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Nokia has Windows Phone "contingency plan"

Nokia has Windows Phone

Many have speculated that if Windows Phone 8 should somehow flop, then Nokia's goose is cooked. Not so says Nokia board chairman, Risto Siilasmaa. In his first television interview on Thursday, Siilasmaa said that Nokia has a "contingency plan" in place just in case Microsoft's mobile OS "fails to live up to expectations." That being said, he stressed that the company was confident that it would be a success, describing Windows Phone 8 as "a technological first, providing users with a seamless user experience across multiple platforms, from PCs to tablets and smartphones."

He defended Nokia's decision to ditch their own operating system after “Symbian’s market share has come down close to zero,” since it began to decline in 2008. Siilasmaa also stood by CEO, Stephen Elop, who "came in at a tough time." Nokia's stock has plummeted since making the move to Windows Phone and the Finnish manufacturer has announced that it will be cutting 10,000 jobs.

Contingency plan or not, Nokia's fate seems to be closely tied to the success of Windows Phone. They took a huge hit after the change in strategy, and it's hard to believe that they could survive a second one in such a short time.

Source: Yle Uutiset; Via: CNET; Thanks, everyone, for the tip!

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Comments

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dkp23 says:

Sell to microsoft is plan b.

irfanindian says:

That sounds like a possibility any which ways!

Icthiodrak says:

Someone needs to fire this idiot.  How do you expect to succeed when you keep telling people that you don't have confidence in your current plans?  It is fine that they have a plan B but don't announce it to the world and let everyone believe that you think plan A will fail.
I was even thinking about buying some Nokia stock but it is boneheaded moves like this that make me question their ability to succeed.

kiddori says:

Every serious corporation has a contingency plan. I highly doubt WP will fail but it's good to know that Nokia has a backup plan just in case. Even Samsung has a contingency plan if Android fails. 
I believe Symbian is dead and I support them killing it in favor of WP. However, they should probably keep a couple of developers working on it in the basement just in case.

BK-one says:

I agree. Never talk about plan B or C until its time to put that plan into action. It says " I don't have full confidence in plan A"

based_graham says:

Nokia in the Android world is a bad mix. Samsung rules that domain even other Android OEM's are struggling. Its either Nokia sells hardware and manufacturing to MS and focuses on selling software and patents.

tekhna says:

Nokia would be in much better shape by now if they were shipping Android, and everyone knows it. The carriers sure as hell seemed to want it. 
 

kiddori says:

Nokia can't compete with Samsung and HTC on the Android front at this point. They needed to differentiate themselves and they did so by going with WP. They should continue innovating in photography and mapping and let Microsoft take care of the basic OS.

based_graham says:

I don't think so. Nokia would have to release a flagship dual core phone priced even higher plus paying MS for patents. How garanteed are you that it will sell at high volumes like the Galaxy line? Apple and Samsung are soo popular because of branding. You see iPods and Macbooks with a big fat Apple log. You see Samsung TV's everywhere. Where do you see Nokia products... No where

tekhna says:

Graham, how do your arguments square at all with what they're trying to do anyway? I don't get how taking a low-visibility brand, and then slapping a low-visibility OS on it somehow gives them an advantage through "differentiation". 

based_graham says:

Its because the low-visiability OS works for 95% of the people out there and the lower specs make it easier to manfufacture. WP works OOB, differentation comes from Metro look and feel. WP7.5 is a different phone its not a PC in your pocket its an actual smart phone in your focus with attention to people first rather than applications. That was the overall goal of 7.5

tekhna says:

And that's sure worked out well, hasn't it?
 

based_graham says:

It has in my opinion. As long as the platform is selling and it is look at AT&T and T-mobile sales charts WP is in the top 5. Now if it completely failed WP would have got nothing but bad reivews and no developer support but that's not how it is right now.WP get great reviews and awesome support even with low marketshare so there is a problem at the carrier side which can be easily addressed with a few tweaks.

tekhna says:

The Titan II, 710, 900, Omnia, and Focus 2 have all come out recently, and moved the needle a grand total of 0.1%. That's a complete failure. Reviews are great, apps are great, but sales are what matters. 
 

based_graham says:

Other than the Lumia 900 did the Titan 2, Focus and other WP's get any sort of dedicated marketing? I bet you would find the Titan 2, Focus, Lumia 710 in the sea of Android devices people probably think their Android not WP. The reason why the L900 is doing great because its actually being promoted. Once carrier presentation is on a even level then lets talk sales.

neonspark says:

off course he does. that's his job. and they have a plan if that doesn't work either. that's what corporations do. however by saying such stupid commend he is just sinking his company further.
and the kiss of death would be android. then nokia would be just another android OEM getting crushed by samsung and HTC with little hope of differentiation and getting no money from MSFT to keep them alive. Surely meego seems more promising than google's mess.
nokia's bad choices were seeded long ago with their clinging to symbian. lumias have actually generated more revenue for them than just about anything and even more with windows phone 8 considering how MSFT is paying for all the nokia maps technology for every single device even those not made by nokia.
sweet deal.

cedarlog says:

Great, you are annoyingNokia windows phone current users and making potential buyers skeptical to buy Nokia windows phone 8
You are Fired > > > > exit door
all we can do  to prove him wrong is by buying Nokia window phone 8 devices

based_graham says:

Windows Phone wont save Nokia...  Windows will. So don't just make phones make some nice Windows RT devices as well. Nokia 7 inch tablets yes please!

gregoron says:

You can't fire the chairman of the boards. He has to be voted out. They can fire Elop though but they're still confident in him and WP8.

Android is not the answer. WP8 is and possible takeover from MSFT.

cedarlog says:

No problem i will vote yes :p
 

mech1164 says:

Nokia Plan B: OpenWebOS.:D

ejlee072006 says:

Fire this guy... Stupid ass

mdram says:

+1 to OpenWebOS

They may have a backup plan. I think their backup plan is to say they have a backup plan so MS pays more for them when they do buy Nokia. Windows 8 will be very good, I think people will finally have that 3rd option. A windowsphone will never pass Apple or Android. I'm ok with being a very close 3rd place.

NIST says:

This guy should be out of a job soon. You simply can't make stupid statements like that.
Also Android adoption would be retarded. You simply can't get a better OS than WP8. If you want in on the worlds largest tech eco system then partnering with Microsoft was the correct move. For scalability from a product line perspective Nokia made the correct move. It appears a few items still need to be positioned, but I expect those to be in place by years end.

MrBlowfish says:

They do not. Still, you have to say sheet like this to keep the shareholders at least moderately happy.

daniel_spl says:

This is the last Nokia I ever have. I personally feel very disapointed with the wp8 decision to do not make it available for lumias 800 and 900, I think that decisión showed everyone how old-tech Nokia is today compared to Samsung and other leading devices. And I do agree, this asswhole should be fired.

based_graham says:

Sorry to hear that but WP7.8 will bring some good things to 7.5. Do you really want a phone that is not designed for WP8 to work OOB its goign to be slow and painful. But hey you never know Nokia might work some magic and get WP8 on WP7.5 its doable.

OMG55 says:

First of all, those job cuts and plant closures were announce when Nokia adopting WP7 was still a rumor. So is the phrase, Nokia stock has plummeted since adopting WP7???

This was fake news, Endgadget already reported it, some people really hate WP, I think it was zacman.

btgusto says:

Plan A is to sell to Microsoft and become it main hardware provider for phones.  Plan B? There is no plan B.

Seasword says:

Like what people say here, it's not usual someone like him telling plan B to public when plan A is in execution. It's most likely a gentle reminder to MSFT to take this seriously and not like the first launch of WP7. Before Nokia came, MSFT & WP7 as whole play catch up and lagged far behind. And for anyone that keeps mentioning Android, the only one that truly profits is Samsung.
 
MSFT should help Nokia more. I don't know whether the features are coming to WP 7.8, but MSFT certainly don't simply say officially more is coming in their previous expo. This tells a lot. The momentum gained by Nokia's effort is being eroded.
 
Nokia is known for its great flexibility in hardware offering. It has a lot of imagination and WP7 limits that. The opportunity cost should be compensated by MSFT. The compensation is another mean of investment for MSFT.  In the end, both will win.

PeterFnet says:

Of course they should have a backup plan. The real question should be why he is making note of it publicly

tallgeese says:

Buy Nokia stock now!

winbot says:

What people don't understand is Nokia has a contract with Microsoft for 5 years. Every year Microsoft pays them 1Billion dollars as part of the agreement. Also, Nokia is not allowed to negotiate a buyout by any other company without going through Microsoft first. So what is their Plan B? It's not Android.
 
This guy should be given a lesson in PR. I'm already doubting my investment in Nokia. His statement was leaning towards more negative then anything else.

zacman says:

Please read Nokia's financial statements. For Q1/2012 the amount of money Nokia got from MS was already as high as the royalties Nokia paid to MS for WP licensing fees. And that was with very weak numbers (only two million Lumias sold). In other words: when the sales get a bit higher then Nokia has already more to pay to MS than they get from them. Not the best situation for Nokia.

winbot says:

I'm not an accountant and I'm not sure what exactly they pay and lost, but, If Nokia pays roylties for each device sold, that means they also made a profit for each device sold. So I'm not sure I get your point clearly. Can you please explain how they will lose more money if they make more sales, if making more sales = more profit? 
 
Also, I believe it costs more or same to use Android since every Android OEM needs to pay Microsoft because of some patents. So even though Android is free, OEM's still have to pay for it.

zacman says:

Nokia for sure wouldn't have to pay to MS when they chose Android. Simply because Nokia has a huge patent portfolio which puts MS and Nokia at a draw if it came to a serious fight. So more sales for Nokia now mean more royalities and less profit than if Nokia chose a different OS. Plus WP is hated by almost all carriers worldwide. In Germany the Lumia 710 is down to 150€ (incl 19% VAT). And people still don't buy it. Carriers don't show it in the stores. Or travel to Asia. When the people see my Omnia7 they tell me: "Ahhh, Samsung Galaxy!!". In Malaysia Nokia currently has a big campaign for the Lumias. Problem is: WP doesn't support the Maxis/Hotlink carrier menu over *100#. Dealers are therefore telling: Only problem with these phones, customers are very disappointed. And guess what: they don't recommend the phone then.

Seasword says:

1.It's interesting. Nokia Lumia 800 is surely a lot more popular than 710 in Germany. It does not mean Lumia as entirety is unpopular.
 
2. It's not hated. Care to elaborate ? It's that they are waiting for better version while selling the current version without pushing it. The business model is usually by carrier and not the push by OEM.
 
3.Asia ? Here in Indonesia people know Lumia. Its advertised a lot. I don't see problem with csc menu. Its obscure and the description in the menu is appaling. Many tricks by providers. People don't decide solely by that feature. Not even close.
 
4.Omnia=Galaxy ? It's damning, really. People sometimes tell my Focus a Galaxy. Samsung really needs to step up the effort.
 
5.Disappointed ? I doubt that. Its all about marketing. Here in Indonesia Nokia has strong feature in Symbian. No need for credit card to buy apps. Yes, that's right. It's so easy. I hope Nokia has a lot to say so that feature comes to Nokia WP8 and Nokia gets share. There is only so much we can do with free apps. We need paid apps.

shotokq says:

Nokia is doing what apple did with the iphone... Give exclusivity to AT&T hahaha... Huge mistake. What are they thinking??? Only att users buy high end phones??? Come on... Just think! The worst carrier is AT&T. Iphone was just lucky and the phone was so good so it sold well with AT&T. Nokia and MS you have to compete against apple, open your eyes and bring more phones to everybody. Dont think that everybody is going to att because of nokia.

theraj1910 says:

It will be good for Nokia if it ties with Google and launch Android based phones. Nokia will get it's days back as still their are a lot of Nokia fans.

blackprince says:

If you all remember from last year Elop said they are still doing very limited development on Meego, research stuff. I'd assume that's plan B.