Nokia-Microsoft Windows Phone 7 Deal Disaster
Stock Prices Drop & Employees Stage Walk Out the Day of Deal Announcement
Nokia's contract with Microsoft is a mistake, made obvious by the lack of investor confidence in the deal. When Nokia announced the deal on Feb. 11, the company saw a 14 percent drop in stock prices and, over that weekend, saw another five percent drop. Even Nokia employees were disappointed with the merging and made their feelings clear by staging a mid-day walkout.
The Original Nokia Mistake: Leaving the US Market
While Nokia has consistently been among the leaders in markets such as Europe and Asia, it was also US leader, but that lead eroded because of Nokia's decision to pull out of the US market around 2002. Then came the falling market share, and loss of consumer trust. According to a 2009 statement by Ari Hakkarainen, former business development executive for the company, "Nokia, at the height of its success, decided not to adapt its phones for the U.S. market. That was a mistake. They are still trying to recover from this."
Nokia Chairman Jorma Ollila, who is well aware of the company's troubled past in the US market, said that Nokia made the move hoping to gain some much-needed success. This was when Nokia admitted to its mistake in leaving the US market, and that the company has a lot of catching up to do.
The Windows Phone 7 Disaster
Windows Phone 7 is a problematic operating system and has been from day one. InfoWorld's Galen Gruman says that it is a "tepid knock-off of 2007-era iPhone," and later, in a guest post on PC World, calls it a "complete disaster." Another author on PC World agrees with his assertions, going so far as to detail each of the problems and missing features, as this writer did in a previous article. The key features that are sorely missed, no matter what some Windows 7 fans say, include lack of on-device encryption, VPN, Flash support, HTML5 support, copy and paste, and true multitasking.
The first two listed missing features are required if Nokia expects any business user to want to purchase a Nokia device with Windows Phone 7, as encryption is a must for most people to connect to an Exchange server. The other four are basic features available on almost any other device, except for Apple's iPhone-but at least Apple offers HTML 5.
Others have identified even more problems with Windows Phone 7. For example, on two devices, the HTC HD7 and the Dell Venue Pro, the Wi-Fi is problematic and does not allow users to connect to some Wi-Fi networks. Other various reported problems include "couch potato" or sloth-like processing speed, slow accelerometer response time, various SD card issues, and others.
By far, the biggest problem is the automatic rebooting of Windows Phone 7 devices-without any prompting by the user. The XDA-Developers Blog put together a complete list of all reported problems and bugs concerning Windows Phone 7.
Why Make the Windows Phone 7 Mistake?
Considering Nokia had a perfectly good MeeGo phone in development, and considering all the confirmed problems with Windows Phone 7, why did the company all of a sudden ditch it in favor of an already failing mobile operating system?
In September of 2010, Nokia replaced its chief executive officer, Olli-Pekka Kallasvuo with Stephen Elop; Pekka Kallasvuo had been with Nokia for 30 years. Could the fact that Elop served for two years as President of Microsoft's Business Division president be why Nokia is all of a sudden turning to Windows 7 when better choices exist? What would have happened had Nokia acquired a former Google executive?
Nevertheless, Nokia was just looking for an "easy in," regarding its previous abandonment of the US market. As Elop stated, the deal with Windows Phone 7, "... gives us a faster path to the United States Market place..." Nokia thought that siding with Microsoft would help regain consumer base in the US, but instead, it helped crush that base-and investors' trust in the company, which could signal the end of Nokia altogether-not just in the US market.
Sources:
Sal Cangeloso, "Nokia workers walk out in protest after Microsoft News," Geek
"Dell Venue Pro Plagued by Wi-Fi Bug [UPDATED]," BGR
Darryl K. Taft, "MeeGo handset Code Released to Developers," E-Week
Galen Gruman, "Windows Phone 7: Microsoft's Disaster, "PC World
Jared Newman, "Windows Phone 7: Problems out of the Gate, "PC World
"Windows Phone 7 List of Bugs & Problems," XDA-Developers Blog
Eric Lai, "Who is Microsoft's New Business Division Leader, Stephen Elop?" Computer World
"Nokia appoints Stephen Elop to President and CEO as of September 2010 ," Nokia Press Room
"Nokia Reports Q3 2010 net sales of EUR 10.3 billion with non-IFRS EPS of EUR 0.14," Nokia Press Room
"Nokia Outlines New Strategy, Introduces new Leadership, Operational Structure," Nokia Press Room
Nokia and Microsoft Announce Plans for a Broad Strategic Partnership to Build a New Global Ecosystem," Microsoft Press Room
Published by JC Torpey - Featured Contributor in Technology
JC Torpey started writing at a young age and is affiliated with many online publishing websites. JC's expertise includes network security, PC health and the Internet. Her specialized writing areas include we... View profile
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10 Comments
Post a CommentThanks JC for your update, you always give as great info, I count on your articles for the very best info, rude comments are uncalled for and boorish.
Yikes! Not good!!!
Between Boy George look alike contests have you ever actually used a WP7 for any amount of time? The phones are good and are only going to get better. Nokia is drowning. Sorry. They are in serious trouble and their MeeGoo operating system isn't even out on a single phone but you love it huh? Hair dye will do strange things to you I suppose.
I just had to sign up for the sole purpose of responding to your incredible ill researched and uninformed article. But then I saw your picture and it all made sense.
Try a WP7 for a week and then you can write whatever you want. Just don't get any Nyquil Red Hair Dye on it please. I have a feeling it wouldn't wash off.
please note: Some comments deleted for obscene language and one other comment deleted by accident This comment I would like to say that I stand corrected; part of my first comment was wrong concerning how many apps there are, but 10,000 still is nothing compared to Android's more than 100,000 and Apple's almsot 300,000. I have no problem admitting when I am wrong, but say it nicely, not by leaving obscene comments. Thank you.
I have read many articles here on AC that I feel are blatantly inaccurate, and the author does not so much as cite a single source. And no one comments. You state your case, and provide far more sources at the end of your article than most do here at AC, But yet you have angered a mob? I don't understand the madness???
JC, you could not be more wrong in your response to WP7 User. To use the Bing Visual Search of Top Windows Phone 7 Apps as your counter for the total number of apps in the WP7 Marketplace shows a lack of judgement in your fact finding and ruins a lot of the credibility of your article. Don't you think it's odd that the number you reference says 3000 day in and day out? It's because the Bing Visual Search for WP7 was meant to show the TOP apps on the WP7 Marketplace. Several sites track the total number of applications on the marketplace and it is well understood that the WP7 Marketplace is one of the fastest growing (percentage wise) and is closing in on the 10K application milestone very soon.
http://news.softpedia.com/news/Windows-Phone-7-Nears-10k-Applications-New-Ad-Available-186993.shtml
http://www.phonearena.com/news/Windows-Marketplace-hits-9000-apps-to-reach-10000-app-milestone-mid-March_id17132
Hi, JC,
I suggest you spend some time check with some facts. There are multiplaces in your article are non-factual. Your comment in response to WP7 user is largely wrong. You may check for yourself. You are a skillful writter none the less.
Hi WP7 User: Thank you for your comments, although it seems to me that you might be a WP7 employee of some sort, since you write as a Microsoft exec would and according to most news reports, including the ones I use as references-you are the only person not having problems.
I would also like to correct you on your statement about apps, you say, "App selection is large, and I can get all the apps I want already. 10,000 apps is the number of apps in " However, according to Microsoft, you are dead wrong. If you check this link provided by Microsoft (they are not biased, and come from the Windows Phone 7 manufacturer), you will see that there are only 3,000 available. http://www.bing.com/browse?g=wp7&qpvt=Windows+Phone+7+Apps#toc=0
Thank you for your comments!
Well first off, the device is encrypted. It will only run if it knows exactly what it is running on, and it knows exactly whats running on it. Otherwise, it will not work. Each copy of WP7 is specific to the phone hardware that its on, based by a mtaching number on the chip set of the phone. I've had a Samsung Focus for about a month now, and I've had no problems with it whatsoever. The phone has never had any wifi issues, it has never restarted on me, nothing. The software is not sluggish by any means, its fast and light just like a mobile os should be. Copy and paste is not a problem if you know how to use the phone correctly. The only time it would help is in Office, but thats coming out here in just a few days. Multitasking is great through out the phone, and even the third party apps that get "frozen" until you come back to them load quickly with out problem. App selection is large, and I can get all the apps I want already. 10,000 apps is the number of apps in t
Well written. If it is indeed a disaster, it would be to Apple and Google. I bet my house on it.