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The clock is ticking for Stephen Elop, chief executive officer of Nokia Corp., as anger because of continuing slump of the stock is growing among investors and there is no light in the end of the tunnel because the strategy set by Mr. Elop simply does not work.

It has been nearly exactly two years since Nokia Corp. hired Stephen Elop to regain the dropping smartphone market of the world's largest maker of mobile phones. Since then, Nokia has lost position of the world's largest maker of smartphones, ceased to be the globe's biggest supplier of mobile phones, fired tens of thousands of its employees, closed down manufacturing facilities around the worl, ceased development of its own operating systems, sold-off its luxury phone division called Vertu and restructured the company's management for a couple of times.

Despite of all changes, Nokia still cannot turn itself around: sales of Symbian-based smartphones are slowing down, shipments of Windows Phone-powered devices continue to be low when compared to Apple iPhone or Samsung Galaxy S III flagship models. The company continues to make losses as its relationships with its partners among carriers and retailers are getting worse because of many reasons.

"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," said Magnus Rehle, senior partner in Greenwich Consulting, in an conversations with Reuters news-agency.

Many investors hoped that Nokia's second-generation Lumia smartphones could attract a lot of interest and attention, but Windows Phone 8-based handsets did not inspire observers or financial analysts. At the same time, the new operating system means that Nokia will either fail to offer a low-cost Lumia smartphone, or will have to sell two types of Lumia: one with Windows Phone 7.8, which lacks compatibility with new apps, another with Windows Phone 8. All-in-all, the holiday season will unlikely help Nokia much.

"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," said Juha Varis, who holds Nokia shares as part of the Danske Invest Finnish equity fund.

In case Nokia fails to make Windows Phone 8-based Lumia handsets popular within a couple of quarters, to avoid fatal consequences, it should focus on rolling out smartphones running on Google's Android software for millions of consumers in emerging markets who often still prefer Nokia's brand, Mr. Rehle advised. At the same time, focusing on Android would mark defeat of Mr. Elop's Microsoft-centric strategy, which would naturally call for the CEO to resing.

"He is totally a Microsoft guy, so it is natural that he would have to step down then," said Mr. Varis.

Tags: Nokia, Windows Phone, Android, Google, iOS, Microsoft, Apple

Discussion

Comments currently: 12
Discussion started: 09/20/12 08:37:38 AM
Latest comment: 09/23/12 05:12:25 AM
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1. 
I am unsure those "observers/investors" probably doesn't understand technicalities involved. Android is the least efficient, most unstable and unsecure OS compared to iOS and WP. WP seems to be most efficient OS out these three, thats why my old Lumia 800 give pretty damn good run to my new SGS III for whatever it is worth. So as soon as Lumia 920 hits shelves I'll be ditching my last droid for good (well there are 22% andoid users who want to jump ship anyway). Add legal issues surrounding it and picture doesn't look so rosy.
2 4 [Posted by: Aquanox  | Date: 09/20/12 08:37:38 AM]
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Even if everything you say is true, unless it translates to consumer sales, it doesn't mean much. Unless consumers believe that Lumia 920's amazing Pure Motion display, its advanced touch screen that allows you to use winter gloves to operate and its good quality construction and WP8 OS are worth it, then Nokia cannot continue using this strategy.

Also, MS has just announced that the HTC 8X and 8S will be positioned as the signature phones for Windows Phone 8. How do you think Nokia feels about that?
http://www.anandtech.com/.../htcs-nyc-event-live-blog

Nokia should have gone ahead with Android first, and become a flagship Android provider with their superior materials construction, quality, and cameras. Instead, they went with an OS no one wants!

If you look at the Samsung Galaxy S2/S3, HTC One X, Motorola Razr they are really nothing special but sell like hot cakes. Clearly, consumers just like Android and iOS much more than WP8. It's not Nokia phones they don't like, but the WP OS!

Nokia is also not well-known or as prestigious as Samsung or Apple are in North America. That's another obstacle for the actual brand to overcome.
3 2 [Posted by: BestJinjo  | Date: 09/20/12 09:32:18 AM]
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2. 
Microsoft would never let that happen, they would swoop in and take over before Nokia can switch over to Android. Microsoft's future in the mobile space depends on the success of WP8 and Windows RT and Nokia is a big part of that future.

1 0 [Posted by: Memristor  | Date: 09/20/12 10:32:02 AM]
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3. 
Just to give you brief history of problems I have had with various droids, almost every device I owned suffered from unexplainable reboots, crashes, hangups, and slowdowns. The previous droid in addition to above would also want to optimize apps upon each reboot, taking 6-7 minutes doing it.

A friend of mine have an GS3 as well, and his device suffers from almost all these ills and then some.

To end it, in a simple app loading test ie youtube, Lumia 800 loads in about half the time of GT I9300.

Compared to Nokia HTC is in greater need of help as they are not making money selling androids.
1 1 [Posted by: Aquanox  | Date: 09/20/12 12:01:32 PM]
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yeah, during past 4 years I had SE P1i (symbian), T-Mobile G1 (android), some Gsmart Windows 6 Phone, Gsmart Android Phone, and now I use SE Xperia Mini Pro (android).

Se P1i and Windows 6 were slow from time to time, but they were fast like light compared to android phones, and they didn't take 3 minutes to power on. If you had your phone turned off, and wanted to turn it on and call for help, you would die of boredom, before it made that call.
And those unexpectable reboots... every time i drive a car and hear that stupid welcome music, indicating that my phone has just restarted i feel like playing carmageddon with someone who has made all those reboots possible.

On the other hand, if there is market for Nokia Android phones they should sell them. A lot of people prefer to buy something cheap, even if it's worse, than buy something better, but with higher price.
0 0 [Posted by: knedle  | Date: 09/21/12 07:49:20 AM]
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4. 
"...anger because of continuing slump of the stock is growing among investors and there is no light in the end of the tunnel because the strategy set by Mr. Elop simply does not work."

Editorializing much?
0 0 [Posted by: bluvg  | Date: 09/21/12 03:11:23 AM]
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5. 
In my opinion the pinnacle of Nokia phones was the linux powered N900 - a truly great top end device. Their linux based Maemo OS was never going to be mass market but it was great for geeks. I entirely understand that they had to ditch symbian, but can't see why they went windows only for their mid-high end. Why not have a windows and an android option?

PS: Those calling Android slow and inefficient - in my experience this has more to do with manufacturers & network providers pre-loading bloatware and failing to properly update and support Android handsets. I throughly recommend re-flashing your Android handsets with custom roms such as cyanogenmod. In most cases the performance improvement will be very noticeable. I'm using a very old galaxy 5700 i got on ebay for £25 with cyanogen 7.2 and its feels pretty quick for most of what I do on it.
0 0 [Posted by: Prosthetic_Head  | Date: 09/21/12 03:23:43 AM]
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Why even bother with Android if you can have a phone that works well and fast out of the box like the iPhone or soon WP8.
0 0 [Posted by: Memristor  | Date: 09/21/12 05:18:42 AM]
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I only buy factory unlocked smartphones, so only bloatware left is what the manufacturer put it. Also I dont use too many apps, which I use I keep an close eye on what they are doing.

Do you expect an novice user to root and install custom rom on their new shiny smartphone, which should JUST work right out of the box?

My other issue with android beside the ones in my peevious post, its balatant UI copying of iOS, as MS has proved if one try they can come up with something new, intuitive and easy to use.

By the way I have rooted my SGS III got rid of crapware, but it cant fix OS's shortcomings.

0 0 [Posted by: Aquanox  | Date: 09/21/12 09:15:41 AM]
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No, I wouldn't expect a novice user to do that. I think that manufacturers and network providers are harming their customers, and as a knock on effect the Android platform by bloating and crippling it the way they do.

Some people will alway prefer other systems and thats fine. I'm very glad to see variety and competition in the smart phone OS market.
0 0 [Posted by: Prosthetic_Head  | Date: 09/23/12 05:12:25 AM]
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"...in my experience this has more to do with manufacturers & network providers pre-loading bloatware and failing to properly update and support Android handsets."

Sounds exactly like the comments Linux fans make about Windows.
0 0 [Posted by: bluvg  | Date: 09/21/12 02:56:23 PM]
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Very true, I use both linux and windows and always go to some length to get the cleanest minimal install possible before putting the applications i want (and only those i want) on. Bloatware is a big problem with any preconfigured system even if unintended, one mans feature is anothers bloat as can be seen with many of the popular linux distros.
0 0 [Posted by: Prosthetic_Head  | Date: 09/23/12 05:07:41 AM]
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