Nokia’s CEO Kallasvuo says the Apple iPhone is a niche product

Nokia Tube 5800 fights Apple iPhoneBy now you all know that Nokia is working on an iPhone-fighting touchscreen handset based on the S60 Touch OS. The UI on the S60 Touch OS still needs work, from initial impressions. The hardware, on the other hand, looks good.

But, the most memorable comment in this whole Nokia S60 Touch vs. iPhone debacle is Nokia CEO Kallasvuo’s statement, in response to analysts’ suggestions that Nokia needs to do more to fight the iPhone, that the iPhone is a “niche product.” I’m not even going to touch this one with a 10-foot pole – so here’s an interesting take from MacDailyNews:

Kallasvuo is either incapable of applying the lessons of iPod to iPhone and understanding what’s coming his way or, much more likely, he understands perfectly and, since he has no answer, is saying just what many now-defunct (if they aren’t making iPod accessories) MP3-makers said a few years ago. How many “niche” products have $100 million venture capital funds ready and waiting, exactly? Candybars and way-too-late, fake 1st generation iPhones with craptastic UI’s aren’t going to cut it from here on out, Nokia boy. This June, the bloodbath really begins, and Kallasvuo sounds like he knows it.

I think he takes that comment personally.

[Via: MacDailyNews]

  • JonnyBruha

    Is he not right though? Take a step back from all of it for a second. Do you really anticipate a future filled with nothing but devices with only touch screen for input? I still can’t wait to see what Nokia’s going to do with their touch screen device since nothing from the touch screen genre has come close to matching the functionality and openness of Nokia’s typical handsets, but I don’t think Apple’s trying to dominate the market like everyone thinks. They initially wanted 1%, they’re probably going to get considerably more than that, but do you really think they’re going to try to put Nokia out of business with low and middle class handsets in such a variety just like Nokia has? The whole idea is a bit silly and proves exactly what OPK said. Now, he may be underestimating how large that niche is and losing some great opportunities by releasing a touch device so late in the game, but touch is never going to replace EVERYTHING.

  • Rahul

    Comparing iPhone to iPod isnt exactly correct. ipod is not a single product. Rather its a full range of players from shuffle to ipod touch whereas iPhone is one single product. Different people have different needs and iPhone doesn’t satisfy everyone. For example, what about people who dont want to spend $400+contract on a phone or people who do not like touch? What would happen in the mp3 player market if apple makes only the ipod touch and iphone and stops making everything else like the shuffle, nano, classic etc?

  • Mac

    I think he is right. We have to remember that iPhone hasnt sold very well, only 3 to 4 million devices. Normal phones sell more than that in single day! So it is niche.

  • Topy

    So after iphone(that is great product cant deny that)what?
    Ok maybe some mini iphone with cheaper price then you got 2 phones, but they dont let you in to the top 4 in phone markets. And they need to keep evolving with iphone. Example iphone 2 can be iphone with 3G and maybe GPS and got pretty much the same looks, but should iphone 3 then be something totally different?

  • anoska

    Seems like Will is bashing every even the smallest bit of iPhone criticism in a separate blog entry… I’d prefer bit more objective views.

  • klinrrrr

    I think Kallasvuo is right.. iPhone has sold only very little when compared to “normal” phones. But it’s not always the number that counts but the overall impression…

    I have to admit that Nokia makes fantastic phones but it can’t do what Apple does best – making an average product wanted and admired. Also, Nokia has always been a bit late with new trends like clamshells and now with touchscreens. But Nokia is a (very) big player so I’m sure it’s going to catch up real fast.

  • Markus

    Although the iPhone is a niche product and has sold very poor it did change the whole mobile market. Every manufacturer tries to bringt out its own “iPhone”. Isn’t that interesting?

  • Raidium

    Markus here has a point. Although the iphone sucks (my own opinion not intended to inrage anyone) it has changed the everyone’s out look on the mobile world. Ever sence the launch

  • Raidium

    …almost every manufacture has aleast attempted a “iphone killer” device. The iPhone has done terrible so far when it comes to sales, but the impact it has had on the mobile market is historic!

  • Topy

    Dont get me wrong here iphone is fantastic phone and when you think about it if it would have been Nokia product and by Nokia been available around the world it would have been most sold smartphone Nokia would have ever had for certain.

  • Matti

    Macdailynews commentary as source !?!

    Heh, that site makes the most rabid fanbois of the tubes known as the internets seem like reasonable and intelligent.

    Take every Playstation+Xbox+Ericsson+Nokia+all other Mac-fans of the planet and put them together. The combined idiocy would still be under 10% of Macdailynews.com.

  • Topy

    =D Cant deny that

  • KevinD

    All phones did not turn into RAZRs when it was the most popular device.

    All phones will not turn into iPhones, either.

    Next year there’ll be something else to ooh and ahh over. Perhaps projector phones or simulated 3D images. The wonderful thing about history, is that it repeats so often!

  • A.T.

    wait, you ask for comments from “MacDailyNews” and expect what? what it has been said is classical Fruit fanboy moronity at its rafinated variant – it has been taught for years to sing praises for anything containing The Fruit, and barking on anything hostile to that. I believe we are closer to beginning of Fruit end, it just takes a little bit of time. Remember Fruit computers were sold sometimes ago pretty well for short period, only to come into almost oblivion for ages. This time it will be in portable devices ;)

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