Will "The Tao of Steve" Principles Revitalize Nokia?
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In the movie, "The Tao of Steve," the protagonist, a homely, dumpy kindergarten teacher by the name of "Dex" enjoys a mystical rapport with attractive women way out of his league that invariably leads to bouts of unmitigated lust.
Like I said, its in the movies.
When queried about this seemingly unfathomable success in matters of amour, Dex attributes it to "The Tao of Steve" principles that he established and perfected from hours spent watching the undeniable appeal of on-screen icons Steve McGarrett of the original "Hawaii 5 0," Steve Austin from the "Six Million Dollar Man" and Steve McQueen, the star of action movies such as "Bullitt" and "The Magnificent Seven." From Dex, whose ostensible appeal to the opposite sex (or anything, for that matter) is nothing that about $10 million in liquid assets could not cure, the three principles of "The Tao of Steve" are:
*Be Cool
*Be Excellent
*Be Gone (or unattainable)
In a recent interview in Fortune magazine, Jo Harlow, the Executive Vice President for Smart Devices for Nokia Corporation (NYSE: NOK), states that the new Lumia 920 and Lumia 820 smartphones are the first step back for the former world leader in mobile phone sales as, "Becoming cool again means having great products."
The first principle of "The Tao of Steve" has been established for Nokia Corporation.
For being excellent, the second tenet, from the Fortune interview, is to "...show Microsoft some love." The claim that Microsoft (NASDAQ: MSFT) is critical to not just the success, but the very survival, of Nokia cannot be understated. When Nokia's Chief Executive Officer, Stephen Elop (no relation to McQueen, Garret or Austin) took the helm in 2010, he ditched the Symbian operating system in favor of the Windows platform from Microsoft. Elop was head of the Business Division at Microsoft before coming to Nokia.
Both the Lumia 820 and the Lumia 920 operate on the Windows 8 platform, Microsoft's newest. As for being excellent, that can only be judged by the consumer reaction. But, according to the Fortune article, Harlow "...has scored small, early wins."
Production targets have been met for the smartphones is one such triumph. Last quarter, 4 million Lumia phones were shipped, for another. That is twice the amount from the previous three month period. CNET.com, a well-regarded tech blog, lauded the Lumia 800 for having both "innovative design" and a "gorgeous screen."
The last principle of "The Tao of Steve," being gone, by far the most crucial for Nokia, also means being unattainable.
In the smartphone world, that means selling out as consumer demand is so strong that not enough product can be kept on the shelves. While that is currently happening with the iPhone 5 from Apple (NASDAQ: AAPL), that certainly did not transpire with previous Lumia smartphones. The Lumia 900 was being advertised at only $50 a short time after its introduction earlier this year.
While the being gone or unattainable dictate has not happened yet, a recent study by International Data Corporation lends hope. According to the report, the market share of Windows smartphones will soar while that for those from Google (NASDAQ: GOOG), Research-in-Motion (NASDAQ: BBRY) and Apple will fall.
Worldwide Smartphone Operating System 2012 and 2016 Market Share and 2012-2016 Compound Annual Growth Rate
|
Smartphone OS |
2012 Market Share |
2016 Market Share |
2012 - 2016 CAGR |
|
Android |
61.0% |
52.9% |
9.5% |
|
Windows Phone 7/Windows Mobile |
5.2% |
19.2% |
46.2% |
|
iOS |
20.5% |
19.0% |
10.9% |
|
BlackBerry OS |
6.0% |
5.9% |
12.1% |
|
Others |
7.2% |
3.0% |
-5.4% |
|
Total |
100.0% |
100.0% |
12.7% |
Source: IDC Worldwide Mobile Phone Tracker, June 6, 2012
For Samsung, the world's largest seller of mobile phones, that is particularly disturbing as it relies on the Android operating system from Google. A recent analyst note from Jeffries posited that Samsung has been kicking the tires of Research-in-Motion as it was very interested in the Blackberry 10. Earlier this year, Nokia stock jumped on a rumor that Samsung might be making a bid.
Nokia is certainly paying homage to the principles of "The Tao of Steve" that worked so well for Dex.
It has recognized that its smartphones must be cool to be attractive. It acts to be excellent to its partner in terms of "...show(ing) Microsoft some love." The last principle, being gone or unattainable, will be the most difficult for Nokia to achieve.
That rests in the hands of the consumer.
For Dex, it worked unfailingly. But, like I said, that was in the movies. And, as Eddie Murphy as "Reggie Hammond" remarked in the cop flick "48 Hours,": "The generosity of women never ceases to amaze me."
Fool blogger Jonathan Yates does not own any of the stocks mentioned in this article. The Motley Fool owns shares of Apple, Google, and Microsoft. Motley Fool newsletter services recommend Apple and Google. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.If you have questions about this post or the Fool’s blog network, click here for information.
