Nokia: leaks cause us major problems. Us: so get your act together.

Now here's something you don't see every day: a manufacturer openly complaining about its own product leaks on their corporate blog. Charlie from Nokia would "like to ask folks to do less peddling in [their] trade secrets," and lays out the myriad ways in which products get leaked (partners, employees, etc.), the supposed negative impact it has on Nokia's bottom line (lost money, angry customers, whatever), and how they feel about it (really upset). It's an interesting and sensitive topic because while companies hate having their products leaked, leaked products are our clearly part of our stock and trade here at Engadget.

Nokia kind of sums up their stance with this bit: "There are a lot of folks behind a product and leaks really screw up all the efforts." So yeah, we totally get that no one wants to have their inside info shared with the outside world -- we're a company too, and don't feel any differently. But it's up to each organization to insulate knowledge of its workings and products to prevent these kinds of leaks. It's not necessarily easy, but think there are few leaks that aren't preventable -- it's really a matter of companies taking their information security into their own hands. But just so Nokia (and everyone else) hears the other side of the story:

Not only do leaks drum up buzz and help customers make advance purchasing decisions (like whether to buy now or hold out for something coming down the pipe they'd prefer), it allows other companies to keep a closer eye on their competition. This means the marketplace is likelier to produce a product that's cheaper and/or better, if not also launched sooner. While that really sucks for the company whose products were leaked, it's ultimately really good for the consumer -- and that's who we represent. (Oh, and claiming leaks result in "a bunch of writers with no story" is actually kind of insulting to tech journos' collective intelligence.)

What we find really strange, though, is the attitude product people have about leaks totally "screwing up their efforts," which completely forsakes the early feedback they COULD be getting from their best and most engaged customers. This is precisely why some product "leaks" are actually plants to solicit unfiltered public feedback. (Yes, that really happens, although not very often.) That feedback can be positively unequaled in outing whether a product is on the right track, and we've been around long enough to know that if a product in its early stages isn't headed in the right direction, there's little chance it will be by the time it's released. Just remember that when you blame product leaks for ruining the launch of your next crappy device, okay?

[giantenemycrab @ Jun 20th 2008 7:21PM]

Nokia: fighting irrelevancy since 2003.

[chris @ Jun 21st 2008 12:32AM]

I think Nokia is relevant, they make great cheap phones. For people who just want the cellphone to do phonecalls, they also make them for third world countries... they are very strong in that market.

As for innovation, product leaks and hottest phones... I think Nokia is the only one pushing the hardware forward. yes others have gone with the form factor/software route... Nokia has gone 'let's pack as much stuff as we can' approach. Granted their UI sucks, they should seriously work on that But the N95 8gb and N96 are solid products. They have the best optics, the best sound/loudspeaker I have tried, they have pretty much all the features...

I love Apple, I love Sony, I love Nokia. I have owned and used all three. I think they all have different approaches, agendas and markets. Apple is flashier, smoother and software wise, so far, are unbeaten. Sony are really becoming inventive, thinking outside the box, love the Xperia. Nokia you've heard my thoughts..

So yes, they are relevant in 2008. And yes, they should use the leaks to better focus and enhance their phones. And I do believe they should use the apple way of trying to misinform the press, send out fake leaks, but still sending bits of real info... it keeps you in the press, keeps people from forgetting your upcoming product.. it's basic marketing.

my two G's

Chris

[WickedEast @ Jun 21st 2008 12:15AM]

Worldwide, Nokia is relevant; it's much much more relevant than Apple and the iPhone. And yes, I know you're an iPhone fanboy. You should go out sometime... like out of the USA.

[Wwhat @ Jun 21st 2008 8:09AM]

I really really don't get that 'ZOMG LEAKS!!1! nonsense', who cares what people know about products if your name and quality and support or/and price is the best? I don't believe another company will steal your grand (and most often very very obvious) idea then make your sales slump, I don't think that happens, look at apple, they are very afraid of leaks and yet they always come late to the market and still take it over by their 'invention' of the phone and mp3 player years and years after everybody already had one of those.

[tekdroid @ Jun 21st 2008 10:34AM]

they are fighting irrelevancy pretty darn well with that market share they have. I'd like to fight irrelevancy like that!
http://en.wikipedia.org/wiki/Nokia
"It is the world's largest manufacturer of mobile telephones: its global device market share was about 39% in Q1 of 2008, up from 36% in Q1 2007 and down from 40% in Q4 2007."

PS. E71 leaks ftw.
http://nds1.nokia.com/tutorials/support/global/phones/e71/english/index.html

[Eric B. @ Jun 20th 2008 7:22PM]

Leaks suck. They spoil everything

[jonyb @ Jun 20th 2008 8:03PM]

They might spoil it for the producers but certainly not for us consumers. Like the article said, we get early infos about the product and what might be coming soon to avoid us doing unnecessary purchases. How many times have u bought an electronic good to find out that there's a better one coming out in a fortnight with a pricetag that's only marginally different.

[Timothy Sottek @ Jun 20th 2008 9:23PM]

I can sympathize with their views.

re: Engadget --

You aren't inherently entitled to leaked information just because its available. I understand that your core business practice is to publish gadget info, but the whole "leaked" media phenomenon is fairly new, for all mediums.

Heres an example of how it has gone the other way: I doubt anybody is old enough to remember this (myself included), but the press used to have a certain respect for public figures. Whenever FDR was pictured in the press, the media would try to obscure his paralytic condition. To be sure, this is a small example, but it is a contrary practice nonetheless.

Todays media, of course, would show no reservation to showing anything and everything (about everybody). This includes medical information, as well as leaked corporate secrets. I'm not trying to moralize, but its certainly possible to show restraint.

I don't think I'd disagree with your assessment that Nokia might stand to gain more than it might lose by releasing early product information to consumers. From their standpoint, its understandable that they'd prefer to have a "gotcha" effect on their competitors, making sure people aren't trying to ruin an innovative release (Meizu, for example, try as they might). I don't have much to say about this, other than that I'm not sure it has a decisive say over whether or not leaked information ought to be spread.

In short, Nokia probably should put their money where their mouth is and make a strong enforce the privacy of their proprietary information.

But corporate responsibility goes both ways.

[Shinigami @ Jun 20th 2008 10:04PM]

Actually leaks are two-sided coins. On one side it increases the value of the name if the product leaked is good (lets just say you'll be more willing to buy Nokia stocks if you know they are making something great). Another side - if you know something amazing is going to appear a bit later, you might not want to buy something now. They think they lose here. Thats not entirely correct because if people save money on a newer and more expensive product, they spend more and company wins in the end. Basically.

And yes, I agree, instead of whining how leaks ruin their efforts, they should work with people to receive an early feedback about upcoming product, would do lots of good for the product, and thus will do lots of good to the customers. A pity corporations think of profit first and of customers last...

[macserv @ Jun 21st 2008 3:00PM]

Pay your employees better, make them feel valued, treat them with respect, and they'll have enough pride in the company and their position enough that they won't want to risk their job for a cheap thrill.

That, combined with heavy consequences - including prosecution - for the crazy fools who still leak, ought to keep the sharing of secrets to a minimum.

[eggothewaffle @ Jun 20th 2008 7:23PM]

Oh my god! I just read a blog post about a Nokia phone and looking at all the amazing specs leaked out about it, I really want to get it!

Shit! But wait! It was leaked...Now I don't want to spend my money on that Nokia product :(

[The Dude @ Jun 20th 2008 7:25PM]

If gas wasn't so fuckin' expensive, I'd commission a certain ambulance with a certain wailing siren to make the trip to Finland and pacify Charlie.

[phanbouy @ Jun 20th 2008 7:27PM]

you mean a WAAAHHHMBULANCE?

[Tomheivers @ Jun 20th 2008 7:28PM]

You could rig it so it runs on electricity or biofuel!!!

[stefan @ Jun 20th 2008 8:29PM]

everybody STOP! we don't want to go there again.

[The Dude @ Jun 20th 2008 8:45PM]

Gaaahhh, has my subtlety been thwarted by the phanbouy: Master of Deduction and Putting-Two-and-Two-Together?

[Greg @ Jun 20th 2008 7:27PM]

I love the last line "Just remember that when you blame product leaks for ruining the launch of your next crappy device, okay?" The old nokia that got me hooked on Snake, that was the greatest! Sleek and nice. While it was about a 1" cube, i have not seen a phone from Nokia that I would get now.

[Johan S @ Jun 20th 2008 7:29PM]

Nokia hasn't had anything innovative to leak.

If they had anything innovative they would ANNOUNCE what they are working on to take away hype from competitor products.

Funny how the company which actually innovates (Apple) is able to

For example, the iPhone 3G lost some momentum because some of us are impressed with the HTC Diamond and Xperia X1. If Nokia had announced a worthy competitor to the iPhone days or even weeks after it launched (before it went on sale) it would have taken some of the hype away. Of course to do that, they need to be an innovative company .. which they aren't. So they are pissed off at leaks.

Basically this is an admission that they have nothing cool or innovative.

Thanks Nokia for letting us know that you guys are jerks and that all your stupid QVGA phones suck with their horrible UI.

[Engadgetluvsappl @ Jun 21st 2008 6:24AM]

I agree on some of your points but greatly disagree on others.

Nokia ARE an innovative company. Sometimes when they create phones, no other companies can still match that phone 16 MONTHS after its release to the public. Just look at how many 'first' Nokia have in the mobile phone world, that enough proves how innovative they are.

I also agree that Nokia aren't bringing anything new to the table recently, look at the supposed N85, absolute shit. The QVGA resolutions are also laughable, this isn't 2005 anymore, Nokia.

[ilias @ Jun 20th 2008 7:35PM]

Seriously... Do you really care what does Nolia think?? Like they have a market in the US???

[krios66 @ Jun 20th 2008 7:39PM]

Seriously... Do you care what Nokia thinks?? Like they have a market share in the US???

[Striker @ Jun 20th 2008 7:48PM]

Yes, we do, but we don't care about you. Seriously, Nokia makes some of the greatest smartphones.

[Adam @ Jun 20th 2008 7:39PM]

So many emotions....such little time.

[Montey @ Jun 20th 2008 7:44PM]

Well, if it ain't Mark Felt. One of the better examples of a good leak into the stupid affairs of higher authorities.

[ishism @ Jun 20th 2008 7:44PM]

At least they still have the Ngage.

Sorry:( had to do it

[Anthony @ Jun 20th 2008 7:47PM]

I love this- especially when taken in light of their weblaunch of the N82 where they had "respected bloggers" (who get that way by showcasing leaks) on site to give "first impressions" of the device long before it was available to build hype.

[Rand @ Jun 20th 2008 7:47PM]

HAving worked in product development I'll say leaks do frequently cause havoc. I wouldn't say its the problem in Nokia's case. But...if some of you are old enough to remember a company called Osborne Computers, you'll recall how the company went out of business when its customer base stopped buying product because they got wind of the next product. Cash flow stopped and Osborne ran out of cash before they could get the product to market. Companies do talk to customers, however its surprising how often some arrogant ass with a marketing degree thinks their idea for a product is better than the customer is telling them. Sorry to disagree Ryan, leaks do not cause a product to be brought to market sooner....if they do...you'll be getting a subpar "rushed" product. Nor do they make them cost less. Managing existing stock is one of the most difficult and crucial parts of a product launch. A new product does not get priced less when a company has to eat a huge number of the previous generation product.

[Ryan Block @ Jun 20th 2008 7:57PM]

The Osborne effect is a good point and worth noting -- but it's hardly 1:1 with Nokia and most other product launches today. They release 70-100+ distinct cellphones each year, and the leaks in question here (regarding the E71) would hardly have lasting negative effects on the company.

[Rand @ Jun 20th 2008 8:55PM]

True, but if there is an existing model being replaced....the leftover unsold parts could be significant. I agree.... probably not a problem for Nokia, but for other companies with smaller product portfolios, companies like Dell, HP, or Apple, leaks can cause a lot of problems. Particularly on a technology transition (one where old technology parts can't be used in the new product)

[Cedric @ Jun 21st 2008 4:40AM]

Maybe I'm the only one who thinks this, but doesn't business plan which amounts to "Let's sell the customer a product that's obsolete but not tell them" seem rather unethical or bad for future business?

[Rand @ Jun 21st 2008 12:08PM]

If they misrepresent the product then unethical yes. Shipping an obsolete product, not necessarily a bad business plan. The iPhone was arguably using obsolete cellular technology when it shipped. But people bought it in droves....... right up to the point that it was obvious that Apple was depleting stock in preparation for a new model.

[maikel @ Jun 20th 2008 7:47PM]

They should take cues from the Apple book. We do hear rumors like it was for the iPhone 3G but nothing was set. The security at Cupertino is tight. So I think Nokia should revise their system and do the same.

[bjsguess @ Jun 20th 2008 7:58PM]

Did I miss something?

What was Apple supposed to leak on the new 3G phone? Let's see, it's 3G and it has real GPS. Did anyone actually NOT know that those items were going to be found in v2?

[telepheedian @ Jun 21st 2008 9:33AM]

To be fair, people were still going wild at what the phone would look like, whether it would have a video camera, front facing camera for video chat, stuff like that.

[wiredordie @ Jun 20th 2008 7:53PM]

This is the reason I don't like these bumpkins from Finland. They seem to blame everyone and everything for their lack of innovation and competitiveness in a very competitive market. Even before Apple crashed the party, up and coming Asian OEMs, like Samsung, LG, and HTC already kicked their asses around the world. Back then they blamed Qualcomm - whose chips are powering all the previously mentioned Asian OEMs (whatever happen to their decade-long with Qualcomm anyway?) And now they are blaming bloggers? Are you kidding me? I say all tech/gadget blogs to stop covering Nokia altogether, let's leave them in peace and ensure there will be no leaks of any kind regarding Nokia.

[gary @ Jun 21st 2008 12:59PM]

you have these horrible KOREAN phones from LG and Samsung because they are the only people else in the world using CDMA and not GSM :P Nokia being the largest GSM phone manufacturer in the world generally pushes its greatest products to GSM using countries.

I know, i know, AT&T use GSM but really?!

Get a real phone on a real network, ill stick to my N95 8GB nice smooth interface, no crashes and at least i can MMS :P

[Gabriel @ Jun 20th 2008 7:54PM]

Ya know, nokia really hasn't impressed me with anything in a very long time. That is because they release alot of crap! When you release that much crap, getting early warning that crap is coming your way will give people (consumers) the chance to not buy it. Leaks are most beneficial to consumers because it helps us not waste our money on crap. Nokia is only angry because we realize its crap before the can mass produce it and therefore wont make any money off of said crap. It would be nice if they learned form their mistake and used the insight to make a product better but alas, they are only in it for the short term buck and have nothing to offer us. Better luck next time nokia!

[Lowest Ranked @ Jun 20th 2008 7:59PM]

Official Crap Count: 6

[tekdroid @ Jun 21st 2008 10:53AM]

approx 39% of the phone-toting market in 2008 loves buying crap, then. Which isn't saying much because this percentage would probably eat at McDonald's without a second thought...but there you go.

People love crap. People will buy crap when it's accessible. People love crap.

[saxdrummer @ Jun 20th 2008 7:55PM]

Great statement, Ryan. You left out, however, that competition is not only good for the consumer but also for the corporations! Engadget and friends serve a vital purpose in our increasingly gadget driven world by giving Nokia, Apple, HTC and the like FREE ADVERTISING. Essentially, while leaks may get other companies hip to their gameplan, consumers are given enough info to actually figure out what they should buy.

This kind of whining from Nokia is foolish. It is the responsibility of, say, a sportswriter to report on last minute trades happening incognito, and while the franchise at hand may gruff about who leaked it to the press, the victim is never the press. You're right, they should just get their house in check.

Keep giving us the juicy leaks, and I'll keep wasting my income on their wares. Thank you Engadget.

[Anoldcarsnickname @ Jun 20th 2008 7:55PM]

Nokia has a big market share in Europe because of the ignorance most buyers are blessed with. They just make 10 new models every week so people think they have 'so much choice' and buy one of those Nokia models. In the end they're just 99% the same phone with a slightly modified design.

Companies like Nokia, Samsung, HTC laugh at Apple's iPhone sales and for good reason. They sell a lot more phones. But in the end Apple only has one phone on the market while they have loads of different models. I work in a phone shop and we sell so many models from different brands people don't even know where to start looking when buying a phone. Just look at ASUS and how they're ruining a very promising EEE concept at this very moment by expanding it to infinity.

And Symbian? Please, Symbian hasn't changed over the past 3 years or so. Granted, it has gotten a couple of new functions but they just aren't worth the update. And the fact that it is fully extensible with new applications means shit. Those applications are overpriced and very limited in options.

[mrhahn @ Jun 20th 2008 8:15PM]

Um... us Europeans don't buy Nokias because of ignorance. We buy them because it takes most manufacturers 6+ months to bring phones that you N. Americans currently enjoy to our shores. Nokia being one of the few exceptions.

[suckface @ Jun 20th 2008 8:40PM]

You know shit about Symbian. It has changed more in the last 3 years then the 5 years preceeding and the rate of change is accelerating. Just because S60 looks more or less the same now as a year and half ago doesn't mean it's all the same under the hood. Your statement is as factual as saying Windows95 and Windows2000 are the same since they both have a 'start' button.

[Anoldcarsnickname @ Jun 20th 2008 9:27PM]

"you N. Americans", wow, I didn't know Belgium was located in America. But of course, if you'd take a survey among Americans where it's located that would probably be the most frequent reply.

And Suckface, I might know shit about Symbian but I do know that I'm the one actually using the damn Operating System. And as an end-user I expect improvement in a product that has been under development for a few years now. I've previously owned a Nokia N93 which was basically utter crap, and now my brother has a Nokia N82. The N82 came out a year later but in the end it's almost the same phone than the N93 with a better design. It's still buggy and isn't snappy enough for a mobile OS. And except for the GPS and some function to "easily" switch between apps (just as pointless as windows+tab in Vista, who'd prefer something like that above alt+tab anyway?) they're one and the same.

Why does Nokia even have a firmware updater? They barely even send out updates for their phones, and if they do they only contain minor bugfixes. They should really start moving their R&D money from modeldesign to Software and Usability training. Most big companies today seem to have really lost sight of what the customer expects from their products.

[BobTurbo @ Jun 20th 2008 8:01PM]

These companies always start to blame other things when they start failing. Nokia have never been able to go beyond being good at making really cheap (and very good) phones in the 1xxx -> 3xxx range. If not for Android, they would be totally screwed in the high-end as they can't make software to save themselves. And I don't want a bloody FM transmitter in my mobile......

[Lowest Ranked @ Jun 20th 2008 8:09PM]

This guy Charlie looks remarkably like the Jigsaw Killer in the Saw movies.

[ThePerfectCompanion @ Jun 20th 2008 8:30PM]

Sorry but Nokia is just not cool...so I don't care...

[Fernando @ Jun 20th 2008 8:32PM]

why all the hate engadget, why all the hate?

[dale_nx26 @ Jun 20th 2008 8:51PM]

Is it just me or does many N. Americans have different taste in phones than Europeans? In many threads over the years, I remember the Americans dissing Nokia (I myself find most of their phones ugly), but Europeans seem to praise them. Weird...

[Dan Parmelee @ Jun 20th 2008 9:00PM]

The reason people here in the US associate Nokia with crap is because all of Nokia's nicer phones aren't sold here. All the high-end N- and E-series phones aren't available through normal channels. AT&T/Cingular had the pathetic E62, instead of the E61i that was far superior. Same goes for the N75.

If you do some research, you'll learn that Americans truly get the shaft on the nice phones. Why? Because most Americans don't give two shits and just take the low-end free device......which is a lot of Nokia stuff lately.

Go read about phones like the N82, E51, E61i, etc. Better yet, visit a Nokia flagship store and try it for yourself instead of passing judgment so quickly.