There is an issue with that perspective though. The Europeans sell out. Ok. Maybe they are bad at valuation and don't realise that their companies are worth more than they are being paid for. Or maybe an EU company can't capture as much value as a US/Chinese company. And those are really the only two options - either the decision is rational or irrational. If it is an irrational decision then there isn't much to talk about. But it is probably the second case - selling out to someone on a different continent generates value. And there is a good chance that is because it helps avoid EU regulators.
For example, you mentioned Nokia. Nokia was blown out of the market by superior Chinese manufacturing and US design [0]. It wasn't a close battle, the EU contender was crushed. Apple's motivation for entering the market was that among other things that companies like Nokia were so bad at making phones that Apple reckoned it could break in to a new vertical. That is a very EU-led-industry problem to have. The reason they sold out was because the EU turned out to be incapable of incubating a modern, successful phone manufacturer in the 21st century even with an incredible lead and Nokia was being outmanoeuvred everywhere.
[0] Both looked like regulatory issues to me, we've seen how the EU responds to things like micromanaging the iPhone charging port.
> Nokia was blown out of the market by superior Chinese manufacturing and US design [0].
No, Nokia was blown out of the market via the exclusive deal with Microsoft, which in turn made the dumbest management decisions ever. Nokia bled under the horrible management of Steve Ballmer and their own ignorance with regards to Android. They also proved later on that you don't need any expertise to produce decent Android phones, as HMD global used their name as a brand and has been thriving.
To add to this: It's not that hard to develop a mobile operating system that's on par or better than Android, despite what Google might want you to think.
Pretty telling though. When dijit was talking about Tencent, Microsoft or Google a few comments ago they were being presented as these huge incumbent behemoths that scoop up everything in their path. And, fair enough, they are.
But when Nokia starts with an overwhelming incumbents advantage, their board doesn't even have confidence that Nokia's internal talent pool can lead them to make a mobile phone! They couldn't defend themselves from multiple companies in completely different industries with no prior competence in the mobile phone world. That was an A-Team EU hardware company's performance.
The issue here isn't company size, it is something specific to the EU. I'm not sure what, but since it is a geographic thing I'd start with regulation and branch out from there.
> their board doesn't even have confidence that Nokia's internal talent pool can lead them to make a mobile phone!
I'm sorry but it's honestly pointless discussing this as no one in this thread wants to spend even an ounce of time into researching this. Reading your comment in it's entirety tells me you weren't there when stuff was happening.
> That was an A-Team EU hardware company's performance.
For the record, the Lumia phones had A-Tier hardware in them. They boasted the best low light cameras on phones for a while around ~2012.
Nokia made the Lumia phones, MS provided the operating system. Previously, Nokia had their own Linux based OS, called Maemo, which was originally supposed to run on what became Lumia. It later formed into Sailfish OS, which had it's own device family.
The issue wasn't the hardware platform itself, it was the fact that Nokia decided to go with the MS ecosystem, instead of Android. And honestly, I don't even think that was a bad move. I am at a loss trying to figure out how device manufacturers actually make profits based on what has turned into extremely restrictive licensing deals with Google in order to get GAPPS on their phones.
I used to have a Lumia phone as a teenager and it was very nice. I loved how curved and rounded it was, made it look very sleek and sci-fi, and it felt really good in the hand. Even the panel-style home screen was considered to be pretty cool. I remember at the time that, as you say, the main criticism was that it was isolated from the main android/iOS app store ecosystem and there were hardly any apps for it.
> There is an issue with that perspective though. The Europeans sell out. Ok. Maybe they are bad at valuation and don't realise that their companies are worth more than they are being paid for. Or maybe an EU company can't capture as much value as a US/Chinese company. And those are really the only two options - either the decision is rational or irrational. If it is an irrational decision then there isn't much to talk about. But it is probably the second case - selling out to someone on a different continent generates value. And there is a good chance that is because it helps avoid EU regulators.
I think it comes down to two things:
1) The US is a large, uniform (regulation, language, media, etc.) making it easier to grow quickly. This puts the US competitor in a better place to buy the EU competitor than vice-versa.
2) More significantly, the US capital market is bigger & better. That starts with VC funding but is also the case with IPOs and publicly traded companies. That‘s how the EU tech standouts such as Spotify end up IPOing in the US.
#2 is certainly something the EU can work on improving but it has very little to do with tech regulation.
For example, you mentioned Nokia. Nokia was blown out of the market by superior Chinese manufacturing and US design [0]. It wasn't a close battle, the EU contender was crushed. Apple's motivation for entering the market was that among other things that companies like Nokia were so bad at making phones that Apple reckoned it could break in to a new vertical. That is a very EU-led-industry problem to have. The reason they sold out was because the EU turned out to be incapable of incubating a modern, successful phone manufacturer in the 21st century even with an incredible lead and Nokia was being outmanoeuvred everywhere.
[0] Both looked like regulatory issues to me, we've seen how the EU responds to things like micromanaging the iPhone charging port.