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strategy
by leon on December 30, 2009

Nokia has been losing its share of the mobile phone market as more consumers take to smart phones.
So it's not surprising that beleaguered Nokia has now gone on the attack, filing a complaint with the US International Trade Commission claiming that Apple is infringing Nokia patents with their all their iPhone, iPods and Apple computers. Basically, Nokia is claiming that Apple is trying to free ride on its pioneering innovation. Not that this will result in the iPhone being removed from the market. As the 24/7 Wall Street blog says, these sorts of disputes usually come down to dividing up royalties and making some sort of settlement in a Mexican stand-off.
Still, this claim is a worrying trend in Nokia's strategy and behavior. We saw it earlier this year when the company released its Netbook.
The problem here is that Nokia is doing this from a position of weakness, not strength. It's entering this market because it's losing mobile phone sales.
Secondly, this would require a completely new distribution network. Nokia distributes its phones through phone carriers. To sell netbooks, it will have to go through the retail electronics channel. Dealing with a company like Verizon, Sprint and Virgin Mobile is very different from dealing with retail bullies like Wal Mart and Tesco.
In the past, Nokia wowed the markets with its innovative fire. It will have to go back to those roots.
Permalink: Nokia's mistakes
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