Design rising in importance at Nokia

For years the corporate religion at Nokia (OMX: NOK1V, NYSE: NOK) was that specs are everything and that is what consumers want. Chique look and usability of new ideas wasn't as important as technical superiority. Other firms weren't stuck with such a vision and soon later they were no longer playing catch-up. Users also started buying an entire ecosystem of services instead of just the mobile device further changing industry dynamics.

Within the last few months the coporate culture at Nokia seems to be changing. All the while the rest of the company is downsizing, Nokia has been hiring graphic designers from game companies and other different entities. The head of the Design department Marko Ahtisaari is clearly becoming more influential figure within the company. For years he had to answer to doubters who said he only got his position as the only son of a Nobel peace prize laureate.

Now Ahtisaari is also getting promoted into the Executive team as the Executive Vice President of Design. This is a clear sign that the man is considered competent at his job and that the department is seen as more integral for the company's success. British magazine The Guardian recently published an article comparing Ahtisaari to Apple's head designer Jonathan Ive. Ahtisaari's role is more of that of a visionary for the entire designing culture and direction. He does not get that involved on the practical work at a product level.

Newspaper Talouselämä interviewed Mika Nenonen, who is a member of the Nokia design team. He said that the team was allowed to follow through its vision in its entirety in Lumia design. It seemed new and weird for them that other departments were actually working to make design teams vision happen instead of the design team scrambling to adapt to their demands.

Nokia is also all the more aware that it is now quickly losing market share. It will certainly take a while before we know if its Windows phone foray will pay dividends. Nokia has now started a massive advertising campaign in the Nordic countries. Lumia adds are popping up all over in local websites and television channels, even to the point of consumer exhaustion. Mobile operators are apparently getting their cut too, something Nokia was able to shy away from in prosperous times, and are advertising Lumia as well.

The stock has been languishing well below 4 Euros a share after foggy fourth quarter report despite the overall market making some nice gains. Upside is certainly limited as long as the company cannot really predict Lumia sales going forward. More cautious investors will not make an investment before Nokia gives some sort of a sales guidance and some proof is shown that Windows phone is competitive in the market. This is why for now investing in Nokia can be seen as a speculative move.