Anssi Vanjoki, outgoing head of Nokia’s smartphone division, likens mobile phone makers that adopt Google’s software to Finnish boys who “pee in their pants” for warmth in the winter. Temporary relief is followed by an even worse predicament.
It is the big question facing Nokia: should the company give up on its own software and put Google’s Android operating system on its phones instead? Combining Nokia’s great hardware with Google’s great software would do wonders for sales. As for margins, Nokia sinks a tenth of its handset division’s revenue into research and development, three times as much as Apple. UBS reckons Nokia could cut annual R&D spending by about €1bn a year if it stopped working on software, lifting the division’s operating margin by 400 basis points.
via FINANCIAL TIMES
Here the straight shooter comes yet again. He is right last time. But what about this time?
Some analysts agree with Anssi that relying on Android as the universal OS may lead to “permanently low profitability” with users failing to distinguish among different brands if they all offer the same experience.