Nokia is changing from a pure hardware company to one thats converging entertainment, computing and mobile communications.
Tim Green talked to the man driving the switch, Nokia’s Executive VP of Multimedia Anssi Vanjoki…
You’ve been with Nokia since 1991. When did you first become aware of the potential of mobile to be more than simply a voice device?
Well, in 1994 we launched the 2110, which was the first phone to ship with the Nokia Tune on it. It’s fair to say we saw it as a gimmick at first, but three years later in 1997, we worked with Intel to introduce ‘Narrowband Sockets’, which enabled software developers to create SMS messaging applications as well as ringtone and menu item downloads. At that point we started to see the potential of the phone to be a programmable computer.
And when did the concept of the Nseries first take root?
In 2001, with the launch of the 7650. This was probably the first genuine smartphone, and it set us thinking about a separate brand for what we came to know as multimedia computers. That was, of course, the Nseries, which we launched in 2005.
Nseries has been very successful…
Yes, we’ve shipped 50 million in around two and a half years and every month we set a new record for sales. It’s tangible evidence that this is what the market wants.
Obviously, the Nseries range is closely bound up with Nokia’s new Ovi services. But Nokia made various attempts to enter the mobile services space before. What is your view of these launches now?
There were major issues around Nokia Entertainment Service, which we launched in 2001. It was too early in terms of the network – at that time GPRS wasn’t widespread – and the price point was just too high because of data charges.
And how do you reflect now on the decision to launch N-Gage as a device rather than a service?
We learned it’s better to develop software that can turn any device into a games console rather than try to develop a dedicated games phone. But we sold three million in two years, which was a decent result. It would have been great for someone else, but for us it was half what we hoped.
Everyone has been waiting for Nokia to ‘have another go’ at content. This year, with Music Store and N-Gage, you have done that. What’s changed? Why now?
It’s the net: it’s penetrating everything. There is no mobile internet; there’s just the internet. I think that over time the mobile industry will accept there are many possible business models – and that they are complementary just as they are in the wired internet. The individual operators will have to make their own decisions. But on a more general level, that’s the way the market is going.
This is a gamble. Is it fair to say Nokia is changing the fundamentals of its business? Will Nokia still be a phone manufacturer in five, ten years’ time?
There’s lots of mileage in the phone market, so we won’t be departing it. We will come to be seen as a computer company though – and that will extend us into services. Nokia was formed in 1965 and has always regenerated.
It’s in our DNA to seize the moment.
You’ve launched into music and games. Any plans for services in other rich media areas – video, for example?
Nothing we can talk about. But you don’t need to be a nuclear scientist to conclude that we’re looking at other media.
Inevitably, I have to ask about iPhone. What’s your take?
It’s been great. Really. The impact in PR terms has been good for the industry and I commend Steve Jobs for putting his profile behind it. Let the best team win!
And will Nokia be developing a touchscreen device?
We already have, with the 7710 and the Tablet. We’ll carry on working on touchscreen technology, but you have to think about it flexibly. There will, for example, be small devices where the touchscreen will be used to access entertainment functions but there will still be a keypad for text input and calls.
NB: This interview formed part of a special supplement produced by Mobile Entertainment magazine and Nokia to celebrate ten years of mobile content. You can download it in PDF form, bundled with the latest edition of ME, by clicking right here.
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