Irate investors rushed to criticize the head of Nokia




Irate investors rushed to criticize the head of Nokia

Stephen Elop

No, well, what?

Investors Nokia patience ran out, and they expressed what they think about Stephen Elop and his attempts to catch up with the leaders of the smartphone market – Apple and Samsung. CEO of Nokia was heavily criticized by people interested in the development of the Finnish company.

At the annual shareholders’ meeting in Helsinki, the majority of investors agreed that Elop should reconsider its decision in 2011 to transfer Nokia on the operating system, which was developed by his former employer, the company Microsoft. The shareholders have made it clear that Windows Phone is another obstacle to the development of the company in which they have invested.

“You’re a good guy … and your team is working at full strength, but as you see, this is not enough. You know where it will lead? The road to hell is paved with good intentions. Kindly choose a different path “- addressed to the shareholder Elop Nokia Hannu Virtanen.

Go with Nokia Symbian operating system to Windows Phone took two years and did not bring the expected results. Despite the growth in sales of smartphones Lumia line running Windows Phone 8, sales volumes were lower than what was shown by Samsung and Apple. Fell even sales of conventional cell phones. The consequences were not long in coming. Nokia shares fell below 3 euros, despite the fact that in 2000, for one share of the company paying 65 euros.

When asked why investors still hold shares Nokia, some veterans said they are looking at a company with a certain degree of sentimentality. At Nokia, they still see the symbol of the rebirth of Finland after the collapse of the Soviet Union in the early 1990s, which was its main trading partner.

However, not all investors are experiencing similar feelings. Finnish pension fund Ilmarinen, the second largest shareholder of Nokia, in the first quarter reduced its stake in the company to 27 percent.

nokia lumia 9201
“Plan B” does not exist

Elop reaffirmed its strong commitment to the operating system, Windows Phone:

We make adjustments as we go. It is obvious that in the present circumstances of the war of ecosystems, we made the right decision by choosing to line Lumia operating system Windows Phone, with whose help we are going to compete with Samsung and Android.

Juha Varis from the financial institution Danske Capital, which holds shares in Nokia, Elop sees in the work of a big mistake:

He closed the door. He did not offer any new ideas. The fate of the company in the hands of Windows Phone.

Some analysts believe the situation critical. Their opinion is that hard to stay afloat, with small sales volumes (Lumia).

In the first quarter , Nokia sold 5.6 million units of Lumia, which is 1.2 million more than in the previous quarter. But that has affected its market share – Nokia continues to hold about 5 percent of the smartphone market, while Apple and Samsung control most of the market.

“He was able to reduce costs, but to increase market share. They might go to Google and say that, too, want to be with Android. Even if it hurts someone. Microsoft has already used his chance, “- says Magnus Rehle of Greenwich Consulting, which advises telecommunications companies.

Nokia asha 210
Cheap smartphones

Due to the lack of “Plan B” Nokia’s advised to focus on the sale of cheap smart phones or regular phones with a “cut off” functional smartphone, for example, Nokia Asha for emerging markets.

Sources say that the Finns will soon come to market with new top-end smartphones Lumia , but is unlikely to help significantly increase the share of Nokia in the smartphone market. At least in the short term.

“Do not you have to beat Apple ram. It is better to focus on the mid-price range. In developing countries, demand a $ 300 model, and not the ones that are offered at $ 600. Here you should pay attention “- gives advice Elop analyst Brian Colella of rating agency Morningstar.

Battle in the segment of expensive smart phones Nokia has long lost the Apple and Samsung. In the lower price range feel a strong oppression from the Chinese manufacturers. But in emerging markets can still compete for a place under the sun. But listen to the current leadership of Nokia all these tips – that is the question.

Elop promised in the coming days to announce several new smartphones . The presentation will be held in New Delhi on May 9.
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