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  (Source: Paramount Pictures)
All is not well in Nokia Land

Nokia seems to be riding high in the U.S. with its Lumia 900 smartphone that runs Microsoft's Windows Phone 7.5 operating system. The company is seeing high demand for its flagship smartphone on AT&T's wireless network and is reportedly in talks with Verizon to expand its market presence in the U.S.
 
However, all is not well with Nokia globally. The company's overall smartphone market share has plunged worldwide with the most recent figures from IDC showing that Nokia had just 8.2 percent global smartphone market share for Q1 2012 compared to 24.7% and 29.1% for Apple and Samsung respectively.


Nokia Lumia 900
 
As a result of its precarious place in the worldwide phone market, Nokia is looking to make some drastic changes to put out the flames on this burning ship. Today, Nokia announced a plan of action that centers around three key goals:
  • Invest strongly in products and experiences that make Lumia smartphones stand out and available to more consumers;
  • Invest in location-based services as an area of competitive differentiation for Nokia products and extend its location-based platform to new industries; and
  • Improve the competitiveness and profitability of its feature phone business.
In an effort to follow through this plan, Nokia looking to its Lumia brand of smartphones to showcase its innovative side and reclaim market share back from industry heavyweights like Samsung and Apple. "We intend to pursue an even more focused effort on Lumia, continued innovation around our feature phones, while placing increased emphasis on our location-based services," said Stephen Elop, Nokia president and CEO. "However, we must re-shape our operating model and ensure that we create a structure that can support our competitive ambitions."


Nokia CEO Stephen Elop

Nokia is also shaking up its executive team. Effective July 1, 2012, Juha Putkiranta will become executive vice president of Operations; Timo Toikkanen will take over as executive vice president of Mobile Phones; Chris Weber will service as executive vice president of Sales and Marketing; Tuula Rytila will claim a position as senior vice president of Marketing and Chief Marketing Officer; and Susan Sheehan assume the role as senior vice president of Communications.
 
Executives on the way out the door effective June 30, 2012 include Jerri Devard (chief marketing officer), Mary McDowell (executive vice president of Mobile Phones), and Niklas Savander (executive vice president of Markets).
 
Perhaps the most drastic change, however, is Nokia's decision to eliminate 10,000 employees worldwide by the end of 2013. These job losses will come as a result of the closure of Nokia facilities in Finland, Germany, and Canada along with the streamlining of its corporate, IT, and support functions.

"These planned reductions are a difficult consequence of the intended actions we believe we must take to ensure Nokia's long-term competitive strength," added Elop. "We do not make plans that may impact our employees lightly, and as a company we will work tirelessly to ensure that those at risk are offered the support, options and advice necessary to find new opportunities."

Source: Nokia



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Probably an unpopular opinion...
By aliasfox on 6/15/2012 11:35:08 AM , Rating: 2
But Elop is no Jobs. Both were brought in when the companies were in dire straits:

- Nokia with 7 quarters of cash left, by some accounts Apple had less than two months.
- Neither really had any high selling products or products with any level of mindshare
- Both companies were being beaten by competitors that had released new operating systems that had quickly gained marketshare - iOS/Android now, Windows 95 back then

By many accounts, Elop is trying to follow the Jobs playbook:

- Shrinking the company
- Killing extraneous, legacy products (In Elop's case, probably too early)
- Focusing on core markets
- Releasing a distinctive product to capture mindshare (both happened to be teal, too)
- Marketing

But what did Jobs have that Elop doesn't?

- TBWA Chiat (I think that's the name of Apple's ad agency)
- Jony Ive
- Charisma. Lets face it, Jobs could rally not only customers, but also his employees to release products on-vision, on-time.

Jobs likely sold his soul to the devil (who collected early) to save his own company. Will Elop be willing to do the same?




RE: Probably an unpopular opinion...
By Belard on 6/16/2012 12:46:38 AM , Rating: 2
Nope. Nokia is not Elop's baby.

Jobs was the father of Apple (Woz, the mom). Jobs is not a techie person, a big jerk, he could sell a bag of flaming dog turds. But *HE* did cause innovation in the computer market that Gates could never think of.

Zune should have killed the iPod, it didn't. They came out with ugly brown-turd looking players. Apple does the rainbow.
Windows brings the tablet to mainstream, nobody buys it... even 10 years later. Apple sells more iPads in 18 months than Nintendo sells Wii in 5 years.


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