5% of the emerging Smart/WebPhone market and that software, and device product design had already evolved to the point that game changing was not going to happen.When I asked quorums of users, including audiences of telecommunications professionals, what features were being used on a regular basis on their own mobile devices, and whether they used more advanced features, the take away was that advanced features were more for show than practical use... five menu layers down the stack. The point at the time was that this was hardly 'being all you can be' for an industry that, at the time, was approaching 3 billion users.The wonderful world of incumbent thinking... whether it is bloatware from Microsoft or 'SmartPhones' with features few would find relevant or easy to use.Apple saw a mobile environment that was becoming broadband which mostly needed software to unlock it.. and the harnessing of mostly upfront unpaid open source developers to firestorm.Nokia faces two conflicting trends: The rapid demise of hegemony of Web/SmartPhones including rapid decline in pricing for this early stage or market development, and the onslaught of cheap clones and value phones from 'Shanzhai' China. What muddles this is Nokia's incumbent position: they are want to give up their software investment, however likely that will be diluted regardless, to open apps and services to Apple, Android et al environments. The unwinding of this should have been foreseen ... it was not at all unexpected. What was also expected was unwillingness to give up control, give away apps, mapping services and other content... to unravel the walled garden so quickly. That understanding left the moves by the handset juggernaut to 'lock up' mapping, unified messaging and some other areas via costly acquisitions very much in question at the time. While Nokia saw the trends in technology and applications correctly they were deluded by the drink of their own success control on markets up to that time. Humanity needs Tiffanie Tippens • People know the name and still trust the durability of the product. However, durability is no longer the golden ticket.... Ease of use is. Nokia MUST make their phones more user friendly. It takes on average 3-4 clicks to get anywhere. If I am in a message.... why is the soft key marked options instead of reply? The symbian platform needs to be updated for ease of use. Blackberry users are getting tired of the lack of bells and whistles but don't want to pay for the additional $25 monthly to have the IPHONE. There is oppurtunity there if they can beat out Andriod. Their R&D did a great job with the over feel and look of the device (example e73) and the bells and whistles kill the BB8900. But none of this matters if using the basic functions of the phone takes you twice as long infrastructure Christian Ferenz • My Nokia 95GB was by best Phone unitl i see a Android. I think they are to big and also the lost the conection to the customers. And they also have problems with the infrastructur equipment. The main problem is they dont speak with there customers, they think they are the best. They are doing the same what Nortel does. and you know what is happening. I would sell my Nokia shares. Sorry to see this, but maybee the look in this discussion :-) Innovation Robert Syputa, robert at Maravedis com • If only it were so confined and simple as "Hardware rules, Software follows" .

"Innovation rules"... both hardware and software are dated and become lowest denominator commodities over time:

Cell phones started out as expensive, bulky, fragile, and yet delivered just basic voice and then cludgy text messaging. Nokia,

Motorola, Samsung, Sony-Ericsson and others grew with the industry by innovations that centered around the hardware. That was because having a smaller, form fitting curve, flip-style keyboard and other innovations, some that pushed the previous ones out of the marketplace, were a benefit to users. Higher power density batteries, sharper, brighter displays, and other innovations including some in the software interface helped one vendor leapfrog for a short while over the other.

The thinking that any one thing rules forever other than the broad thing called innovation has repeatedly proven to have been the mistaken thinking of the entrenched.

Innovation can occur at several levels, some of which a pointy-head product manager may not recognize (no offense meant, I'm borrowing a comic strip metaphor): One innovation that Apple successfully grafted from the common practice of the Internet and PC environment was greater use of the hundreds of thousands of open source developers. To do that, Apple had to shift that they had to innovate the way the device was formulated: starting with creating a good software development platform that harnessed the basic skills of programmers. Then they needed an apps store so they could be easily rewarded. The scheme meant giving up control for innovation. The grok that was different was that Apple understood that giving users more choices as part of the comprehensive package was another level of innovation. Innovation of OS apps development. Innovation in user choices. Innovation in ease of use of the cool new software... all that has an X squared amplification through the levels of innovation.

What about the iPhone 'hardware'? Come on, if hardware ruled, Apple would be just another step-wise player (one manager at Nokia told me 'the iPhone is nothing special'.. and I have to agree if you base that on the 'hardware' and fail to grok that the whole is much more a new thing, indeed what was innovative, rather than the engineer's analysis of the parts.

If 'hardware rules' as if that were a golden rule, then why in the world has Apple overtaken Nokia in market leadership with the new WebPhone/Open Source apps environment/apps store triumvirate innovation? Innovation Bassem Abi Farah, PMP • Innovate! Think about revolutionary disruptive ideas. Become leaders again not followers. Innovation Colin Dawkins • Robert Syputa makes two points

1. If 'hardware rules' as if that were a golden rule, then why in the world has Apple overtaken Nokia in market leadership ...?

Robert, I was not stating this as a good thing. I was simply stating the way Nokia seems to be working with comments from insiders. BUT your second point leads nicely into a just released email from another Nokia insider Juhani Risku.

2. "Innovation rules"... both hardware and software are dated and become lowest denominator commodities over time:

Risku says: “The last job I had at Nokia was head of innovation and ‘concepting’ – how to get ideas from concept into real products. I had about 5,000 innovations in front of me – a huge portfolio. And many, about 500, were very good – there were some very ‘killer’ ideas.

“But there’s a huge approval process. We call it the ‘best approval process on Earth’, because everybody can say something about a concept. We saw competitors realising the same concepts, but realising them better. We became very disappointed. Even Samsung now has better innovations – they’re minor, but they’re very good ones. They’re innovations we’ve had on our tables for years." Full article: http://www.mobileindustryreview.com/2010/09/risku-13-executives-the-new-nokia-ceo-should- sack-today.html innovation Frank Hau • well in simple words..... Nokia needs to blow all the dust from its cupboards and rethink the idea of "connecting people" and what it means in terms of today products and customer needs. Not more to say as this would mean a big big change ..... Innovation and good decission is asked [RS: no numbers needed] Innovation Isaac Chang • RAZR was an overnight, novelty success; but it didn't last. It didn't change the entire industry like how they started with their first phone. Their stock dropped 2-3 years later after RAZR success because they couldn't keep up with novelty design. You can tell from subsequent RAZR mutations were just no-brainer tweaks. They should innovate. Now, Nokia is in this pit, and it is just going deeper. While others, they are showing hardware, software, app economy, mobile operator CHANGES. N8 will be very much filling up the order; and will unlike creating a new demand that the order will be over-taking their forecast and incoming inventory. Key words: INNOVATION brings CHANGES; not NOVELTY that brings UPGRADE. Innovation Isaac Chang • To re-iterate from my past comments; it's a shame that Nokia just did novelty, no revolution and innovation. To be the No.1 leader in this industry, they have to innovate, not just to bring out novelty. They used to be 97% market share in India, almost invincible. But at present, it's way below this figure. So, they are in trouble at both low end and high end phones. While their competitors are really innovating in many ways, like Samsung and LG. For Samsung alone, they R&D all components to complete the phone; and now they entered the mobile OS game. This is brilliant positioning for them to be influential and taking the leadership on mobile handset. For past 2-3 years, both Samsung and LG have been making great profit and moved up in rank. Nokia has lagged for years, and they will go down in drain soon(in 1-2 years' time in 'guestimation') if they don't INNOVATE. Innovation Manmohan Daga • The problem with Nokia is - it never focussed on what customer wanted and till recently, never looked at innovation. Their focus all the time was retail client and only recently they came out with handsets which can cater to Enterprise segment - too little too late. Secondly, what about innovation. Look at a few handsets, all look the same. Where is a product differentiation and a fresh look and feel. Someone having a Nokia handset, till recently used to struggle for getting a different looking handset if he wanted to change his current handset. So a natural choice was to look for handsets of other companies. I agree that in terms of pricing and quality, Nokia stands the best but what about other attributes. I had a Nokia N95 and when I wanted to change, Nokia was not the answer since I was looking at the phone to do much more than just calling. Then came Blackberry... Having said that, Nokia is a market leader and in any market, with entry of the new player, the

leader loses share more rapidly. But there is more than what meets the eye. There is something seriously missing. They may not realize it as currently the demand for cheap phones are high and Nokia is catering majorily there. But what about 5 years down the line?? Point to ponder...... innovation Marie-Laure Drider • Nokia needs to : 1-Develop Smartphones & applications and games 2-Improve design & internet connectivity (Faster-Stronger) 3-Innovate with Symbian (if it's possible...) 4-Create an efficient, free and easy to use Gps Tool 5-Initiate a sense of belonging to the brand & develop a "nokia" community 6-Smile?? ;) Innovation Mark Adams • Nokia needs to be more innovative. Perhaps they should work on setting a precedent. Motorola became complacent when they rode on the success of their Razor phone. You do not see or hear much about those anymore. They may still be number one but that could change. innovation Marshall Taplits • Having gone from an HTC Touch Pro 2 (Windows Mobile) to a Nokia e72 (Symbian) and now to an iPhone4 I can assure you that Nokia is in big trouble if they do not have a VISIONARY at the helm of this company. As Shawn above stated spot on, Nokia needs to create phones that excite people like the 6900 series (which I had) did at the time. Nokia is not going to be able to beat Apple in terms of consumer high end usability and cool factor right now. But I know what I could use as a second phone - a solid phone capable of storing 2 sim cards that are both on at the same time (dual line phone). The phone must be able to create a wifi hotspot from either SIM, have great battery life, built in GPS and maps that don't require an internet connection. I think as more business people start to carry iPhones, they're going to need a 2nd phone with better battery life and more SIM card flexibility - and will be willing to spend $3-500USD out of pocket for an unlocked, no contract package. innovation Steve McGeown • Trends 101 - Its all about data people, even voice in 4G is nothing but data... Strategy 101 - Strengths: Market position in developing nations, channels, manufacturing capability - Weaknesses: Not a technology leader (get over it Nokia, wake up, it's true) - Opportunities: I love my iPhone... I very much doubt the third world loves its price - Threats: Android will enable cheap devices to enter the third world if you don't... if somebody is destined to take your Symbian lunch, it might as well be you... Strategic Direction The smartphone battle already happened in the western world. Newsflash Nokia, you lost... But any IP enabled VoIP phone is still too expensive for the third world market. My beloved iPhone has many features, many of which are simply luxuries this market cannot afford, alas Nokia, I will likely never be your target market again. Create a whole new segment... build that cheap Android data phone over your existing channels. Better hurry, the Chinese are already thinking this way (the myphone, the cyphone, etc) and your advantages will dissolve over time faster than you think. Innovation and Anna Metsik • Currently Nokia is relying too much on the brand without investing and innovating. The issue is that there are investment countries where it is not allowed to export legally IPhones. In these countries Nokia is top solution. While competitors're

breathing at their neck such as Sony-Ericsson, HTC. As the managment've changed there is a hope for changes... Innovation Dieter Platel • It is all about innovation. There was a time when Alcatel made refrigerators, as it was considered high tech at technical that moment. No one believes GSM is high tech anymore. An Iphone is a commodity, not a high tech product. I advise NOKIA to start something completely new (as they did for the GSM phone several years ago). I consider the Scandinavian approach of simplistic but holistic design a good one, but NOKIA has lost the edge of technology and needs to find it back again. Is it cloud computing, M2M, car assisted intelligence or intelligent refrigerators, new GPS technology, or anything else ? I do not really know exactly (If I knew I'd not be writing this comment would I?) but I am sure Nokia has the right people to consider a different route into new horizons maintaining their corporate culture. internal Chad Blenkin • They have 40% of the market share on smartphones. This only validates my theory that you need to take care of the internal side of business to ensure your products and service are great. Then and only then can you go out and build on that brand and increase market share. I think the Executives at Nokia are doing a great job in keeping a low profile while they refine their products and grabbing 40% of the market share in the process. For the record I'm an Apple fan and user. Every piece of technology that they offer that is relevant to me is in use both at the office and home internal Colin Dawkins • Hi Ken Nokia are arrogant, but I don't think that engaging with the market is the problem. They certainly have the engineering skills to compete in the consumer market. What they may not have is the design skills and certainly not the public relations skills which arguably are more important. Also, I am not sure that Sony Ericsson is the best example. They have engaged consumers with the Cybershot and Walkman brands (both Sony) but their market share was only 3.5% in the second quarter this year according to IDC. Nokia in their arrogance made some silly mistakes though. Selling underpowered Smartphones without enough RAM will get you smacked down. Especially when HTC are churning out high end Android phones with ample CPU and RAM and Apple iPhones simply work! Links Chad Blenkin • Robert here is the press release. http://www.nokia.com/press/press-releases/showpressrelease?newsid=1393524 Links Kam Rezvani • Interesting article on Nokia: http://techcrunch.com/2010/09/15/will-microsoft-and-nokia-team-up-to-take-on-apple-google/ Links Syed Masood Ibrahim • I guess you all need to read this slightly lengthy post.... http://www.symbian-guru.com/welcome/2010/07/symbian-guru-com-is-over.html Links Colin Dawkins • Hi Jeffrey. What if the problems are more fundamental then that. A kind of perfect storm of poor decisions and bad luck? Here are some heavily edited quotes from yet another interesting article [Sorry] ( http://www.theregister.co.uk/2010/09/16/nokia_smartphone_history/ )

"The data people wanted to make the experience as rich as possible,... that also did voice. The other school of thought envisaged data as being a service, a bolt-on to a device which was still a voice phone first and foremost. ... Naturally operators

took the second view. But ..., they were uniquely incapable of delivering interesting or innovating services, lurched from WAP to walled gardens."

"Nokia, being Nokia, tried to please everybody. And why not, it had the scale to do so."

"The rollout of GPRS and 3G networks had been behind schedule, which negated the advantage of a phone being “smart”. And while it poured billions into multimedia and enterprise device development on Symbian, Nokia neglected its more humble feature phones. The result was a dramatic collapse in market share [2]"

"... the resulting realignment saw the original idea of a sophisticated converged data device take a back seat. Sony Ericsson and Nokia abandoned the rich data-centric UIs..." ... "In a bonfire of the UIs, Nokia ditched two platforms within a year: "

"There was a huge hole in the portfolios of the leading companies when Apple announced the iPhone. And Apple, along with RIM, today scoop up almost all of the profits made by anyone making high-end devices"

"The reasons for this are numerous and varied - but the overriding one I think is that both RIM and BlackBerry made the sticker shock go away. Both bundled a data plan with the device. And this was the biggest breakthrough in the history of the smartphone." Links Dhananjay Kumar • NOKIA has to learn a lesson. http://ibnlive.in.com/news/forbes-india-maxx-mobile-the-shanzhai-warrior/130257-7.html?from=tn Links Laith Badarin • http://www.eweek.com/c/a/Mobile-and-Wireless/Yahoo-Nokia-Partner-on-Messaging-and-Maps-Services- 860446/ Links Meredith Courtemanche • Gartner put out a report today on the cellular handset/smartphone market. Some good information about market share for Nokia, Apple, RIM, etc. in Q01 2010: http://www.electroiq.com/index/display/smt-article- display/3679538146/articles/smt/surface-mount_technology/business/analyst-viewpoints/2010/may/gartner_- worldwide.html Links Murali Erraguntala • We a bunch of students from IE Business School, Madrid, doing Masters in Telecom and Digital Business did a study on Nokia's strategy to regain the lost glory in smartphone market. You can find the links for both presentation and document at http://www.slideshare.net/merragun/nokia-strategy-presentation http://www.slideshare.net/merragun/nokia-strategy-3763661 Hope those links provide some valuable information Links Randall Arnold • A couple of my writeups on this (mostly US-oriented):

http://tabulacrypticum.wordpress.com/2010/07/21/how-nokia-can-retake-the-us-market-and-more/

http://tabulacrypticum.wordpress.com/2010/09/16/rebuilding-a-nokia-north-america-presence/ Links Isaac Chang • Latest comments from Nokia http://www.engadget.com/2010/08/06/nokias-vp-talks-n8-meego-milestone-product-tablets-android/ Long term Roberto Camarena • Nokia in Mexico has been a successful brand for offering simplicity, low cost and quality. But nowadays, people is looking for simplicity but having more technology (smartphones) and Nokia is already offering but with high cost what is a weak for it as blackberry and iPhone offers now a status and brand. Im sure Nokia will be the monster it was, but it's going to be hard work to compete with Apple but not impossible. Offering long term use of the phone with smart features and an average cost. Yes, the product is vital for its success but and agressive and viral marketing campaign is crucial today. I haven't seen it anywhere since last year with the nokia express being the bet of the company. Branding while you develop!!! Manufacturing Mark Seemann • Nokia's key strategic advantage is it manufacturing capacity - which is second to none. I beleive it should price advantage concentrate in delivering low cost Smartphones to the business space, consumers and to emerging markets. Nokia cannot beat Apple or BlackBerry on brand but can beat them on price so they should start from that point. They dont need to have the best phones, but their phones need to be open and be good at integration with a wide array of document formats and cloud based services. Market Carl Johan Støylen • Just some simple thoughts from a users perspective. How many models has Apple made of IPhone yet? If we compare with the high number of models from Nokia or any other vendor we start to understand that it is a different type of competition where Nokia seeks to cover all perspectives and where low price phones are just as important as high quality phones. Let us hope this continues and that there is a phone for every taste and need also in future. Just some simple thoughts.. Market Chris Bray • For me it is very simple. Nokia need to start focusing on their marketing strategy, including face to face contact with the networks Business and consumer sales teams. Take RIM's strategy for example. They provide channel managers for all the main providers and are constantly visable to the sales teams and customers when needed. I have spent 9 years in the industry and have seen channel managers from RIM, Motorola, Samsung and others. I have never seen or met a Nokia channel Manager or representitive. They need to get back to basics and realise that it is clever sales and marketing which is making the difference as much as technology. Market Gareth Price-Jones • HI Great post, but lets put this in perspective, before we consign Nokia to the graveyard of long gone handset manufacturers.. "The Usual Suspects Nokia again led the overall industry in market share, claiming 34 percent, followed by Samsung with a 21.2 percent share." http://www.eweekeurope.co.uk/news/nokia-samsung-and-lg-dominate-handset-market-6887

That's of the 303 million handsets sold in Q1 of 2010, so they shipped ~103 Million handsets in Q1. Of the smartphone market, the much critisised Symbian has by far and away the largest market share (approx 47% in 2009).

http://techcrunch.com/2010/02/23/smartphone-iphone-sales-2009-gartner/

I think all a case of 'the reports of my death are greatly exagerated' Mr Twain. Now having put that in perspective, they do need to remain relevant in their backyard, mid and lowend handset market, as well as to continue to dominate the world (there is a world beyond the east and west coast) smartphone handset market, where the new players will start to dilute their dominance. Market Heiko Sieger • I agree with Isaac Chang. Nokia has to do a lot to get back on track. Those who believe that the low end market will help them stay in business - I think that sooner or later the Asian / Chinese makers will conquer that market. I can't believe Nokia has any survival chance should they choose to be a cheap mass market low margin manufacturer. That strategy doesn't pay European salaries, it may also not be in line with their environmental and social responsibilities (that's a good thing). What I find lacking is the direction. I don't see that Nokia gives much thought on how to make an average (or any given group of people) spend a real bunch of money to get one of their phones. RIM/blackberry has won a significant slice of the business community with their phones, and they manage to make nice money from phone sales and services. Apple's iPhone is even a better example in winning mass markets - who doesn't want that phone? Nokia needs to provide more than features, they need to provide value and benefits. If the new Nokia phone could pay at the cashier, be used as a universal remote control for TV, stereo etc., open the car and start the engine (the iPhone can do that with some cars), enable/disable my burglar alarm and open/lock the doors at home, monitor the baby sleeping in bed, I would start seeing some use for it. If you tie the gadget to some useful services, like replacing the old fashioned credit cards, you never know where this might lead to. If Nokia needs ideas, I'm here. Market Isaac Chang • I find the presentation is not well balanced with data, it's just a bowl of soup for comfort; no solid plan. Sorry; I find it boring. Nokia still can do well on low to mid end (mid end for now). No matter what they segment over there is irrelevant to smartphone. Note, the more they segment, the more the spend their effort, cost and time - I mean, really a lot. Fundamentally, Nokia smartphone market is eroding every quarter, probably every week. I don't find it intelligent enough to segment N and E series in that way. Technology and Cost advancement is doubled and halved every year or every new product launched. That's why companies like Nokia, Microsoft, Dell, HP and all others who are not doing this tec/cost advancement, found themselves to have boring products and not worth of upgrades. In view of Nokia smartphone market share eroding, they went into lots of copy right lawsuits with Apple. It's just reaction, very much on reacting; but still, not revolutionizing not responding. Still on segmentation. iPod made tremendous success on music player industry; putting it on iPhone giving iPhone a superb reason for consumer to have it. And iPhone's 3G connection gives a reason of no reason for customer who never needed continuous connection to have it. This drove the 3G usage insane for these few years globally. Now, iPad is going to double the 3G usage to a new level soon. Tell me, what kind of segmentation that Nokia is contributing? I mean, real segmentation, not the subset of each segmentation. Same things goes with PC market; no one find sensation anymore to upgrade their old PC(dual or whatever core) which still can do the same thing. With no innovation, these companies are just filling up the market more of their products, making their money. But, this is NOT GREEN and NOT

INNOVATIVE. Market Jeremy Penston • "What does Nokia need to do to become relevant again?" Relevant... Sell 110 million phones in Q1 2010? Or, if you are just looking at the top end provide 44% of the smart-phone market. http://www.gartner.com/it/page.jsp?id=1372013 There are too many iPhones on LinkedIn if the comments here are anything to go by. Apple might make the best product but that does not make them the most relevant. Nokia's sales dwarf them by a factor of 13. By most people's definition, Ferrari would be the most relevant carmaker and Harrods the most relevant retailer too. I know Nokia, Toyota and Wal-Mart are a bit downmarket and dull in comparison, but they are what people choose when forced to make a value judgment. Perhaps the question should be rephrased - how should Nokia retain it's dominant market position and fight off competition for premium hardware? Market Rahul Sachdev • I refer to a comment that R.Paul Singh made earlier. One needs to look at the market segment. For example, Nokia dominates to lower end to mid market segments and sold more phones in China and India than all other vendors combined. http://us.asiancorrespondent.com/indianomics/in-india-nokia-rules Nokia needs to continue to improve its dominance of this segment through feature and operational innovation. As far as the high end SmartPhone market is concerned, why not ditch Symbian and adopt Android? Market Steven Tang • Nokia indeed is still the market leader but this is because the clout they have built over the years with the distribution and service provider community. Look at their margins, it tells another story. They are making more simple 2G phones. They have lost a lot of market shares in the emerging markets like China, India and Brazil. Nokia is losing it and they know and have re-organizing their product-marketing and setting up focus team to counter the erosion from HTC, Samsung and LG which are using many different OS; and Symbian seems to be dragging Nokia's innovative approaches. They have spent a lot of money, resources and effort in trying to get innovative products and services. Nokia is hurt because they want to protect market share. Whether it is new leadership or the leadership with a new outlook in providing product and services, they have to act fast. Market Terence Phillips • It still looks like they command the largest percentage of the market. Unless these number are tainted. http://www.mobileisgood.com/statistics.php?year=2009 Market Mike Gauba • Ref: Usaman's remarks - Nokia is not losing out on Technology but on "go to market" strategy Market Colin Dawkins • In one line I would describe Nokia as having great phones with improving UI, but the company does not seem to have coherent strategy in the high end market. However, I think that the original question is not completely correct. Nokia has never been irrelevant and still isn't. Unless of course you are talking about the US. Then as everybody knows, Apple came in and changed the game from emphasising hardware to improving the user experience. Nokia, and to be honest everyone else got caught out by this. Nokia seems to be concentrating on the mid tier and low end market using their massive economies of scale especially in the emerging markets, where they are the leaders by some distance. They are of course playing catchup on the high end Smartphone market. Nokia makes great phones with reliable hardware and simply the best calling experience but is somewhat crippled by poor UI. I say "somewhat" because for experienced Nokia users we have seen the Nokia touch UI steadily improve from an unholy mess to a very usable system. I like my Nokia and my last 4 or 5 phones

have been Nokia. New users comparing Nokia to the Apple UI would naturally prefer the Ap Market change Ken Edmonds • Nokia is a technology-based company. They got into the mobile business because they were one of the first there with the extensive technology required.That is their background, their culture and their archilles heel. Mobile is now a strong consumer market, not a technology market, and Nokia is increasingly losing touch. Just like the other two technology stalwarts, Ericsson and Motorols, Nokia does not have the culture, understanding or presence required to design and compete in a real consumer market and as every day passes, the consumer market settles further into place, Nokia becomes more and more irrelevant. Ericsson werer smart enough to partner with a consumer market giant. Nokia need to put their arrogance aside and take a fresh feel of reality. This is not going to go away. Either engage with the market or die. Market change Ken Edmonds • Hmmmmm. Seems that "Telecom Professionals" actually means "technical people" to many. Hopefully not to mass adopters too many. Nokia is a technology company - period. When I say they are not a consumer company I don't mean that they do not produce consumer products. What I mean is that they do not have a predominantly consumer culture - they have a predominantly technology culture. They understand technology very, very well. They do not understand consumers well at all. Contrast them with Apple. Originally a technology company, Apple has grown into one of the most outstanding consumer companies in the world. They can hit all the excitement buttons and know exactly how to make their product a thing of desire. They know what the consumer will really put up with, what they think, what they will desire. Apple can produce a new product with new technology and make it a celebrity. Nokia on the other hand mainly knows how technology works - it is a totally different field. The problem for Nokia is that the overall market has moved on to the mass adopters. Nokia made their bucks in the days when their customers mainly wanted technology and it was inevitable that this market would follow the traditional development model and the early market leaders would have to adapt or die. Nokia must adapt or die. Market share Isaac Chang • I just saw this shocking figure: Nokia had a 54.1 percent share of the 102 million mobile handsets sold in India in 2009, according to research firm IDC India. But lower cost devices from Indian and Chinese brands are fast gaining share in the market, according to analysts. What's gonna be for 2010? Nokia lost on smartphone segments and now the low ends as well. In my past 10 points for Nokia to turn around, I believe they need to have another innovation focus on their low ends. Otherwise, they need to give away that to Chinese and Indian manufacturers. Market share Ali Elmi • Nokia enjoys huge market and strong brand recognition in the Middle East and Africa. However, Apple iPhone is Chinese impact making inroads into their market share. For example, Mobily the second largest wireless operator in Saudi Arabia sold 25,000 iPhone 3Gs in the first launch day. Those are traditional Nokia N96 buyers. On the other hand cheaper Chinese brands are eating away the lower end of the traditional Nokia market. Creative designs, better market segmentation and pricing may do the trick in reversing this trend. Market share Mike Gauba • My only comment about the article is that India contributes significantly to the sale of Nokia Phones and I Chinese impact understand that the market share for Nokia's Phones toppled by thirty percent in 2009 due to the invasion of the Chines phones but this is not reflected in the numbers. Market USA Umesh Satija • Nokia- Not a King in America. Check this out, a very nice Article: http://4gwirelessjobs.com/articles/article-detail.php?NOKIA-NOt-a-King-In-America-&Arid=OTY=&Auid=Njk=

Market USA John Gordon • Indeed I believe Nokia does have 'everything'. Keep in mind that Apple and RIM (and HTC) fail to own base station hardware and have skin in the backbone that keeps the products produced working. I believe this knowledge in itself is a strength for Nokia. What should they change? Hire a marketing guy from Apple and then capture the North American market. The Nokia hardware if super - but they fail to reach the North American consumer with the same degree of 'lifestyle' ads that both Apple and RIM are 'experts' at. At the same time hire one of the UI R&D people from Apple. That's another key area that might go a long way in the Nokia family. Mindset Juhana Lampinen • Many good ideas that I agree! Additionally, I guess, a large paradigm shift would be needed. This could mean fundamental re-thinking what is perceived cool by the market like touch, social networking, cool applications, ease of use, fresh simple design, word-of-mouth and small start-up/SME image instead of large brand/corporate. As well as turning the consumers aged 15-35 years to cheering fans again. As I was onboard at Nokia for many years, I strongly believe that Nokia has the qualities that are needed to be cool again. Nokia should just unleash the vast amount of creativity in it´s people and turn it into crazy new ideas and products. Sometimes less is really more. Maybe this simple advice what I wrote I my blog yesterday would be a starting point: http://www.rework365.com/innovation-take-a-big-pen-and-small-paper/ Mindset Kam Rezvani • It would be a shame to see Nokia die a death of thousand stings but that seems to be the direction it is heading. Nokia needs to turn its organization upside down and gain an in depth understanding of the fact that the mobile telephony business has been completely and irreversibly changed since the introduction of iPhone. We are in an era of merging of computing and telecom. The problem with Nokia is that its mindset is still telecom-based and it has to switch to more of equal mix of computing and telecom. And that means a renewed emphasis on software and applications. I think the best approach for Nokia at this juncture is to do a massive spin off of its smartphone business into an independent company. This would be the only way to gain the necessary nimbleness and creative freedom to compete with Apple and Google. Unquestionably, Nokia needs to reinvent itself. Morale Graham Silverlock • Nokia use to be for many year at the top of the Global lists as one of the top companies to work for from an employee point of view, now it is so far down the list it dosn't even get a mention. Apple and others are now doing exactly what Nokia were doing then in making their employees proud and happy to work for them. The same goes for the Networks part of the business, they still have top of the range equipment but from the implementation side of the business, employee satisifaction has gone. Too much focus on just margins. They should focus on getting the business and customer satisfaction then the margins will come later with long term business. Network Tato Murier • It needs to get a new concept of comunication, the one which will follow the mobile phone. Is always good to create new mark Network as Zeyad Elsayed • I do beleive that what Nokia need to do is realy invest in social networking , as this is the future for the mobile deliverable business , I donot think having a better camera or mp3 player us what most customers are looking for? They need to have independent application developers intrested in , this is the way if they will like to grow in the business more, u do beleive that Nokia and other mobile manfuctures have a good chance to regain what they have lost to rim and iPhone if they become

more invotive in the next few month ! Network dual Steven Tang • Agree with Mark on the production clut, there is one other strength is the brand loyalty with the service SIM providers - not just the end users. Have notice for the past 10 years, Nokia never bring out any real leading technology nor outragely trend setters. They make phones with all the features people love. They come second with many perfect solutions. They are slowly winning back the low cost phone market with their quietly introduction of the dual sim phones. The 3G solutions are getting all the features right. Watch their numbers by end of this year. The king is back. Network telcom Avani Prasad ([email protected]) • To Make the change Nokia is replacing current CEO and bringing CEO from Microsoft ... viewpoint but don't know weather this will make any effect... as it need to bring someone from Mobile or telco side or someone who needed have good knowledge in innovation like from Apple Facebook or Google. Nokia is facing a tough competition from RIM and smart phone so it need to focus on innovation and the quality of the product . OS Roberto Saavedra • I find Murali and fellow IE colleagues study very illustrative on what Nokia should consider as future strategy to maintain brand positioning, and more important : to avoid losing market. In summary, I think these key aspects should be considered : - Reduce product portfolio : Even though the diversity of models allows Nokia to segment the market in its favor for total sales, this could be precisely the reason for other brands to gain special attention, in device-specific capabilities. - OS and Apps : A decisive comparative aspect among leading smartphone brands. Apple relies on its exclusive Mac OS core and user interface. Google relies on openness. RIM relies on its exclusive private secured network and services. Nokia should find the innovative direction that bring the best of these approaches into one single OS. - Connect emotionally with the target : Users and community developers should be motivated to buy a Nokia smartphone, targeting specific lifestyles and matching them with specific device capabilities. There will always be a trade-off between technical and marketable. I see the solution to be in narrowing this gap : The customer should be informed of the advances and advantages, and these need to be supported by positive feedback OS Andrew Borg • They need to go all out on Meego, forget about S3... killer devices in all form factors: smart, table, netbook, home communications hub (e.g. refrigerator devices).. OS Daniel Maycock • I think Nokia has a very strategic opportunity, owning a single operating system that spans multiple form factors, and has control of both the OS and the handsets. Iphone works great, as long as the form factor works best, but anyone that's worked in the enterprise segment knows that not one size fits all. MeeGo and Symbian 3 have the potential to really regain some of that lost foothold domestically, but don't forget - even with all these issues, they're still #1 worldwide. OS Isaac Chang • I supposed new top leader. Look, this is plainly a neutral discussion, and I'm not aiming at any individual or company. All these key players, they have the same juice, same tool, same resources and capital; but very different in direction and passion. Today, Nokia is just like Motorola 20 years ago. Nokia phone is full of buttons like Motorola phones those day they were full of steps to get things done. Well, is Moto making a come back with Android? Yes for now, not for long. But they made a good temporary direction for a quick fix. They may go back their rabbit hole if they don't make their own phone OS a relevant revolution. Like the Docomo top leaders said when they held an iPhone in their hand, I can make a device just like iPhone, why didn't we make it? Hey, Docomo did the iWallet and iTravel things 5-7 years ago and is still

running. Just my opinion. OS Joris de Sutter • quote: "As far as the high end SmartPhone market is concerned, why not ditch Symbian and adopt Android?" This is one you read time and time again. With all due respect, but that is completely beside the point. True: Android is a great OS, but it is still maturing. It will presumably reach adulthood with version 3, but do you really expect Nokia to adopt it? Get real!! It's Google for crying out loud! Besides, Android is in reality not ready for the high end market. Only the hardware specs put an Android phone there, not the OS! Symbian will simply be a good (mind you: not perfect) OS for the mid and low end market. This can clearly be seen in the present line-up of Nokia. 5230, 5530 and the likes do not cost over 200 Euro at stores. The latest Symbian devices released by Nokia are all quite "cheap" smartphones, rarely costing over 300 Euro in stores. That's what I call low to mid end market. For the high end market, Nokia will go with the MeeGo OS. At least, that's what I expect. It would really surprise me if the people in Finland are not having a crisis meeting on the pre-mature ending of the symbian-guru.com blog. Go there Nokia and weep! OS Mohan Kumar • If you look at Nokia's strength they are 1. Lowest cost producer in the world. 2. Strong in mid market segment and has got the volumes. Global reach except NA. Once the iPhone hype gets over in next 2 years in NA they can still battle it out if they get their strategy right. Remember the phone volumes are replacement driven in a 18-24 month cycle. They will need to get onto an Open OS platform ( Android/MS ?? ) and produce high volume/lower cost Smart phones for the masses. They can aim to be HP/ACER/DELL of the mobile world working closely with an independent OS vendor. I think the days of another OEM driven Mobile OS platform is over, the battle for that is between Android & MS7 along with Apple OS which is not open to other OEM's. They can still continue their OVI and other services on top of their chosen Open OS platform but they need to get off Symbian. OS Nikolay Nenchev • Nokia had also networking business with Siemens- NSN, but seems that all the discussion here is just about customer facing device. Just a hint, mainly the mobile market today is dominated by Apple, RIM, Google(HTC) phones and Nokia. Nokia should act aggressively and buy HTC. Separate hw and sw teams in mobile device department. Continue to provide open hardware device platform - for Android and Google. Also launch its own mobile OS, definitely open standard base and follow Apple strategy with apps and music/movies store. OS Ralf-Gordon Jahns • Nokia has focused too much on gaining market share by getting into the emerging markets with low cost handsets. Market share comes before margins. Therefor they did not pay the same attention to their smartphone business. Before the iPhone it was a niche market. Now they struggle to turn the business focus. The key elements of their strategy are: 1. new exiting devices 2. Get their new OS out as soon and good as possible 3, Navigation, music and apps to foster handset sales 4. support standardization for feature phone app development to leverage market share on simple phones. In some areas this strategy show already positive first signs. OVI download and app numbers increased faster than average. They might get their service business right after all. OS Roberto Saavedra • I find Murali and fellow IE colleagues study very illustrative on what Nokia should consider as future strategy to regain brand positioning, and more important : to avoid loosing market.

In summary, I think these key aspects should be considered :

- Reduce product portfolio : Even though the diversity of models allows Nokia to segment the market in its favor for total sales, this could be precisely the reason for other brands to gain special attention, in device-specific capabilities.

- OS and Apps : A decisive comparative aspect among leading smartphone brands. Apple relies on its exclusive Mac OS core and user interface. Google relies on openness. RIM relies on its exclusive private secured network and services. Nokia should find the innovative direction that bring the best of these approaches into one single OS.

- Connect emotionally with the target : Users and community developers should be motivated to buy a Nokia smartphone, targeting specific lifestyles and matching them with specific device capabilities. OS benefits Ajay A Jampale • What I wanted to point out here is, Nokia is customer centered company and is more open in its approach unlike some of its competitors. - Qt SDK which hides the underlying OS details(Symbian,Meego or Windows Mobile) and provides a nice abstraction on top of the OS. This way developers can develop once and deploy on multiple platforms. - Free Navigation on its Smartphones, something which has really received a very good response at least in the blogosphere. - Symbian(targeted for low end and mid segment smartphones) and Meego (targeted for high end mobile computers and beyond) are both open source and the world is free to contribute to it. - The UI improvements in N900 is laudable and there are many more to come. I see a lot of potential in Nokia but its just a matter of time. My $0.02 of course! OS Maemo Parham Beheshti • I used to avoid Nokia phones in the past in favor of other full featured smart phones. Pretty unknown Nokia N900, it totally blows away competition, it does what ever other smart phones do, way better ... It utilizes previously developed Linux application and taps into huge linux development community. I think if nokia pushes Maemo OS a bit further it can directly compete with the droid and iOS. The problem is that this phone/OS is pretty unknown to non-geeks and Nokia is not doing anything about it. OS multiple Carl Whalley • Keeping on tweaking Symbian, Maemo and MeeGo is the old mindset. If users don't know the reason Nokia needs 3 OS's they must be stupid, especially when they wonder why apps for one brand new Nokia handset won't run on another. Carriers and developers will jump for joy at the thought of marketing & supporting them, too. OS-OVI Wafa Khawatmi • Nokia has a good vision in my opinion they start to move to the network they make OVI and it’s the best, also le us not forget about mobile Accessories its amazing. they will not fall down. partnering Greg McQuay • Hardware is cool provided there are applications and content to make it dance. The market shifted and remains accelerated in this direction. Second issue is the dynamic of content sharing applications and experience. Frankly I see Nokia needing some effective partnering and a hot new idea that puts applications and content on a pedestal. Lucky for Nokia they remain a good name if they can turn the corner with the market. They have not been short on

innovation. Example - what could they do to reinvent high fidelity home entertainment? My guess is they could partner to re- formulate distribution, content, experience married to a market reserved to high end aficionados. The limiations are boundless if they extend themselves outside of their walled gardens and hardware. I hope they figure it out. Pay as you go Harris Von Essen • Nokia should focus on making cheaper more accessible phones to a wider market of users who are looking to take advantage of competitive wireless carriers and pay as go options. Although not as sexy as trying to be the best smartphone, this market has wide appeal, international growth, and can be dominated. They should also think about making a wide array of easy to use phones for a growing segment of older users, kids, and lower income individuals. perception George King • This is a great Nokia ad ! http://www.youtube.com/watch?v=zULDfSS7h20&feature=player_embedded perception Jorge Díaz García-Herrera • Nokia has to think about what has happened in the smartphone market: with iphone Apple has initiated a new trend that really connects whith the people (remember "connecting people"?). Right now the handset market is not about technology, it is about the way people perceive the phone: something nice and simple that helps you with everything you like: listening music, taking pictures, surfing the web, etc. Apple got it right and unless they make a very big mistake, it is going to be hard to beat them. There is only one way out for Nokia: change. Forget everything about what has been done in the past and start a new line of smartphones that can match the Apple design (nobody said it was going to be easy). perception Mike Gauba • Jorge Díaz García-Herrera is right. Purchase is all about perception. The forty one percent share (approx) that Nokia still enjoys is again due to perception that it has build over the last two decades. We must also appreciate that this perception was build over a solid foundation for it did not tumble overnight peripherals Mike Ross • Nobody makes as good a phone as Nokia.... but if they don't offer an Android version soon I'm getting rid of my E71 soon for one from Motorola, HTC or Samsung. (are you listening Nokia?) (oh yeah you might want to ditch the proprietary charger in favor of the ubiquitous USB type) Products Ajay A Jampale • The following link shows some early signs of improvement in Nokia's offerings. They are many more that can be expected down the line. http://bit.ly/bwS71h products German I Herrera MBA • Dear NOKIA, Diversify and evolve your product line to fit your customers newest needs.... Nokia has reached a stand still with mobile technology...what about a PHONE/ NOTEBOOK Hybrid...Internet connection, windows & office, explorer... An iPhone on Steroids.... don´t just stand near the competition get ahead 2 or 3 paces... (get research & development budgets ready) products Guido Meyer-Arndt • Hi to all the Nokia-Fans, hopefully you are all buying shares in Nokia! Nokia does need two devices – a small one and a bigger one. I buy a 4G-pocket-Nokia for Push-E-mail, contacts, schedule and E-money. This device must fit into my jeans at 24/7. A second and bigger device should be the size of an iPad with Wi-Fi only. (The small device might be the modem for the bigger device.) The 4G-Wi-Fi demand is a revolution Nokia can`t miss. The demand for all kind of content is real traffic for mobile networks – this is the future business of mobile networks. The advantage of the iPad is the digital rights management for all kind of content. The ecosystem of content for the iPad is the recipe for its success. Nokia does need easy

to program apps. For the bigger device there should be a Windows-mobile version ready. I need easy transfer of data I created myself. I need an easy to use key-board – may be at least on a touch screen. Let me say it in “Apple”-terms: The functionality of the Android competitor should be a crossover of the iPad and the MacBook Air. The bigger device should be both - a media reading device and a basic notebook. I will carry the bigger device in the tube, in the office, at lunch, and at the weekend on the beach but not in the disco or at sports. Ciao for now! Guido M.-A. Products Guido Meyer-Arndt • In general I am very satisfied with my Nokia – great attention to the detail which makes it easy to use. Last not least it’s the usage what is the overall design principal. The design of the next mobile phone is not just a problem for Nokia. BlackBerry is criticized as well. You do have to ask your self: “How do I use my mobile communication and mobile computing?” I argue the answer will be as follows: I need a small device which is surgical attached to my body for 24/7. The small device does have the 1Gigaherz computing power and something like windows mobile. The small device does have a small screen – off cause. But sometime I need the convenience to browse, read, write, and publish a text on a bigger screen. This is why there is a bigger mobile device – some call it the tablet “computer”. Both mobile devices – the small one and the bigger one – are connected via Bluetooth. This is why the bigger device does not need a second CPU – it is just a bigger screen, a key board and more battery power. BlackBerry is adding the encryption for everybody without the need to sign up for PGP. Not bad. This will be use full if and when encryption will be technology for electronic money. And money is something you do need to have in your pocket 24/7 – right? products kamal vij • Nokia was good and still is a trusted brand for many users. Specially those who dont want 1. "QUERTY/Business like looks" and those who don't want 2. "phone with best camera, best music player " You see the point ???? the point is , people still buy Nokia even if there are phones with better camera and player available at same price. Nokia should learn from the Success of E63 , E71 and E72 and come back to where they used to be... Products Monsif Allach • Being the number 1 for many years is a great performance in this competitive telecom world.. Nokia is losing area.. Apple is winning.. RIM still runs for silver or gold (!).. Samsung makes the price difference with good specs in cheap plastic coats.. but all of that can change with 1 new great product from Nokia which makes a difference for the next 5-10 years.. I hope they are up to it because I love the brand Nok products Shawn Ameli • Nokia needs to revert back to the basics and produce phones that excite people. I dont know if anyone remembers the 3300 series and 6900 or even the 7100 (MATRIX) phone. Those were the phones that generated excitement. products Thomas Beer • Oh, I think it would be a massive step towards, if they would come up with an new Communicator at long last. Products Ghana Galindra • Even though the low end market is huge, but I think Nokia needs to concentrate on its smartphone market smartphone first as it’s tightly correlated with its brand image. Once they re-capture the smart-phone market they could easily leverage to lower market. I think the problem with Nokia is that they have out touch with the market for some reasons. Had they reacting fast to RIM and Apple’s software technology the situation would have been better for them; moreover, a company with $8billion R&D budget (6x more than Apple) could have easily emulated every revolutionary technology out there. Given its giant market share and global leverage (Compare to RIM who is relatively not yet ready to serve global domestic market). I think it is not too late for Nokia to regain its once mighty brand image. They just need to calm down pull itself together and

reorganize its roadmap. Quality poor Amit Bhaskar • First thing it can do is manufacturing hyped handsets such as N97 which are driving users mad. Nokia it is time to something original and something that works not half baked products which are driven by marketing and poor customer support. I have been always a Nokia User but it seems now is the time to say goodbye. Reliability Andy McQueen • Nokia build some of the best phones around. The software works on most of the range and if a user wants just a phone most will still look at a Nokia unit first. they will always be a top brand but the are being left behind by RIM, HTC, and Apple as these companies now have the image people want to be seen with. To keep up I think Nokia should be looking for a simple reliable software version to run on the E series units. The N series should move back towards media as they did do this really well before the N95 came out. Selling mobile phone for a living I get to see what customer want and what they want to pay. 40% of customers want the fashion phone of the time, 20% want a straight forward phone and the rest want something for business use. Apple, RIM and Android fill the business side, and Nokia have the "I want a phone that makes calls" side sown up. So I would like to see Nokia with some really good looking business tools that you don't need to be a rocket sciencist to program. Just like everyone else in the mobile world we have all owned more than one Nokia in our life, so we all know what they can produce and look forward to the new units each year. Maybe Nokia should look to towards Android for software or email soliutions with RIM (again) so either way it will only take tow or three new units to start the ball rolling. When it happens I will have more items to sell. Reliability Carlos Baccan • Nokia is still a leading Brand, they may have drop a bit of market share, but they still hold a very healthy chunk of the market. Their range is wide ranging and they are very relevant, the only thing is that Apple has been revolutionary and this has impacted Nokia, but how can we suggest that they are not relevant, with over 1/3 market share. I've had multiple phones and the Nokia ones were by far the most reliable and the ones I miss most. I would agree that they need to work on their smart-phone offerings but this would be the only market that I would suggest that they are not leading in. Reliability Veronique Decotter • I think along the line Nokia lost its objective. The phones are released and the Nokia N97 was the worst model that we had in South Africa. I had this phone for 1 month brand new and it was sent for repairs and everything had to be replaced and upgraded over a period of 3 months and I was stuck with the same phone model. I have a few friends who went for the same model and experienced the same problem. Nokia is trying to go for quick Time to market to increase their market share but the product does not follow since there is no software stability. I have had no choice but move to Apple. I find the Apple phone to be quite intuitive and user friendly after having been a loyal Nokia phone user for the past 8 years. The phone can contain more that 4000 contacts and not freeze or crash when doing a simple task like a contact search. Nokia seems to have lost their market share since their products are not in sink with the professional market. For the youngsters who like music and media the Nokia phones answers this. The one good thing about Nokia is their Sync via Nokia PC Suite seems better to me than Apple Itunes Sync since you have a better view of the contacts and messages and other functionalities of backup. Sadly i will no longer buy Nokia Screens Isaac Chang • 9. Glass Unbreakable new glass material from Corning will ultimately fill all devices in my estimation. This will unbreakable revolutionize how we carry and use our mobile devices. They way we input and get output from our devices will be changed

Robert Steele [email protected] and on LinkedIn Page 32 of 42 glass forever. This is a great opportunity to invest to revolutionize mobile devices if some current technologies can be ported step by step as in revolution, innovation; not revision. Nokia should re-plan all that I suggested and all that we discussed with their spirit of Connecting People. Seamless Bradley Sander • I would encourage you to look more closely at the areas that NSN is actively working in support of Nokia's evolving strategy and you will at least find a compelling path..... Handset, Network, Content and Platform. Whether or not it will work, only time will tell. seamless Paul Hollingsworth • Well - as usual if you have no vision - the market looks pretty full. RIM seems to have the business market and Apple produces nearly everyone else's coolest device. However Apple still haven't worked out how to make a phone that works very well and from my experience RIM still can't make a device that you can type on very easily, so there must be some scope. But the big challenge that finally we've all understood is that the "killer app" is seamless application access and Apple have again moved the goal posts. Therefore, my view is that, the "mobile device" as a separate market is dead. Nokia had better start to change their core market. seamless suresh agrawal • In world of converange, nokia has opportunities to build a large gadget portfolio and at the same time create revenue stream thru application centres.Gadgets need not be restricted to mobile phones, it can be like digital diaries, palm top video games, cameras, laptops, or like !Pad create a new category called "DigiWorld" etc. It is important for Nokia to shed traditional hardware brand type image and reposition to "connecting wireless world".To reposition its image, Nokia must launch new categories like DigiWorld which can be like !Pad product i.e. a diary shape video screen with wireless connectivity with lacs of applications on the web. They need to improve user interface esp for push mail, social networking experience and other applications to make it instant and one touch button access. Use as much of open platforms like Android for mass penetration, however keep provision for hiend application charging. segmentation Usman Rafique • Rober,t in BRIC countries with large population, you see more Nokia than others. I have heard they have 38- 39% global share. Its similar in 90s when everywhere i saw in my country, I found windows, never saw anyone had Apple. SEGMENTS:Marketing 101 One example of benefits of segments: Nokia can gain brand love from all segments of society, for example young ones. When they grow up, they can get higher end phones from brand they been trusting that long. Ever wonder of potential advantage of segments in advertisement? And advantage of scale achieved by segments in advertisements? Apple don't do segments. Microsoft don't do hardware, don't do segments, don't do services Google don't do hardware, don't do segments, don't do services Nokia does segments, hardware, software and services. They have all pegs in place. They have deep integration with face book, own world maps, All you guys don't get it and i wonder on what you most of you guys lost your hair :P Moreover, it is stupid to say they are making half baked products, all of them are making good products. BTW i own a Samsung phone, because i think Nokia is a racist company internally and that taste bad. services Carl Whalley • @Usman "Google don't do services" "All you guys don't get it ..." Nice. services Chirayu Wadke • Nokia needs to take a clear position in the market. Right now they are being sandwiched between the elite smart phones and low cost phones from Samsung and other Asian manufactures. Also, they are faced with low cost smartphones increasingly prevalent in India and China A good idea would be to appreciate that they have the distribution

relationships to play at the lower end of the market and do not possess the brand or the UI/UX to make a successful dent in the smartphone market. Also, look at beating the crowd with better after sales services, a key area ignored by most smartphone handset manufacturers while not being an important criteria for low cost / mass manufacturers. If Nokia can improve on this, the game can change signficantly. Services Colin Dawkins • Hi Usman As I said above, It looks to me like Nokia is trying to become more of a services company. The hardware is just a way to get those services into peoples hands. Kind of like Google with the Nexus One. That didn't work well, but their Android OS is out there and lots of people use it to access Google services Services Edgardo Scrimaglia • Hi Guys, may be one point to take into account: when anybody buys an Iphone they do it based on the Iphone features/services/capabilities/design/look and fell, etc, etc, regardless the cell operator. Apple stores and marketplace were very key on their success. Something similar has started happening lately with blackberry. On the contrary, any other phone including nokia is bought based on the cell operator promotions and/or the price of the contract rather than the product´s pros or qualities. As long as a Smartphone company let their business strategy on hands of cell operators things are going to be even worst my 0.002 cents Services Guido Meyer-Arndt • Nokia does have (almost) everything it needs – the n900 with 600 GHz, its own app store, the quite sophisticated maemo 6 which shows strategic thinking. What is missing is a little bit of buzz - but action speaks louder than words – let`s wait and see: I guess they might work on a >bigger screen only device< which might be connected to the n900. Apps are key – especially for the publishing industry – encryption for everybody & DRM. And they might work on electronic cash for their smaller devices. That kind of action is the basis for the buzz to come … services Guido Meyer-Arndt • Samsung Galaxy S & Galaxy TAP is becoming an industry benchmark. High speed Wi-Fi will connect the device to cloud computing. Hardware is becoming a commodity and bandwidth is good but not sufficient. The customer doesn`t want the hardware only for the sake of it but an effective use. What service does Nokia offer? My suggestion is a service to make secure transactions – money payments. Not just in order to buy digital content but for online and off-line shops as well. services Kam Rezvani • Nokia has to think 'post iPhone'. You can't chase iPhone. You can't be doing what Microsoft does which is chase everybody's latest and greatest in the hope of beating it. You have to be ONE step ahead. What is post iPhone? That is a very difficult question. But may be the IBM model is the one to follow for Nokia. Go into services. IBM is making a fortune at it. Even infrastructure is a good bet for Nokia with the demand for bandwidth continuing to soar. Apple and Google cannot be beat at their games. They are just too good. Services Manas Ganguly • Relevance here has two connotations: 1. Service relevance at the low end 2. Device relevance at the high end At the service relevance part, Nokia will possibly do well in Afro-Asian countries with Nokia Money, Life Tools, Free Navigation, Music and eMail. The optimism here is because there is no single platform that offers such services to the bottom- of-the-pyramid users. However the time that it will take to get these services mainstream may be a concern. In the High end devices, Nokia has lost the game and no matter how and what Nokia does, there is a very bleak recovery there. Competitors

like Google, HTC, Dell are possibly doing better on many counts in here. References:A phased snapshot each documenting the decline and fall of Nokia in the mature US markets.: http://ronnie05.wordpress.com/2010/04/14/i19/ http://ronnie05.wordpress.com/2009/12/04/127uy/ http://ronnie05.wordpress.com/2009/12/15/juu8/ http://ronnie05.wordpress.com/2009/08/06/fixing-nokia/ http://ronnie05.wordpress.com/2009/07/28/hjk/ http://ronnie05.wordpress.com/2009/07/22/fgh/ http://ronnie05.wordpress.com/2009/07/22/nokia-ii/ http://ronnie05.wordpress.com/2009/07/22/nokia-i/ Services Mike Gauba • Nokia is going through a mid life crisis and here are some thoughts on how it can pull itself out and regain its leadership position. 1. Accept that there are two broad segments - Voice and Data. With the data needs becoming more specialized, Nokia requires a separate corporate level focus (say Nokia Voice and Nokia Data). It should give up its hang up of convergence and face the emerging realities of the market. Nokia should also consider changing its business model and move to more engagement based rather than one off sale model. This is almost a virgin area (barring for Blackberry), Nokia can establish its leadership 2. On the voice side - there are three definite market segments. Brand and position phones in line with these segments. The key is that the segments should be able to identify themselves with the phones and proudly own them 3. Rapidly move high end innovations to the middle tier and low end phones - exciting the markets to invest on new phones 4. Improve market communication and align it with each market segment and hit it at the specific need of each segment. "Connecting People" is now bland and a punch line of nineties 5. As Chirayu rightly said, Nokia should fully leverage its after sale centers to differentiate and maximize its value proposition. Especially at the low end, these centres should become more obliging and provide immediate service to send a clear message to those who left Nokia to buy unbranded phones The new CEO should transorm it from a technology driven to a consumer focused company [RS: Wrong. Intelligence services— information sharing and sensemaking for one or many.] services Usman Rafique • Colin you are right, they are into services but for many years. Even they were thinking about services from last century and played their cards from there on. I don't see one guy will help them anything on services. The Canadian will just be used as pawn, and thrown out in 5 years time when they will get from him what they want. About politics, it is always there. services Usman Rafique • Nokia is already in services: games, music, maps and navigation, advertising etc. When it comes to services, volume wins. What I don't see is what is apple game for social networking? Moreover i wonder why Indians and Chinese are advising Nokia, why don't they shower their wisdom to their own companies? Services Colin Dawkins • Another interesting article "Hardware rules, Software follows" . An ex Nokia Software engineer reports what I suspect we all knew, but the article is still interesting. Quote: "Here's the problem: Hardware Rules at Nokia. The software is written by the software groups inside of Nokia, and it is then given to the hardware group, which gets to decide what software

goes on the device, and the environment in which it runs. All schedules are driven by the hardware timelines. It was not uncommon for us to give them code that ran perfectly by their own test, only to have them do things like reduce the available memory for the software to 25% the specified allocation, and then point the finger back at software when things failed in the field." The full article is at: http://www.engadget.com/2010/09/15/nokia-software-engineer-says-hardware-rules-software-follows/ Services—for Phil Stone • Focus on good customer service and post sales support. Look after existing customers because they cost less to life, lease do not keep that converting (say) people away from iPhones. For me I have always been brand loyal to Nokia and inspect the Nokia buy devices website first when considering a handset upgrade but recently the build quality has deteriorated and my last three handsets have died within warranty. When things do go wrong Nokia are not around to help and simply want to sell another handset so after twenty plus years of only buying Nokia I'm starting to look at HTC simply because the after sales support couldn't be worse... Siemens Giacomo Ghassan Karouta • I guess Nokia needs a new Strategic Leadership (similar to what happened in the early 80's) and should perform a strategic critical review of the alliance with Siemens. I see the company as a follower the last 7-8 years. Smart phone Carl Johan Støylen • I just recently got the HTC Desire Android 2 "smartphone" and started testing it. My first impression was not the best as real time streaming of my remote IPCAM was NOT SUPPORTED. Interesting that typing in rtsp:// was overrun by the default browser which added http:// so I ended up with http;//rtsp://.... really annoying! I checked out some forums and found out that this was a known weakness of Android phones. So I downloaded some apps that was free but it didn,t work out well as none of them was working at all, so I switched to my wifes Sony Ericsson Vivaz Symbian phone and oooppps in 5 seconds I was online with my IPCAM! On my Nokia N95 same good experience :-) So the smart phone was not so smart after all.... Another thing is that HTC do not have any apps at all! I checked out Nokia site and Sony Ericsson and they are loaded! I know there are thousands of Android apps out there but to be honest I expect that HTC at least had more than 1-one.... Well when I checked the apps on the markets I did not find many useful ones and what I was looking for to my IPCAM was not there.... So again I am not convinced but time will show if I will find something useful on the android markets. I will come back and report :-) Smart phone Carl Johan Støylen • Well, let us hope that these "Smart" phones will come down to an affordable price level to give Nokia even more competition :-) The comparison with iPad was a bit off the track in this discussion as they do not belong to the category of mobilephones, nevertheless I see ur point. More important, pse do not forget that there are not only "smart" users out there, many users prefer a simple handset just because it is cheaper investment, easier to use and easier to read. Smart phone Carl Whalley • By the time Nokia finally do get with the Android plan it will be too late. It looks like they are hell bent on pushing their tweaked legacy stuff for another year, at which point they will be forced to realise their incompatible, app-less systems aren't even on the radar for either consumers or carriers. Android has just turned round Motorola which was facing a similar future - have they really not noticed this? Smart phone Isaac Chang • Note, Meego, Maemo; N800/N900 - those software OS and handsets are not making any tiny splash in entire industry; it's like 100Kpcs for 6 months while iPad 2million pcs in 60 days. This shows obviously both interfaces of mouse and

keyboards, and web browsing and page formatting are becoming legacy from past few years to next 1-2 years time in becoming more mobile, more intuitive to any window size of any mobile devices in any OS form. Nokia has not progressing at all with this revolution of interface. They got totally wrong on Meego, Maemo, weak processor, weak marketing, weak market reading on smartphone and new mid-end smartphone user need with loads of features on hardware and software at very affordable cost. I want to re-iterate this that Nokia is not in the 'zon' of progressing and going wrong track both in hardware and software, not to mention their store. Yes, they are leader, only leader in low-mid end; that's like walkie- talkie stuff, very old legacy for antenna, battery, RF, display, keypad to make a $10 phone for past 20 years. They will continue to make small profit, high volume(lots of work) and small gross/net profit while giving away their main chunk of beefy smartphone profit. I am not saying I'm in love with Apple, but their recent capital position over took even Microsoft and heading to Exxon. That's why Nokia, the leader has been REACTING, not RESPONDING for past 3-4 years, and emotionally attached in lawsuits. Data, wireless, and ongoing evolution in interfaces are changing the consumer daily life to be more connected and effective at more and more affordable cost. That's what others and I will fall in love. Smart phone Michael Radanovich • I see many comments saying Nokia should do "X", where "X" is, in fact, something they have done with the Maemo platform. Maemo is not Symbian based but in fact built on open-source Linux much like Android is. It appears to me that they are clinging to the Symbian cash cow for too long and not going "all in" with Maemo. I use a Maemo device (the N810 PDA) and find its Linux core to be wonderfully utilitarian, close enough to a laptop replacement that I find myself pulling this out of my pocket instead of walking across the room to my laptop. I like the fact that they stick with resistive touch screens instead of capacitive multi-touch; pinch-to-zoom is nice, but only resistive screens are accurate enough run a real web browser that works like a real computer. The iPhone is popular, but not popular enough to cause every webpage in the world to shift from a deisign that assumes mouse-like accuracy to fat-finger capacitive touch. 3rd party software support, however, is thin. The logical thing to me is to add a compatibility layer to run Andriod apps. It should be possible since Android is open source. There is a PalmOS compatibility box but it won't run some of my legacy apps. A Symbian compatibility box would be a sign to 3rd party developers that they are serious about switching over. Smart phone Muzammil Raza • i like the idea of spinning off smartphone division...tht can be a very good step for nurturing the mindset required to think and act differently from general non-smart phones...however they should be very careful in selecting the ppl for such setup as spinning off just for the sake of it thru ppl with non-smart phone mindset will be putting nokia in a much deeper whole...as i said in my previous comment...there certainly seems a will to change and adapt to the new environment from Nokia...so that solves a major problem...but they need to channelize that will now into making bold steps like spinning off the smart phone division and giving them the required resources (not spoon feeding them though; they should have enough resources to thrive but they need to make their own living; again putting the right people there would solve this problem somewhat)...and setting them free to create their own universe rather than having them to abide by anything...nokia culture and all.. Smart phone Peter (Sheung) TANG, MSc. SBIT • I have been using Nokia for many years, but in the next few month I'm going to give up

Nokia N82 for iPhone. For iPhone and Android seems to be the way forward.... Nokia need to spent more on their Research and Development to come up with new idea inorder to attract customers. I will look into Nokia again after my iPhone in 18 months time...... Smart phones David Grootwassink • What I find most interesting is that they have fallen victim to the same thing that allowed them to eat Motorola's lunch when the world shifted from analog to digital. The world has now shifted to smart(er) phones and Nokia didn't realize it until they were already the fourth person in a three person race. Symbian is dead, the body just hasn't realized it yet. In the end there will be Apple, RIM, and various flavors of Android. If they want to continue to play in the game, they will have to adopt an Android strategy like Moto, HTC, and anyone else who wants to play the game. Smart phones Wilbert van de Kolk • I agree with David. If we look to the smartphone market in the near future, we will see RIM als leader within the corporate market and the consumer market will be ruled by the iPhone and Android smart phones. Symbian is dead and Nokia will, on his own, not be able to compete to the power of the Android market with the Maemo OS.. In my opionion, there are two options for Nokia: 1) Adopt the Android platform or 2) Give Maemo free and look for other manufactures to bring this to the market. Software R. Paul Singh • Nokia is a great company but somewhere lost its way in trying to become something other than a handset company. Nokia is a leader in the mid-market worldwide and it should do everything to stay on top in that segment. That segment is not interested in apps at this time but if a cheaper Android alternative appears, the game may change. This segment wants feature rich phones at a reasonable price point. If Nokia can innovate and bring some of the high end features that are in Android and iPhone to this price range, it can defend this market and probably grow its market share. As far as high end market is concerned, it tried unsuccessfully to compete with Blackberry and now trying against iPhone and soon will have to compete with Android phones. In this market the battle has shifted to developers and applications. I am afraid that Symbian and its long history is more of a liability as new developers are preferring newer platforms like iPhone and Android. In this segment, Nokia has to reinvent itself to stay relevant. Nokia's biggest advantage is a better relationship with mobile operators and it should figure out how to leverage it to its advantage.

Software Isaac Chang • Look all, I used to love Nokia and still do. But, I'll buy new iPhone 4.0 version soon. Here's the thing: 1. Change leadership, ie. change the C-level leaders. Do a comparison with Motorola CEO, he made a come back (for now). 2. Change organization structures: perhaps they have too many layers, direction and things are set and done in timely manner. Time-to-market. Cut back all redundant org. 3. Keep low end phone: That's what big boys usually play, the massive game, 40- 50million units onwards kind of game. This is said sometimes back by Steve Ballmer. But, low end phone would never secure them high margin, given the phone cost is $8-12. Well, Apple did lesser volume, but made the largest margin and profit in comparison to big boys' volume. 4. High end phone: Nokia smartphone ain't smart anymore. - I typically hate the 'Option' menu button, I don't know why does it for any reason. - Besides, I don't like 6-8 buttons on top of the keypad. Even LG latest touch phone has only 1 button. - Nokia lagged for 1 year to come out touch screen phone while their competitors from Korea, made exciting touch screen phones.

- Nokia doesn't innovate. What is so big deal from E71 to E72? I call that, revision or improvement. It is the same goes with their 'i' naming. They segmented their phones in too many layers, giving too many options and loose the steam to be focused, giving to the right clients with the right phone. 5. Phone software(smartphone): - They are slow, not responsive, not intuitive, not user friendly - OVI: Why iTunes music download spoke louder than Nokia theater on every American Idol show? I don't get it. - Someone from there has to take a dummy(like Jeff Hawkins), and starts to figure out how each software flow to be done, in the simplest way, in the least steps, cool and awesome - to get a task done. - Step back, competitor OS platform allows for multiple types of apps running on it. Yes, it may be just 1 task at a time(multi-tasking coming), but it's a computer like platform. That's what makes consumer excited, that they can add more apps, upgrade OS. Palm was the pioneer, then MS Pocket PC; now all are replaced by iPhone OS, Android, and more to come... - Meego, Moblin - too many headlines on these; but no relevance to us anyhow, today - simple means no impact. 6. Processor - Everyone is going to use 1GHz. It seems marriage between Intel and Nokia, is not working out after a long time as compared to Apple's investment for making A4 - which is just a repacking technology. Smartphones need more processing power at low power. - Samsung would be a great candidate to do well in long run in this business since they manufacture everything from AMOLED, LCD, RAM, ROM, microprocessor, screws and nuts(just kidding), and now working hard on Bada. Not even Sony Eric. can come close to Samsung as Sony always depend on their vendor making their phones. 7. Focus Droid, was a single focus to come back. RIM brought us business tool via their Blackberry. Consumers don't want to be confused with so many models, E, C, X, N, S, whatever series out there. They have to focus, 'Connecting People'. 8. Contents I think, this you all can write. Note, Sony has all contents in the world, you name it. 9. Nokia US It is a total failure there. They closed their concept stores. Their phones are the cheapest in that country as compared to elsewhere. Their selection at operators are the lowest while being cannibalized by Samsung. American either wants Smartphone or cheap phone; no mid phone. This is just my opinion, correct me if I'm wrong. Note, I still like Nokia, I still like Intel; they got to innovate. I refuse to pay a phone/tool with revision; neither will I use a tool that doesn't listen to my comfort and need. I need a phone, well connected and get everything into the palm of my hand. Software Isaac Chang • Yes, Nokia is still leading in many ways, but isn't consistent in every country. This shows that they still have lots to fix. Also, their smartphone markets are eroding and being taken by RIM, Apple and Android. This means they can have the low-mid, high volume-low margins; but giving away the high end markets and their technological leadership. Today, Nokia- Yahoo partnership sounds, to enable Nokia to be strong with searching engine, IM and other map stuffs. But, as you know, your old Nokia phones won't enjoy this new marriage even in second half of 2010 when this is released. Their software platform or policy won't allow you for an upgrade; yes your phone has Symbian, but you got to buy a new Nokia. This is really frustrating with Nokia at times, they are not green and just want you to buy the latest model with latest software. I don't mind to pay Nokia $5 or $10 for an upgrade, note iPhone first generation model still can be upgraded. Hardware guy, is always a hardware guy, un-green but eyes only on green bucks. It's times to question again, 'Connecting People'; back to basic and fundamentals. It's times to question buy 'why', not 'what'. It's times to question what is your vision? Software Ivan Skledar • OK, Nokia is still a leading brand, but everybody must admit that their Symbian mobiles are slow and unstable

(speaking from my experience - I have N95 for some time now and it's not a great model for sure). Feature packs in new mobiles are not distributed through mobile models as they should be (in my opinion). If you want a simple model you'll get basic feature pack, but for something more you have to invest too much money in device. For example, I think that N97 is a great mobile with everything that advanced user can whish, but the price and quality ?!?! Software Ognjen Antonic • My view is very simple: Nokia was always concentrated on their hardware and not enough on their software. From mobile phones to network equipment (now NSN), their software was not as good as their hardware. I know this by using both their phones and their network solutions. Apple and Google both come from powerful software domains. With Apple it was always about symbiosis of software and hardware and software development taking over hardware in importance quite early in their company life. You can see that Apple not just makes good hardware, they make excellent software, too. From iLife which is preinstalled on every Mac, to specialized software like Aperture and web server like WebObjects, not to mention their excellent operating system foundations both for desktop and mobile use. With Google it was always about services from their cloud which are of course based on software domain and not so much on hardware. They hired some of the best software developers in the world and have built Android on modern and open software concepts. Their rationale is increasing the number of users of their cloud services, while at the same time keeping phone makers and application developers very happy. Android is now fastest growing mobile OS platform. So basically, Nokia should refocus and give software much more importance than it currently does. They should rethink what to do with Symbian to be up to date with competition and to make it attractive to developers again. Joining Android would not necessarily be bad idea. As it is open source and they can tweak it to the way they want. This might be better idea than spending time building new mobile OS foundation capable of fighting off competition. Software Saif Kader • I hate Nokia with a passion, almost as much as I despise Sony-Ericcson! However they took a good decision, albeit late, by initiating the move to the MeeGo open platform. In order to be profitable and in Nokia's case to regain competitive advantage it must understand what the customer wants and how to survive competition. Off the top of my head: Ditch Symbian and invest heavily in MeeGo Encourage independent app development for MeeGo Drastically improve signature apps such as Nokia Maps Actually build capable email client software If all else fails, bite the bullet and move to Android! The differentiator in mobile telephony these days is software. And Nokia cannot compete against Google or Apple in that aspect. They need a new differentiator, perhaps new innovative form factors? I hope they've been heavily investing in R&D over the last decade or they will soon be in deeper trouble than they are in now... Software + Vesa Jaamuru • Nokia like all the big players is trying to avoid becoming just an commodity like device vendor. It has currectly Services a strong foothold in voice only cellular segment, but has also realized that the game has changed and importance of SW and services with applications has grown. So it cannot stick to high volume/low margin voice only markets in order to grow. Therefore Nokia is executing its' new growth strategy which requires flag ship type smart phones as the game is more and more about image share not just market share. This is where Nokia has struggled big time. Apple and RIM have shown that you can be more profitable by selling much fewer phones than Nokia. But relevance in this game is not about amount of sales. Relevance to whom? It's relevance to customers, share holders and with smart phone business relevance to third party SW

developers. Nokia is taking actions fixing the smart phone platform issue by launching new more attractive ones. Problem is that they are behind Android in schedule. As it is all about image share you need to be relevant in US market and with US customers. This is area where Nokia has failed big time. In stead of showing big operator customers existing product roadmap and asking them to choose from it one needs to work with the customer in order to create customized products for them. This is happening now again (10 years ago it was different story and Nokia was market leader in US) but not in large scale enough. Nokia has always had the products full of features (also some clearly ahead of competition) but sales have been miserable. Also Nokia's marketing efforts in this vital market are almost non-existent. Share holders mostly care about the future potential and how credible the future promises are. Nokia's top management is currently lacking some credibility in front of share holders and investors as promises to retake US market have not succeeded. Speed Shivcharan Panteja • wow.. big discussion.. Well, i have just to say few lines.. Its not that Nokia is falling, Its just other are doing better and running faster to catchup.. So , why its happening : 1. Speed ( Time to market ) : Asian companies understand it very well, and they are trying to come up with new models at faster speed. Samsung , HTC, they release new models frequently. New models definitely means , improved in some or other features. So no wonder Asian companies do overtime to meet product deadlines. 2. Hardware advantage: Samsung is Semiconductor company and so has advantage now. It can manufacture full mobile with its own hardware ( Processor , memory , LCD etc) and software. Similarly HTC has broad competitive electronics market in Taiwan for hardware and chineese developers to meet software. Apple case was exception so far but we can see so many issues reported in IPhone 4 recently ( could be because of quality checked missed trying to meet launch date). http://www.straitstimes.com/BreakingNews/TechandScience/Story/STIStory_548574.html Future in Mobile business is mainly for those who can produce faster without loosing quality. Thats what Nokia should adapt. Speed of Alban Cousin • Why is Nokia not a great company anymore? It is still a leading brand, especially in emerging markets, but in execution recent years has failed to capture any value from the smartphone opportunity. They hold market share, pump volumes, but capture less profit in absolute terms than Apple, RIM and HTC combined, although shipping 5x their combined volumes! They increasingly look like IBM in the PC industry in the 90s, an incumbbent with long product development cycles, lack of innovation, and internal issues delaying important decisions.

I agree with Isaac on a lot of things and would add: 1. Bring more Internet and Software expertise in the Board; currentboard members lack it 2. Get rid of the old guard: the latest restructuration was just a change in roles bearing no punishment to any of those who have failed in their previous role and even worth gave them responsabilities in areas where they lack experience. At a crucial time to the company..No wonder the brilliant guys under them are growing frustrated and will start leaving soon 3. Refocus on the US b/c there is value in being present there, either money wise or technology wise (trends still start there) 4. Ally with a leading internet brand to offer new services 5. Do more to engage in other areas than phone, soon these things will communicate with your car, TVs etc.. I know there is

Terminal Code, but looking at Samsung assets and RIM and Apple acquisitions, Nokia is behind Speed of Michael Radanovich • Randall Arnold's articles bring a different angle to many thigs I have noticed. I think Nokia's *techinical* execution plan to re-vitalize the high end is basically sound, with Ovi services and Meego serving as the platform and QT as a developer environment that can bridge the old Symbian with the newer Linux OS core. I also concur that Apple is not the threat; their marketshare is already declining in the US as consumers gradually discover the hidden costs of carrier subsidy and outgrow the locked-down platform. Google is.the real threat and Nokia seems to realize this.

What has been missing recently is execution, execution, execution. Maemo came out about the same time as the iPhone and Android, but has evolved much more slowly. Randall's article also points up something that I should have noticed myself: they make too many phone models. Nokia might take a cue from Hewlett-Packard of the 90's and kill off most projects early to concentrate on launching fewer of them. It also escapes me why they can't make variants of a platform: a CDMA variant of the N900 on Verizon would sell like hotcakes.

Nokia biggest problem is shown by their highly assymetrical sales performance in the US vs the rest of the wrold: Retail distribution. I'm afraid this will require radical thinking that is contrary to Nokia's methodical nature. Exclusive partnership with Radio Shack? Buy a controlling interest in Radio Shack? Buy a controlling interest in T-Mobile USA? Finance directly like GMAC did for cars? Launch nationwide carrier-agnostic retail stores? Door-to-door salesmen on commission?

I can tell you what will NOT work: sales via the web. A consumer must hold a phone in his hand and futz with its controls to make the sale. Video Leonard ("Mick") McManman • Here's a novel idea...or maybe not so much. The point is that we have yet to see it implemented and made available to the subscriber -- WHY IS THE CAMERA LENS (VIDEO AND PHOTOS) STILL ON THE SAME SIDE OF CELL PHONES AS IT HAS ALWAYS BEEN? OR WHY NOT A DUAL-SIDED CAMERA? With streaming video and all that entails currently available from a bandwidth standpoint, why hasn't a manufacturer like Nokia, or Apple for that matter designed a phone where people can see each other in fairly real time during a conversation? Doesn't it make sense that such a feature is a "natural" feature transition to be one of the next big things? Maybe it's just me, but I thought we would have arrived at that point by now. Video Manish Tharwani • A metallic phone with a TV seems to be its answer. Nokia is banking on the N8’s impressive gadgetry to make a mark in the smartphone market. It boasts a 12-megapixel camera and high-definition video, and will also offer streaming TV services. Nokia has inked some deals with local video providers to make this part of the phone particularly attractive to Singaporean and Malaysian customers. Video Ted Jackson • I think they need a dual approach. First they need to remain relevant in the low end of the market. Let's not forget that this is the larger portion of the cell phone market and while margins are lower the volumes are much higher. I think on the high end that they need to focus on incorporating features relevant to future applications in an attempt to

leapfrog competitors like Apple. One area I would be focusing on is video. The networks will be able to handle this soon and I think it could be the next big thing. Why are there not more devices with cameras on both sides? My children use their phones to text, access You Tube, access facebook and make phone calls -- in that order of importance. I think they would take to video calling/chatting like a fish to water. Voice Mike Gauba • Nokia like most mobile operators is struggling on the 3G front for both are still living in the "voice" world. Though the operators are still happily milking voice but Nokia's cow has become slack. It should do the following to rejuvenate its cow and establish its leadership in the data domain 1. Shed its legacies, including convergence and focus on the data related challenges. The rules of the game of the data market are distinctly different from that of the voice 2. Play its own game and not get sucked in by iPhone or Blackberry. These two are fostering ahead for they play their own games (separate business models) 3. The key success factors of this market are strong positioning and a market synergistic business model. Unfortunately Nokia, inspite of its excellent technology and user interface utterly lacks on those fronts. Must factor them into its marketing initiatives Windows sucks Marlon Molina • besides of management, as user I am looking for easy of use and effective products. I just return my mobile and change to a blackberry because the Windows system in the mobile was impossible and really hard to use.

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