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The 'oh sh_t' moment that Nokia decided to abandon MeeGo
Bloomberg Businessweek just published an amazingly thorough piece on Nokia, pre- and post-Elopcalypse. We've long wondered how MeeGo, an OS that Stephen Elop himself said "inspires both confidence and excitement" in October 2010, could be cast aside so quickly in favor of Windows Phone, an OS still struggling to find traction in the heated smartphone market. Well, now we know. Bloomberg recounts a January 3rd meeting between Nokia's Chief Development Officer Kai Oistämö and Nokia's freshman CEO. After Kai expressed his concern with MeeGo's ability to effectively respond to Apple's iOS and Android operating systems, the two decided to interview two dozen "influential employees" about MeeGo, ranging from execs to engineers. Here's how Bloomberg recounts the events that followed: Before the first interview, Elop drew out what he knew about the plans for MeeGo on a whiteboard, with a different color marker for the products being developed, their target date for introduction, and the current levels of bugs in each product. Soon the whiteboard was filled with color, and the news was not good: At its current pace, Nokia was on track to introduce only three MeeGo-driven models before 2014-far too slow to keep the company in the game. Elop tried to call Oistämö, but his phone battery was dead. "He must have been trying an Android phone that day," says Elop. When they finally spoke late on Jan. 4, "It was truly an oh-s--t moment-and really, really painful to realize where we were," says Oistämö. Months later, Oistämö still struggles to hold back tears. "MeeGo had been the collective hope of the company," he says, "and we'd come to the conclusion that the emperor had no clothes. It's not a nice thing." Nokia is now on track to release at least one Windows Phone handset in 2011 with a dozen more in 2012.
Live from D9: Nokia's Stephen Elop takes the stage
We know, we know -- you should've left the office hours ago, but if you hang tight for just a wee bit longer, you'll be able to join us on our journey of the last D9 liveblog for June 1st, the year two-thousand and eleven. Hot on the heels of Steven Sinofsky and Leo Apotheker, it's the president and CEO of Nokia, Mr. Stephen Elop. He's been doing the media rounds while camped out in California today, and now it's our turn to see how he reacts to Walt and Kara's questioning. Live coverage of the interview continues after the break!
Elop: Symbian will continue getting updates until 2016, at least
How much does it take to convince Symbian users their OS is doomed? Just the one slide you see above. Now it seems Nokia CEO Stephen Elop is attempting damage control. In an interview with Nokia Conversations, Elop attempted to placate his shareholders and customers by stating that the OS's last update will take place somewhere around 2016 at the earliest. He isn't switching the focus away from Windows Phone as his company's bright new future, but he does want to assuage folks who sunk money into Symbian that their investment isn't just going down the drain. Stating there is "a long history still to be paved for Symbian in the future," Elop didn't volunteer any additional details on update strategy or how much longer new Symbian phones will be sold. We're a bit surprised at the length of this extension of relevancy; we can't help but feel as though it's all because Nokia's breakup with Symbian was too emotional and they're both trying to stay friends. Or perhaps four years is just how long the company thinks it will take to sell all of the remaining 150 million units it originally planned to push. Either way, check out the full video after the break and let us know what you think below. [Thanks, Chris]
Nokia's promised dual-SIM handsets arrive, look strangely familiar
Well, that didn't take long. When Stephen Elop said a new dual-SIM handset would ship by the end of June, apparently he meant to say, "Right away!" Nokia has announced the first shipments of its C2-00 -- the same dual-SIM candybar we've known about for a year -- throughout India, China, and various developing regions for €45. On this C2, one of the SIM slots is accessible from the outside of the phone, making it convenient for those carrying more than two cards. Additionally, the company revealed the X1-01, a dual-SIM (and still very loud) variant of the X1-00 with a specially tuned speaker that's said not to distort too badly -- even when the volume is turned to 11. It sells for €34 and lasts 43 days on standby. Both devices feature dual-standby, which allows calls and messages to be received on both numbers without needing to switch back and forth between them. Of course, this leaves us awaiting the arrival of Nokia's dual-SIM touchscreen phone, the C2-06, but this will suffice for today. Game on, Mr. Elop.
Nokia's chief envisions a dual-SIM future in India and China, remains uncommonly silent about Europe
When speaking at Nokia's Annual General Meeting, CEO Stephen Elop identified the company's burning desire to strengthen its dual-SIM portfolio, citing the feature's strategic importance in India and China. During the speech, he announced Espoo's first dual-SIM phone (likely the C2-06) will ship by the end of June, while failing to mention its true "first" offerings, the C1-00 and C2-00, were released in 2010. For travelers who must contend with network fragmentation, dual-SIM functionality allows users to easily switch among carriers while moving about. The feature is also getting noticed in Europe, too -- though it's unclear whether you'll begin seeing Windows Phone pursuing double lives. Should Elop decide two SIMs have a future in Nokia's smartphones, we're pretty sure he'll be able to twist Ballmer's arm. [Thanks, Nisse]
Stephen Elop: Nokia won't build just another tablet
Apple has a tablet. So does RIM. HP Palm too, soon enough. And Android tablets, particularly those running Honeycomb... they're everywhere -- hell, even Sony has a few on the way. That leaves Nokia as the glaring anomaly conspicuously absent from the tablet wars. Understandable, we guess, given the company's urgent need to transition its smartphone strategy to Windows Phone. That doesn't mean the company is standing still though. According to an interview with YLE television in Finland, Nokia CEO Stephen Elop is taking a very calculated approach to tablets, saying, "We could take advantage of Microsoft technology and software, and build a Windows-oriented tablet, or we could do things with some of the other software assets that we have. Our team right now is assessing what's the right tablet strategy for Nokia." In other words, Nokia is investigating tablets running Windows 7 (doubtful), MeeGo (doubtful), and Windows Next, aka that tablet-friendly Windows 8 OS (likely). But here's the most illuminating exchange from the well-mannered Canadian: There are now over 200 different tablets on the marketplace, only one of them is doing really well. And, my challenge to the team is I don't wanna be the 201st tablet on the market that you can't tell from all of the others. We have to take a uniquely Nokia prospective and so the teams are working very hard on something that would be differentiating relative to everything else that's going on in the market. Q. So you're not in a hurry? We're always in a hurry to do the right things, but we're mostly in a hurry to do the right thing. Makes sense to us and echoes what we've heard about Sony's relatively delayed entry into consumer tablets. Why should Nokia build another me-too tablet when it can tap into the combined Microsoft / Nokia ecosystem and make a grab at some real market share and profit? The entire 20 minute interview is interesting as Elop discusses layoffs, the first Nokia Windows Phone, Symbian, and competing against Apple and Google. Hit the source link for the full deal -- the tablet discussion begins at 10 minutes and 32 seconds. [Thanks, Pauli N.]
Nokia's Q1 2011: smartphone share down to 26 percent, 'more challenging' times ahead
Nokia has just published its first quarterly results in the era of its Microsoft partnership and things aren't looking too bright. Smartphone market share, which had been at 41 percent this time last year and 31 percent in January, has now dipped to 26 percent, while operating profits have taken a 17 percent tumble relative to last year. The company managed to ship one percent more phones in Q1 2011 than in Q1 2010, but its 108.5 million units was an 18 percent drop from last quarter's totals. CEO Stephen Elop describes the first quarter as solid, but warns that the second will be "more challenging." The impact of Japan's disaster earlier in the year will be felt more strongly in Q2, we're warned, with respect to component supply and logistics, while new products won't figure too strongly as Nokia intends to "start shipping the majority of our new products in the second half of the year." Elop is, however, encouraged by the "roadmap of mobile phones and Symbian smartphones" that Nokia has in store for 2011, which sounds good on the surface, but we'd be more comforted if he'd have inserted the words "Windows Phone" or "MeeGo" in that sentence too. Hit the links below to see the full financial details.
Nokia CEO: cheap Windows Phones can come 'very quickly'
We'd raised our own concerns in interviews with both Stephen Elop and Microsoft's Aaron Woodman in the past week that Nokia could have difficulty pushing the Windows Phone platform low enough to fill the holes left by Symbian's departure in the bottom rungs of the market, but the Nokia CEO is making it very clear that he thinks that won't be a problem. In a talk with Finnish journalists on Friday, Elop said that it has become "convinced" that it can hit "a very low price point" and do it "very quickly," a strategy that will be key to converting significant swaths of Symbian market share into Windows Phone market share without losing it to other manufacturers or platforms. Of course, something tells us the leaked design concept (pictured right) doesn't represent the types of hardware Nokia has in mind for those low price points -- but no single device or market segment is going to take Espoo to the promised land here.
Nokia shareholders and unions fight back against Microkia
Nokia shareholders are not very happy right now with NOK taking a 25 percent hit since the announcement of the Microsoft marriage. Stephen Elop, Nokia's first foreign-born CEO, is taking heat on multiple fronts even as he prostrates himself to the media in hopes of getting his message out. Already, we've heard numerous conspiracies calling Elop a "trojan horse," sent by Steve Ballmer to sabotage Nokia from within. Conspiraloons are quick to point to records showing Elop holding a significant number of Microsoft shares -- a situation that Elop says is temporary (and outdated) having already sold a majority of his Microsoft position with plans to sell off the rest in favor of Nokia stock just as soon as he's free to do so under regulatory moratoriums meant to prevent insider trading. Nevertheless, Nokia will be facing at least two very real showdowns on its near-term horizon. First, will be a battle with the Finnish trade union Pro which is demanding €100,000 (in addition to severance payments) for every Nokia employee that loses their job under Elop's new strategy -- money the unions says will be used for reeducation. The union estimates that Nokia could cut as many as 25% (5,000 people) of Nokia's 20,000 workers located in Finland. The second major hurdle facing Elop, and the board of directors that appointed him, will come at Nokia's Annual General Meeting for shareholders. Already, a cabal of nine frustrated shareholders have been grabbing attention with its "Nokia Plan B" proposal to oust Stephen Elop and return Nokia to a MeeGo focus giving Symbian a five-year minimum reprieve. The group has since disbanded after its plan was rejected by institutional investors. Nevertheless, we don't expect Symbian / MeeGo fans and developers to give up without a fight, and we expect Helsinki Fair Centre's Amfi Hall to be center-ring when the event kicks off on May 3rd in Helsinki.
Debunk: Elop never said Microsoft is paying Nokia billions of dollars to use Windows Phone
In our sitdown with Nokia CEO Stephen Elop out at Mobile World Congress today, we brought up something that had come up during his press conference and Q&A session last Sunday evening -- that the company's partnership with Microsoft would generate "billions, not millions" of dollars' worth of value. This quickly morphed into an internet-wide story that Microsoft would basically be cutting a ten-figure check to Espoo in exchange for launching devices running its platform, but the reality is that Elop never said anything close to that: in fact, when we specifically asked how the money was flowing and who would be seeing black ink upfront, Elop said on no certain terms that they're not talking specifics of the deal. He goes on to say that it's a "very balanced relationship," which would indicate to us that there wasn't any massive cash transfer to kick this thing off. Regardless, the fact remains: at no time did he say Microsoft was paying to make it happen -- and considering Nokia's needs, we wouldn't be surprised if this was nearly a zero-sum transaction: Microsoft gets a huge boost in the platform's profile along with some services it needs, while Nokia gets a platform that it wasn't able to make itself. Makes sense to us.
The Engadget Interview: Nokia CEO Stephen Elop talks Microsoft, Symbian, MeeGo, and Windows Phone
We had a chance to sit down for a few minutes with the man who's arguably stolen the show here at Mobile World Congress this year -- Nokia CEO Stephen Elop -- to talk about everything from his time at Microsoft to the potential for a multi-billion dollar platform partnership with his former employer that he's hoping to foster over the coming years. Elop's emerged in the past week as an outspoken character who doesn't seem to shy away from a question, to speak his mind, or to tell it like it is, which makes this ten-odd minute segment a must-see. Check it out after the break.
Engadget Podcast 232 - 02.13.2011
Who's ready for the special Grammys edition of the Engadget Podcast? When we said "Grammys," we meant "consumer electronics," and when we said "special," we meant "just like every other week, but still pretty special."Hosts: Joshua Topolsky, Nilay Patel, Paul MillerGuest: Chris Ziegler Producer: Trent WolbeMusic: March of the Pigs00:02:45 - Nokia CEO Stephen Elop rallies troops in brutally honest 'burning platform' memo? (update: it's real!)00:05:15 - Nokia and Microsoft enter strategic alliance on Windows Phone, Bing, Xbox Live and more00:09:13 - RIP: Symbian00:11:15 - Nokia: Symbian and MeeGo not dead yet, still shipping this year (updated)00:18:41 - Nokia tells investors that 2011 and 2012 will be 'transition years'00:32:50 - Exclusive: Nokia's Windows Phone 7 concept revealed!00:39:34 - Live from HP / Palm's 'Think Beyond' webOS event!00:41:15 - RIP, Palm: 1992 - 201100:42:07 - The Engadget Interview: Jon Rubinstein and Steven McArthur talk webOS on PCs, 'Music Synergy,' competition, and more00:43:20 - HP's 9.7-inch TouchPad: webOS 3.0 tablet with 1.2GHz dual-core Snapdragon, coming this summer00:45:07 - HP TouchPad first hands-on! (updated with video!)00:48:00 - webOS Enyo framework free to developers today, brings pixel density agnostic apps to phones, tablets and PC (video)00:48:22 - HP Pre 3: 1.4GHz Qualcomm CPU, 3.6-inch WVGA, coming this summer (video)00:49:00 - HP Pre 3 first hands-on! (updated with video)00:49:27 - HP Veer: smallest smartphone in the webOS stable, 2.6-inch display, coming this spring00:50:45 - HP Veer, first hands-on! (updated with video!)00:52:40 - HP's Touch to Share eyes-on, starring the TouchPad and HP Pre 3 (video)01:11:52 - Palm Pre 2 vs. HP Pre 3: what's changed?01:18:40 - Looking for our Motorola Atrix 4G review?01:21:05 - We're live at Mobile World Congress 2011!Hear the podcastSubscribe to the podcast[iTunes] Subscribe to the Podcast directly in iTunes (enhanced AAC).[RSS MP3] Add the Engadget Podcast feed (in MP3) to your RSS aggregator and have the show delivered automatically.[RSS AAC] Add the Engadget Podcast feed (in enhanced AAC) to your RSS aggregator.[Zune] Subscribe to the Podcast directly in the Zune MarketplaceDownload the podcastLISTEN (MP3)LISTEN (AAC)LISTEN (OGG)Contact the podcast1-888-ENGADGET or podcast (at) engadget (dot) com.Twitter: @joshuatopolsky @futurepaul @engadget @reckless @zpower
Nokia: 'Our first priority is beating Android'
Nokia CEO Stephen Elop is currently on stage at MWC in Barcelona, and he's had a few choice things to say about the recent announcement that Nokia will partner with Microsoft to create devices which run Windows Phone software. Elop told the crowd assembled there that Nokia's "first priority is beating Android," and he also took a moment to let everyone know that Nokia is not interested in being the only company producing Windows Phones -- countering some recent exclusivity chatter. The presentation is still going on, so we'll keep you updated. Be sure to check out our full liveblog right here.
Nokia hints we'll see first Windows Phone 7 device this year
Nokia may still sticking to the official line that it will begin shipping Windows Phone 7 devices in "significant volume" in 2012, but it just dropped a big hint at its Mobile World Congress press conference that we could be seeing the first device even sooner -- like this year. That word came from Nokia's Jo Harlow, who said that her boss would be "much happier" if the timing of the initial launch was in 2011. What's more, Nokia's also given us a glimpse of another slightly different Windows Phone 7 concept device in addition to confirming the leaked one we got our hands on a few days ago, and it's shed yet more light on the behind the scenes intrigue that led up to the switch to Windows Phone 7. According to CEO Stephen Elop, the "final decision" to go with Windows Phone "just happened on Thursday night of last week." Elop then later then expanded -- in response to a question shouted from the audience about whether he was a trojan horse -- that the "entire management team" was involved in the process, and that "of course the board of directors of Nokia are the only ones that can make this significant of a decision about Nokia," which they made on Thursday night. Update: Official image of the latest concept is now pictured above.
Live from 'An Evening With Nokia' at MWC 2011!
We've been gathered at the same cozy venue as two years ago (for the introduction of the E52, if memory serves correctly) for Nokia's event at MWC 2011 this evening... and frankly, in light of what's happened the past few days, we're not quite sure what to expect. CEO Stephen Elop should be on stage to take some questions -- but in terms of product or strategy announcements, it's anyone's guess. Follow the break for all the fun!
Nokia workers mourn death of Symbian, thousands walk out
We know how you feel about the apparent death of Symbian, and you had to figure that those most affected by it wouldn't be feeling too good either. Those people are, of course, the 1,500-odd workers at Nokia's Tampere office who have crafted the OS through the years, over a thousand of whom apparently walked away from their jobs today as a sort of non-violent protest -- or maybe just to get a preview of what their Friday afternoons will look like once Elop starts dropping the axe. It should be noted that they used their flexible work schedules to enable this, so this is one orderly bit of social dissonance that shouldn't result in any accelerations of whatever layoffs are to come.
Nokia will be able to customize 'everything' in Windows Phone 7, but likely won't
Stephen Elop, in his financial and strategy briefing continuing Nokia's marathon Capital Markets Day, just posed an interesting rhetorical question: will Nokia be able to "customize everything" on Windows Phone 7 in order to differentiate itself? "Yes!" was Elop's ebullient proclamation, though he quickly pulled it back to say that Nokia likely won't make extensive use of this freedom to tailor Microsoft's OS. Instead, the company will be cautious and seek to maintain compatibility rather than pushing the boat out too far in tweaking the underlying software. That's a major shift for Microsoft, who forbade HTC from skinning Windows Phone 7 with Sense, something the Taiwanese company would surely have loved to do, and limited it to the introduction of a self-contained Hub. Now Nokia's saying it -- perhaps exclusively -- has been given the liberty to play around inside WP7 to its heart's content. We'll see how important that turns out to be whenever Nokia delivers its first device bearing its new smartphone OS. An insider tip tells us the current plan is to introduce such a handset by the end of 2011, potentially based on current hardware. Who's ready for Xbox Live on a future version of the N8?
RIP: Symbian
This slide was just presented by Stephen Elop and Nokia CFO, Timo Ihamuotila, at Nokia's Capital Markets Day. Although there's no date listed, it's clear that Symbian -- a "franchise" OS that Nokia will "harvest" -- will be wholly consumed by Windows Phone on Nokia devices just as soon as Nokia and Microsoft can complete the transition. It won't be immediate, but it seems like 2012 will be the year that Nokia pulls the cord on life support. Regardless of the actual date, who in their right minds would invest their development time or consumer dollars in a smartphone OS that has no future within the company? One more slide showing the post-Symbian reductions in R&D spending after the break.
Nokia's Elop responds to Google's 'Two turkeys' tweet
Like it or not, you have to hand it to Stephen Elop, Nokia's new CEO. The man isn't afraid to shake things up and clean house to meet his vision of the future. And now that he's made Windows Phone 7 Nokia's "primary smartphone platform" in what he sees as a three-way race between Microkia, Googloid, and Apple (sorry HP and RIM), the man's free to unleash his mild-mannered Canadian fury upon Google's Vic Gundotra (via proxy). As you'll recall, Vic insulted the rumored partnership earlier in the week by tweeting, "two turkeys do not make an Eagle." If you don't understand Elop's twitter-burn then we urge you to visit one of Dayton Ohio's fine historical museums while eating a slice of Cassano's pizza -- we hear it's delicious. [Thanks, Jack]
Nokia Q&A reveals more MeeGo details and tablet plans -- says Android 'risk of commodification was very high'
The Steve show just ended with both Elop and Ballmer hosting a very informative media Q&A following the reveal of Nokia's plan to use Windows Phone 7 as its "primary smartphone platform." Here are the highlights: No specific announcement for when we'll see the first Nokia Windows Phone. Ballmer mentioned that the engineering teams have spent a lot of time together already. Elop also confirmed that Nokia is a Finnish company and always will be -- they will not be moving to Silicon Valley or anywhere else. Ballmer said that the partnership is "not exclusive" but some things that Microsoft is doing with Nokia are "unique" allowing Nokia to differentiate itself in the market. Elop added that it's important for the Windows Phone 7 ecosystem to thrive, which means that multiple vendors must succeed. Elop didn't believe that Nokia could create a new ecosystem around MeeGo fast enough. Nokia will "substantially reduce" R&D expenditures while increasing R&D productivity moving forward. Nokia did talk with Google about adopting Android but decided that it "would have difficulty differentiating within that ecosystem" and the "commoditization risk was very high -- prices, profits, everything being pushed down, value being moved out to Google which was concerning to us." Microsoft presented the best option for Nokia to resume the fight in the high end smartphone segment. Elop clarified that MeeGo will ship this year but "not as part of another broad smarpthone platform strategy, but as an opportunity to learn." Something that sounds very similar to position Nokia took with its so-called "experimental" Maemo-based N900 last year. After the first (and apparently, only) MeeGo device ships this year, the MeeGo team will then "change their focus into an exploration of future platforms, future devices, future user experiences." Trying to determine the "next disruption" in smartphones. Responding to "hope for a broad MeeGo-based ecosystem," Elop said that Nokia simply wasn't moving fast enough to effectively win and compete against Apple and Google. Windows Phone makes it a "three-horse race," something that Elop says is pleasing to the carriers he's been speaking with. Nokia has different options for its tablet strategy including using something from Microsoft or something that Nokia has developed internally.