“This is the end, beautiful friend
This is the end, my only friend, the end
Of our elaborate plans, the end
Of everything that stands, the end
No safety or surprise, the end
I’ll never look into your eyes, again”
– Jim Morrison – The Doors, 1967
The above quote may seem far fetched, but it really is not. When I heard the latest news about Microsoft on July 8th, I thought about The Doors song. This really is the grand finale. The final, undeniable, unstoppable end of the great Nokia saga.
Last Thursday, Microsoft announced it would lay off another 7,800 workers in the smartphone business that it bought from Nokia, after they had already laid off 18,000 employees last year, and last week the company booked a $7.6 billion write-down on the mobile phone business. This said, keep in mind Microsoft bought Nokia´s mobile phone division for $9,4 billion two years ago, so now they have written off 80% of the purchase price.
For the past 3-4 years, we in Bearing have shown the two PowerPoint slides below to illustrate disruptive innovation. How accurate we were.
Below is a video from Financial Times about the latest and last word on the Nokia mobile phone saga.