hey guys is black with the verge and i'm
joined today by nokia CEO stephen elop
so thanks for joining us a larger you
have had a whole heap of announcements
to make today even though a CES you had
some major announcements to make as well
you opening up your your portfolio you
adding new Asha phones symbian phones
are very significantly similar phone and
windows phone so tell us about it what
is the highlight for you what is I made
you I think the biggest highlight for me
is that in one year since we launched
our new strategy we're showing the
fourth Lumia device which is the fourth
device with Windows Phone we showed the
fifth sixth and seventh Asha device yet
and we showed some brilliant innovation
in the area photography with the Nokia
808 a symbian device so the highlight
for me is not any particular child if
you like it's the whole family it's the
fact that we've accomplished so much
I've heard that from modern low key
executives that you love for your
children there because they're very
different do you love people and that's
another thing I had questions prepared
in the first question was it's been
pretty much exactly one year since you
announced your transition to Windows
Phone yes I thought that was a clever
question and then your entire
presentation was all about the one year
yes so it's a big milestone for you guys
cities and I mean you've said that
you've made developments you've pushed
forwards and you're working to execute a
new strategy but I want to ask you about
the downside have there been any
setbacks any regrets where you things
haven't gone as well as you wish well i
think you know during the course of the
year it's been very very
because changing the strategy is not
just about saying it's this ecosystem
versus that operating system or whatever
it affects people we've had to
restructure the company which means some
people have lost their jobs we've had to
change factory configurations again
infecting people and communities we are
still in the heart of the transition we
have new products new excitement all of
that is happening but we're still going
through the transition and restructuring
of the company so it's a hard time but
it's also an exciting time sure I
understand well let's talk about the
variety of phones that you have at the
moment because like I say you have seven
extra phones given a lot of diversity
for you know developing and emerging
markets yes when you have the four
windows phones and you still keep in
symbian go indefinitely with the 808
would that be the long-term strategy
when you still keep a whole bunch of
devices for also surprised points and
taste something like that yeah I think
generally we have a strategy to cover
the broad range of price points which is
one dimension there's other another
dimension related to particular taste
for example there are some some
opportunities where people want to
specialize in photography and things
like that so like the 808 we have a
specific example of a product for that
we also have to think about the
different platforms that may be required
the Windows Phone platform is great as a
smartphone platform but obviously a very
very low price points you need something
different and that's where we're
evolving our series 40 effort with the
ash of product line so you look at these
different things and say yes with a
portfolio of products that make sense at
the same time you have to balance it you
don't want phone after phone app
you want an appropriate number of
devices that you can use as broadly as
possible in all around the world and you
mentioned that with the movie end up in
the window with a Windows Phone strategy
we just introduced Lumia 610 which is
your most affordable
when it's gone yet would that maybe kind
of way the needs and things like future
seemed device kind of obvious but what
he also put into the development of Asha
when it would it would you keep bringing
windows phone down to lower price points
and focus on Windows Phone so our intent
is to continue to bring windows phone
down in place it can still come down
quite a bit we believe over time but
that being said there's a line if you
like with below which something like
Windows Phone or other smartphone
platforms can't easily going without
there being a significant architectural
change because when you get to the very
lowest price points you're short on
memory you're short on processor
capacity you may not have a GPU and so
forth so those very low price points
something else has to happen there today
for nokia that's our series 40 line so
we anticipate that there's a platform
covering the smart for smartphone price
points and then something beneath that
for the very lowest price points as we
go forward what would you say that line
is because you know it's 1 89 year old
familiar 610 yeah you say can go lower
less than 100 year perhaps you know it
could be a lot depends on how chipsets
memory costs and things of all i don't
think it's a firm line and in fact i
would think that's probably even a
little bit of overlap between the high
end of the low end and the low end of
the high end if you might be some
overlap as well genuine passed out
somewhere in the middle yeah yes
actually i think when people say
mid-ranger thinking higher in price when
i'm talking you'll very low down in the
price points where these things may
overlap sure sure well sticking with
Windows Phone discussions with your
camera guys and design
they've told us that specifically with
the 808 and a few of you technology
brand-new Boswell megapixel all that
craziness everyone's really excited
about it later she was a five-year
project took a very long time yes yes we
spoke to seven Panabaker he said the
design of the low key and nine to two
years from the first model into came to
market these are long developing times
do you think they match up to the
current fast pace of the mobile market
so I think there are different
technologies that you know by definition
they take a while to develop the fact
that the photographic technology in fear
of you took five years doesn't mean we
do something every five years what we've
done is disruptive and redefining the
whole photography industry on mobile
phones and that's something that we will
now iterate on and refine you'll see
rapid evolution of other devices on
other platforms that take advantage of
that I think the pace of change as we've
demonstrated we introduced the 800 and
the 710 in October the 900 of January
the 610 in February it's clear that
we've changed the clock speed of Nokia
and we intend to continue to do that i'm
going to say out of device is another
platform so q you can we I was safe to
see in Windows Phone is incumbent we've
said that Windows Phone is going to have
optics in photography as a critical
differentiator for it as well so we
haven't made any specific product
announcements but
you know we'll see what happens to be
pretty exciting and when you say
accelerating the pace there is a
noticeable lag in terms of you
introduction of brand-new things again
like the n9 design first and then it
comes to doing an 802 you coming out in
symbian first which admittedly has
raised a few eyebrows and then
potentially coming to Windows Phone I
imagine that's a priority for you want
to shorten that gap and introduce you to
new technologies and innovations and
Windows Phone first right yeah I mean we
want to very quickly get to the point
where we're rapidly iterating on the
Lumia products bringing innovation there
very quickly this PureView technology it
had been developed for years initially
on the symbian platform and we felt it
was such a big change in that industry
for photography that we needed to get it
into the market because as we get it
into the market we're going to rapidly
learn and iterate from all the people
who are beginning to use this technology
we want to get that learning improve the
product and continue to take it forward
and I was also wondering in your opinion
with regard to Windows Phone it hasn't
taken of spectacular rapidly it's
growing it hasn't taken us protected
rapidly so what would you say is the
next step that Windows one really needs
to take to become you know to engage
users
when come I think first of all it is
only now that the first real windows
phones are in market and those are the
Lumia products or no case yes and
because we've done our best work for
windows phone we've taken our best
design or best engineering put it
together with the windows phone software
and deliver these products so what needs
to happen now is we need to make sure
that from an advertising and marketing
perspective we're getting the message
out that in stores all over the world
when you walk into a store that the
retail sales people are well trained on
how to present Windows Phone and Lumia
how to differentiate it from the
competitors and so forth we have a lot
of that type of execution work to do day
to day and that will help but also what
you should expect to see is successive
waves of new versions of Windows Phone
of new products from Nokia that really
accelerate the pace of innovation
because we're really focused on driving
that so there's a lot more that will
just continue to build and of course
we're just in the early stages of
getting the product into various
countries around the world we have many
countries to go with many products
there's a lot of build still ahead with
the very products we have at the market
how are you going to contribute to this
because when you form a the announcement
of the first we see involved when you
said that you had the freedom to
customize everything this is including
the software but at the moment if you
take just the software and you exclude
the Nokia exclusive applications which
massive but you know that
this silo with applications the windows
phone software and the interface isn't
nokia specific its Windows Phone so can
you tell us about how you are you going
to slc first of all windows phone is a
platform and we have a unique position
in the development of that that allows
us to add to it make changes or whatever
you mentioned the Nokia specific
applications that we've done those are
actually good examples of where we've
added value to the Lumia product where
you get free navigation free music the e
reading application all of these things
included that differentiate our product
so we think that's a good first step but
what what is important to remember is we
joined the windows phone ecosystem when
the current version of software was
already essentially done so our level of
engineering involvement was not high in
that first round but it will increase as
we go forward so there's more
opportunity for us to do those those
differentiated elements that being said
that doesn't mean we should or would
customize everything because if you take
for example the base user interface
what's called the Metro user interface
the live tiles that are actively showing
you information we could do something
quite different than that but if we went
in a different direction with that then
what Windows Phone stood for and all of
the marketing that will accrue to it
both from Windows Phone and for big
windows which is adopting the same user
interface we would not get the benefit
of that so there's certain things yeah
we could change but why would we I mean
that's sort of the SI can see unless you
have something I love it and customers
who use it love it as well and so why
not build on that but then introduce the
differentiation around it so for example
I would rather differentiate with say
let something like photography or
location-based services or other things
like that then change in the UI so it
looks different than what's being
marketed broadly for windows function
well you brought it up big windows he
also you also said to us previously that
you see big potential in tablets can you
give us an update the potential is still
big but where is nokia with respect to
that so we're not making any
announcements today about tablets or or
what we're doing in that space what i
will highlight is that i think Microsoft
has clearly stated now how the user
interface that's on the Lumia devices
that comes with Windows Phone is
becoming the user interface across the
Microsoft properties PCs tablets Xbox to
a certain extent as well as Windows
Phone so the amount of value associated
with that user experience the amount of
familiarity that will develop as
hundreds of millions of PCs and tablets
going to the marketplace is something
that's very advantageous it creates new
business opportunities for many
companies certainly including nope
so presumably you want to see Nokia
services-nokia software all across that
Microsoft ecosystem including the Xbox
in that stuff yeah so for example our
location based services that is
something that Microsoft is taking
advantage of so as you go into a big
maps or other of their properties you
should expect to see Nokia delivered
software and services supporting them
because we're taking the lead on the
location-based services that's a good
example of something were contributing
but they leveraged into other properties
so the magic pull you back on the topic
of making consumers aware about Windows
Phone my episodes started to push with a
more aggressive new marketing strategy
it's called smoke by Windows Phone
they're using directly with Android
you're smiling you're happy with that I
understand it delivers a very powerful
message and the powerful message is for
all anyone tells you how about you just
try and get a facebook photo posted on
someone's wall just go ahead and try
that yeah and we put two two people one
with an android device one with the
windows phone and let's see who gets the
job done faster let's see who can get
there at their news feeds you know look
that fast or those types of things and
what it quickly shows this is why it's
called your smoked smoked by Windows
Phone it shows that the quality of the
user experience is such that those
things that you're trying to do
regularly you can accomplish a lot
faster with more fidelity using
and just to wrap up a quick question we
here at mwc in barcelona all of your
competition is bringing out a HIPAA
clean your clothes as well can you give
us your assessment your thoughts about
what the other guys are doing yeah it's
hard to comment on everything the
competition is saying or doing what I
will say is that one year later after
making our big decisions about strategy
I am more confident than ever that we
made the right decisions you see just
over your shoulder the crowd of people
in the Nokia booth looking at the new
products whether it's Asha in the lower
price tiers the Lumia aquatic ranges
that peer review people are seeing that
Nokia is really executing well and
they're very very interested in what
we're doing and to the extent that that
represents the ultimate consumer
opportunity and very pleased it says it
Thank You time thank you
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