Monday, 27 February 2017

It's Back.

Mobile World Congress 2017 saw the return of Nokia with consumer mobile devices.



Nokia has been restricted on producing mobile phones over recent years because Microsoft bought the brand in order to save Windowsphone. The story is full of irony.

Nokia had been late to understand how much the smartphone industry changed with the iphone. Over the years it had about 50% of the mobile phone market globally and had a massive design, distribution and manufacturing base. Such a huge infrastructure meant high quality and end to end control. Unfortunately Nokia had internal battles. It's own Symbian OS was not really able to produce the new devices inspired by Apple and the mobile internet. Some of it's engineers wanted to turn to a Linux based OS called Meego.

As smartphones dominated sales and Nokia's internal decision on the OS raged a series of decently designed but confusing smartphones came out of the company. Nokia decided it need a new CEO and Stephen Elop, a former Microsoft executive, was appointed. Elop changed the primary OS to Windowsphone. Many people criticised this decision saying Android was the better choice.

Nokia costs were high and it's market share had dropped. Elop reduced staff and many technically well designed phones were produced. The difficulty was that Windowsphone was not well received. As 'apps' dominated with related services Microsoft was found to be in a distant third place.  After committing to Windowsphone Nokia found itself not selling enough product, having high costs but dominating the Windowsphone sales at 97% of all Windowsphones.

Microsoft was slow at developing apps and an ecosystem of compelling consumer services. Google services were never available. Microsoft was obsessional about the US market even though sales in places like Europe, where Nokia was strong, should have had some priority. The net result was Nokia  consumer phones was about to go under. Microsoft paid $7.2 billion to buy the business and license the name. Most of this money was subsequently written off. Financially it was a complete waste for Microsoft that, if they had spent it on developing apps and ecosystem, might have saved Windowsphone.

Nokia can now use it's name for phones again. It has no infrastructure to build phones but former Nokia engineers have formed a company called HMD Global, literally across the road, and have a license to produce Nokia phones. So ex-Nokia people are creating new phones based on Android.

Their pitch to consumers is;

1. It's a Nokia!
2. The Android will be the pure experience without crapware.
3. Security updates monthly.
4. Available at all price points - by which I suspect there will be others coming but the Nokia 3, 5 and 6 look to be in the space vacated by the Nexus 5x.

If the phones are the same hardware quality as the Windowsphones then this combination might suit people annoyed by all those manufacturers who bloat their phones with apps that are not wanted and cant be uninstalled.