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.
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RE: No Android for Nokia
9/20/2012 2:24:06 AM
Ditching Meego is the biggest mistake Nokia ever done. Everyone who tried the N9 loved it, everyone. Only problem is that it just didn't have a large ecosystem, but that would have changed with some work. Instead they just trashed it all and went for the easier route (going with Windows Phone) and I'm pretty sure it will bite back on them.
RE: No Android for Nokia
9/20/2012 5:14:57 PM
Not sure where you got your information, but Meego, though promising, was losing market share which is why Elop was brought in in the first place.
The problem was for all the promiss of Meego, it was not as well backed as Android or iOS by developers. It was also only on handsets from Nokia, limiting its potential.
Personally I think the transition was very hard for Nokia, but was good for consumers. Rather then pushing their Meego phones and then dropping support leaving customers hanging, Nokia indicated when support would stop. The problem was that most customers did not want a phone which was heading to EOL (even though Nokia promised to support the phones for longer then most people keep their smart phones). As a result Nokia, who was 100% invested into Meego, did not have any smart phones to sell. The big down side is that it took so long to develop a Windows Phone, probably due to Microsoft's strict hardware requirements. The hard choice for Elop was probably between money from Microsoft to keep the company a float, or trying to transition to Android and hoping to make a splash in the already highly competitive market.
They probably did not expect it to take so long to develop the Luma 900, but when you have to start from scratch...
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