Multimedia Ecosystem Opportunity Watch
>Apple wiped the floor with Nokia. Twice the net profit and almost on par with gross profit. A whole fricking billion dollars a quarter in R&D. The R&D Mafia take is 10.2% of sales.
You heard of corporate welfare. Well in Finland they believe in welfare payments for engineers.
$612 vs $90 ASP makes all the difference. Nokia needs to stop making low-end devices their core focus and take back market share in major world markets, especially the US. Their arrogance in the late 90s and early 00s starting with their refusal to manufacture flip phones for the US market effectively destroyed their market share in developed countries. The iPhone is such a big success because of 1) street hype – Nokia, you could learn something here from Apple!, 2) aspirational marketing, singular focus on making the best product, not many mediocre products, 3) combination with iPod and 3) effective next generation UI. Nokia used to be the king of mobile UI in a keypad-driven world. But the world has changed, technology has evolved an once again, Nokia has missed the boat and dug in to proven platforms rather than taking a leap of faith into the future – or god forbid, just following its competitors!
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