Watching markets work: Bad move, Nokia
I have long marveled about how quickly the world of mobile phones has rapidly moved through four paradigms. My first mobile phone was a Nokia and they seemed to rule. But then Blackberry won because Nokia did not get the importance of email. And then Apple won because Blackberry did not look beyond email. And then Google Android seems to have won because Apple did not understand the problems of a closed system. At each stage, it looked like there was a dominant solution, but the pace of change was brutal and the king of the heap was rapidly unseated. What an amazing pace of creative destruction.
So when I heard that Nokia was now going to be quite wedded to operating system from Microsoft [press release], I thought to myself “That can’t be so bright”. Then I looked at the stock price and it said:
So the market seems to have knocked Nokia down by 18% for wanting to run with a loser like Microsoft. And what’s more funny, the market seems to have knocked Microsoft down 4% for this contract too (which I don’t understand – compared with being wasteland, it seems that it is good news for Microsoft to have the support of Nokia).