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 9:52:35 PM
I agree that Nokia doesn't have the brand-name image of Samsung or HTC in the Android market, but I'm wondering on what basis you make the assertion that Nokia is an inferior hardware maker. Have you actually compared the Lumias, Samsung's Ativ S, and the HTC 8X/8S?
The Lumias are generally regarded as the nicest pieces of hardware coming out period, WP8 phone or otherwise -- only major complaint is the weight, but I wonder how many people actually give a crap about an extra couple tenths of a pound). Of course not everyone will like them, and the Samsung Ativ S looks nice (being basically a WP8 version of the GS3 with an attractive brushed-aluminum back). The HTCs are nice enough but not terribly interesting unless you prefer smaller phones.
9/20/2012 10:13:56 AM
I agree, while Nokia isn't known in the Android market they are well known for making reliable phones especially compared to Samsung which are more flimsy than Nokia. Personally I would be using a Lumia now except they took too long to get to market. I'm using a Samsung Focus S.
Keep in mind Samsung and HTC were the initial release partners for Windows Phone 7 on November 8, 2010. Nokia decided to go to Windows Phone 7 during the Mango release and the Lumia 800 arrived on Dec 2011 in the US.
"We shipped it on Saturday. Then on Sunday, we rested." -- Steve Jobs on the iPad launch
Apple Goes for the Jugular, Asks Judge to Triple Samsung Damages to $3B
September 19, 2012, 12:24 PM
HTC Hedges Android Bet With Colorful New Windows Phones
September 19, 2012, 2:42 PM
Nokia SVP Says New Lumia 920 and 820 Aren't the Company's "Last Chance"
September 10, 2012, 9:46 AM
Nokia Officially Announces 4.3" Lumia 820; 4.5" Lumia 920 w/PureView, Wireless Charging
September 5, 2012, 10:21 AM
Samsung Announces 4.8", Aluminum-bodied Windows Phone 8 Device
August 29, 2012, 11:55 AM
Archos Offers $99 WinPhone, $150 x86 Win8.1 Tablet, Android Trio
August 27, 2014, 7:07 PM
HTC Desire 510 Officially Announced, May be First 64-Bit Android Smartphone
August 27, 2014, 3:50 PM
Report: Apple to Unveil "iWatch" at iPhone 6 Event on September 9
August 27, 2014, 2:00 PM
Reports: Snapchat is Now Worth $10B, Cofounders are Billionaires to Be
August 27, 2014, 9:30 AM
Tim Cook Says iPad Sales Have Merely Hit a Temporary “Speed Bump”
August 27, 2014, 9:16 AM
ZOTAC Announces Diminutive ZBOX PI320 pico
August 27, 2014, 9:00 AM
Most Popular Articles
Microsoft's Surface 2 Tablet Family Gets a $100 Price Cut
August 25, 2014, 1:16 AM
Report: Microsoft to Announce Windows 9 on September 30
August 21, 2014, 11:20 AM
From HULC to FORTIS: the Evolution of Lockheed Martin's Incredible Exosuit
August 22, 2014, 12:45 PM
SpaceX Falcon 9-R Rocket Suffers Malfunction, Self-Destructs During Test Flight
August 23, 2014, 9:36 AM
Owner of "Decepticon" Maserati Ordered to Appear in Court This Thursday
August 25, 2014, 7:55 AM
Latest Blog Posts
Space Terrorism is a Looming Threat For the United States
Apr 23, 2014, 7:47 PM
Facebook Aims to Provide Internet to "Every Person in the World" with Drones, Satellites
Apr 1, 2014, 10:20 AM
Retail Mobile Sites Experience Outages in Light of Simplexity's Bankruptcy
Mar 14, 2014, 8:48 AM
Tesla vs. BMW: Who Has the Safer EV?
Feb 1, 2014, 2:56 PM
Justice Leaks Details of Next HTC One Two Flagship Phone
Dec 5, 2013, 4:04 PM
More Blog Posts
Copyright 2014 DailyTech LLC. -
Terms, Conditions & Privacy Information