Nokia and Android: Follow the Money

October 1st, 2010 by

The straight answers often come from people on their way out, and Nokia’s outgoing EVP Vanjoki is no exception. His blunt, and now famous analogy underscores that the fragmented mobile industry is likely to stay that way. Those that believe that there will eventually be consolidation and standardization with wireless devices do not understand the inherent forces that exist to prevent this from happening. The reason is fundamentally about profitability – all parties involved need to protect their margins. And on the surface, the industry’s players may appear illogical. For example, the real reason Verizon has taken so long to offer the iPhone may never be fully known. But a safe bet is that it relates to concerns about profitability effects – even though they would clearly capture market-share from AT&T with this move.

In the short term, perhaps the consumer is getting the shaft. But if you subscribe to the belief that Microsoft has caused consumers to be deprived of innovation for years, then this is the alternative you desire.

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