Nokia to Supposedly Sell Its Mobile Devices Division in 2013

The Knight

Knight is coming
Adept
Nokia might soon cease to be one of the leading vendors on the market, should the latest predictions regarding its future pan out. According to Forbes’ Tristan Louis, the company might be en route to sell its mobile devices division entirely. Undoubtedly, the company has had some rough quarters, but it
has shown signs of growth lately, fueled by its recently launched Windows Phone 8 devices. The new smartphones were expected to turn the tide in Nokia’s favor, and allow it once again become the leader in mobile technology that it once was. However, Forbes’ Tristan Louis believes otherwise, suggesting that the company will actually depart completely from the mobile phone business before the end of this year. He suggests that the company will sell the mobile operation and infrastructure divisions to Chinese maker Huawei, and that the smartphone group will go to Microsoft in the end. “The biggest shocker (and what I suspect will be my most controversial prediction), though, will be the departure of Nokia from the phone business as the company sells its mobile operation and infrastructure divisions to Huawei in order to focus on software and services,” Tristan Louis notes. “With the company’s bet on Windows 8 having failed in the marketplace, it will see Microsoft and Huawei competing for the mobile device division and will eventually sell its smartphone group to Microsoft and the rest of its telecom interests to Huawei.” Apparently, Nokia is facing fierce competition in all market segments, with companies such as Huawei and ZTE leaving it behind at the low end, and with Samsung and Apple leading the high-end smartphone market. Thus, the company might have a harder-than-believed time regaining the lost ground, something that will eventually determine it to leave the mobile phone business altogether. However, this is only a supposition for the time being, and it remains to be seen whether it will indeed pan out or not.
Nokia to Supposedly Sell Its Mobile Devices Division in 2013
 
It’s just an opinion, and there’s no evidence pointing to any of this happening. Random company to choose though. Of all the companies, the prediction is for Huawei, :bleh:
 
No tech enthusiast would want that to happen!

That said, i sometimes wonder whether Nokia's decision to not go with Android will make the company a case study subject down the years when it comes to strategic blunders.
 
Nokia can wither down but never die. They have a very strong IP portfolio and a great presence in the emerging markets, and can leverage that to stay put in the market for a long time.
 
Since it is an ego problem for Nokia to not shift to android.. I guess the new acquiring company won't have any qualms about adopting the android os.. Then we could see some good phones from nokia..
 
I simply cannot understand why Nokia cant go the Android way. Am sure it would have had atleast some devices which would have sold in tons.
Every player in the smartphone field wants to differentiate, and nokia till now has had the luxury of owning or controlling at least 2 or 3 platforms, because controlling a platform gives you a totally different kind of leverage as opposed to being a 'me too' player and competing with all the other players on their terms.

The trouble is that the whole phone market paradigm has changed, from one where you sold phones and got margins on the hardware, to one where the hardware margins have shrunk, and in either case, hardware is a much tougher market to compete with all the huawei's and micromaxes of the world. So what do you do? From selling a product which is becoming increasingly commoditized, you move to more of a service player than a product player, because its harder for your competitors to copy your service aspect.

That is what apple has managed to do successively earning record profits, both on phones and laptops, while the hp's and dells of the world are figuring out what happened. You are competing at a different level. And at that point, your product sales become just one of your revenue streams, and you look at others. Take Apple and Google, two of the most sucessful smartphone platform owners. Google monetizes the android platform by harnessing the data it collects and finding more meaningful ways to target customers, and sell that data to advertisers. Apple uses it to lock users to its ecosystem and buy more of their products and their ecommerce platforms.

That's the problem where Microsoft is having a hard time, and HP lost, and why I predict canonical will have a hard time, because their plan stops at selling the phone. Microsoft is banking on the UI commonality between WP8 and Windows 8, and the common ecosystem. HP put webOS into everything they had. Printers, and sadly not much else. Wasnt enough to lock customers, and their bungee CEO also didnt do any help either.

Nokia wants full control - the platform, the hardware, and the carriers too (which is why it's prescence in the US isn't as big as it should be). It's taken an all or nothing strategy. Lets see if their bet pays off.
 
I am not sure, but do Microsoft's contract with Nokia allows Nokia to use Android?

Nokia tied up with Microsoft quite late when its own symbian software proved to be incompetent. That time already Android was gaining ground. So I dont think that is the reason.

Every player in the smartphone field wants to differentiate, and nokia till now has had the luxury of owning or controlling at least 2 or 3 platforms, because controlling a platform gives you a totally different kind of leverage as opposed to being a 'me too' player and competing with all the other players on their terms.

The trouble is that the whole phone market paradigm has changed, from one where you sold phones and got margins on the hardware, to one where the hardware margins have shrunk, and in either case, hardware is a much tougher market to compete with all the huawei's and micromaxes of the world. So what do you do? From selling a product which is becoming increasingly commoditized, you move to more of a service player than a product player, because its harder for your competitors to copy your service aspect.

That is what apple has managed to do successively earning record profits, both on phones and laptops, while the hp's and dells of the world are figuring out what happened. You are competing at a different level. And at that point, your product sales become just one of your revenue streams, and you look at others. Take Apple and Google, two of the most sucessful smartphone platform owners. Google monetizes the android platform by harnessing the data it collects and finding more meaningful ways to target customers, and sell that data to advertisers. Apple uses it to lock users to its ecosystem and buy more of their products and their ecommerce platforms.

That's the problem where Microsoft is having a hard time, and HP lost, and why I predict canonical will have a hard time, because their plan stops at selling the phone. Microsoft is banking on the UI commonality between WP8 and Windows 8, and the common ecosystem. HP put webOS into everything they had. Printers, and sadly not much else. Wasnt enough to lock customers, and their bungee CEO also didnt do any help either.

Nokia wants full control - the platform, the hardware, and the carriers too (which is why it's prescence in the US isn't as big as it should be). It's taken an all or nothing strategy. Lets see if their bet pays off.

Great explanation but if it is that, Nokia comes out as a very rigid firm. They have to change with time, it sound quite stupid that Nokia is letting go off some profits for huge profits which are nothing more than empty at the moment. Lets say the earn some X amount of profit with android, 10X is they have their own platform. But the fact is they dont have anything at the moment, so why miss out on the X profit?. Frankly it sound stupid on part of Nokia.

I have seen Samsung rise from nothing to a major player over the years because it was/is always flexible. Also Nokia have to fear that their brand is losing its value. There was a time when people used to say Nokia hi lena, now even in feature phones Samsung is coming out to be VFM. Yeah not to forget the Micromax and Huawei and what not.
But I still feel if there is a quality product, people will buy it over the cheaper counterparts like micromax.
 
Nokia probably thinks (and it would be justified) that they have enough clout(at least for now) that their putting themselves behind a platform would be significant enough to give that platform some exposure. I mean it just needs a decent amount of nokia fanboys for nokia to say that "I will sell only WP phones", and for those fanboys to preach about nokia's goodness (and lord knows microsoft needs all the exposure they can get). and eventually WP will get enough marketshare along with nokia and then Nokia will have some leverage with microsoft.
Alternately, if nokia were to adopt android, any other platforms it might also support would be dead in the water, much like bada is nowhere now despite samsung's best efforts, and WP would have the same end, and eventually nokia would end up as a "me too" player, just like LG or HTC
 
Nokia should re-develop its very own Symbian platform to match and compete to android. Also, why the hell it went completely into windows I still dont get that. :annoyed:
 
They can still have a mix and match portfolio like samsung,running their phones on both windows and android.

also they do have an upcoming OS in Tizen too.
 
Just hold on till Google launches new stuff from its purchased Motorola mobile division.

Even biggies like Samsung & LG will have tough time.
 
Nokia should re-develop its very own Symbian platform to match and compete to android. Also, why the hell it went completely into windows I still dont get that. :annoyed:

Leave Symbian, I'd seen a better future with Meego. N9 was such a great device, Nokia could've kept it along with WP. But instead they went ahead and fired a whole bunch of their employees, and who were very talented. Just have a look at the range of innovative products ex-Nokia employees are coming up with.
 
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