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Nokia's board supports CEO Stephen Elop

Posted: , by Alan F.

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Nokia's board supports CEO Stephen Elop
Despite the perception that the company needs a well-to-do partner to survive, and a stock price that has recently made a 16 year low, Nokia's board is giving current CEO Stephen Elop its full support. Nokia chairman Risto Siilasmaa praised Elop for the speed at which he was able to get the Windows Phone powered Nokia Lumia models into the marketplace. Siilasmaa says that Elop is being criticized way too often, for problems that date back to 2008 which was well before Elop left Microsoft for Nokia.

"Our duty is above all to ensure that Nokia's competiveness is restored."-Risto Siilasmaa, Chairman, Nokia
Siilasmaa also answered general questions from the press, explaining why Nokia left Symbian for Windows Phone. The executive pointed out that Nokia's share of Symbian powered phones had declined from a peak of 60% in 2008. The chairman added that it became clear about 18 months ago that Symbian couldn't be saved. Siilasmaa praised Elop for his analytical, transparent and critical performance noting that turnarounds don't take place in a short period of time. Ironically, in a separate interview, Elop said that he had miscalculated the speed of the market during the last year and a half. He said that if he had known how fast the market was moving in certain cases, he would have done some things differently. As an example, he mentioned the drop in price for Android phones in China. The drop has been so fast that Nokia's position in the country has become more difficult.

Nokia has announced a major restructuring earlier this month that will  force the company to lay off 10,000 employees, close some plants, and widen the price points for its Nokia Lumia phones. The handset manufacturer has seen its shares drop 80% since Elop became CEO in 2010.

source: WMPoweruser

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posted on 28 Jun 2012, 14:56 5

1. hepresearch (unregistered)

I have spent well over a year hoping for Nokia to recover and be successful again. Yet, at every turn, disaster is the result of every change and every effort. Nearly everything has been done in what seems such a ridiculous fashion, and yet we still have Elop and Board members saying how "quickly" everything was done, making excuses for why "everything had to go this way and ONLY this way", and explaining to us just how well Elop has done everything...

So, does the Board support Elop?

Obviously, yes... even to the death, apparently...

posted on 28 Jun 2012, 15:18 8

3. hepresearch (unregistered)

It looks to me as though Nokia will not survive long enough to release a Windows 8/RT/Phone 8 device. All indications are that Microsoft is rumoring-up a WP8 device of its own to go along with the Surface tablets, behind the backs of Nokia and other licensee OEM's, and Microsoft has already refused to bail-out or purchase Nokia altogether. With their patent portfolio valuation being revised in a declining direction rather quickly, all that is left is for Nokia to sell or liquidate before the patents are less valuable than their market capital. Otherwise, it will be an epic bankruptcy dissolution while their investors finally sue the corporate officers for everything they're worth...

This mobile-market gladiator is about to get the thumbs-down.

posted on 28 Jun 2012, 16:30 9

10. AppleConspiracy (Posts: 637; Member since: 18 Oct 2011)

Elop is Microsoft's mole actually. He destroyed Nokia from the inside. Great job indeed!

posted on 28 Jun 2012, 16:52 3

11. PhoneArenaUser (Posts: 5498; Member since: 05 Aug 2011)

I wouldn't be surprised if one day Microsoft buy Nokia with all Nokia's patents. Maybe it is the case.

posted on 28 Jun 2012, 17:24 1

13. qwertypoor (Posts: 72; Member since: 09 Jun 2012)

Your a pathetic idiot Microsoft already said there not making there own pnone you probably won't believe that but you hear a rumor and you'll run with it lol and Nokia will survive long enough to release a windows phone 8 devices

posted on 28 Jun 2012, 23:42 2

27. kanagadeepan (Posts: 926; Member since: 24 Jan 2012)

They also once told, all recent WP7.5 devices will get WP8 and now you know what happened... The same applies for this case...

posted on 29 Jun 2012, 02:28 2

33. AppleConspiracy (Posts: 637; Member since: 18 Oct 2011)

Yes, MS was also so confidently wrong when they said they won't make tablets either, and that was in March of 2011. Not just that they won't make tablets, but they don't believe in tablets in general...


posted on 29 Jun 2012, 10:28

41. hepresearch (unregistered)

Woohoo! I'm an idiot! Oh, wait, I mean a "pathetic idiot". How awesome is that...

Actually, from my experience, the more often and vehemently a rumor is denied, the more often it seems to turn out to be true.

posted on 28 Jun 2012, 18:05 2

15. jmoita2 (Posts: 930; Member since: 23 Dec 2011)

Yet, at every turn, disaster is the result of every change and every effort.
Almost the same words to the letter from my grand dad who served in the Italian Army in WWII...

posted on 28 Jun 2012, 21:01 1

24. hepresearch (unregistered)

The Italian Army was indeed a tough place to have to be in WWII.

posted on 28 Jun 2012, 23:06 2

26. steelicon (Posts: 318; Member since: 02 Apr 2011)

Fatten the pig before the slaughter - good idea.

posted on 29 Jun 2012, 10:37

42. hepresearch (unregistered)

More like starving the pig until it keels over dead...

Stalin did this to the Ukraine in the 1930's... it was decreed illegal to eat or possess food in the region for two whole years. Seven million people were starved to death without occupation troops having to fire a single bullet. It was considered "the greatest of successes" by The Party and their Fearless Leader.

If you really honestly take some time to read history, you will start to see it being repeated all around you, in different ways and contexts, these days.

posted on 28 Jun 2012, 15:06 7

2. akita256 (Posts: 80; Member since: 26 Jan 2012)

Apparently. If I were Chairman, he would have been gone a long time ago.

posted on 28 Jun 2012, 15:40 5

6. TROLL.ISAHA (banned) (Posts: 535; Member since: 28 Mar 2012)

He's a bribe. He killed his own platform for WP...

posted on 28 Jun 2012, 15:20 3

4. Muhannad (Posts: 455; Member since: 20 Sep 2011)

The only sensible explanation I can deduce from the board supporting Elop is if he has shared with them a plan for future competitive handsets and a great marketing plan.

posted on 28 Jun 2012, 15:38 3

5. TROLL.ISAHA (banned) (Posts: 535; Member since: 28 Mar 2012)

He dislikes high-end hardware. Doesn't like to give customers
high spec items in his phones.... also Nokia always had
mid range components inside there phones! Well Nokia
is done and dusted, you should be joining BB down the road!
I use to love Nokia till Android 2.3.3 came in and took the
world almost by storm, along with the iPhone. WP7 and
WP8 are both a big fail......

posted on 28 Jun 2012, 15:45 1

7. cornerofthemoon (Posts: 590; Member since: 20 Apr 2010)

At least Nokia will outlive RIM.

posted on 28 Jun 2012, 15:45 2

8. 7thspaceman (Posts: 1552; Member since: 14 Feb 2011)

Windows 8 is a game Changer for Nokia smart phones because it enables the Windows metro interface to run on cutting edge Electronic components and it has new soft ware features windows 7.5 MangtTango smartphones can not do. such as being part of a unified Microsoft NT OS that is used from smartphones all the way upto powerful Microsoft Servers

posted on 28 Jun 2012, 15:58 4

9. TROLL.ISAHA (banned) (Posts: 535; Member since: 28 Mar 2012)

But still RESTRICTIONS....

and its no way near Android. Root. Kernels. Rooms. Etc....

posted on 28 Jun 2012, 17:17 3

12. TheRetroReplay (Posts: 254; Member since: 20 Mar 2012)

I'm actually surprised that Microsoft said that they weren't going to buy Nokia. It's amazing that they're all just beating around the bush as their company fails. It reminds me of that movie "Other People's Money" where the Larry the Liquidator buys the company then using his voting power to liquidate the assets.

posted on 28 Jun 2012, 17:35 5

14. Johnnokia (Posts: 1094; Member since: 27 May 2012)

You can get everything from the last sentence .
"The handset manufacturer has seen its shares drop 80% since Elop became CEO in 2010."

posted on 28 Jun 2012, 18:07 1

16. AhmadAlsayegh (Posts: 293; Member since: 18 Jul 2011)

Well, those blaming the chairman and the board of directors, should know that those people are elected by share holders...so i would assume that share holders support the board.
last time i mentioned that Nokia now have to change its structure to support its new strategies, and apparently this is what is happening.

When a critical change occurs within an organization, people inside and outside the organization will react (in this case Nokia), a small number of people will directly support that change...many people will be observers and will accept the change after sometime...a small number of people will keep resisting and refusing the change...
People should understand that Nokia made this step after lengthy analysis and studies, they had threats out there from Apple and android, and it had some weaknesses inside shown in Symbian and probably meego (lack of developers support), and apparently this leaded them towards MSFT which didn't have enough attention from OEMs, and Nokia though they could star in that, another reason was MSFT injecting 1 billion in Nokia...all makes sense to me tbh

posted on 28 Jun 2012, 20:44 4

20. hepresearch (unregistered)

And so, Nokia loses $38 billion of its own stock valuation (diving from $15.12 per share, in Feb 2011, to $2.10 at today's NYSE close) in order to obtain $1 billion of Microsoft's cash... and now it has become clear that Microsoft is more than capable of stabbing its OEM licensees and partners in the back by stealing their ideas and competing with them directly. Nokia's maps are now a free gift to Microsoft's platform, and all the other OEM's who want to use it. Microsoft's billion was a very very expensive billion for Nokia, and it doesn't look like Nokia's new-found loyalty to Microsoft is getting a whole lot of loyalty from Microsoft in return. If the OEM-rage snafu with the Surface tablet is any indication, it is entirely plausible that Microsoft will spit Nokia out after using Nokia's ideas to develop their own proprietary devices. After all, Microsoft has had a history of "great artistry" and back-stabbing in-general since the beginning. Does it still "all make sense" for Nokia to give up that much just for a billion in cash and a little involvement in Windows Phone Mango/Tango/8 development?

posted on 29 Jun 2012, 03:41 1

34. AhmadAlsayegh (Posts: 293; Member since: 18 Jul 2011)

Whether people were seeing it coming or not, Nokia's share price was dropping. Nokia was losing huge market share, no proper OS, and not so creative marketing team. They needed MSFT's marketing capabilities and their infinite financial injection to their new OS. Now let us not forget that WP7 was the transition phase where the new Metro look was introduced. I, personally, believe that they were laying the bases for the incoming W8, making people and developers ready for the new looks and echo system. If Nokia went with Andriod, they might have had their stock dropping even more; for the very capable OEMs in that market. And what if they decided to continue with their own OS? They would have never kept up with the other two! Well, maybe Symbian could, but not anymore, it was too late.
Let's not blame it all on Elop, when he arrived, Nokia was already taking lose since 2008. Long term direction and existing of Nokia is > fast cash and short term profits

posted on 29 Jun 2012, 10:11

39. hepresearch (unregistered)

Symbian was a proper OS until the iPhone showed up. Nokia decided to ignore that one, hoping it would vanish on its own. Then Android showed up, and Nokia went WinMo Pro look-alike on us with S60 5th Edition...

Microsoft's financial "injection" has been far from "infinite"... 1 billion dollars shelled out to Nokia, and in return they have gotten Nokia Maps as a house-warming gift as Nokia collapsed by over $30 billion in valuation. That collapse was already happening gradually, yes, but this event made it all happen at once, in big falls. So, Elop is not totally responsible, and certainly not for anything before his arrival, but that doesn't make him less of a plant to bring what was left down. Pre-Elop, the Board gutted the company by failing to do anything about iOS and Android, and after Elop... Elop has clearly been part of a decision to condemn and buldose the hollow shell to the ground.

posted on 28 Jun 2012, 18:57 3

17. Stuntman (Posts: 836; Member since: 01 Aug 2011)

I certainly did not want to see Nokia take the route that they did in the past year and a half. However, I don't feel I am qualified to run a company such as Nokia. As much as I disliked Elop's decisions, I'm not sure if another course of action will have had a better result over the next few years. It will take more time than has already past to turn things around. I'm interested to see if he can pull off a big turnaround for Nokia.

posted on 28 Jun 2012, 20:06 2

18. allen83 (Posts: 107; Member since: 01 Mar 2012)

Good Luck Nokia I hope your brand does not fade away or degraded again in 2013. Iwas hoping to have a Nokia phone with its uniqueness not having a Windows phone that is surely not unique to Nokia

posted on 28 Jun 2012, 20:34 1

19. snowgator (Posts: 3596; Member since: 19 Jan 2011)

I made the observation about a month ago that the board absolutely supported Elop, his plans, and did so before hiring him.

So, if by 2014 Nokia is profitability, secure, and still completely independent, how many on this thread will still be posting and willing to give this devil his due? If Nokia was going to be bought out, my observation is this is the time. WP8 is MS mobile piece of the puzzle. Their ecosystem needs it. They need a strong OEM, they need Nokia. They will not purchase Nokia and put their Windows 8 launches in a weak spot.

I am still saying Nokia is a more profitable, better run company for WP due to it's lower R&D. Yes, Symbian should have been a part of the equation. But Nokia will be fine.

posted on 28 Jun 2012, 20:52 1

22. hepresearch (unregistered)

If this turns around for Nokia, and Elop is proven to be the genius behind their short-term-future (2013/2014/2015) rise from the ashes, then I will be the first of the critical posters here to stick my foot into my mouth... and then keep shoveling it in half way to my trachea...

Either Nokia actually IS gagging on a puddle of its own corporate-failure-vomit right now, or I will be the one choking on these words no more than a few years from now.

posted on 28 Jun 2012, 20:51 1

21. aoikemono27 (Posts: 177; Member since: 27 Feb 2012)

I dont know how microsoft can eat all the losses of its windows phone push. The dvelopment and marketing cost billions just for wp7 alone, and billions more are being offered to nokia to retain their partnership. Now that the lumias are out and sales re still disappointing, mayb micosoft is trying to cut their losses. Imagine what apple or google could do to improve their current os with that kind of money being thrown away so recklessly.

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