Nokia Comes With Gloves Off

These are interesting times for Nokia. Just a week ago, it reported a $1.36 billion (£0.82 billion) third quarter loss off the back of a global drop in sales of 20%, and wrote down the value of its wireless networks venture by $1.35 billion. And while its share of the global mobile handset market remains unchanged at 38%, its share of the Smartphone market has fallen from 41% to 35%, with the slack taken up by the iPhone and Blackberry.
The company is being slated from all corners for its disappointing entry into the app store arena with Ovi, and then today comes the news that it is suing Apple over the iPhone. Nokia argues that the other major handset manufacturers have signed licences which compensate the company for the use of various bits of its technology, while Apple has not.
This is likely to run and run. For Nokia, the saga risks taking on the aroma of sour grapes. Like many other handset makers, the company must wonder quite how Apple managed to enter the mobile market with such a bang. As AdMob’s Russell Buckley said on his Twitter feed this afternoon: “When you can't beat 'em, sue 'em?”

David Murphy