Feeds

Nokia cuts hit smart phone, multimedia R&D

One of our Platforms is missing

  • alert
  • submit to reddit

Application security programs and practises

Nokia is reining in R&D, with the axe falling hardest on its 3,000-strong multimedia division founded a year ago. The exact number of staff affected isn't known, but a press release issued on Tuesday from Nokia Multimedia says the cuts are intended to reduce R&D expenditure to 9 to 10 per cent of net sales by the end of next year. That's roughly the level it was in 2001. According to Nokia's most recent annual report, consolidated R&D rose from 9.6 per cent of net sales in 2001 to 12.8 per cent in 2003.

In a statement, Nokia's multimedia chief Anssi Vanjoki said that while imaging was doing well, "games, music and media are still in a more early development phase". The division is responsible for the N-Gage games console, which with unfortunate timing, disappeared from the ELSPA's weekly sales tallies this week because of low sales, according to one report. ELSPA says it will still track N-Gage games sales, but this is an indication of the failure to make much headway in a highly competitive market. Last year Nokia said it needed 18 months to judge the success or failure of the console, and much of the initial marketing expense seeding developers and promoting the device has been invested. However a third version will be in even hotter competition against Sony's PSP, and the arrival of Nintendo's DS in Europe.

Orphan phone, dead platform

Sometimes, Nokia's lab teams seem to be more enthralled by the joy of producing strange explosions than looking at what the experiment has produced, once the smoke has cleared. Take for example, one of the casualties of Nokia's ongoing multimedia shake out, an orphan phone based on a dead-end platform.

The 7710 is a 640x320 touchscreen Series 90 phone no larger than a Sony Ericsson P910, but last November Nokia confirmed that Series 90 was being folded into the Series 60 platform. The only other Series 90 phone to be made public, the 7710's predecessor the 7700, never even made it to market, being repositioned as a test-bed before launch. Its much vaunted "Visual Radio" feature is in its infancy and the device can't see more than 512MB of MP3s files. But that hasn't diminished interest in the phone, which ironically, has trickled out to joyous reviews and is now selling like hotcakes as an import on eBay. It's not hard to see why: as good, cheap, light MP3 players that run the Opera browser don't just drop out of the sky. Except when they do. ®

Related stories

Nokia revives media phone concept with pen mini-tablet
Archos preps Linux, Wi-Fi enabled portable media player
Nokia bows to cellcos in midrange
Nokia blames prices for profit fall
Nokia steadies in booming phone market

HP ProLiant Gen8: Integrated lifecycle automation

More from The Register

next story
Google Nest, ARM, Samsung pull out Thread to strangle ZigBee
But there's a flaw in Google's IP-based IoT system
Orange spent weekend spamming customers with TXTs
Zero, not infinity, is the Magic Number customers want
Want to beat Verizon's slow Netflix? Get a VPN
Exec finds stream speed climbs when smuggled out
US freemium mobile network eyes up Europe
FreedomPop touts 'free' calls, texts and data
'Two-speed internet' storm turns FCC.gov into zero-speed website
Deadline for comments on net neutrality shake-up extended to Friday
GoTenna: How does this 'magic' work?
An ideal product if you believe the Earth is flat
NBN Co execs: No FTTN product until 2015
Faster? Not yet. Cheaper? No data
prev story

Whitepapers

Top three mobile application threats
Prevent sensitive data leakage over insecure channels or stolen mobile devices.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
Mobile application security vulnerability report
The alarming realities regarding the sheer number of applications vulnerable to attack, and the most common and easily addressable vulnerability errors.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.