Investors Growing Tired of Nokia's Elop, Eye Android Escape Route
September 19, 2012 6:40 PM
comment(s) - last by
But it's unclear if ditching WinPhone would fix Nokia's deep issues
Magnus Rehle, a senior partner at telecom advising firm Greenwich Consulting, tells
, "Elop has not been able to attract customers and that is what counts. You can say that he has not had enough time, but he has been there for two years. Time is up."
He's referring to Nokia Oyj. (
) CEO Stephen Elop, the former Microsoft Corp. (
) executive who now leads the
embattled Finnish phonemaker
Patience with Mr. Elop is
among investors. Danske Invest Finnish Equity Fund is one large Nokia shareholder. Juha Varis one of the fund's members comments, "The Christmas season is a lost cause. For Nokia, if there is any chance, it will be Spring. The beginning of next year may be the final judgment. I think that maybe the end of the first quarter is the marking point."
Nordea analyst Sami Sarkamies comments, "He has been making some brave decisions and courage is something this company has lacked for a long time before Elop joined. His starting point was really weak and it's hard to say someone else would have done a better job."
Nokia CEO Stephen Elop [Image Source: Mark Vlander/Getty Images]
reports that even Mr. Sakarmies views Q1/Q2 2013 as the point at which Nokia must turn the quarter or show Mr. Elop the door.
Nokia's failures are correlated to Microsoft's Windows Phone platform, but responsibility for causation doesn't necessarily rest on the shoulders of Mr. Elop's decision to go Windows Phone. Rather, it was arguably from making the decision to early (perhaps) and taking a bizarrely long time to get Windows Phone product to market.
Windows Phone 8 lineup
is facing stiff competition
Electronics Comp., Ltd. (
) who previously had paid little interest to the platform. At the same time Apple, Inc. (
) and Samsung's Android lineup are
Nokia's Lumia Windows Phones.
The question is what should Nokia do? Some like Mr. Rehle believe Nokia should ditch Windows Phone
and use Android
. A switch to Android would certainly lower costs, but at a price. First, Nokia would lose its payments from Microsoft. Second, abandoning Microsoft for Google Inc.'s (
) open source OS could lead to
some big legal risks
, given Apple and Microsoft's aggressive litigation history (Nokia does
have a cross-licensing deal
with Apple, but its exact scope is unclear).
Some investors want Nokia to jump ship to Android. [Image Source: AndroidModo]
On the other hand, with Samsung and HTC on the verge of fleeing to Windows Phone, if Nokia stays, it could find itself being shown up in a market it was
groomed by Microsoft
to be the star of.
This article is over a month old, voting and posting comments is disabled
9/19/2012 8:50:11 PM
They would have had more time if they hadn't so aggressively killed off their Symbian line of phones by marketing them as obsolete, and telling everyone to stay away from the platform, including developers.
Instead of saying, in the very beginning, that they poured oil on their failing platform (Symbian), and were jumping into the icy sea (Win Phone), where they may not survive, thereby killing off both platforms, they should have done something else.
I would have kept Symbian alive in an aggressive way (remembering that it had 38% growth the quarter before that statement). But I would have said that they were diversifying to give customers greater choice.
They did the worst possible thing.
But I can't just blame Elop. I guarantee that the board of Nokia made the decision to go to Win Phone before Elop was hired. They also approved that memo. This can't be laid entirely at his feet.
9/20/2012 9:39:43 AM
I agree. Stating symbian is dead and then that that wp 7.5 is dead is really rough on any loyal customers.
As they didn't have any exclusivity with microsoft, I'm not sure what going all-in has bought them, though I guess they did get a bunch of funding from microsoft.
Microsoft's wp 7.5 wasn't up to par in hardware support, and their lumina phones were way late to market. failure all around I think.
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