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Sunday, March 21, 2010
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Nokia insider laughs at Apple's iPhone sales claims



Apple recently released a press release stating that the company sold a million iPhone 3G S phones in three days after the launch. Given the real market size of Apple and Palm [who only sold 100,000 units in the first week - thanks to a short-sighted decision to sign an exclusivity deal with Sprint Nextel instead of Verizon], we wondered what would a reaction of market leader be.

The answer was, long story short - nothing. Nokia does things "the Finn way", no bombastic press releases or various claims. In our chat with an employee from Nokia's Ovi division, we learned that not all people in the company are thrilled with the way company works. "We sell 1.26 million phones DAILY, out of which 410,000 are smartphones". That was a reaction from an unnamed Nokia employee from the Ovi division.

The figures that cite the market strength of Nokia are something to think about. Every day, Nokia will sell 1.26 million phones. Out of that number, 410,000 can be considered smartphones, e.g. competitors to Apple's iPhone and Palm Pre. We have to rain a bit on Nokia's parade there - a minority of those 410,000 use touch-screen, so there is somewhat of a moot point there.

But Nokia as a hardware platform is a terrifying prospect for the competition. With this new cooperation with Intel, Nokia is going to bring Symbian OS into the x86 world territory, not becoming a competition to media-beloved competitors [Apple, Palm] and the real ones [Samsung, RIM], but rather a giant monster - a true cellzilla or phonezilla.

Intel could sell at least 100 million of its SoC to Nokia every year after their platform is deployed onwards [our estimate is 2010-2011], and given the aggressive plans Nokia has, in roughly 5 years from now, it could happen that SoC chips for Nokia make up for most of Intel's chip volume, something unthinkable just yet. What happens in a few hours with a live conference from 8:30AM PDT onwards will mark not just today, but rather be one of game changing days for the industry as whole.



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Comments:

RE: No need to make things up by: Theo Valich on 6/24/2009
Hi Frantz,

the article title has been modified. Thanks for your input. However, the tone of people we communicate inside the company is right on the dot.

Sometimes, people just get frustrated with all the marketing agenda that is flying in the biased part of the press.

Ed.
No need to make things up!!! by: Frantz on 6/23/2009
Please change the title of the article. It is misleading not to mention totally false.
RE: Ovi Store? by: Theo Valich on 6/23/2009
Greetings Steve,

We won't go into the quality of Ovi Store or App Store or just about any store here... this was just the story with numbers - Nokia sells 1.2+ million cellphones every day, rain or shine, holiday or not. Out of those 0.4M+ come as competitors in the smartphone field.

Ed.
Ovi Store? by: Anonymous on 6/23/2009
Perhaps the particular Nokia employee should work on making Ovi Store and the rest of their mumbo jumbo experience. Nokia doesn't hold a candle to RIM and Apple, so STFU and make Ovi Store work.

My two cents.

Steve
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