What does Nokia need to get out of the gutter?

What does Nokia need to get out of the gutter?
In just over a year, Nokia went from a profitable company, to the biggest loser the industry has ever seen - the company has burned a billion dollars of its cash each of the past couple of quarters. Nokia can’t seem to get the needed traction with its Windows Phone devices - sales are slowly picking up, but next quarter its high-end Lumia will face an uphill battle as users know they are not getting updated to Windows Phone 8 and many will hesitate before getting one.

So what does Nokia need to do to finally get out of the gutter and swing back to profit, and to bringing awesome devices to us, users? What’s the recipe for success?

To arrive at that answer, we should know that Nokia has already changed a great deal under Stephen Elop and is no longer the same company you knew. First, Nokia has dramatically slashed R&D and its workforce, and is continuing to do so. It has outsourced manufacturing to Asia and closed a couple of its factories. Also, it has focused more on design and location, with Elop’s vision of Nokia as the “where” company. It has also signed agreements with Microsoft that tie it with the Redmond company for good or bad. In that relationship, Nokia is the part providing the maps and the colorful handsets bringing the best out of Windows Phone.

With this new reality in mind, here’s what we think Nokia can do to finally get out of the red. But we are mostly looking to hear what are your thoughts and suggestions about the company that until recently was the world’s largest phone maker.

We are not suggesting radical shifts in management as that would mean a whole new paradigm to think in, but you are welcome to - that’s definitely the only option for many. What should happen after those changes? Check out our ideas and hit us with your thoughts in the comments below.



1. wendygarett unregistered

How about, Kick Stephen Elop instead !!! just joking lol

12. nagabiru003

Posts: 11; Member since: Jun 04, 2012

yeah, return him to Microsoft, and ask for refund

13. haseebzahid

Posts: 1853; Member since: Feb 22, 2012

if elop didnt came in there wasnt any wp or meego phones only symbians

20. bobfreking55

Posts: 866; Member since: Jul 15, 2011

you know symbian is still good and useable. the ecosystem and feel is just outdated. I would actually prefer MeeGo and Android over WP because of it's open nature, Mass Storage etc. Samsung went Nokia's previous ways with SD Cards and Removable batteries... Now Nokia wants to be Apple, with closed systems and the like --- who do they come to? one of Apple's biggest competitors, Microsoft. everyone thought the Nokia Lumia would crush everything, including me. I lost faith already. Last Nokia phone I would actually want to own is the N9.

35. haseebzahid

Posts: 1853; Member since: Feb 22, 2012

then why did no one cared about developing high quality apps for it i know it is good OS but its not given enough attention by anyone nokia or developers thats why it is going down hard

36. haseebzahid

Posts: 1853; Member since: Feb 22, 2012

and openness is not everything people use to brag its only one reson Android users say its better but there is others things that are also involved i dont mind a closed OS as long it is butter smooth and easy to use i am happy with it and WP beats android in these 2 matter straight out of the box with no extra apps if i had android i need a whole week just to tweek the phone for my use and getting use to it is even harder and their is alsoways a risk of bricking the phone if power faliure occrues for example on my WP i never had to do these stuff at all i love it the way it is and Games are awsome on it Android wont have the quality that wp has to offer and wp8 is comming with i think u might have heard of = Dx support native to PC where it leads well u can imagine

50. microsoftnokiawin

Posts: 1268; Member since: Mar 30, 2012

elop had nothing to do with meego meego was being developed since release of nokia n900

57. downphoenix

Posts: 3165; Member since: Jun 19, 2010

Well Meego was going to come anyway without Elop, Elop just killed it off before it launched and released the stillborn N9 to virtually nowhere. Symbian was just fine as it is, it just needed to be updated to play catch up with Android and iOS, or at the very least become the "low tier" for their smartphones and have meego be the next generation, if it was not feasible to update the platform. As far as meego getting poor US Carrier support, I feel like this is somehow Nokia's fault, Nokia was the #1 cellphone oem in the US before the Iphone came out. They clearly had the clout to get Symbian devices on carriers subsidized, but they failed to do so.

48. snowgator

Posts: 3621; Member since: Jan 19, 2011

Mr. Elop did two major things wrong: 1) Killed Symbian before WP was a proven winner. While I liked the N9, killing off the R&D costs for MeeGo was not a poor decision. Killing off your cash cow, even if it was aging and unable to compete long term with Android and iOS, was just short sighted and left them with a sink or swim immediately situation instead of an opportunity to allow WP to grow. 2) Being way to honest. One of the most important jobs of the CEO is to make the unpopular decision and make it look popular. Slapping everyone in the face with the "everything you have done up to now is outdated and worthless" was a dumb way to go about things. I like the decisions, but just think it was silly to make them this painful. At this point WP8 is the witching hour for Nokia. Mr. Elop needs to see huge gains in marketshare, or else he will be shown the door.

2. Veigald

Posts: 290; Member since: Jan 13, 2012

What Nokia needs to do? First of all complete the turn-around operation they're in, which is going to take another year or so. Nokia is like an athlete stopping to exercise and starting to eat fast-food. If he does that for a long time, it will take even longer to lose weight and getting into shape again. Under previous management, the athlete that used to be Nokia became a fat slob who didn't care about anything than short-term pleasure. Elop and the current team has to deal with getting the company into shape again. And for the R&D comment, it should be pointed out that Nokia is now filing more new patents than they have done since 2007. Nokia simply will not be profitable at least until Q1 next year, that is how long these things take. Not that you would expect the average phone-forum user to understand that, so most likely this article will be spammed by "fire Elop" and "push Android" comments...

17. Edmund

Posts: 656; Member since: Jul 13, 2012

Couldn't have said it better myself. The armchair CEO's commenting here and on other tech blogs don't realize just how significant the paradigm shift to WP8 will be. They're also quite ignorant to the fact that android's ecosystem is so far behind the 8 ball that it will be years before google comes even remotely close to catching up.

31. rocky459

Posts: 6; Member since: Mar 27, 2012

True its not about current loss , in long run, it will rule and yes now the war is not about the OS its just about ecosystem , and after win8 its complete :D :D

3. kunyuk

Posts: 56; Member since: Jun 29, 2012

Nokia should go with android

6. MeoCao unregistered

That's not gonna happen in near term, they have a contract with MS

51. Bluedroid

Posts: 57; Member since: Sep 12, 2011

Nokia could produce a Google Nexus device which could be there saviour as the hardware and software would not have to be tweaked like a samsung or htc skinned device...

16. haseebzahid

Posts: 1853; Member since: Feb 22, 2012

oh so u think its like a switch button that shifts from wp to android do u have any idea what it takes to switch the company from technologies or did this idea just came to your mind. For now it is IMPOSSIBLE to go on android with low cash and low time no one shifts hard

19. bobfreking55

Posts: 866; Member since: Jul 15, 2011

that's plan B probably.

4. JunitoNH

Posts: 1946; Member since: Feb 15, 2012

Very simple, ask Apple permission to use iOS, at the end beneficial for both parties. If those negotiations don't go well, there is always Android **sigh***

15. bloodline

Posts: 706; Member since: Dec 01, 2011


46. aokde

Posts: 186; Member since: Jul 09, 2012

its ironic how your 12 thumbs up point at him as an idiot, and his 18 thumbs down point telling people to listen to what you have to say about him lol!

5. som

Posts: 768; Member since: Nov 10, 2009

Nokia committed to WP OS only is a self destruction.

38. haseebzahid

Posts: 1853; Member since: Feb 22, 2012

but it was only way u noobs could ever have a chance to get a new different OS which is in middle of IOS and android features of both and technology of its own i think WP8 will break the streak of big established OSs it takes time to gain market especially when compition is sky high , once Android was the s**tiest OS and everyone use to laugh on it once now its most widespread OS even though it has flaws and the only reson for its success is it has only 1 competetor yet = ios now there is hihg potential competetor wp and its all better for end user

45. Whateverman

Posts: 3295; Member since: May 17, 2009

Why are you so angry? And why don't you use punctuation marks? It makes your rants against Android tough to read. It's okay if Android isn't your thing, it's not for everyone. No OS can be. But hitching your dying company to an OS that no one was buying is suicide and the numbers are proving that. WP7/8 could become the market leader in the future, so it's a good thing to have a WP device in their stable. But it would be even smarter to have a device with the most sought after OS on earth...Android. It makes sense to everyone except Elop.

7. alterecho

Posts: 1106; Member since: Feb 23, 2012

Wow, i didn't know that info about Nokia Maps. I thought Google had the extensive coverage till now, with its ubiqutous Google Maps. This is actually a HUGE asset for Nokia if what is said here is true.

21. Victor.H

Posts: 1056; Member since: May 27, 2011

Don't misunderstand us here - Google is big in the States and a few other countries, and street view is great. When it comes to pretty much any other country, though, Nokia has much more coverage.

28. s.mrabet

Posts: 147; Member since: Oct 26, 2011

Here in Holland, it's all Google Maps!

32. rocky459

Posts: 6; Member since: Mar 27, 2012


41. jackhammeR

Posts: 1548; Member since: Oct 17, 2011

...and people like you tend to critisize Nokia even if they don't know about its advantages,

8. MeoCao unregistered

Shrink the Pure View technology to fit into phones and you have a winner.

9. script_writer

Posts: 56; Member since: Jun 27, 2012

i think we all know that android is way to go cos windows phone 7 has been a major disappointment from day 1 and windows phone 8 looks the way. Apple are so uptight about everything that it just wont happen. Android is definatly the way to go

Latest Stories

This copy is for your personal, non-commercial use only. You can order presentation-ready copies for distribution to your colleagues, clients or customers at https://www.parsintl.com/phonearena or use the Reprints & Permissions tool that appears at the bottom of each web page. Visit https://www.parsintl.com/ for samples and additional information.