Originally Posted by jfanning
What is your problem with numbers. Nokias entire R&D costs are $4 billion, of which around $1 is for Symbian. Yeah is is excessive, but not as bad as you constantly try and misrepresent it as.
The problem with Nokia's R&D is that they have way too many products. What this means is that each product gets just a small fraction of that R&D. Apple, on the other hand, has a small number of products. Their much smaller budget still allows much more dollars to be spent on each product, and it shows. Nokia is committed to making dozens of phones to meet every need and niche. That's a problem, and only works when their competitors are doing the same. None of them gain much of an advantage. But when a company takes a different approach, as Apple has done, it disrupts this concept. What Apple has done is to have people who would otherwise have bought into different segments of Nokia's phones, buy instead into Apple's one segment, displacing a number of different Nokia products.
Now, Android has also disrupted that flow of products from Nokia. Nokia's R&D isn't helping them, because it doesn't allow for much work to be done to come out with something really different, and superior. It took Apple at least two years to come out with the iPhone, and a year between new releases, with just one model. Nokia, because of the way they're perceived, can't exist with just one model. We can look to the good, but not great N8. it sold pretty well actually, but only about 8 million at last count. Nokia would need about five models in the same price range selling about the same amount, to stay in the game at high enough sales levels to maintain, and even increase their marketshare, and it Ain't gonna happen, because they can't spend the R&D dollars on five different high end models. Selling cheaper ones, as they do, keeps sales up, but profits down.
Now, as far as those Symbian R&D dollars go, well, they will be replaced by license fees to MS, so they haven't gained anything there. In their slide, in the financial report given Friday, after the MS affair, they showed that their margins would be lower than before, pulled down by expected license fees to MS. So there's no question about that.
I fail to see what benefit they're getting here financially in the short or medium term.
I do see their smartphone sales dropping, rather than having a 36% increase as we've seen with Symbian. You're in Europe. How much visibility does WP7 have? It's sold in France, I believe, but where else? How is it marketed? IS it marketed? What was the presence of Win Mobile earlier, and now?
Sorry for all the questions, but that's something that is hard to find out from here in the US.