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  • Did The iPhone Bring Down Nokia's CEO?



    Early this morning, Nokia announced that Olli-Pekka Kallasvuo, the company’s longtime chief executive, is leaving his posh position as of September 20th. The announcement indicated that the new chief will be Microsoft's Stephen Elop, who will formally take the helm of Nokia the following morning. Nokia’s Board of Directors has appointed Stephen Elop President and Chief Executive Officer of Nokia. Until September 21st, Elop will remain "head of Microsoft’s Business Division."

    The announcement of Nokia's power shift didn't surprise many, especially given the company's nearly hopeless recent history of competing with major players in the increasingly competitive smartphone marketplace. In May, Kallasuvuo publicly admitted that Nokia flat-out failed to combat the iPhone, a reality that now appears may have helped to cost the outgoing CEO his job.

    “The time is right to accelerate the company’s renewal; to bring in new executive leadership with different skills and strengths in order to drive company success,” said Jorma Ollila, Chairman of the Nokia Board of Directors. In other words, Nokia needs a big thinker who isn't afraid to take on the iPhone and never admit that Apple has whipped them like a schoolyard bully. “The Nokia board believes that Stephen has the right industry experience and leadership skills to realize the full potential of Nokia. His strong software background and proven record in change management will be valuable assets as we press harder to complete the transformation of the company.”

    Although Kallasvuo will officially resign as president and CEO on Sept. 20, he isn't being completely thrown under the bus. He will, after all, continue to chair the Board of Nokia Siemens Networks in a non-executive capacity.

    Nokia
    This article was originally published in forum thread: Did The iPhone Bring Down Nokia's CEO? started by Michael Essany View original post
    Comments 29 Comments
    1. Nelly998's Avatar
      Nelly998 -
      Nokia... Psh
    1. saunupe1911's Avatar
      saunupe1911 -
      Nokia needs to create there own mobile OS or create their own flavor of Android to be competitive. All they need is a beautiful design, hardware that can compete(i.e SnapDragon 2 or Hummingbird chip), and a solid/stable OS. Then they will be back in the ball game.
    1. Bl1tz's Avatar
      Bl1tz -
      I'm surprised nokia has been around this long as is..
    1. macsoldier's Avatar
      macsoldier -
      Nokia seems to be behind anyways, they talked all this comeback stuff and getting with the program of things but looks like it was a little tougher than expected, just a guess though im sure it will come back as personal issues or something like that
    1. PM5K's Avatar
      PM5K -
      Did you write this? Nokia is the global leader in overall cellphone sales (their market share actually went UP 5% in the last quarter).

      If anyone deserved to get fired for a lack of smartphone sales it should be the head of the smartphone division.

      Quote Originally Posted by saunupe1911 View Post
      Nokia needs to create there own mobile OS or create their own flavor of Android to be competitive. All they need is a beautiful design, hardware that can compete(i.e SnapDragon 2 or Hummingbird chip), and a solid/stable OS. Then they will be back in the ball game.
      They have with Symbian 3 and Maemo, they just haven't done a very good job.
    1. saunupe1911's Avatar
      saunupe1911 -
      Quote Originally Posted by PM5K View Post
      Did you write this? Nokia is the global leader in overall cellphone sales (their market share actually went UP 5% in the last quarter).

      If anyone deserved to get fired for a lack of smartphone sales it should be the head of the smartphone division.



      They have with Symbian 3 and Maemo, they just haven't done a very good job.
      The key words was "solid/stable OS". I think you might have missed those words. Besides, a great OS is worthless without hardware.

      Also, this article isn't written clearly. This CEO didn't get fired because of the iPhone itself. He got fired because Nokia couldn't compete with the idevice platform. Look how much the AppStore has grossed. Look how much Apple has grossed off iTunes and phone accessories. Nokia is one of largest mobile phone manufacturers in the world, but still can't compete in its own market. A market that it help create for that matter.
    1. PM5K's Avatar
      PM5K -
      Quote Originally Posted by saunupe1911 View Post
      He got fired because Nokia couldn't compete with the idevice platform.
      They don't compete in the Smartphone market at all, you could just as easily say he got fired because they can't compete with Android devices and the Android market.
    1. saunupe1911's Avatar
      saunupe1911 -
      Quote Originally Posted by PM5K View Post
      They don't compete in the Smartphone market at all, you could just as easily say he got fired because they can't compete with Android devices and the Android market.
      True. The SmartPhone market as a whole is kicking their butts. I'm rooting for Nokia though. The used to make some great mobile devices.
    1. baskie's Avatar
      baskie -
      The biggest mistake Nokia made was the OS, and the interface. I've a iPhone and a e71. I still maintain the 71 is a better tool, it can do all the things out of the box that the iPhone won't/can't. The iPhone is a better toy, the 71 a better comms device. BUT.... The OS on the 71 and the user inftrface is just pants. Even now a huge amount of space on the homescreen is left blank, a huge no no in todays smartphone scene.

      It's right the CEO takes the hit. Smart phones are the future of mobile devices, for Nokia to have taken their eye off the ball on this simple fact can fall only at the door of the CEO.
    1. whereswaldo's Avatar
      whereswaldo -
      Fail


      Sent from my iPod touch using ModMyi
    1. TheOrioles33's Avatar
      TheOrioles33 -
      Its a no-brainer. Nokia needs to make Android based devices. I can be the CEO! I will take my $1 salary in advance please!
    1. andygev35's Avatar
      andygev35 -
      Quote Originally Posted by Nelly998 View Post
      Nokia... Psh
      +1
    1. Shoey5's Avatar
      Shoey5 -
      What brought hom down was his ressistance to go beyond Symbian. Best phones I've ever owned in terms of build quality and speaker quality have always been Nokia. Granted they have their stinkers but it's a common theme with everyone I know, They always wish Nokia would release an Android or Windows based phone. Android saved Motorola, hopefullu Nokia's new CEO will be more open to Android and Windows Phone 7
    1. zozodouce's Avatar
      zozodouce -
      why is nokia still around? all they do is make garbage phones for the poor people hahahhahahahahahahahaha.
    1. alnaggar's Avatar
      alnaggar -
      it's not just the phone IT'S the APPS
    1. zozodouce's Avatar
      zozodouce -
      Quote Originally Posted by alnaggar View Post
      it's not just the phone IT'S the APPS
      it's everything they should be dead a long time ago lol.
    1. politicalslug's Avatar
      politicalslug -
      This guy is behind his stepping down. Nokia saw the iPhone coming from a mile away and the best they can do is the N8 with a CPU from 2 generations ago and brought to market 3 years after it should have been. If I were a shareholder I would have been demanding this guy be fired back in 2007 when Apple shipped it's first million iPhones. Apple managed to dominate a 3G market with a 2G phone and Nokia couldn't do a thing about it? They have the engineers and the money, and yet they can't get their act together. It's the CEO's job to ensure this kind of thing doesn't happen.
    1. zozodouce's Avatar
      zozodouce -
      Quote Originally Posted by politicalslug View Post
      This guy is behind his stepping down. Nokia saw the iPhone coming from a mile away and the best they can do is the N8 with a CPU from 2 generations ago and brought to market 3 years after it should have been. If I were a shareholder I would have been demanding this guy be fired back in 2007 when Apple shipped it's first million iPhones. Apple managed to dominate a 3G market with a 2G phone and Nokia couldn't do a thing about it? They have the engineers and the money, and yet they can't get their act together. It's the CEO's job to ensure this kind of thing doesn't happen.
      you sir are right lol.
    1. politicalslug's Avatar
      politicalslug -
      Quote Originally Posted by Shoey5 View Post
      What brought hom down was his ressistance to go beyond Symbian. Best phones I've ever owned in terms of build quality and speaker quality have always been Nokia. Granted they have their stinkers but it's a common theme with everyone I know, They always wish Nokia would release an Android or Windows based phone. Android saved Motorola, hopefullu Nokia's new CEO will be more open to Android and Windows Phone 7
      Nokia is right in sticking to developing it's own OS and Store. Relegating Nokia to just another pusher of commodity hardware is a huge mistake. Motorola dropped out of the dumb phone sector and is now a tiny shadow of what it was 10 years ago, albeit it is finally profitable. Apple showed that the platform, not the hardware, is what people want (the first iPhone lacked 3G, a decent camera, apps, and sported last-gen hardware). Apple covered every base. They have the market, the hardware, and iTunes, and it all comes together beautifully. No one else is doing that. Sony tried, but got nowhere. Nokia can't compete with HTC on manufacturing. The problem with Android and Windows Mobile is that they only allow manufacturers to distinguish themselves with hardware (which is outdated the second it leaves the store) and UI skins (that almost always denigrate the overall experience with lag, instability, and unintuitive "features"). Even Google isn't making money on Android. They are pouring money into developing the OS, yet it's open source and the Chinese market sells it without any Google services. Microsoft is the only one that benefits from sales of Windows based phones. What's the point? Nokia needs to develop a platform, drop Intel (ARM owns the mobile future), focus on a single OS (either Symbian or Meego, but not both), flesh out it's OviStore, and develop quality desktop software that allows for the management of music, video, pictures, documents, and data of all sorts. I'll take my $1 now, thank you.
    1. sziklassy's Avatar
      sziklassy -
      Quote Originally Posted by Bl1tz View Post
      I'm surprised nokia has been around this long as is..
      Why? They are the leaders in handset sales worldwide. Maybe not smartphones, but there are far more non-smartphone handsets out there than there are smartphones.