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Nokia's Capital Markets Day is tomorrow, and we'll be there live!
February 11th, 2011. It looks set to be a day to remember in the grand history of that titan of the mobile industry, Nokia Corporation. Its fearless new leader has been trumpeting the need for change both in public appearances and in the private corridors of Espoo, and tomorrow he gets the stage all to himself, having been handed the keys and told to pick a direction in which to drive. Will he steer Finland's proudest export into the warm embrace of Microsoft and its developing Windows Phone 7 platform? Will he respond to being described as the orchestrator of a turkey sandwich? Or will he be his usual understated self and lay out a sensible roadmap for righting the wrongs of Nokia's recent past? If we're lucky, he'll do all three tomorrow morning. The show gets started early, at 10AM GMT, but whether you're staying up late or getting up early, we don't expect you to miss a moment of it. 12:00AM - Hawaii 02:00AM - Pacific 03:00AM - Mountain 04:00AM - Central 05:00AM - Eastern 10:00AM - London 11:00AM - Paris 01:00PM - Moscow 03:30PM - Mumbai 07:00PM - Tokyo 09:00PM - Sydney
Nokia CEO Stephen Elop rallies troops in brutally honest 'burning platform' memo? (update: it's real!)
"The first iPhone shipped in 2007, and we still don't have a product that is close to their experience. Android came on the scene just over 2 years ago, and this week they took our leadership position in smartphone volumes. Unbelievable." This is just one of many, many pieces of stark knowledge allegedly dropped by recently-appointed Nokia CEO Stephen Elop -- formerly of Microsoft -- in a roughly 1,300-word memo to the company's employees that we've received today. Though we can't vouch for the authenticity, it's notable that the memo contains a portion previously reported by The Register and heard by sources at TechCrunch Europe, so it would seem that we've simply received the whole thing. Elop goes on to suggest that his company is "standing on a burning platform" and must "change [its] behavior," suggesting that the adoption of a non-homegrown platform like Android or Windows Phone 7 is a more realistic possibility than ever before. Update: We've now heard from multiple trusted sources that this memo is indeed real, and was posted to an internal Nokia employee system. That makes it one of the most exciting and interesting CEO memos we've ever seen -- and we're absolutely dying to see how Elop plans to shake things up. Overall, the communique laments Nokia's lateral movement while Apple and Google have started eating its lunch on the mid- and high end and Shenzhen-based off brands have started to cut into its traditional dominance in emerging markets, leaving Espoo with virtually zero market leadership. It's a stark revelation that seems befitting of a man brought in from the outside -- he's neither Finnish, nor raised in the Nokia system -- and he promises to start revealing the way forward this Friday at the company's Capital Markets Day event where grandiose plans have been unveiled in the past. Whether the memo is legitimate or not, the frequency and intensity of big-time rumors floating around Nokia ahead of Capital Markets Day (and MWC next week) have been pretty wild: we've heard they'll be announcing a partnership with Microsoft possibly revolving around Windows Phone 7, that a boatload of executives would be shown the door, and that Elop would start looking to Nokia's new Silicon Valley campus as its center of gravity, with execs and senior management expected to start spending more time outside Finland. We'll know far, far more about what's going on over in Espoo in the next few days, but in the meantime, here are some choice quotes from the memo: "...there is intense heat coming from our competitors, more rapidly than we ever expected. Apple disrupted the market by redefining the smartphone and attracting developers to a closed, but very powerful ecosystem." "They changed the game, and today, Apple owns the high-end range." "Google has become a gravitational force, drawing much of the industry's innovation to its core." "We have some brilliant sources of innovation inside Nokia, but we are not bringing it to market fast enough. We thought MeeGo would be a platform for winning high-end smartphones. However, at this rate, by the end of 2011, we might have only one MeeGo product in the market." "...Symbian is proving to be an increasingly difficult environment in which to develop to meet the continuously expanding consumer requirements..." "Our competitors aren't taking our market share with devices; they are taking our market share with an entire ecosystem." "We poured gasoline on our own burning platform. I believe we have lacked accountability and leadership to align and direct the company through these disruptive times. We had a series of misses. We haven't been delivering innovation fast enough. We're not collaborating internally. Nokia, our platform is burning." Read the full memo after the break.
Nokia reportedly planning 'organizational changes,' mobile phones exec on the outs
Looks like Capital Markets Day is shaping up to be quite the barnburner for Nokia. In the wake of news that Microsoft and Nokia may have some sort of tie-up in the works, Germany weekly Wirtschaftswoche is reporting that newly appointed CEO Stephen Elop will be bidding adieu to a number of high-ranking officials. Citing "company sources," the paper stated that Mary T. McDowell, a bigwig in the mobile phones unit, as well as Niklas Savander, the manager of the markets unit, could be on the outs. Moreover, Kai Oistamo (Chief Development Officer) and Tero Ojanpera, the manager responsible for services and mobile solutions, may also be enjoying their final weekends as Nokia employees. It's all part of a monumental strategy shift, and if it all pans out, it'll be Elop's first major move since taking over as CEO last September. Of course, Anssi Vanjoki more or less left on his own accord, and the company has essentially forged ahead with little to no change since. We're told that Nokia has hired headhunters to scout top people to fill said slots, but it's hard to say why Elop feels that new brains are needed. Here's hoping it's the start of something... competitive. Update: Having had a few minutes to digest this news, it's worth pointing out that neither Alberto Torres (exec leading MeeGo Computers) nor Jo Harlow (head of Symbian Smartphones) are rumored to be at risk. So if the report is true, then these organizational changes appear focused on, 1) rectifying Nokia's inability to quickly execute upon its corporate strategy and, 2) the recent walloping Nokia received in emerging markets like India where Nokia's S40 feature phones once ruled the land, but are increasingly under attack by aggressively priced cellphones from Chinese and Indian handset makers. [Thanks to everyone who sent this in]
Nokia smartphone market share shrinks to 31 percent, operating profit takes a beating too
Stephen Elop's first quarterly results as Nokia CEO have just come out, and while the company's still growing, others seem to be speeding ahead of it. Nokia's reporting its converged mobile devices (smartphones, to you and us) reached volumes of 28.3 million during Q4 2010, which is a neat bump from 20.8 million at the same time last year and 26.5 million in the previous quarter. However, in the context of the broader smartphone marketplace, that figure now amounts to only a 31 percent share, according to Nokia's own estimates, which is a major dip relative to its 40 percent slice in Q4 2009 and 38 percent in Q3 2010. Elop's perspective on the matter is as follows: "In Q4 we delivered solid performance across all three of our businesses, and generated outstanding cash flow. Additionally, growth trends in the mobile devices market continue to be encouraging. Yet, Nokia faces some significant challenges in our competitiveness and our execution. In short, the industry changed, and now it's time for Nokia to change faster." When your operating profit goes from €1.47b (€950m net) a year ago to €1.09b (€745m net) this year, the response should indeed be to change and to change fast. Nokia's still not disclosing sales figures of the N8, but given that this was the first full reporting period where the company's Symbian flagship has been on sale, it doesn't seem to have had quite the impact Espoo will have hoped for. Wanna try again with the N9? Update: Nokia's investor relations call has borne a few more interesting tidbits from the new man in charge. Elop is quoted as saying Nokia must "build or join a competitive ecosystem," with the latter verb in that sentence sure to renew discussions of why the Finnish company should / shouldn't switch to an OS such as Android or Windows Phone 7. We still think that'll be the very last resort over in Espoo, but Elop apparently believes Nokia has the brand recognition and operator relationships to make such a move if it wanted to. Which of course it doesn't. Or does it? Let's wait for Nokia's Strategy and Financial Briefing in London on February 11th -- Mr. Elop's expected to be a lot more specific about his company's roadmap going forward on that day.
Microsoft names three new division presidents following recent departures
As you may have noticed, Microsoft has seen a few pretty significant executive shakeups as of late, with Robbie Bach and J Allard announcing their departures back in May, and Steven Elop leaving just last month to take the top job at Nokia. Now Microsoft has officially filled in some of those gaps, naming Kurt DelBene as president of its Microsoft Office Division, and Andy Lees and Don Mattrick as presidents of its Mobile Communications Business and Interactive Entertainment Business, respectively -- Windows Phone and Xbox, in other words. All three divisions are actually new (at least in name), but DelBene is effectively succeeding Elop, who led Microsoft's Business Division, while Mattrick and Lees are more or less splitting up Robbie Bach's former duties as head of the now dissolved Entertainment and Devices division. Head on past the break for the complete press release.
