Analysts Suggest Nokia Commit Corporate Suicide

Photo of Nokia Headquarters courtesty of -Majestic-
Photo of Nokia Headquarters courtesty of -Majestic-

Several analysts have suggested that Nokia commit corporate suicide. Seriously.

Would You Believe…

An analyst who supposedly has expertise in cell phones, and the cell phone market, suggesting that the solution to all of Nokia’s problems is to use an operating system that from all reports, is less than popular in the market. Does this make sense to you? It doesn’t to me.

Yes, we are talking about Windows Phone 7. This is a phone OS which isn’t yet complete, and is having severe problems competing with Symbian, Blackberry, IPhone, and Android phone operating systems. In fact all of them are out selling Windows Phone 7.

Possibly Windows Phone 7 will show itself competitive when the operating system is completed. Right now? No. There are far better options out there.

Which makes you wonder, why would Adnaan Ahmad and Brian Blair make such a suggestion? The stated reason is that Nokia has terrible software, which doesn’t hold up. Symbian may be outdated, but it isn’t terrible, and more than the outdated Windows XP is terrible. For all my dislike of Windows, and it’s advanced age, Windows XP does work. Most of the time.

And Symbian doesn’t have the baggage that Windows XP has, it’s far more secure.

So what exactly is going on?

I think Andrew Orlowski of The Register hit the nail on the head when he wrote:

In what looks suspiciously like part of a carefully-planned PR campaign, an investment analyst who follows Nokia has written to Microsoft and Nokia urging them to form a partnership.

It does look like a bit of a setup. But why? Well, money is the usual reason. Possibly the comments are designed to push Nokia’s share price down, so that someone can pick up shares cheap, and then unload them when the stock price normalizes. Or maybe it’s Microsoft’s shares they are playing with.

And since the analysts in question also wrote to Steve Ballmer, it’s possible that Microsoft is the target.

Yes. I’m a cynical old bastard. But there’s one thing that I’ve found out. When it comes to fast ways of making money, you don’t go wrong very often by treating everyone as a crook. Whereas if you try and trust everyone, you’ll probably end up owning nothing except your underwear.

But it’s impossible to see using Windows Phone 7 as anything but a disaster for Nokia. Nokia needs a solid, well designed operating system. Maybe in another year or two Windows Phone 7 will be that, but right now adopting it would hurt Nokia.

Of course maybe the fix is already in. The CEO of Nokia did work for Microsoft at one time…

Regards

Wayne Borean

Thursday February 3, 2011

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