Elop: We Have No Plan B If Windows Phone 7 Fails
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Nokia stunned everybody this year when they announced that they were ditching their home-grown operating systems Symbian and MeeGo in favor of Microsoft’s Windows Phone 7. That’s a major decision, but what if Windows Phone 7 doesn’t work out? Well, in an interview with CNBC, Nokia President and CEO Stephen Elop admitted he had no Plan B. Uh oh.
Here’s what Elop said in an interview with CNBC’s Bill Griffeth (emphasis mine):
Griffeth: Here’s the question I have, Mr. Elop. As you transition from the Symbian platform – the operating system you’ve had for so many years there – to the Windows operating system, you are already scaling back research and development. Trying to cut costs as you make this transition. But you’re making the transition to an operating system that’s been used for handsets for ten years and has failed to gain traction at this point against the likes of an Apple or Android. I guess my first question to is, you know what if it doesn’t gain traction? These new Windows phones that you’re going to bring to market later this year? You’re already abandoning Symbian for down the road? What’s Plan B if this doesn’t work?
Elop: Plan B is to make sure that Plan A is very successful. The critical ingredient for success are there, consumers are saying the Windows brand operating system is very good. Better in terms of their satisfaction than the competing platforms, but Microsoft hasn’t had a partner doing its best work for Windows Phone. That’s the commitment Nokia made through this processor. By bringing together our hardware, software and services assets with the strengths that Microsoft brings, we have a formula we believe will drive great success.
Of course, it’s a bit unrealistic to expect Elop to admit that they’ll probably make Android phones if this Windows Phone 7 thing doesn’t work out. Elop seems very confident that Nokia and Microsoft will make a great pair, and that the upcoming Windows Phone 7 devices from his company will be fantastic. Remember that Nokia is being given extra room to modify the operating system that other manufacturers aren’t.
Do you think it’s dumb of Nokia to stop development on Symbian and disconnect themselves from MeeGo when there’s a risk that Windows Phone 7 may never catch on and get iPhone/Android-grade sales? Tell us what you think in the comments section.
Nokia announced a new partnership with Microsoft just before the 2011 Mobile World Congress industry trade show in Spain this year. The first new Nokia Windows Phone 7 devices are due out at the end of the year, tentatively.
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Get over it… Why wouldn’t windows phone 7 work? Its better than android already
Nokian CEO is right. MS already have the OS superior to android and iOS in many ways, esp. Come mango. But hardware has been half hearted. If Nokia bring top quality hardware as sell as good low price options… It has very high chance of success. Android is flawed through patent infringement, malware in marketplace, high resource consumption, and list could go on…android would have been a bad choice for Nokia
We have heard of burning platforms from Mr Elop, but he has now created a possible burning bridges by abandonuing MeeGo despite promising to use Meego for “future discruptions” purposes. In any case the mobile phone industry is not a static industry. But all is not lost if the Nokia N9 is made available to the general public.
Windows 7 is a complete reboot – it’s not true it’s been on the market for 10 years.
They have no plan at all! That is the whole thing. Otherwise the Nokia management would not put the future of Nokia under the risk to go under with WP7 which failed totally to gain momentum in the market since October 2010. So why it shall work with Nokia? Because Nokia has no alternative? Both are doomed to fail with that strategy and having no plan B is gross negligence. Bye bye Nokia…
When i picked up my Samsung Galaxy, decided to choose Android because personally didn’t like Windows monopoly in PC world, but I do love Nokia mobile phone, high quality — my last Nokia was washed inside hot soap water half hour, after being taken out, dried everything, it could still work, only the battery refused to be charged, try this with other competitors, doubt if they still work.
If had known my choosing potentially effected Nokia sales and even survival, would never made the same decision.
Will go back to Nokia for the next time, even they use Windows operation system.
Besides, even I love Linux system very much, but I must admit Windows system save more battery life on PC than Linux system did, and also other advantages. So, if Windows works better on PC, it could also work better on a Cell phone.
WP7 is a far better OS than Android or iOS…so time will tell who will succeed and who will fail
^this
Griffeth: “But you’re making the transition to an operating system that’s been used for handsets for ten years and has failed to gain traction…”
This is not true. From 2010 Windows Phone 7 was launched, and it couldn’t be more differnent than Windows Mobile. It has been designed from the ground up to compete with iOS and Android.
To say it’s been around for ten years is simply not true.
Announcing Nokia would dump Symbian was maybe the biggest mistake in the history of European business. Not because Symbian’s latest version (S*3) could effectively compete with Android and iPhone – it couldn’t, without major rewrites to the UI and some native services. It was a mistake because making such a blunt (“We suck.”) announcement basically killed off sales for the current period. After all, what shop wants to be accused of selling a ‘dead’ OS and which of their customers would buy it, without later regret?
Announcing Nokia would switch their smart phones to Microsoft’s Phone 7 (later called Windows Phone 7; now we hear the new phones will be running Windows Phone 8) was maybe the biggest mistake in the history of the mobile phone business. Not because WP can’t effectively compete with Android and iPhone – it can if MS makes 100s of improvements. It was a mistake because neither Nokia nor Microsoft can execute fast enough.
GOOD TECHNOLOGY? GOOD PROGRESSION???
wboys oh boy!
Windows Phone 7 + Mango will be the best thing in the world. But Windows Phone 7 is available just for a year, not ten years. It’s huge mistake
What is it that Nokia will do different with WP7 than what HTC, Samsung, LG and others have done ? Do you really think consumers have such strong tie-in to Nokia’s hardware ? I don’t think so, I live in one of those “emerging markets” where they hope they will rebound. No one is looking at any WP7 handsets, Nokia’s booths at exhibitions are almost empty, everyone hangs around Samsung to check out the SG 2. Someone said above “time will tell who will succeed and who will fail”. WP7 isn’t gaining any market share, in fact it’s declining, even though it’s been rolled out with multiple handsets in multiple countries.
Feel sory for Nokia.
Rest in Peace.
I love Android, but I also have no doubts that NOKIA’s newest and sexiest hardware and design + Microsoft’s really UNIQUE (visually and technically) WP7 Mango software will make a perfect, standing out from the crowd COMBO.
They don’t need Plan B.
NOKIA-WP7 must be done right and must work.
Microsoft and NOKIA must put all their efforts, power, skills, ideas, innovations, partnerships, acquisitions, PASSION on this alliance to take-off very, very successfully. The market needs the #3 or even can get a NEW, BIG #2 player.
The uniqueness of NOKIA-Microsoft alliance is in its enormous hidden power.
Microsoft has on of the biggest CASH war chests among tech companies. Microsoft will buy everything for this alliance, it will invest into everything which will Nokia need to manufacture the best smartphones for Microsoft. Google wouldn’t pay it a CENT to produce Android devices.
We will be impressed with NEW Nokia smartphones…powered by Mango, which looks, feels and is REALLY different! It will be a new TECH PHOENIX.
“Plan B is to make sure that Plan A is very successful.”
Obviously that’s just stupid, obviously Elop’s moving Nokia to WP7 for Microsoft so that WP7 doesn’t die. They’re switching to an ‘ecosystem’ that had roughly 1.6% marketshare last quarter. Duh, it doesn’t take a genius to figure out that the strategy of combining a declining mobile manufacturer with an unpopular mobile OS won’t yield success. Wall Street, most analysts and everyone I talk to seem to agree with this theory.
I basically just figure all the comments to the contrary are from marketing companies hired by Microsoft to troll the blogs/comments.
It is a good thing that such connected and informed people post such insights. The IDC’s prediction about WP7 being 2nd by 2015, or Gartner’s, is rediculous. That guy on wallstreet who wrote that open letter to Nokia, about how they should adopt WP7 doesn’t know anything. Nor do the customers who claim to be more satisfied with WP7 than any other phone OS. Man, where do these loonies come from?
None of the major handset manufacturers is dedicated to WP7 right now (with the exception of Nokia). That’s why WP7 is lagging right now. The OS is set to compete against iOS more than Android. It’s clearly a better choice than iPhone but it still lacks the apps. Once Nokia releases some decent hardware and sticks to its promise of delivering new handsets frequently the game field will change. Since Apple is loosing momentum others will start taking a share of that market. It may be slow but it will happen. Apple has proven many times that it cannot maintain the advantage it gains. They have brilliant marketing department but that will get them only so far. Android may have a problem now because of Oracle scavengers. Who knows how that pans out. RIM has problems across the board with old, slow and buggy OS. WebOS will probably turn out good but it really depends if it will gain developer acceptance. Number of apps, no matter how dumb, seems to be a big factor for a lot of people which platform to choose. Only WP7 OS is moving forward without legal or technological obstacles.
@Calvin H: “I basically just figure all the comments to the contrary are from marketing companies hired by Microsoft to troll the blogs/comments.”
This is exactly what some kids do when they don’t want to listen to their parent. When they are being spoken to they close their ears and yell “LALALALALALALALALALALALALALA!!!!!!!!!!!!!!!!!!!!!!!”. Great way to admit you are at that level. I doubt anyone here vouching for WP7 cares that you think they work for MS.
Wall Street and analysts have been wrong a bunch of times. Arguments like that have completely no merit.
The fact of the matter is WP7 is a superior OS when compared to Android. I can’t see what WP7 won’t succeed with Nokia hardware and brand recognition. WP7 is relatively immature, however, it improves with dramatic speed and will be better than any other os come Mango. It’s already better than android, not as many features but it works extremely well.
hey, windows was known to be the best operating system in the world. that is why bill gate is the richest man on earth. this prooves that windows 7 won’t fail. i have to admit that it is hard to beat android, but easy to beat iPhone
Microsoft will have an ecosystem like no other. Kinect, Microsoft Office, Azure, Zune, Bing, Skype, XBOX… Microsoft knows how to build moats, developer friendly platforms and monopolies!
Quite an interesting discussion going on here, but as for the monopolies, I am afraid the man that would really know how to do all that and bring Microsoft back to the spotlight has decided to step down and go about his business.
So if it’s already better than Android how come it’s losing market share ?
IDC predicted in 2006 that the Microsoft Mobile OS would reach in 2010 a 32.3% market share. Factually it was then only approx. 7%. That demonstrates clearly the reliability of IDC’s predictions. The assumption that the Symbian market share could be converted to WP7 shows, that IDC has no clue about the dynamics of the smartphone market. There are many reasons why this conversion of Nokia’s market share of today to WP7 won’t take place:
1) Nokia is a phone brand. For Nokia customers Microsoft is not automatically a reputable partner.
2) Nokia and Microsoft failed terribly until today to get a stake in the smartphone market. Why that shall change all of sudden?
3) Nokia and Microsoft have different cultures. Elop will experience that. Who at Nokia is motivated to work for Microsoft?
4) Symbian has no loyal fan-base; therefore there is nothing to convert
5) To cooperate with Microsoft is a declaration of bancruptcy of Nokia. Most sales channels won’t buy the vision of a strong Nokia brand with a Microsoft OS. Nokia lost overnight the trust of the sales channels. That hurts all sales of Nokia
6) Microsoft made the dumbest mistake you can make in such a situation by acquiring Skype. From that moment on WP7 is the natural enemy of the telco carriers. The carriers hate Skype like a deadly disease. Therefore the carriers won’t be willing to open the door for technology which has the potential to hurt their core business. Therefore not only the 8 billion investment for Skype is lost, this move will hurt Microsoft with a sustaining effect in the phone business. That has then also severe consequences for Nokia since Elop is swaggering that Nokia has NO backup strategy to WP7. That doesn’t sound smart and could be the final nail in the coffin of Nokia.
Great comment, Harald – appreciated.
If only Microsoft knew how to get all their separate parts to work together simply, easily and homogeneously. I’m not saying they can’t do it, but they haven’t given me good reason in the past to believe they know how…yet. Microsoft has a hard enough time trying to get documents from one version of Office working in a newer one.
That being said, I really would like them to succeed, because I think the Windows platform has the potential to create the kind of seamless and convergent user experience that will not only be popular, but make things easier for the end user to switch from social mode to business mode, gaming to work, home to public and back again with nary an interruption. Hopefully, Nokia as a partner will help bring phone hardware expertise to the platform. They may not have a lot of smartphone experience, but they know how to flood markets with decent, popular and well-priced feature phones, so they need only learn (from the likes of HTC) how to do the same in the smartphone market. Microsoft and Nokia just have some catching up to do, and time will tell if it’s a case of too little too late as it was with Palm (and possibly RIM now too) or if this partnership will yield a competitive line of products. Who knows, this might well be even more influential a joining than Sony and Ericsson, if Nokia and Microsoft both play their cards right.
I agree with your points, but I hasten to add that I recently read that Skype has brokered a deal with Telus in Canada to make Skype long distance calls easier to make on the Telus network. Sure, it’s a bit player in a bit market (compared to the rest of the world) but I was surprised a telco was even receptive to that kind of overture from Skype, let alone agreeing to help facilitate users in making such calls. Perhaps Telus has some method of monetizing these Skype calls that is preferably to conventional long distance costs, or Microsoft is paying them to do it, I don’t know, but it’s apparently happening.
http://www.cbc.ca/news/business/story/2011/06/10/technology-telus-skype.html
Bill Gates is still Chairman of the Board, I am confident that he has a big say in the direction of Microsoft!
They’ll do it! They’ll squash these guys just like Netscape and everyone else. It takes a while to build out a platform and this is significantly larger than Windows. Look how long Windows took. Elop’s not an idiot, they have a strategy that will criple the competition.
How many peoples leave nokia brand and choose android?. How many employee in nokia lost their jobs?
Nokia ignore that problem, they dont care about what people want and what people need. Nokia CEO only hold his egoistic, even company profit going down, down and down.
Now (december 2011), Nokia still have a chance before too late. Nokia MUST KNOW what MARKET DEMAND, this is standard strategy that Samsung use. You’ve seen what Samsung did, it launch like a rocket!.
If necessary, change nokia’s CEO. Let him make a new brand called Elophone :lol: