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Analysts: Stephen Elop must turn around Nokia by early 2013 or else

Posted: , by Alan F.

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Analysts: Stephen Elop must turn around Nokia by early 2013 or else
Some analysts are counting down the days that Nokia CEO Stephen Elop has left to turn around the Finnish based handset manufacturer. Magnus Rehle, a partner in Greenwich Consulting, said that the executive has been at Nokia for two years and has not been able to get enough customers even though Nokia sells nearly a million phones every day. The poor response to the introduction of the Nokia Lumia 920, Nokia's first Windows Phone 8 model, led to a 25% decline in Nokia's stock in the two days after the introduction of the device. Along with the Nokia Lumia 820, the two Windows Phone 8 models were seen as merely refreshed versions of Nokia's current Windows handsets. The executive had told the investment community to expect new phones and the analysts feel let down.
"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."-Magnus Rehle, senior partner in Greenwich Consulting

While Nokia will ship the new models before Christmas, (the latest rumor has the Nokia Lumia 920 being released October 21st via AT&T) the two phones will be hard-pressed to compete against the red-hot Apple iPhone 5, which has sold 2 million units in the first 24 hours of accepting pre-orders, and the Samsung Galaxy S III. The latter has sold in excess of 20 million units in its first 100 days. And you can't forget the Samsung GALAXY Note II. The original sold over 10 million phablets.

Nokia Lumia 920 (R) and the Nokia Lumia 820 Windows Phone 8 models

Nokia Lumia 920 (R) and the Nokia Lumia 820 Windows Phone 8 models

Interestingly enough, in the quarter that end in June, Nokia sold 6 million Symbian powered handsets which beat out the less than 4 million Windows Phone powered handsets Nokia sold in the same time period. Some analysts are already writing off this coming Christmas and say that it won't be until Spring 2013 before Nokia has a chance for a turnaround. Gartner analyst Carolina Milanesi says, "It will certainly be an iPhone Christmas."

Nordea analyst Sami Sarkamies says it is hard to say if someone else would have done a better job than Stephen Elop, but he sees the CEO as having until the end of the first or second quarter of next year to prove that his strategy will work. In the midst of a major restructuring, Nokia has lost 3 billion EUR ($3.9 billion USD) in the last year and a half.

Also looking bad for Elop is the recent revelation that the company used professional photographs and claimed that they were taken by the camera on the Nokia Lumia 920. Compared with the slick introduction of the Apple iPhone 5, this "black eye" is the type of setback that could lead to Elop's dismissal from Nokia.

source: Reuters

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posted on 19 Sep 2012, 17:10 25

1. wendygarett (unregistered)


Just fired him already :D

posted on 19 Sep 2012, 17:34 13

9. wendygarett (unregistered)


Elop shouldn't kill symbian and meego in the 1st place, instead elop should develop it to compete and negotiate with Google so symbian and meego can play Google play apps...

posted on 19 Sep 2012, 18:33 10

19. Bernoulli (Posts: 1592; Member since: 01 Sep 2012)


Well, jolla has thought about this and it's exactly what they're doing! :)

posted on 19 Sep 2012, 21:58 2

48. neutralguy (Posts: 1152; Member since: 30 Apr 2012)


Being a WP exclusive means letting go of other OSes. I think, it's a good move based on Nokia's state by now.

And hey, a free OS for them plus a billion dollars every year is not a bad at all. Besides, WP is starting to gain track. And that's a proven fact. :)

posted on 19 Sep 2012, 22:28

49. pikapowerize (banned) (Posts: 1869; Member since: 03 May 2012)


yeah its a fact but hey... iPhone just sold 2 million in just 24 hours and it will be available this october...

how about WP? still on november... and might be push back again... (hope not true)

i really wish that microsoft act fast! but make it feature-rich! and it wont be half-baked!

im really hoping that WP8 to have a REAL Voice assistant like Siri and google now!! so hoping to see one! coz if not, they're delayed in the competition! even RIM is addressing this too!! and making a solution for the upcoming BlackBerry 10!!

posted on 20 Sep 2012, 10:15

60. neutralguy (Posts: 1152; Member since: 30 Apr 2012)


fastest selling phone is iPhone 5 with 2 million in 24 hours? nahhh.

here's a phone that really sells like hotcakes.

http://www.gsmarena.com/xiaomi_sells_300000_mione_s_phones_in_4_minutes_12_seconds-news-4833.php

posted on 19 Sep 2012, 18:08 1

15. Angkor (Posts: 108; Member since: 05 Jul 2012)


Bankruptcy is best for Nokia unless Microsoft buy it.

posted on 19 Sep 2012, 19:07 5

24. pikapowerize (banned) (Posts: 1869; Member since: 03 May 2012)


actually they are only unimpressed coz they dont bring what people expect on the lumia 920, a monstrous 41 mp pureview... but actually the 8.7mp pureview phase 2 is enough on lumia 920... it just remove the loseless zooming but at least it has the best camera! and its prove to be a worthy smart-cameraphone...

i believe nokia can turn around the odds! they can get what they lost! and android wasnt really the answer... it will never gonna be the answer! coz there's a lot of android player but struggling to get a market share! even that optimus G that has better specs than the s3...but it wont have the same glory and fame that s3 receive!

and yes, they shouldn' abandon symbian and meego... well atleast on meego it is still supported through jolla, how about symbian?

symbian is really capable now of doing great stuff!! stuff that is a "requirements" on a smartphone today! the only s**tty about it is its app store and browser! but its really an awesome OS now! and the sales of symbian is still impressive even elop wanted to destroy it! so i hope nokia shouldnt play blind and dumb again!!! i want them to work with symbian... work with it... you make a symbian smartphone that was 5 years advance in the competition before and i believe that they can do it again!! on the camera department they already did it with 808 pureview so just develop symbian more and more!

but yeah.. in order to do this... fire elop first!

posted on 20 Sep 2012, 11:09

61. xtplnet (Posts: 39; Member since: 03 Mar 2012)


You are right Man!!! At all this time Nokia promises customers that they bring extraordinary devices and customization with windows Phone 8 but , Nokia 920 is defiantly a big letdown. They used familiar terminology like pureview for Nokia Lumia 920 but Nokia 808 Pureview has totally different implementation which sometimes let you forget you are using mobile and not d-slr Camera , and don't let me start with abandoning Meego platform. Just give that Elop Pink Slip already!!

posted on 20 Sep 2012, 03:09

56. AeroPrime (Posts: 173; Member since: 21 Feb 2011)


Yes and maybe not..... Nokia need someone that could really market their phone better than how iPhone did it? Need to give a little bit push of excitement make sure people know about it... I still see people who still does not know about Lumia phones.

posted on 22 Sep 2012, 10:26

62. AppleHateBoy (unregistered)


Turn to Android already. It will bring them back in the game.
Think: the Pureview 808 with Jelly Bean. :D

posted on 22 Sep 2012, 13:47 1

66. chaoticrazor (Posts: 2347; Member since: 28 Aug 2012)


android cant handle the sensor and pureview at the moment

yes lots would like a nokia android phone but its not a guranteed solution, give wp8 its shot. android has a way to go too

posted on 19 Sep 2012, 17:12 15

2. InspectorGadget80 (Posts: 6736; Member since: 26 Mar 2011)


OR ELSE YOU'RE FIRED!!! How bout using ANDROID OS for once then you can sell LOTS OF HAND SETS

posted on 19 Sep 2012, 17:22 5

3. chaoticrazor (Posts: 2347; Member since: 28 Aug 2012)


well no, android isnt the key to instant success, besides its a crowded market with sony, samsung etc

maybe if nokia become a major player again they can look at that but until then it would be a bad move

posted on 19 Sep 2012, 19:22 2

26. -box- (Posts: 3878; Member since: 04 Jan 2012)


There is no guarantee with any OS. HTC, LG, Motorola, pretty much everyone except Samsung have been less than successful with Android. If apple made iPhones with their current equipment they'd be second-tier devices. If folks could get their ios apps on another OS fewer would buy iPhones. There are many who are loyal to Samsung Android phones, so it would be difficult for another company to crack that. Nokia's strategy is sound, but its sudden abandonment of Symbian and MeeGo was surprising and slightly irrational, unless it was a condition of their getting Microsoft's money.

posted on 19 Sep 2012, 22:56 5

50. Whateverman (Posts: 3233; Member since: 17 May 2009)


I gotta disagree dude. A Nokia with Google Android would be a huge hit! Nokia is a name that people know and trust. All the companies you mentioned make really good phones, but all have serious issues with either hardware or their custome UI's. Not to mention that Samsung is the only OEM that adding anything of real value in terms of features. S Beam and Phonton share my not be the most ground breaking features, but it makes people go "Ooooh, I want that!". I think if Nokia put out a vanilla Android device with top notch specs and the Nokia name across the top, customers will flock! Everyone had a Nokia 8100 back in the day because they looked great (at least back then), they were almost bullet-proof, and they would lock onto a signal like a pitbull on a rawhide bone. Their reputation alone is enough to attract customers, but for me... Their unwillingness to make CDMA phones and the Windows OS just kills any hope I have for ever another one. Hopefully that will change someday.

posted on 20 Sep 2012, 00:42 3

55. D-Saif (Posts: 1; Member since: 20 Sep 2012)


I was a loyal Nokia customer until I saw Ice Cream Sandwich!!! They need to make Android Phone to gain those old customers back!

posted on 20 Sep 2012, 09:38 1

59. TechPsycho (banned) (Posts: 32; Member since: 05 Sep 2011)


i totally agree with you man.

posted on 22 Sep 2012, 10:31 1

63. AppleHateBoy (unregistered)


Yeah. Nokia phones still have unmatched signal quality in any phone ever made. And there is the brand name, the Nokia Maps. Plus they have lots of patents which they can also use(read that somewhere).

posted on 19 Sep 2012, 20:56 1

44. lyndon420 (Posts: 1785; Member since: 11 Jul 2012)


I agree. I've heard people craving for Nokia's hardware with Android onboard.

posted on 19 Sep 2012, 17:24 6

4. Apple_Royally_ (banned) (Posts: 42; Member since: 15 Sep 2012)


Fire him right now and the boards. Eflop hates Linux and was an ex Microsoft employe. Finland public should boycot him.

posted on 19 Sep 2012, 17:26 4

5. TheRetroReplay (Posts: 245; Member since: 20 Mar 2012)


Why hasn't that guy been fired yet? He's been running it into the ground since he was in charge. Then when Microsoft said they weren't going to buy Nokia he still didn't do anything to turn it around.

The only thing that will save Nokia now is Android and that will only happen when Elop is thrown out on his duff.

posted on 19 Sep 2012, 17:29 4

6. rusticguy (Posts: 2828; Member since: 11 Aug 2012)


It's long overdue. Elop has to Elope :)

posted on 19 Sep 2012, 17:31 7

7. metalpoet (unregistered)


An Android powered nokia phone would be pretty sweet as long as they throw everything they can into the device without holding back, i hate it when companies present a phone as a high end premium phone just for it to have last years technology*cough Iphone 5*

posted on 19 Sep 2012, 17:34 1

8. threed61 (Posts: 133; Member since: 27 May 2011)


Gotta love a keen grasp of the obvious.

posted on 19 Sep 2012, 17:39 3

10. downphoenix (Posts: 2415; Member since: 19 Jun 2010)


Elop is the worst CEO since whoever the CEO of Enron was, forgot their name.

posted on 19 Sep 2012, 17:52 7

12. Doakie (Posts: 1326; Member since: 06 May 2009)


I highly disagree. He's no where near as bad as Leo Apotheker was for HP and webOS. Leo was a special kind of a$$hole, he nuked HP and left with gobs of money.

posted on 19 Sep 2012, 20:01 1

31. downphoenix (Posts: 2415; Member since: 19 Jun 2010)


He did cost HP a few billion, but he didnt also cause their stock to tank 85+% lie Elop did. Elop also has costed the company more.

posted on 19 Sep 2012, 20:14

36. -box- (Posts: 3878; Member since: 04 Jan 2012)


I think any of the managers of GM in the last 5 years have been pretty horrendous. Also the guy who was in charge of Lotus cars until recently

posted on 19 Sep 2012, 17:50 2

11. Giggity (Posts: 147; Member since: 17 Nov 2011)


I would be surprised if his final act as Nokia CEO is to sell off his Nokia shares to Microsoft

posted on 19 Sep 2012, 17:56 1

13. snowgator (Posts: 3293; Member since: 19 Jan 2011)


Nothing official from Nokia, and no real rumors from them. This is another analyst looking to grab headlines. I am not arguing his days HAVE to be numbered if things do not turn around, but no one knows what that number is. I still believe in Nokia and love that WP 8 is being embraced by most major carriers in most markets.

Sand glass is emptying, but if sales are good and continue to trend up Elop has a fair chance of surviving.

Side note: Of course it will be an iPhone Christmas. How stupid of a prediction is that? The bigger challenge for the iPhone will be matching the those sales all year.

posted on 19 Sep 2012, 17:57 2

14. krimHD (Posts: 106; Member since: 23 May 2012)


are they still giving him till next year??? whats with them?

posted on 19 Sep 2012, 18:10 2

16. TheRetroReplay (Posts: 245; Member since: 20 Mar 2012)


Is it just me or does he always have the "I just farted" look on his face

posted on 19 Sep 2012, 18:11 6

17. dreamflasher00 (Posts: 8; Member since: 19 Sep 2012)


I dont get this..
Lumia 20's phone they say is jus a refreshed version of older Lumia's..
well they got..better display..better camera..dual core..bigger size..NFC n all that...but still these phones are jus refreshed from older Lumia's..
same people when Apple gets iPhone 5..which has little difference from 4s..they call it a revolutionary phone ...lol...

posted on 19 Sep 2012, 18:54 1

22. Stoli89 (Posts: 333; Member since: 28 Jun 2010)


One can only wonder who is paying the "professional" tech journalists these days.

posted on 19 Sep 2012, 20:10 1

33. downphoenix (Posts: 2415; Member since: 19 Jun 2010)


anything with an apple symbol on the back is revolutionary. The brand prints money.

posted on 19 Sep 2012, 18:24 1

18. unbiasedcommenter (Posts: 11; Member since: 29 Aug 2012)


I'm excited for the Lumia 920 to see some real hands-on and actually considering a switch from Android for it, from a purely hardware standpoint. It's probably one of the most underrated announcements these past few weeks. That said, Nokia really needs to diversify their portfolio, would love to see that hardware on the Android ecosystem as well. Putting all their eggs in one basket is very risky, they make great hardware and should try to sell it in as many markets as possible. Just my two cents.

posted on 19 Sep 2012, 20:39 1

38. -box- (Posts: 3878; Member since: 04 Jan 2012)


Agree, but many who think "Android" think Samsung, and less so Motorola and HTC, so it is hard to break that mentality. Look at Sony, LG, and Pantech: great products, don't sell super great because most will just buy a Galaxy S3 if they can afford it.

I I have a sense that a lot of folk saying Nokia should go Android are holding onto Android like an older child holds onto their childhood teddy bears, not wanting to move on from what is comfortable onto something better suited for them.

posted on 19 Sep 2012, 18:41 3

20. papss (unregistered)


Here's the thing.. It's easy to say "just make a android phone" but you can't just make one. It takes time and resources that they don't seem to have. They should focus on w8 and then work on other ventures. You could point at any phone manufacture and see there faults.. I personally don't see W8 as a lost cause.. Where would Samsung have been if they didn't bet on android? Hell where would android be? Also Linux is s**t except in phones lol lets be honest

posted on 19 Sep 2012, 20:38 1

37. downphoenix (Posts: 2415; Member since: 19 Jun 2010)


They totally could by:

1) Using the Stock UI (which tech geeks would LOVE), but add in some nice widgets and backgrounds and such to the stock resources for people who want to customize or like polished widgets and backgrounds.

2) Use basically same hardware that is on Lumia 920, except with a real PUREVIEW camera. Camera fans will buy it. Thickness wont matter, the Pureview 808 isnt as thick as most cameras anyway, or even as thick as old school nokia's we put in our pockets. Sure, thick compared to modern smartphones, but who's to say that its good to have a phone that thin?

3) Classic, good nokia build quality. Nokia's windows phones are pretty much copy pastes of HTC, Samsung, LG, Apple. Nokia's signature design style is pretty much lost on these. Great way to get the nokia fans back.

4) Put in nokia exclusive apps, such as Nokia Maps and Ovi Store with Symbian app compatibility. Another great way to win over the nokia fanbase.

posted on 19 Sep 2012, 20:49 1

40. -box- (Posts: 3878; Member since: 04 Jan 2012)


That would take months to do, if not longer, just for coding, testing, and quality control, and even longer for added features like camera, NFC, software, etc, and they have to either develop it themselves to avoid patent infringements or pay royalties to someone else for theirs, which means even more time and money.

It isn't happening, quit asking.

posted on 19 Sep 2012, 18:41 3

21. bigstrudel (Posts: 518; Member since: 20 Aug 2012)


I sure hope HTC and Nokia stick around because if Samsung and Apple are the only two smartphone companies around; Ill go back to a flip phone.

posted on 19 Sep 2012, 20:01 1

30. pookiewood (Posts: 626; Member since: 05 Mar 2012)


that's exactly what I was thinking. If Nokia, HTC go under, if Nokia, HTC and Samsung goes exclusively Android or If MS stops making Windows Phones then sign me up for a Flip Phone from Ebay!

posted on 19 Sep 2012, 18:56 1

23. Nathan_ingx (Posts: 3024; Member since: 07 Mar 2012)


No, Android is not the key to Nokia's success. If Nokia wanted to adopt Android, it would have long back.
Nokia and Symbian are like two adopted brothers in a family...and Windows is the latest family member, apart from a short term MeeGo.
If Stephen has that much time left, he better start doing something good before his ass gets fired by himself...my advice would be to stick to whatever they have and develop the necessary interface and hardware to the point where innovation comes afresh.

posted on 19 Sep 2012, 19:08 2

25. Stoli89 (Posts: 333; Member since: 28 Jun 2010)


I am negative about Nokia's lame launch, where availability and price for the 920/820 were not announced. However, the turnaround seems to be marching along systematically. Consider production for the 920/820 are now in-house (new factory tooling, China) as opposed to a third party familiar with WP. Also consider how successful Nokia has been with its location based service assets, now powering Bing, Yahoo, and...AMAZON (not to mention a myriad of other platforms)! In terms of new hardware tech, consider Nokia has commericalized PureView, delivered built in wirless charging based on int'l standards, married NFC and wireless charging to accessories powered by heavy hitting brands like Harmon/JBL, delivered the first super sensitive HD+ screen tech to the market that exceeds Retina's PPI, and created a design franchise around Lumia. The story is a good one, if it's actually communicated to consumers. Until the 920/820 are in carrier channels, most of this good news will be drowned out by competitive noise.

This is where Nokia's execution needs to improve. Nokia needs to annouce and then deliver ina few weeks, not a few months. For sure, Elop has made major improvements in this area...but it is still not up to the supply chain execution of Apple.

If Nokia can actually get the 920 to AT&T consumers before the end of October '12, then I think the tide will begin to turn in the Finns favor. They need exposure soonest, because the products are IMO terrific.

posted on 19 Sep 2012, 20:57

45. -box- (Posts: 3878; Member since: 04 Jan 2012)


What's that about a China factory? I thought they were shifting production from Korea and Mexico back to Finland and other parts of Europe, though with the ongoing economic turmoil in Europe it wouldn't surprise me if it's done in Asia

posted on 19 Sep 2012, 19:27 3

27. whatever... (Posts: 1; Member since: 19 Sep 2012)


I've had the Palm Phones, Early Windows Phones (lol) blackberries for business, had the HTC EVO and currently use a GSII. the rest of our office staff use the 4S...

I consider myself a normal business/personal / phone user who loves TECH...

Although I've been very happy with the GS II it's far from perfect and has been laggy... with occassional reboots... Samsung makes a great product.

I Plan on purchasing the Nokia LUMINA 920... because I want a phone that that impresses... NOKIA just needs to get the phone out to the people and I'm sure it will impress others compared to the latest and greatest favortism.

I read all these forums an honestly, what a bunch overhyped editorial crap... We all should be thankful that WP is on deck and all should hope it grabs marketshare... competition is good for us consumers across all platforms.

Cheers!

posted on 19 Sep 2012, 20:07 2

32. pookiewood (Posts: 626; Member since: 05 Mar 2012)


Totally sorry posting from a phone and when I tried to thumbs you up it thumbed you down. Great post! Competition is great and Windows Phone is great. It kind of disheartening that most of the comments are negative against it. I really don't want Android and I think iOS is so boring. I'm glad MS is still in the smartphone game and anyone that wants to work with them I wish them the best.

posted on 19 Sep 2012, 21:03 1

46. -box- (Posts: 3878; Member since: 04 Jan 2012)


PA needs a way to undo votes

posted on 19 Sep 2012, 19:48 2

28. tiara6918 (Posts: 1534; Member since: 26 Apr 2012)


The only way for nokia to survive the next couple of years is to kick elop out now...

posted on 19 Sep 2012, 20:00

29. ChangMin2012 (Posts: 87; Member since: 14 Apr 2012)


HTC should buy up Nokia and add an android phone, then maybe there will be a time for recovery for Nokia.

posted on 19 Sep 2012, 20:12 2

34. papss (unregistered)


HTC should worry about their business

posted on 19 Sep 2012, 20:46

39. ChangMin2012 (Posts: 87; Member since: 14 Apr 2012)


Nah, they can hold on their own.
Soon, they can go up against that second-rate imitating excuse of a brand called samsung...

posted on 19 Sep 2012, 20:13 2

35. pookiewood (Posts: 626; Member since: 05 Mar 2012)


Elop is just fine and the Phandroids want Nokia so bad that it's pathetic. Why keep posting the cra these analyst spout? It's nothing but negative! I really hope the 920 makes them and these tech sites eat their words. You know you are full of **** when you say the 920 is an incremental update and not mention the iPhone 5 in that same sentence. Talk about incremental.

posted on 19 Sep 2012, 20:52 1

41. lubba (Posts: 1311; Member since: 17 Jan 2011)


Their WP strategy is a losing one. They will not turn around playing the exclusive game. On the other hand HTC will move up. Sorry Nokia, there's no winning sleeping with ATT. You're not the only on ATT folks are excited about.

posted on 19 Sep 2012, 20:52

42. lyndon420 (Posts: 1785; Member since: 11 Jul 2012)


Google should buy nokia :-)

posted on 19 Sep 2012, 21:09 1

47. -box- (Posts: 3878; Member since: 04 Jan 2012)


They already bought Motorola and had enough trouble with that, and it hasn't been exactly profitable, and has incurred more lawsuits.

posted on 19 Sep 2012, 20:55 1

43. jack1059 (Posts: 72; Member since: 31 Mar 2012)


Why does this bozo still have a job? Rode nokia down from roughly 35% marketshare and profitiability to now what 4% marketshare, money losing, and shares listed as junk. Good god nokia. Give me the ceo job. Ill destroy your company for half of what elop gets.

posted on 19 Sep 2012, 23:15

51. nt6660 (Posts: 3; Member since: 05 Jul 2012)


I feel that so many hate here for Elop. Definitely Elop could not stay at Nokia forever. But to fire a CEO, you will have to look into many things such as current performance comparing to previous year performance (revenue, cash flow and cost). I have limited knowlege on Nokia performance but It seems that it's cash flow and cost are improving. One more thing on Andriod on Nokia phone, If Nokia could put its map on Android, Nokia may have an Android phone already. As Nokia decided to be a "Where company", that means it strategy totally clash with Google.

posted on 19 Sep 2012, 23:25 1

52. pegasso (Posts: 187; Member since: 27 Nov 2011)


6 million Symbian versus (less than) 4 million Windows Phone.
Nokia should listen to their customers, not microsoft...
many Nokia users still prefer "the so-called dying OS" instead WP.
WP is just a pretty face, it can't beat Symbian in term of performance.
Symbian might not be as pretty as WP, but it still a better OS than WP...

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