Thursday 21 June 2012

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Nokia Late to the Silicon Valley Party,

Nokia Corp.  is hitting the reset button on its U.S. operations from a place some would argue the struggling Finnish handset maker should have been years ago: Silicon Valley.

In posh Sunnyvale digs that could pass for an IKEA showroom, the company is looking to create the type of underdog culture that vaulted many of its competitors to recent success.


The location, occupied over a year ago, also lends proximity to a population of software developers that have been flocking to Apple Inc.'s  iPhone or devices powered by Google Inc.'s  Android software. Nokia hopes it can lure more apps for the Microsoft Corp.  Windows software platform that Nokia has staked the future of its new Lumia smartphone lineup on.

On a recent workday here, software developers from outside firms flooded into a spacious lobby and were taken to conference rooms with names like Pier 39 and Alcatraz.

The ground-floor cafe sold Peets coffee and Marin Sun Farms flank steak with pico de gallo, while a soccer match between England and the Ukraine played on a television. An overwhelming amount of staffers wore cowboy boots and bluejeans.

If the company's approach feels like overkill, it may be for good reason. For years, Nokia ran its North American arm in White Plains, N.Y., far from where the industry's key innovations were taking place.

When the company fell from dominance in the U.S., it was mainly due to products coming out of Cupertino, Calif.-based Apple.

The results of the disconnection have been brutal. In 2003, the Nokia's sales of mobile phones in North America hit 32.4 million, or nearly 20% of the company's global volume.

By 2011, after the company essentially pulled out of the market due to uncompetitive technology, the company sold 3.9 million mobile devices, representing less than 1% of the company's global sales.

The slide has modestly reversed since launch of the Lumia phones under Chief Executive Stephen Elop through T-Mobile USA and AT&T Inc. in January and April, respectively.

Nokia sold 600,000 mobile devices in North America during the first quarter, compared with 500,000 in the fourth quarter. Revenue from these devices, meanwhile, was up 75% on a quarter over quarter basis thanks to higher price points.

Still, North American sales only represented 2% of Nokia's global total in the first three months of the year.

Matt Rothschild, head of retail and sales operations, said in an interview that relocating has given the workforce a "start-up mentality, a challenger mind-set" in the critical U.S. market. Mr. Rothschild has recently tapped that enthusiasm by creating the "Nokia Army."

Under this plan, more than 1,000 North American employees have signed up to go to outlets selling Nokia phones, such as an AT&T store at a shopping mall. The effort has spanned from Tuscaloosa, Ala., to Chicago.

Employees are usually armed with food and coffee, and work to bond with sales people and interact with potential phone buyers. Conversations often turn to the breadth of Nokia's apps, such as its navigation system, which comes free with the phone.

In some stores, such as a nearby T-Mobile store, Nokia staff would find their Lumia 710 smartphone had already been moved off the main display despite being a relatively new entrant in the market. In this store, phones from Samsung Electronics Co. and HTC Corp. get the most prominent placement.

Nokia executives don't need to stray far from home to find people who have little interest in the company's new phones.

At the Westfield Valley Fair mall in Santa Clara, about nine miles from Sunnyvale, Jonathan Lamb stood with his friends in line outside Microsoft's new store armed for battle.

An 18-year-old freshman at De Anza College, Mr. Lamb carried his iPhone and was preparing to participate in the store's marketing ploy. If he could prove his device was faster than Nokia's new Lumia 900, which uses the Windows operating system, he would win $1,000.

While he figured the Nokia phone would beat his best effort—"Nokia performance-wise is extremely fast"—he wasn't remotely interested in abandoning his iPhone.

His device, he says, is easier to navigate, has more readily-available apps and gives more bang for the buck. The Windows phone, meanwhile, "is dull."

Kulvinder Hummel, a 39-year-old resident of Santa Cruz, Calif., meanwhile is weighing whether she wants to make the jump to a smartphone after years of talking on a Motorola Razr. She's considered the iPhone and the Nokia Lumia, but strongly leaning in the direction of the Apple product.

"If I go for it and just bite the bullet and do what everybody else is doing, I definitely think the iPhone is a safer bet," she said.

Ms. Hummel is afraid that the Windows technology is a flash in the pan given her recollection of Microsoft's feeble attempt to take on Apple's iPod with its Zune portable digital-music player.

Mr. Rothschild, an Australian with 14 years Nokia experience, recently did his own stint in the company's new "Army," deciding to forgo a flight from Dallas to Atlanta, and instead drive through several states. On his first visit, he brought baked goods from Cinnabon.

He is also visiting with many developers at the company's site in Sunnyvale. Last weekend, for example, he hosted the chief executive of a golf technology company called Caddy Plus so they could discuss the visibility of the app in the Nokia/Microsoft ecosystem.

As part of its intensified focus on Silicon Valley, Nokia also made changes in the board room by recently appointing an outside director with strong Valley connections. Elizabeth Nelson, a former chief financial officer of Macromedia, was elected to Nokia's board during the May 3 annual meeting. Macromedia, a Web development software company, was acquired by Adobe Systems Inc. in 2005. She spent eight years at Hewlett-Packard Co. before joining Macromedia.

Nokia chose Ms. Nelson, now a professional director whose board seats previously included Autodesk Inc., partly because it wanted a greater West Coast presence, and the U.S. "is a very important market for Nokia,'' recalled Will Dawkins, head of the U.K. board services practice for recruiters Spencer Stuart, which handled Nokia's board hunt



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Launched! BlackBerry Porsche @ Rs. 1.39 lakhs,

In spite of the troubles its parent company is facing in the global markets, Research In Motion, the makers of the popular BlackBerry smartphones, today said it will top industry growth this year in India. The parent Canadian company RIM, which has been fast losing its
grip on the marketof late to more agile players like Samsung and Apple, launched the BlackBerry Porsche, developed in association with Porsche Design, early this year globally. This smartphone was launched in India on Wednesday.

The ultra-premium BlackBerry Porsche P-9981 is priced at a cool Rs. 1.39 lakh. On this highly aspirational phone, RIM India managing director Sunil Dutt told that the phone is about power, style and aspiration. "We will not be selling this through the traditional channels. The discerning customers can order their phones to begin with and later on, we will have select outlets like Luxe watch and accessories showroom located on the high streets," Dutt said.

"The domestic smartphone market is growing at over 40percent this year, after clipping at 87 percent in 2011. I am sure that we will be able to grow much faster than the industry rate," Dutt said, while refusing to put a number, citing the silence period the parent company is into now.

He also refused to put a sales target for the new launch on the same grounds. "The Porsche Design P'9981 smartphone from BlackBerry is a perfect culmination of style and functionality with exceptional look and feel," said Dutt. BlackBerry enjoys 15 percent of the smartphone market share in the country as of March 2012, up from 13 percent the previous year, which places it at the third slot after Nokia and Samsung, according to CyberMedia Research data.

In 2011, the domestic smartphones market saw launch of 150 models. Smartphone shipments touched 11.2 million units in the year recording an annual growth of 87 percent. Nokia emerged as the leader in the segment with a 38 percent share followed by Samsung at 28 percent. On the rationale behind such a costly phone at a time when the overall sentiment is down, Dutt, who joined RIM India last December from Samsung Telecom, said the market can still afford luxury products.

Some of the salient features of P'9981 are the design by Porsche Design that comes with forged stainless steel frame, hand-wrapped leather back cover, sculpted Qwerty keyboard, and crystal clear touch display. It also has an exclusive PIN that easily identifies the user as holder of this phone. It features a 1.2 GHz processor and liquid graphics technology, HD video recording, 24-bit high resolution graphics, advanced sensors, and built-in support for NFC (near field communications) apart from 8 GB of on-board memory, expandable to up to 40 GB with a microSD card.







Rumors of a smaller dock connector being utilized on the next iPhone have been circling the internet for a while, and TechCrunch yesterday confirmed with three independent manufacturers that a new 19-pin port will definitely be used. That would render a whole host of accessories using the 30-pin connector obsolete, but Robert Scoble has posted some insight as to why Apple will be making the move to a smaller connector.

Scoble details how the new power connector will have a chip on both ends of the cable, giving Apple total control and leaving device manufacturers unable to make unlicensed third-party accessories. It’s a similar strategy that was used with the MagSafe connector on the current MacBook line, and something that battery specialist HyperMac fell foul of in the past.

Just like the MagSafe connector, Scoble believes that cables will dock with the port on the new iPhone magnetically, making it easier for users and ensuring a more durable cable. In addition, the smaller connector will allow Apple to make the device physically thinner. That leaves more room for an improved microphone and better sound quality, and also reduces the chance of water damage occurring.

Other rumors have indicated that the next iPhone will feature a larger 4-inch display with a new 16:9 aspect ratio and 1136×640 resolution. Apple will reportedly redesign core apps to take advantage of the increased screen real estate, and encourage developers to do the same. Leaked backplates for the phone suggest a move to a two-tone metallic back, with a thinner device overall compared to the iPhone 4S.





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