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Nokia shareholder tells CEO Elop he's going to hell


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#1 Mikee4fun

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Posted 08 May 2013 - 04:32

Nokia CEO Stephen Elop has been taking flak from angry shareholders at the company's annual investor's conference, with accusations flying that he's running the company into the ground by keeping Nokia as a Windows-only operation.
"You're a nice guy ... and the leadership team is doing its best, but clearly, it's not enough," shareholder Hannu Virtanen told Elop, Reuters reports. "Are you aware that results are what matter? The road to hell is paved with good intentions. Please switch to another road."


It has been over two years since Elop made public the "Burning Platform" memo to Nokia staff that warned of the vendor's fundamental problems as he saw them. Two days later, Elop signed up his former employers at Microsoft to provide an operating system for the Finnish vendor which has seen little sign of setting the world on fire.
Two years down the line and the investors are getting fractious. Shares are hovering around the $3 mark, down from almost $60 in Nokia's glory years around the turn of the century. Shareholders large and small lambasted Elop for his strategy, but the American boss insisted there was no Plan B.
"We make adjustments as we go. But it's very clear to us that in today's war of ecosystems, we've made a very clear decision to focus on Windows Phone with our Lumia product line," he said. "And it is with that that we will compete with competitors like Samsung and Android."
Given the state of the company's last financial results, that kind of attitude is not going to placate the owners of Nokia, nor solve the Finish company's long-term problems. Handset sales were down nearly a third on the year, and while some Lumia models are selling reasonably well, Nokia is being squeezed at both the high and low ends of the market.
"He's managed to decrease costs but not to increase market share," said Magnus Rehle, senior partner in Greenwich Consulting, which advises telecom companies. "Maybe they could go back to Google and say we also want to go with Android. Even if it hurts. Microsoft, they've had their chances, and are not managing to take off."
Finnish pension fund Ilmarinen wasn't impressed, telling Reuters that it had reduced its shareholdings in Nokia by over a quarter. Other shareholders expressed concerns with the corporate policy Elop is espousing.
"He has closed doors," said Juha Varis, senior portfolio manager at Danske Capital. "They don't have new ideas now. Their fate is all in Windows Phones."
The problem with Elop's steady-as-she-goes course is that he appears to be losing the confidence of his crew. When that happens a mutiny is the traditional course, and Elop could well find himself walking the plank. ®


Source

Hey hows that Windows Phone doing for ya?



#2 -Razorfold

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Posted 08 May 2013 - 04:36

Hey hows that Windows Phone doing for ya?

Considering that they made a nice profit last quarter (something like $585 million), I'd say pretty good.

What were their options? Go with Android? How's that working out for HTC? Or the other 600 android OEMs that are fighting for the scraps Samsung leaves behind?

#3 Melfster

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Posted 08 May 2013 - 04:37

I don't really think you can blame windows phone. Look at HTC and Sony they are all in the crapper. Sony should exit the phone market. Android really the great savier. Its only the savior for samsung. Noone else is really making a profit.

#4 Davo

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Posted 08 May 2013 - 04:39

Honestly, WP is the only reason that Nokia exists anymore in the American market. The American market is ridiculously fickle and narrow-minded when it comes to wireless thus why it took even Android a long time to break through.

#5 zeke009

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Posted 08 May 2013 - 04:40

Hey hows that Windows Phone doing for ya?

At least with Windows Phone they have a chance to stand out. It would take them longer to become a player in Android than it would with Windows Phone.

What other choices were there at the time? iPhone, Blackberry, Symbian, WebOS weren't options and I doubt Google even knows how many OEM's there are for Android, but only one of them is turning a nice profit.

#6 OP Mikee4fun

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Posted 08 May 2013 - 04:40

I still think Nokia should have stuck with Meego. At $3 dollars a share that is just a shame. I have had so many Nokia phones in my life but there is no way I will ever touch a Windows Phone in it's current form. I miss Windows Mobile.... Oh well guess I am just old fashioned

#7 zeke009

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Posted 08 May 2013 - 04:41

Honestly, WP is the only reason that Nokia exists anymore in the American market. The American market is ridiculously fickle and narrow-minded when it comes to wireless thus why it took even Android a long time to break through.

That and the carriers are notoriously slow with anything that smells like an upgrade expense for them.

#8 OP Mikee4fun

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Posted 08 May 2013 - 04:41

At least with Windows Phone they have a chance to stand out. It would take them longer to become a player in Android than it would with Windows Phone.

What other choices were there at the time? iPhone, Blackberry, Symbian, WebOS weren't options and I doubt Google even knows how many OEM's there are for Android, but only one of them is turning a nice profit.


You know it is all speculation, I am sure Nokia could have ripped into Samsung if they also had Android, Nokia's hardware is leaps and bounds better than Samsung if you ask me.

#9 Yusuf M.

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Posted 08 May 2013 - 04:43

Windows Phone was the best option for Nokia. As mentioned above, companies like Sony and HTC aren't doing well with Android. WP8 is still growing with new apps being released daily (and old ones being updated with new UIs and features). It's also still new considering it was released in October 2012. Nokia is slowly sweeping up emerging markets in Asia and Europe with low-end Lumia devices so they're on the right track.

Also, the Lumia 920 is the most popular Windows Phone device (source). And it's a high-end device. That shows how well they're doing on the hardware side. And speaking of the hardware side, WP allows them to be unique and not just with the OS. The Lumia range of phones are offered in a variety of colours that go well with the colours of WP. If they went with Android, they'd have the same issues as any company that isn't Samsung (but to a lesser degree because it's Nokia and their hardware is awesome).

Anyway, things will only get better when Verizon and T-Mobile get their high-end Lumia devices (Lumia 928 and "Catwalk", respectively).

#10 OP Mikee4fun

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Posted 08 May 2013 - 04:44

Considering that they made a nice profit last quarter (something like $585 million), I'd say pretty good.

What were their options? Go with Android? How's that working out for HTC? Or the other 600 android OEMs that are fighting for the scraps Samsung leaves behind?


HTC also went with WP in their phone portfolio hows that working out for them?

#11 Yusuf M.

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Posted 08 May 2013 - 04:49

HTC also went with WP in their phone portfolio hows that working out for them?

So you failed to point out Nokia's issues and now you're pointing your finger at HTC. I know I'm not the only person that feels this way but your question ("How's that working out for them?") comes off as snarky. And that's not a good thing. :/

I'm sure people wouldn't like it if I said "Oh, HTC. Yeah... they use Android last I checked. How's that working out for them?"

#12 Davo

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Posted 08 May 2013 - 04:50

Dawg, you're a fan of Windows Mobile. I don't think you should even be allowed to comment.

#13 OP Mikee4fun

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Posted 08 May 2013 - 04:54

I was commenting back on the Razers post. I mean come on, lets be realistic here Microsoft needs to step up the game and partner with more OEM's and carriers if they want to make it a success.

#14 br0adband

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Posted 08 May 2013 - 04:56

As usual, people just don't get things. It's not relevant that Nokia try to, strive towards, or make every decision to put them into a position of absolute smartphone dominance like they were in the plain old "vanilla cell phone" days - making profit is certainly enough to stay alive (BlackBerry could learn a thing or two from them in this respect: Nokia sided with Microsoft because it was the best option at the time; BlackBerry's best possible move right now would be to side with Google for Android devices, seriously).

There's only two mobile platforms that really matter anymore and will remain the dominant two from here on out: iOS and Android.

All the other competitors, including Windows Phone, will simply be "fighting" for consumer scraps, basically.

But the actual mobile OSes pale compared to making "cool devices" overall - look what's happened with HTC in the past 2 months because of the HTC One. Last years models started the change but the One itself is the game changer for them. Sony has that Experia out that is getting rave reviews, but in the long run it's Samsung by a mile with something like the S3 and now the S4 which has so much going for it it's not even funny - and I can't wait to see what the Note 3 brings to the table(t) as well.

Nokia's doing fine, or as fine as they can expect given the situation. They created it, knowing what would happen, and now they're dealing with it.

#15 OP Mikee4fun

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Posted 08 May 2013 - 04:57

Dawg, you're a fan of Windows Mobile. I don't think you should even be allowed to comment.


Why even post your comment because it is obvious your a fanboy. The point of this article is the stock of Nokia sucks and they are diversified in one platform only. Having your stock plunge to 3 dollars a share is not a thing stock holders would enjoy. I am sure if you held stock in Nokia you would not be happy too.