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RIP: Symbian
This slide was just presented by Stephen Elop and Nokia CFO, Timo Ihamuotila, at Nokia's Capital Markets Day. Although there's no date listed, it's clear that Symbian -- a "franchise" OS that Nokia will "harvest" -- will be wholly consumed by Windows Phone on Nokia devices just as soon as Nokia and Microsoft can complete the transition. It won't be immediate, but it seems like 2012 will be the year that Nokia pulls the cord on life support. Regardless of the actual date, who in their right minds would invest their development time or consumer dollars in a smartphone OS that has no future within the company? One more slide showing the post-Symbian reductions in R&D spending after the break.
Nokia's Elop responds to Google's 'Two turkeys' tweet
Like it or not, you have to hand it to Stephen Elop, Nokia's new CEO. The man isn't afraid to shake things up and clean house to meet his vision of the future. And now that he's made Windows Phone 7 Nokia's "primary smartphone platform" in what he sees as a three-way race between Microkia, Googloid, and Apple (sorry HP and RIM), the man's free to unleash his mild-mannered Canadian fury upon Google's Vic Gundotra (via proxy). As you'll recall, Vic insulted the rumored partnership earlier in the week by tweeting, "two turkeys do not make an Eagle." If you don't understand Elop's twitter-burn then we urge you to visit one of Dayton Ohio's fine historical museums while eating a slice of Cassano's pizza -- we hear it's delicious. [Thanks, Jack]
Nokia Q&A reveals more MeeGo details and tablet plans -- says Android 'risk of commodification was very high'
The Steve show just ended with both Elop and Ballmer hosting a very informative media Q&A following the reveal of Nokia's plan to use Windows Phone 7 as its "primary smartphone platform." Here are the highlights: No specific announcement for when we'll see the first Nokia Windows Phone. Ballmer mentioned that the engineering teams have spent a lot of time together already. Elop also confirmed that Nokia is a Finnish company and always will be -- they will not be moving to Silicon Valley or anywhere else. Ballmer said that the partnership is "not exclusive" but some things that Microsoft is doing with Nokia are "unique" allowing Nokia to differentiate itself in the market. Elop added that it's important for the Windows Phone 7 ecosystem to thrive, which means that multiple vendors must succeed. Elop didn't believe that Nokia could create a new ecosystem around MeeGo fast enough. Nokia will "substantially reduce" R&D expenditures while increasing R&D productivity moving forward. Nokia did talk with Google about adopting Android but decided that it "would have difficulty differentiating within that ecosystem" and the "commoditization risk was very high -- prices, profits, everything being pushed down, value being moved out to Google which was concerning to us." Microsoft presented the best option for Nokia to resume the fight in the high end smartphone segment. Elop clarified that MeeGo will ship this year but "not as part of another broad smarpthone platform strategy, but as an opportunity to learn." Something that sounds very similar to position Nokia took with its so-called "experimental" Maemo-based N900 last year. After the first (and apparently, only) MeeGo device ships this year, the MeeGo team will then "change their focus into an exploration of future platforms, future devices, future user experiences." Trying to determine the "next disruption" in smartphones. Responding to "hope for a broad MeeGo-based ecosystem," Elop said that Nokia simply wasn't moving fast enough to effectively win and compete against Apple and Google. Windows Phone makes it a "three-horse race," something that Elop says is pleasing to the carriers he's been speaking with. Nokia has different options for its tablet strategy including using something from Microsoft or something that Nokia has developed internally.
Stephen Elop: There will be 'substantial reductions in employment' inside Nokia
Stephen Elop and Steve Ballmer are in the middle of a Q&A now. When Elop was asked by a concerned Finnish reporter, "What happens to Finland," Stephen responded that a successful Nokia is good for Finland but there will be "substantial reductions in employment" in Finland and around the world. We can't even imagine what it's like to be working inside of Nokia at the moment but the stress, frustration, and concern must be extraordinarily high.
Live from Nokia's Capital Markets Day!
The time for leaked memos, rampant speculation and obscure references was brought to an abrupt end this morning when Stephen Elop and Steve Ballmer delivered the announcement of Nokia and Microsoft's future strategic alliance. It all revolves around Windows Phone 7 becoming the smartphone strategy around Espoo, but there are still plenty of details to be explicated, highlighted and mulled over. Stephen Elop is about ready to take the stage here in central London to officially kick off Nokia's annual Capital Markets Day, where we expect him to give us a clearer picture of what to expect from this tie-up of industry giants. Our liveblog, after the break you shall find.
Nokia tells investors that 2011 and 2012 will be 'transition years'
Wondering how long it will take for Nokia to fully execute on its new strategy? Here's a clue in a press release targeting investors and financial analysts: "Nokia expects 2011 and 2012 to be transition years, as the company invests to build the planned winning ecosystem with Microsoft. After the transition, Nokia targets longer-term: (1) Devices & Services net sales to grow faster than the market. (2) Devices & Services non-IFRS operating margin to be 10% or more." There are many ways to interpret this, naturally. But the one we can't get our minds around is that the Symbian and MeeGo houses were such a mess that they couldn't be repaired by 2012, even after years of effort and huge investments directed towards that goal. And here we thought that MeeGo "inspired both confidence and excitement" while Symbian's only issue was UI related. Update: Stephen Elop says that he expects Nokia to ramp up the transition this year and be ready to ship Windows Phone 7 devices in significant volume in 2012.
Nokia and Microsoft enter strategic alliance on Windows Phone, Bing, Xbox Live and more
It's happened. Former Microsoft exec and current Nokia CEO Stephen Elop has married his future and his past in the holy matrimony of a "strategic alliance." Windows Phone is becoming Nokia's "principal smartphone strategy," but there's a lot more to this hookup -- scope out the official press release just after the break. Microsoft's Bing and adCenter will provide search and ad services across Nokia devices, while Nokia will look to innovate "on top of the platform" with things like its traditional strength in imaging. Ovi Maps will be a core part of Microsoft's mapping services and will be integrated with Bing, while Nokia's content store will be integrated into (read: assimilated by) Microsoft's Marketplace. Xbox Live and Office will also, as is to be expected, feature on these brave new Microkia handsets. An open letter on Nokia's Conversations site, penned jointly by Stephen Elop and Steve Ballmer, sets out the foregoing details along with the following statement of intent: "There are other mobile ecosystems. We will disrupt them. There will be challenges. We will overcome them. Success requires speed. We will be swift. Together, we see the opportunity, and we have the will, the resources and the drive to succeed."
Nokia execs reshuffled in Microsoft-centered Elopcalypse
Pardon us while we catch our breath... Nokia's bombshell of an announcement's going to require some serious internal tinkering to execute upon the new strategy. As such, there's a big-time reorganization effort being kicked off today in order to accelerate the company towards its new goals. Here are some of the highlights: Nokia's "applications and content store" (Ovi) will be integrated into Microsoft Marketplace Nokia Maps will be at the heart of Microsoft's Bing and AdCenter Microsoft will provide developer tools to Nokia (So no Qt?) Symbian is now described as a "franchise platform" with Nokia planning to sell 150 million Symbian devices into the future MeeGo emphasis will be on longer-term exploration with plans to ship "a MeeGo-related product" later this year (not products) The new leadership team that will drive the effort consists of Stephen Elop, Esko Aho, Juha Akras, Jerri DeVard, Colin Giles, Rich Green, Jo Harlow, Timo Ihamuotila, Mary McDowell, Kai Oistamo, Tero Ojanpera, Louise Pentland and Niklas Savander. Unsurprisingly, Alberto Torres, former head of MeeGo, has quit. Here are some of the key execs: Jo Harlow becomes the gal at the center of the Nokia's Elopcalypse with Smart Devices responsibility for Symbian smartphones, "MeeGo Computers," and Strategic Business Operations. Mary McDowell will drive the Mobile Phones division focusing on growth markets. Marko Ahtisaari will lead up design efforts Tero Ojanpera will lead Services and Developer Experience Niklas Savendar owns Markets Rich Green will head the CTO Office responsible for Nokia's technology strategy and related forward-looking activities So really, Nokia is maintaining most of its executive staff, unlike the rumors coming into today.
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
Google's Vic Gundotra on Nokia: 'Two turkeys do not make an Eagle' (updated)
Well, well. Just after Nokia CEO Stephan Elop's "burning platform" memo leaked out and prompted intense speculation that Nokia would start building Windows Phone 7 handsets, Google's Vic Gundotra tweeted "Two turkeys do not make an Eagle" prefaced with a #feb11 hashtag -- the same day as Nokia's Capital Markets Day event in London. That's some pretty serious trash talk, and we'd say it pretty much takes an Android tie-up off the table -- we doubt anyone from Google would run around calling Nokia a "turkey" if they were actually partners. Then again, Vic could just be talking about some extremely disturbing genetic engineering research he plans to unveil on Friday -- really, anything is possible with Google. Update: Oh snap. Our friend Seth Weintraub at Fortune just reminded us that there's some serious history behind "two turkeys do not make an eagle" -- it's what former Nokia VP Anssi Vanjoki said in 2005 about BenQ buying Siemens's failing handset business. (Ouch.) Of course, Vanjoki also just said that using Android is like peeing in your pants for warmth, so we suppose Gundotra's been waiting for some payback -- although his timing's a little off, since Vanjoki just made a very public exit from Nokia after being denied the CEO job, Still, though -- is any burn sweeter than the obscure European handset business history burn? We don't think so.
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?
