Nokia's CEO might become the scapegoat

Nokia's CEO might become the scapegoat
WSJ is usually pretty good at publishing rumors that become true later on. The latest news from Nokia camp are that the board of directors will be deciding on the fate of their CEO Olli-Pekka Kallasvuo by the end of the month.

His tenure as a head of Nokia has been plagued by the introduction of contemporary mobile operating systems like iOS and Android, and the proliferation of touchscreen devices. Back in 2007, as we recall, when the iPhone got introduced, Nokia was still arguing that according to their customer surveys, people don't want touchscreens, so they don't plan on producing such devices. Three years later, touchscreens are the norm on high-end, high-profit-margin handsets, and Nokia's earliest chance of success in that market is the still unreleased N8. In 2007, Nokia was the world's cell phone leader by a much larger margin than now, when Apple's quarterly profit from just the iPhone is larger than Nokia's with half a billion dollars.

This has resulted in revised quarterly numbers, and Nokia's stock plummeting more than 42% since April. The word on the street is that at least one CEO of a US high-tech company has turned down Nokia's advances, and another one is in talks with the Finnish company to take over after Mr. Kallasvuo. Nokia is trying to turn the tide after promoting Anssi Vanjoki as head of their newly-minted mobile division, who wants the company to change course quickly. A new captain at the wheel might be just what the doctor ordered for Nokia.

Nokia N8 Specifications

source: WSJ via SlashGear

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16 Comments

1. ilia1986 unregistered

Oh. People didn't want touch-screen devices in 2007. Well duh, since before the iPhone all the touch-screens were resistive ones. That certainly explains it. You don't just what your users want. You also do what they WILL want in several years. Thats called being ahead of the competition in terms of technology used in one's product. Steve said himself that he will do what he thinks will be the right thing in several years from now - and not necessarily what is right right now. Also - to quote: "Apple's quarterly profit from just the iPhone is larger than Nokia's with half a billion dollars." So I guess it does point out something, now doesn't it? Oi and I'm perfectly aware that many people here will tel me to "stop spamming Nokia articles" because "No-one cares really", and they will put all those nasty little red numbers on the right side of my post. I don't care. Few things in the world of technology can frustrate me more than a slow and sluggish phone with a resistive touch-screen and a small application store.

3. jpropin

Posts: 152; Member since: May 20, 2010

I share your angst, but what really frustrates me are phones that can't even perform basic functions like making and receiving calls! Talk about a cluster f*ck!

4. ilia1986 unregistered

Well I am yet to actually see such a phone. And if you're (obviously) referring to the iPhone 4 - I understand where you're coming from - but even then - it doesn't happen all the time - and the end user can do something about it. Let's face it - many people use their phones nowadays far less for phone calls than they use it for other stuff - like the Web, 3rd party apps, games etc etc etc. For example - I'm a relatively heavy talker - and I talk about 3 hours a week - which is 12 a month. However, If I had a proper fun-to-use smartphone - I would have used it at every possible opportunity when I'm not near my laptop. That would accumulate for far far more than 12 hours a month.

12. thatdude1 unregistered

And you are foolish, ilia, if you think ANY of this comes before a PHONE'S primary function: TO MAKE A PHONE CALL!

15. lovebuzz

Posts: 76; Member since: Oct 21, 2009

Ilia when you talk it sounds like fuzz and smells like farts. I think you're using the wrong end to communicate or something. Shut your butthole.

2. jpropin

Posts: 152; Member since: May 20, 2010

SSDD

5. jpropin

Posts: 152; Member since: May 20, 2010

Oh! I've seen it and experienced it with several Samsung Phones. Phones that got crappy reception where other brands using the same network could. My disdain for Samsung is probably as strong as yours is for Nokia's. I just don't waste my time obsessing over it and trying to convince everyone that Samsung bites. Others can decide for themselves. As far as making less phone calls. Maybe they do where you live, but most people I know still use their phones ALOT for basic things like talking and texting in addition to the other functions you mentioned. People are constantly on the go here. especially in California where I am. It's a mobile and moving society. If a phone can't perform the basics in a sufficient and reliable matter......it's useless. Regardless of how many apps it has or its other capabilities.

6. ilia1986 unregistered

Well I guess we are pretty different in this area then. You regard a phone as a device whose main purpose is to perform phone calls, and for you the ability to do that is critical at all times. I think of a phone as of a mini-computer - a device with a connection to the internet which is meant to primarily entertain me. Phone calls obviously important, but if such a device does not provide the same level of comfort and speed as one would expect from an average laptop (read - smooth and fast performance, with a good-looking gui which is sensitive to the slightest of your desires and actions) - it's useless for me, even if it has full reception the the middle of a desert. Even the iPhone 4, which I believe could be regarded as the most problematic phone when it comes to reception and making calls - is still a device on which you can make phone calls most of the time. And when not - you can do something about it in terms of getting a bumper protector. Another phone - no matter what you do to it - and no matter how many bumpers you put on it - will not be able to produce smooth and fast performance and necessary features for a pleasant user experience. Like one guy on some forum said after a Nokia software update - no software patch will replace a resistive touch-screen with a capacitive one. So I guess that after both of us have reached some sort of an agreement - I feel no real need to post anymore on various Nokia articles (unless they actually produce something good, and then I will post - but positive things).

7. roscuthiii

Posts: 2383; Member since: Jul 18, 2010

"You regard a phone as a device whose main purpose is to perform phone calls, and for you the ability to do that is critical at all times." - That is just epic, EPIC!

9. thatdude1 unregistered

Great! As you said, NO ONE cares what you have to say about Nokia. Let the spamming end! And you're an idiot if you think that a phone is great if it cannot perform it's most basic function well....a phone call! Why anyone should have to buy a bumper, get one for free or hold a handset that they spent money on a certain way is beyond me. Apple has not INNOVATED one idea since the inception of the iphone, but sheep like you think that's okay. And no bumper can "fix" the fact that the iphone 4 was poorly designed and instead of steve jobs "fixing" the problem he points fingers! And fools like you agree with that! Once again, good riddance to you ilia!

11. thatdude1 unregistered

Just goes to show you the level of STUPIDITY ilia1986 is willing to stoop to.

16. lovebuzz

Posts: 76; Member since: Oct 21, 2009

Trying to convince us that you are smart is not going to work. Your nonstop chatter about phone computers and nonsense is just a cover up for the fact that you're such a narcissist and the only way you can get people to listen to you talk about yourself is on a phone review website.

8. Claudio

Posts: 1; Member since: Jul 20, 2010

GREAT, GREAT !!!....all of us who love Nokia and have followed their development for a few years hate their CEO. I remember when he made fun of the "little Cupertino company"...ha..ha. And also leaving the USA out of his main plans is an unforgetable mistake. Nokia is a fantastic contender but it has no innovation capacity, at least not the kind that Jobs has. Fantastic to see him out.

10. thatdude1 unregistered

Jobs has NO INNOVATION whatsoever. He has copied all his ideas and apple has even admitted to stealing ideas and think it's okay for them not to pay like everyone else because they do not like the price. Thats why they are in the process of being sued by several companies. And if you say Nokia does not innovate, then you have never used the Nokia N900 before.

13. wade1968

Posts: 224; Member since: Apr 12, 2010

this is what happens in business, fall behind CEO gets the axe.

14. CRICKETownz

Posts: 980; Member since: Oct 24, 2009

I'm not surprised. CEO's get paid the big pucks to execute, not to allow a company to decline in revenue. So goes the saying "to much given...much is required." We can all say in this tide of new mobile OS's that Nokia hasn't been as innovative as they could have been. I guess you just expect more from a company who has been rated number 1 globally for a long time.

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