Nokia’s Newer, Dumber Business Model: Sue Apple

More than a year ago, in June 2008, I wrote about how Nokia’s clueless approach to serving the US smartphone market basically handed that market to Apple on a silver platter by the time the 3G iPhone launched.

Last week, GigaOm reported that Nokia is now suing Apple, claiming technology patent infringement. And on Oct. 15 CNET reported on Nokia’s dire slide in the US smartphone market.

According to GigaOm:

“Nokia is looking to collect patent royalties of 1 or 2 percent for each iPhone sold, according to a note from Piper Jaffray’s Gene Munster, which — given the roughly 34 million iPhone units already in the hands of users — would amount to $200 million-$400 million. That’s not a lot of money to either company, of course. But Nokia is clearly hoping it can be more successful in the courtroom than it’s been in the marketplace.”

Nokia: Really? Is this what you’ve sunk to?

There are far better ways. Here are some options… Continue reading

Skype: Why you should at least learn to use it

Recently, like many people, I ditched my landline (which I rarely used, and the most basic service I could get still cost me about $35/month). Now my cell phone is my only telephone.

This is a better deal for me, since generally I don’t talk on the phone much — except last month. I was working on a magazine feature story that required many interviews. And also, since I got known as a source on the role of Twitter in covering the Mumbai terrorist attacks, I was called by several reporters (including ABCnews.com) to give interviews on that topic.

Last night I got my cell phone bill. It was about $70 more than I expected — because I’d exceeded my allotted minutes. Ouch.

That’s the trouble with being in the media business, and many other fields: You can’t always control how much time you’ll have to spend on the phone in a given month. Which means you can’t always control the number or timing of the minutes you’ll use. Which is why cell-only folks need other options for making and taking calls that allow you to control costs.

Enter Skype…

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3G iPhone Coming June 9 (Look Out, Nokia!)

Open Democracy, via Flickr (CC license)
Can Nokia move fast enough to keep competing with the iPhone in the US? Time’s running out!

I’ve been hearing the rumor, and Gizmodo claims it’s true: Apple is supposed to debut the next-generation iPhone on June 9, during the keynote address of its Worldwide Developers Conference. I would expect it to go on sale in the US pretty soon after that. (But of course, you never really know with Apple.)

Apparently this new iPhone will include 3G network compatibility. That’s really important for people who want a true multimedia content creation and distribution tool, not just a phone. It’s also likely to have real GPS — which is far more accurate and useful than the crappy fake GPS the current iPhone uses (based on cell phone tower triangulation). That’s important if you want to accurately geocode the content you create (photos, video, etc.).

BUT… the new iPhone is not likely to be the complete Max Headroom device that journalists and mobloggers really need. Because it’s not likely to get a much better camera (currently just 2.0 megapixels). And it’s not likely to support a Bluetooth keyboard. And it’s not likely to get a built-in video editor. So it’s still meant mainly for mobile content consumers, not creators.

In other words, the new iPhone still won’t be as good a product as Nokia’s N95 already is — at least not as far as journalists and mobloggers are concerned.

Nevertheless, I might soon end up settling for an iPhone — unless Nokia pulls its US service act together damn quick. (Specifically, before the new iPhone goes on sale in the US.)

Why? Because the new iPhone might be barely good enough for much of what I need a mobile device to do. More importantly, Apple has proven, through its service practices, that it stands behind its products and cares about customers’ experience after they buy. Apple understands and respects that users of high-end phones run their lives on those devices, and thus cannot tolerate being without them for more than a few days at a time.

Meanwhile Nokia’s dearth of US local service centers, requirement that customers ship damaged or dead phones to Nokia at their own expense, and warranty that allows Nokia up to 30 days to return a phone — plus its risky, clunky, PC-only firmware update process — convey the message that Nokia doesn’t really care much about its US customers. (At least, not after they fork over $500-$700 for an N-Series phone.)

And when it comes to must-have, multi-use mobile devices, service quality is at least as important as product quality. In fact, I’ve come to the conclusion that, for me, service is more important — since evidently I am willing to compromise (within reason) on the product I want in order to get the service I need. I doubt I’m the only journalist/moblogger willing to make that tradeoff.

That said, I know that Nokia has recently woken up to the fact that its US customers are so very displeased with their service, and they are starting to try to make amends. Here’s where that’s at so far…
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Why I keep talking about Nokia’s US Service

Some people have asked why I keep talking — on this blog and elsewhere — about Nokia’s US service problems. This video explains my motives. In a nutshell, it’s because I want to keep options open for journalists. Tools like the Nokia N95 represent a way for journalists to make their own opportunities, regardless of the fate of news organizations. But if Nokia continues to mishandle its US market, it could easily lose out to the Apple iPhone — which, while slick, is not the best tool for mobile reporting/blogging.

No Wifi? No Excuse!

Here’s why I’m going to get myself some “internet insurance.” I never want to deal with this situation again.

And BTW, Nokia (you’re still listening, right?) this NewsTools 2008 conference I’m out is a big reason why I bought my N95 last month — remember, the one that bricked after your firmware update and that you wouldn’t replace immediately for free? The one I don’t have with me right now? Grumble….

Vegas-bound, sans Nokia N95…

Quick video post from the Denver International Airport today. Thanks again to the folks at Nokia for raising on their own Conversations blog the issues related to Nokia USA’s inadequate service I’ve been talking about on Contentious.com. (See Nokia’s posts yesterday and today) . I appreciate their willingness to engage in a frank public conversation geared toward solving problems for their US customers

Across the US, many journalists (pro and amateur) and mobloggers could make great use of pro-quality, multifunctional reporting tools like the Nokia N95 and N82. However, right now, the very slow and limited service that Nokia USA offers — coupled with significant known flaws in Nokia’s clunky, Windows-only firmware update process (which can turn your phone into an unresponsive brick) — foists too much risk upon high-end US consumers.

Please join this conversation by commenting at Nokia’s blog and in their support forum. Let them know how they can make their US service good enough to warrant trust from would-be N95 and N82 users!

Nokia USA: How to turn talk into action

Brymo, via Flickr (CC license)
Talk is a good start, and it need not be cheap, but by itself it generally doesn’t get much done.

Earlier today Nokia’s Charlie Schick posted a thoughtful comment about how Nokia and its current and would-be customers might, through talking openly together, improve the situation in the high-end US phone market. (Also, Nokia director of corporate communications Mark Squires also just left a comment on this theme.)

Here’s my response to the excellent points Charlie raised…
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Nokia’s Blog Starts Discussing Problems

Nokia.com
Nokia’s Conversations blog is getting interesting now that it’s not all just happy talk.

Recently Nokia launched its Conversations blog, a good first step any company can take toward transparency and engagement with its customers, partners, and critics. Not surprisingly, most of the initial posts were “happy news” of one kind or another. I don’t begrudge them that — almost any company is doing some good things worth discussing.

But the real proof of how serious a company is about embracing public conversation is whether it’s willing to openly discuss thorny problems. Today Nokia’s blog took a first step in this direction with this post: When things go wrong with updating your device software.

There, Nokia staffer Charlie Schick picked up on the discussion that’s been happening here on Contentious.com, and on other blogs (like Beth Kanter’s and Jenifer Hanen’s), and via social media like Twitter concerning the myriad obstacles encountered by current and would-be US users of Nokia’s high-end N-Series phones. He focused on the firmware update problem I and other US users have encountered and mentioned Nokia’s support forums — which can indeed be a useful resource for solving some problems with Nokia devices.

Schick’s blog post is a good start. But I found his comment today on my blog even more to the point.

…All in all, I think this is a promising start to the public conversation. Of course, so far it’s all “just talk” — but real progress comes from action. It’ll be interesting to see what kind of action Nokia and its US market can muster together.

I left a couple of comments on Nokia’s blog — which will probably be approved for publication to the blog after people get to work in Finland. So in the meantime, here’s what I commented…
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