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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.
Myriad 'Alien Dalvik' runs Android apps on any phone... starting with MeeGo (video)
You know that N900 you keep around, just because. The one that's been hacked so many times you call it "leatherface?" Well, it's about to get a lot more flexible. Built upon the app quickening Dalvik Turbo, OHA member Myriad just announced Alien Dalvik with the promise of running "the majority" of unmodified Android apps on non-Android platforms "without compromising performance." A bold claim, no doubt. Myriad will be backing this up at Mobile World Congress starting next week with plans to release it later this year on MeeGo. But why wait until then? You can see it demonstrated right now running on a Nokia N900 in the video after the break (it's running Google Maps in the picture above). Hey Mr. Elop, you want to build, catalyze or join a competitive ecosystem? Maybe this is your solution.
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.
Nokia chairman wanted Vanjoki for CEO, American investors forced him to pick Elop? (update: Nokia says it's false)
We love us some corporate intrigue, and there's some intrigue of the highest order coming out of Finland today: local rag Kauppalehti claims that Nokia chairman Jorma Ollila had wanted the outspoken Anssi Vanjoki to step up, but was instead forced to endorse Microsoft executive Stephen Elop as Olli-Pekka Kallasvuo's successor to lead the embattled company by a team of American investors who demanded a CEO from the left side of the Atlantic. How "forced," exactly? Ollila was allegedly in line to be ousted if he didn't throw his weight behind Elop, which -- as IntoMobile points out -- is a bit odd considering that Ollila himself is leaving next year. All told, something seems fishy here; it's possible that Ollila is simply trying to save face with Finns (and / or Vanjoki himself) as he prepares to leave Nokia... or it's possible that hordes of vicious Americans with skin in the game collectively tightened the vice grips. Either way, Elop seems to be cleaning house in light of the Symbian move, so it'll be interesting to see whether he can steer the ship back on course here in 2011. Update: We've just received a statement from a Nokia spokesperson that basically calls the story a total fabrication: "The story is totally unfounded speculation. There were three candidates for Nokia CEO position in the final selection and Stephen was chosen on merit without any external interference. We are very disappointed that this story was published just prior to the financial results." So there you have it -- three candidates, Elop won, so says Nokia.
Stephen Elop: Nokia's first MeeGo device 'will be a 2011 event'
No more wondering or speculation, Nokia's CEO just announced on the Q3 earnings call that its first MeeGo device won't be coming this year. In no uncertain terms, Stephen Elop said that Nokia's, "First MeeGo device will be a 2011 event." A device rumored to be the N9, pictured above. In general communications about new Nokia products will be made far closer to product availability. Elop added that his first impression of Nokia's MeeGo work "inspires both confidence and excitement." Let's hope so, in Q1 2011 Nokia's MeeGo smartphone OS will be battling resurgent webOS and Windows Phone 7 devices in addition to the Android, iOS, and BlackBerry incumbents at the high-end of the market.
Nokia reports improved earnings for Q3 2010, will still 'streamline' up to 1,800 employees out of a job
Nokia's quarterly results have just been made public and the company's devices plus services sector has actually improved its income relative to last year: €7.2b of revenue was collected over the past three months versus €6.9b in the same period a year ago. Operating profit has also pepped up, going from the previous €785m to €807m. You'd think this would augur well for Stephen Elop's beginning at the helm, but the new man in charge is also presiding over a fundamental restructuring of operations at Nokia, which is expected to result in the redundancy of up to 1,800 employees globally. There are no specifics to tell us who'll be losing out, but the aims are the boilerplate tasks of increasing efficiency, simplifying operations, and reducing time to market. Anyway, we doubt the great people of Finland will be pleased.
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.
Stephen Elop chants 'Developers, developers, developers' to close Nokia World (video)
It was short and sweet but ex-Microsoftie Stephen Elop closed Nokia World by handing out a one million dollar developer award (well, "investment"). But hearing him chant "Developers, developers, developers" in a mild-mannered drawl worthy of Nokia's conservative roots was definitely the highlight.
Nokia's OPK is out, Microsoft exec in as President and CEO (updated)
The rumors were true. Nokia just announced a change in leadership: Olli-Pekka Kallasvuo is out, Stephen Elop, the current head of Microsoft's Business Division, is in. That's right, the very Finnish Nokia will now be led by a Canadian. Before Microsoft, Elop, a computer engineer by education, held senior executive positions at Juniper Networks, Adobe Systems, and Macromedia. The embattled OPK will vacate his position as President and CEO on September 20th and will continue to chair the Board at Nokia Siemens Networks. Money quote: "His (Elop's) strong software background and proven record in change management will be valuable assets as we press harder to complete the transformation of the company." Naturally, OPK leaves with a severance package honoring his 30 years of service. That translates to 18 months gross base salary and target incentive totalling about €4.6 million plus 100,000 restricted Nokia shares that will vest on October 1, 2010. Once again, proof that it's good to be king. Update: Click through if you'd like to gaze into the hopeful eyes of Nokia's new CEO. Update 2: Nokia just introduced Stephen Elop to the world in a live press conference (available now for replay) from Espoo. Jorma Ollila, Nokia's Chairman and former CEO, confirmed that the CEO search had been ongoing since late May and OPK, for his part, has been very professional and "very gallant" throughout the process. Jorma then praised Stephen for his "very strong cultural sensitivity," a question that's very near and dear to Finns concerned about a North American taking control of their beloved Nokia. Elop will be moving to Helsinki in the very near future and his first order of business will be to "listen." Elop said that Nokia is well aware of the challenges it faces as well as the solutions to those challenges. It's his job, then, to surface those solutions and to execute on them going forward. Understandably, Stephen refused to talk about specific next steps. Stephen did say that the North American smartphone market is absolutely critical to Nokia and will be an emphasis under his leadership (as it had under OPK, unfortunately, with poor results). Hopefully, Elop's contacts in the US can help. One final tidbit of interest. When Stephen sat down with Ballmer to express his intention to leave Microsoft for Nokia, Ballmer was said to be disappointed but supportive due to his respect for Nokia as a company. He even helped with the transition. Don't you hate it when your stereotypes are debunked?
Nokia and Microsoft to announce an "alliance" tomorrow -- what? Update: Office on Nokia phones
We're not sure what to make of this, but we were just invited to a joint Microsoft / Nokia teleconference during which the two companies will announce an "alliance." Yeah, there are some pretty wild possibilities there -- Nokia going WinMo? Redmond going Symbian? The creation of MaeWinMo? -- but considering the featured speakers are Stephen Elop, president of Microsoft's business division, and Kai Öistämö, Nokia's EVP for devices, we're guessing the real announcement will be something more pedestrian, like native Exchange support on Symbian or possibly that upcoming Atom netbook running Windows 7. Otherwise, hell -- Nokia would be supporting three different mobile OSs, and that seems just a little too crazy, even for Espoo. We'll see -- it all goes down tomorrow at 11AM Eastern.Update: This is probably unrelated, but Microsoft's Mac BU just called its own presser for Thursday, so if you're looking to spend the night weaving wild nonsensical conspiracy theories, we'd say all the pieces are in place.Update 2: Told you it was nothing too out there -- the Wall Street Journal says Microsoft will announce it's working on a version of Office for Nokia phones. Anyone surprised? Didn't think so.
Microsoft shows a glimpse at the future of computing and the people who can afford it
Hey, want to know what the future looks like? Okay, how about what Microsoft thinks the future will look like? If you're still reading, Stephen Elop, Microsoft's Business Division President, recently presented that vision as part of this year's TechFest. In an embedded video below you can get a glimpse, which includes plenty of augmented reality, a personal identification device that could (finally) replace your wallet, and naturally lots and lots of Surface action -- extending from tables to walls and beyond. Some of these conceptual clips are old, but overall it looks like something of a computing utopia to us, and according to Elop these are all representative of currently active projects. But, with the company shedding employees and surely focusing on tangible revenue right now, we're wondering how long they'll stay that way.
