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Ari Jaaksi  (Source: UMPCPortal.com)
VP in charge of Meego devices resigns

One of two things is happening at Nokia right now – the Finnish telecom company is in a serious state of transition, or it has a serious problem with talent retention. Finnish online news site Talous Sanomat is reporting that Ari Jaaksi, the VP in charge of Nokia's Meego Devices, has tendered his resignation.

For those of you keeping count, this is the third high-profile executive to leave the company in less than a month.  In September, Nokia CEO Olli-Pekka Kallasvuo was replaced by former Microsoft exec Stephen Elop. Days later, Executive Vice President Anssi Vanjoki, head of Nokia's N-Series, announced he would be leaving the company within the next six months. Vanjoki admitted his departure was inspired by being overlooked for the open CEO position

According to Talous Sanomat, Jaaksi has worked at Nokia since 1998. In 2003, he began working on Nokia's Linux-based Maemo OS, which merged with Intel's Moblin OS last February to become MeeGo. MeeGo will power all of Nokia's forthcoming smartphones, with the exception of N8, which will be the last to run Symbian. Its successor, the N9, has been touted by Nokia as the company's flagship phone, set to take on its iPhone and Android competitors. Engadget pointed out that Mobile-Review's Eldar Murtazin called MeeGo "not so good at the moment," despite the N9 hardware being "near perfect."

"Nokia needs to step up on the MeeGo side. MeeGo has grown up from Maemo and there is much more at stake now," Gartner analyst Carolina Milanes told The Economic Times. "They need someone who understands mobile and PC, who might be closer to Intel and a much better public person."

Jaaksi will be replaced by Alberto Torres, who has been the executive vice president of mobile solutions since last year.

Engadget investigated what the shakeup means for MeeGo's planned Q4 roll-out, which a Nokia spokesperson said would not be affected. Another spokesperson cryptically told Engadget that an "update on MeeGo" will be announced by year's end. 

This comes at a critical time for the mobile company that has been quickly losing market share to its smartphone competitors, and ranked dead last in J.D. Power's customer satisfaction survey.



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RE: Tough position
By vol7ron on 10/5/2010 9:42:18 AM , Rating: 2
Plus, with a contract, the "highend" isn't highend anymore.
You can get a smartphone for $99; whereas back in the day, I think it could cost you $4-600 for a blackberry with a contract.


RE: Tough position
By mcnabney on 10/5/2010 9:52:31 AM , Rating: 2
High end is where ALL of the money is. The margins on masic phones and feature phones are rather slim. A brand new smartphone will command a very nice profit margin for the manufacture. The original Droid made Motorola a ton of money and likely saved it from bankruptcy.

Right now a wireless carrier that has you sign a contract is subsidizing the cost to the tune of $300-400. So the device that you paid $200 for is actually costing the carrier $500-600. That is why the disconnect fees for smartphones went up to high.


RE: Tough position
By bug77 on 10/5/2010 10:43:27 AM , Rating: 2
I don't think a carrier is subsidizing anything. Not as long as you pledge to give them $1500 or more over the next two years.

Also you're wrong about where the money is. Margins, yes, but for the real money, you're talking volumes. And like Samsung Galaxy S proves, you can't ship high-end in volumes even if there's demand. High-end is more about research and brand recognition, imho. Of course, I'm not taking Apple into consideration here, their business model is different from anything else.


RE: Tough position
By misuspita on 10/7/2010 3:41:18 AM , Rating: 2
If you're staying with the carrier until the contract end's, then you're right, they don't subsidize anything, the money will be recouped from you. But the do pay in advance to the phone-maker a hefty sum of money, the difference from 5-600$ to the 1-200$ you're paying for it. So they have these terminating fees to prevent loosing money when you want to switch mid-contract.


"There's no chance that the iPhone is going to get any significant market share. No chance." -- Microsoft CEO Steve Ballmer














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