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Nokia Chief Strategist: Apple will remain a niche player in smartphones, just like in computers
Monday, November 30, 2009 - 03:43 PM EST

Cyber Monday Sale over 400  dealsMobile phone world unit sales leader Nokia recognizes errors in execution that have led to its eroding market share, according to a German language report by Sandra Louven for Handelsblatt. "In the past, Nokia focused too much on technical issues, instead of optimizing the design of our phones," said Anssi Vanjoki, Nokia's chief strategist. "But I am very confident that we now know what we must do, namely to build cell phones that are easy to use and that look good."

Louven reports, "The Finns stand with a market-leading share of nearly 37 percent, but the new competition from Apple and from BlackBerry-maker Research in Motion in the retail business has the giant duly concerned; especially in the high-margin smartphone business."

Louven reports, "'Technically, the Nokia phones were much better than the iPhone,' said Carolina Milanesi, the market researcher Gartner. 'But were too complicated to use.' In the coming years, ease of use will decide success and failure, said Vanjoki."

Louven reports, "Still, Vanjoki expects that, in the end, Apple will amount to little importance in the market. 'The development of mobile phones will be similar in PCs,' predicts the chief strategist. 'Even with the Mac, Apple has attracted much attention at first, but they have still remained a niche manufacturer. That will be in mobile phones as well.'"

The full article via Google German to English translation is here.

MacDailyNews Take: With a "Chief Strategist" like that, it's no wonder Nokia is hemorrhaging market share, euros, and employees like there's no tomorrow; because, for them, there likely isn't. This quote ranks right down there with beleaguered Palm's then-CEO Ed Colligan who said in November 2006, "We've learned and struggled for a few years here figuring out how to make a decent phone. PC guys are not going to just figure this out. They're not going to just walk in." Ed presaged his company's fate by disappearing into obscurity earlier this year. The quote for which Vanjoki will likely be best-remembered (you might as well just start chiseling now, headstone carver) has been iCal'ed for copious and gleeful future use.



[Thanks to MacDailyNews Reader "Karwa" for the heads up.]

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Nov 30, 09 - 03:48 pm Comment from: video video izle

Thank you for news

Nov 30, 09 - 03:49 pm Comment from: acid

Apple is already moving beyond "smart phone", so he may be correct.

Nov 30, 09 - 03:52 pm Comment from: Deus Ex Technica

Wow. Doubling down. Gutsy. Not smart, but gutsy.

Nov 30, 09 - 03:56 pm Comment from: pdxflint

I love the arrogance of certain types who just can't seem to understand that their "old school" thinking is keeping them blind to the currents of change, either in business, technology or social behaviors. These mindsets are the easiest to defeat, as history has shown over and over... <shaking my head at the obvious here...>

Nov 30, 09 - 03:56 pm Comment from: Wings2Sky

That's great! Because they are moving out of the niche player role in computers so they will move out in smartphones too!

Nov 30, 09 - 03:58 pm Comment from: MacTony

LOL....... funny. Who wants to the be the market leader in unit sales at paper thin margins? Just wait for the end of that exclusive contract. They will be giving away Nokia's sh*t for free........ wait, they already do....... smile

Nov 30, 09 - 04:00 pm Comment from: HMCIV

I get it. The Nokia guy is trying a Jedi mind trick.

"These aren't the phones you're looking for."
"... These aren't the phones we're looking for."

Nov 30, 09 - 04:02 pm Comment from: zek

"But I am very confident that we now know what we must do, namely to build cell phones that are easy to use and that look good." How do these guys get jobs? What kind of imbecile... oh well, if Nokia don't go down there is no justice in the world.

A player in the niche called " the only part of the industry worth bothering about financially" and owning most of it. I spose ignorant shareholders vote ignorantly on their board.They've been carried along so far on the flow, with no competition, selling tons of crap and now people are turning away. Wether Nokia make it or not, people like these need to be recognized and got rid of. Maybe a job in marketing... oh, that's what he is, sorry... ignore that. Just that the tone of the article implied he was important! hehe.

Nov 30, 09 - 04:02 pm Comment from: Adam T. Lindley

or maybe the iPhone will end up like the iPod a niche player with the majority of the of the market smile

Nov 30, 09 - 04:04 pm Comment from: MacTony

@pdxflint

I agree. I just do not understand it. What works is right in front of them. I think it would take a miracle, maybe Steve Jobs could go to Nokia's headquarters and actually layout the business plan for them. I guess the problem is, time isn't on their side. Instead of dismissing the iPhone as a flop, they could have started a ground up project 2 years ago. They may have had something to compete right now. Instead, they are running in circles talking the same smack they were 2 years ago.

Nov 30, 09 - 04:04 pm Comment from: Gabriel

In sports, they tell players and coaches not to say anything the other team can use as "bulletin board" material - statements that will help motivate the other team to reeeeeaaaalllly want to beat you but good.

Apparently, Apple's competitors haven't quite figured this out yet…

Nov 30, 09 - 04:08 pm Comment from: Turnips

Wow so much hate...
I thought you apple fanboys like being in the niche?

Nov 30, 09 - 04:08 pm Comment from: DLMeyer

The thing is, Apple doesn't MIND being a "niche player", just as long as the "niche" is being the biggest player in the most expensive section of the market. They might not be quite there, quite yet, but they are certainly well on their way. Especially in the "profits" part.
So, yeah. Nokia, you can have the bulk of the cell phone sales. Just let Apple have the largest share of the top 10% of those phones by value. Oh. Wait. They don't need your permission for that. They just took it. Just pretend to have S.A.D., good 'til Spring.

Nov 30, 09 - 04:14 pm Comment from: iStepchild

Does Steve really need any EXTRA MOTIVATION??
Thank you! Really!

Nov 30, 09 - 04:17 pm Comment from: Jon1

Prior to the iPhone, they obviously thought the best way to sell phones was to create phones that are "hard to use and look bad".
NOW the largest phone maker has it all figured out - at the end of 2009.

Nov 30, 09 - 04:20 pm Comment from: John E

Nokia is the next Sony.

Nov 30, 09 - 04:20 pm Comment from: Quad core

I wonder what Apple's market share would be if they exclude corporations that buy/lease 500 cheapest possible computers?

I'd bet that for home computers, Apple would be close to 50%....not a niche.

Nov 30, 09 - 04:20 pm Comment from: MediaXYZ

The main reason these other companies come out and talk down the iPhone is because corporate law in many countires forbids directors doing anything that will knowingly drive down the share price of their company. Anyone who is a member of the board of of Nokia (or Microsoft, or RIM) is forced to talk down the iPhone, even if they think it is great.

Nov 30, 09 - 04:22 pm Comment from: Ringgo

Right, guys, niche market but very PROFITABLE niche market, so BOOYA, Nokia!

Not the same as being a niche player, Apple redefined the market. Vanjoki: "we now know what we must do" -- observe Apple's success w. design, copy same.
cool grin

Nov 30, 09 - 04:26 pm Comment from: LordRobin

'Even with the Mac, Apple has attracted much attention at first, but they have still remained a niche manufacturer. That will be in mobile phones as well.'

Hmm, it seems like I've heard this argument before. Let me think...

Oh, right! This is the exact same prediction that was made by every MP3 player manufacturer about the iPod! It's the exact same prediction that was made by every online music retailer about iTunes! "Because Apple failed to take over with the Mac, all their other efforts will of course follow the exact same pattern."

We all know how that turned out.

Seriously, if the Nokia guy actually thinks that Nokia is destined to defeat Apple for no other reason than that they're Nokia and Apple is Apple, I'd start shorting their stock now. Big time.

------RM

Nov 30, 09 - 04:28 pm Comment from: January 24, 1984

Sauce for the goose.

Nov 30, 09 - 04:28 pm Comment from: dd

given the fact that iPhone sales are growing faster than iPod sales and that the iPod has 70% marketshare, Anssi Vanjoki should start looking for a new career. He can't research or strategize his way out of a box if he ignores trend data.

Nov 30, 09 - 04:36 pm Comment from: alansky

Needless to say, if Nokia's "chief strategist" really believes what he just said, he should be fired immediately for extreme incompetence and/or stupidity.

Nov 30, 09 - 04:41 pm Comment from: kenh

"Wow so much hate..."

What an overused word! As in politics, the new definition of "hate" is: anything I disagree with.

Try to be a little more creative. Buzzwords are like paper currency, it becomes worth less every day.

Nov 30, 09 - 04:49 pm Comment from: I'm a PC

CRAPple will remain a niche player in any market regardless where they at.

http://www.bing.com When it comes to decisions that matter, Bing & Decide

Nov 30, 09 - 04:53 pm Comment from: MacTony

What we "hate" is stupidity.........

Nov 30, 09 - 04:53 pm Comment from: BGuy

He's absolutely right! Apple is a NICHE market. The NICHE that WORKS! - that is a definite minority of PCs.

Nov 30, 09 - 04:54 pm Comment from: theloniousMac

What else could the guy say?

"OMG! We never saw Apple coming! We had no idea there was so much pent up demand for well designed smartphones! We are scrambling like crazy to get our own products to market! In the meantime we have our legal people attempting to slow Apple down by suing them. Uh, uh... we pulling our pants up... just give us a few quarters... pay no attention to that stupid chart on MDN!"

Nov 30, 09 - 04:58 pm Comment from: Grrrilla

Some of his points are valid. The world won't all start to use the same phone. Never gonna happen. There will be markets and levels of the market that Apple won't penetrate, as long as there is only one iPhone (yeah, there are a few models, but it's basically the same look, and therefore in many people's minds, the same device). Some people buy phones for the bling factor, or the trendiness, and don't care so much about whether it's got a GPS or how large the screen is. The market will never go 100% Apple.

Nov 30, 09 - 05:03 pm Comment from: Gil (in LA)

I wonder how much they paid for the naming rights to "Nokia Theater"?

Nov 30, 09 - 05:08 pm Comment from: KenC

Wow, I just learned how to spell "beleagured" in Finnish.

It's spelled, N-O-K-I-A, Nokia.

Nov 30, 09 - 05:11 pm Comment from: Jamie

"But I am very confident that we now know what we must do, namely to build cell phones that are easy to use and that look good."

Anssi Vanjoki - Nokia Chief Strategist

Unbelievable. Simply unbelievable.

Nov 30, 09 - 05:13 pm Comment from: Synthmeister

Yeah, Nokia currently has over 200 cell phone models listed on Cnet right now. All they have to do is figure out how to build one good one.

Oh yeah, they also need to figure out which mobile OS to use and how to launch an online store which doesn't suck like Ovi or "Comes with Music" and how to get US telcos to subsidize their phones while not crippling them.

But yes, otherwise they've got if figured out.

Nov 30, 09 - 05:14 pm Comment from: Harvey

I don't care. I love my cozy little "niche."

Nov 30, 09 - 05:32 pm Comment from: ditchdoc68

@Ken C

..and snappy in Finnish is spelled, A-P-P-L-E. wink

Nov 30, 09 - 05:35 pm Comment from: Buster

This article and Nokia's Anssi Vanjoki comments are just too stupid to comment on.....

Nov 30, 09 - 05:35 pm Comment from: ditchdoc68

@I'm a PC
If you're going to toss around insults at least have the courtesy of turning on your spell checker.

Nov 30, 09 - 05:37 pm Comment from: HD Boy

Wow. No wonder Nokia is stumbling. Apple will succeeed with the iPhone if for no other reason than this: No manufacturer other than Apple can release a cell phone that also is a portable computer and an iPod!

Game, set match.

Nov 30, 09 - 05:37 pm Comment from: The Other Steve

""In the past, Nokia focused too much on technical issues"

You mean you've been sitting on your but!

"instead of optimizing the design of our phones," said Anssi Vanjoki, Nokia's chief strategist. "But I am very confident that we now know what we must do"

Yea, all we have to do is build a pretty phone (that looks good in ad's) that'll do it.

Vanjoki should be learning his history from what happened with the iPod instead of the low end - no profit - computer market.

Nov 30, 09 - 05:39 pm Comment from: Macaday

Aha - just like the iPod, a small niche player hey…!

Nokia = Finnish(ed)

Nov 30, 09 - 06:03 pm Comment from: Troy

"Nokia Chief Strategist: Apple will remain a niche player in smartphones, just like in computers"

And Nokia's Chief Strategist will remain as Steve Ballmer, saying crazy things smile

Nov 30, 09 - 06:05 pm Comment from: ken1w

I'm sure Apple has no problems with being a "niche player" in either the computer or mobile phone industry, because Apple is making the majority of the profit in both markets, as most competitors struggle just to turn a profit.

Nov 30, 09 - 06:36 pm Comment from: JustAnotherMacUser

Well if I don't remember well, business is about sell out something and make profit of it. Regardless the share market, apples is doing just that, sell something with high margin. If Apple don't take over the world, but keep making money like crazy, why all anti-apple people keep pointing at them and called Looser??

All those that called us hating people, don't look at themselves: in the last 2 quarters only 2 companies in technology show growing: IBM and Apple..and IBM loss in the HW, but compensate it with services.. so only apple make money manufacturing hw vs the rest of the industry... So why we should be feeling like losers, if the company has a steady grow????

I wish the pc guys/anti-apple explained why they talk of apple like if apple is the one loosing money and firing people??

Nov 30, 09 - 07:08 pm Comment from: spyinthesky

What is interesting is what this guy thinks will be the 'PC' in the phone market to reduce Apple to a niche player. Symbian is not a computer quality OS increasingly required by real smartphones and that is why everyone other than Nokia has deserted Symbian. Win Mobile is simply a warm corpse, it may get a second (or is it third, or fourth) wind but only in the form of a zombie like presence, ie dead but doesn't quite accept it yet. Unless Nokia is going to move to Android it certainly isn't going to be in the smartphone market longer term and even if it does convert far eastern competitors will simply eat it alive in that quagmire. Baring miracles or intelligence well beyond this spokesman's capabilities Nokia is already a dead man walking.

Nov 30, 09 - 07:20 pm Comment from: KenC

Actually, Nokia is also eventually going to abandon Symbian for Linux Maemo. They have already started to put it on their highest-end phones or tabs like the N900. Who is going to develop apps for Symbian, when Nokia is already transitioning to Maemo?

Nov 30, 09 - 09:04 pm Comment from: Ampar

I was sure Nokia was finnished.

Nov 30, 09 - 09:18 pm Comment from: Randian

A MicroSoftie is someone who would NEVER--EVER--defend McDonald's (the world's largest purveyor of shoddy hamburgers) but would lay their penises on the line for MSFT, the world's largest purveyor of shoddy software).

Do, please, try to be consistent, MicroSoftie faninfantiles!

Nov 30, 09 - 09:28 pm Comment from: DLMeyer

I'm a PC just said pretty much the same thing the rest of us said, yet all the attitude suggests he thought he was saying something different. Something somehow negative. The choice of language suggests pathetic ignorance.
His take on being "a niche player in any market", though ... So the iPod's 70% is a niche while Zune's 5%(?) is dominance? That's quite an interesting "reality".

Nov 30, 09 - 09:41 pm Comment from: Ampar

It's now a read herring.

Nov 30, 09 - 11:35 pm Comment from: Turnips

I see most of you are hypocrites. You support Apples arrogance but are outraged when Nokia shows a bit of it.

Also, I think that you all are really underestimating Nokia. They have managed to get where they are, do you really think that they are stupid? Do you really hope that their business will fail causing thousands of people to be without employment just so that you can have a warm and fuzzy feeling?

Sick, sick, sick.

Dec 01, 09 - 12:15 am Comment from: auramac

Sturgeon's Law:

"Ninety percent of everything is crud."

So far.

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