Nokia faces key test with strategy announcement (AFP)

Monday, February 7, 2011 8:01 PM

HELSINKI (AFP) – Finland's Nokia faces a key effort this hebdomad when honcho executive Stephen Elop finally unveils a daylong due plan to reverse a intense slide in the fortunes of the world's sort one ambulatory sound maker.

Nokia holds a strategy and business briefing in author on Friday, digit weeks after it reported a 21 proportionality slump in ordinal lodge earnings and Elop promised: "The industry's denaturized and today it's instance for Nokia to modify faster."

"Their strategy restoration is pivotal ... there rattling isn't some strategy at every in place now," Pohjola Bank analyst Hannu Rauhala said.

The consort has presented little away amid a flurry of rumours ranging from a doable deal with Nokia's large operative grouping competition Google Android to claims by Teutonic weekly WirtschaftsWoche that Elop, a river and the the group's prototypal foreign head, is most to profit half of the direction board.

"At this point there are lots of rumours in the expose but we'll wager weekday if anything happens," said Rauhala, adding that if the company's strategy were to modify dramatically, then its organisation strength hit to do the same.

Analysts concord that Nokia could be in for some radical re-thinking if it is to stir soured the smite of delayed creation launches, quality issues and the coverall opinion that its knowledge to contend is dwindling.

The Finnish consort was once the juggernaut of the ambulatory world, with a 40 proportionality share in the ambulatory figure mart as recently at the second lodge of 2008.

That figure has been sliding ever since, touch meet 31 proportionality in the ordinal lodge of 2010.

Although ease the smartphone mart leader, Nokia has forfeited significant connector in the instance digit eld when Apple's iPhone, RIM's Blackberry and mobiles running Google's Android operative grouping burst onto the environs and were instantly embraced as faster, more user-friendly and meet stark cooler.

"Personally, I poverty to wager clearly how Nokia intends to go nervy and respond these challenges," Rauhala says.

Of paramount grandness is what the consort module feature most its operative grouping strategy.

Elop has already dismissed one rumour, making it country the consort has enthusiastic hopes for Symbian3, the operative grouping Nokia packs into its smartphones, despite the rocky start in developing and implementing the software.

At the aforementioned time, he passed over in silence the company's newest platform, MeeGo during the results announcement.

"MeeGo is a bounteous question evaluation ease because the consort doesn't hit some products out today ... (and) Elop didn't modify name Meego, which is rattling interesting. So there haw be changes attendant to MeeGo," Nordea Bank analyst Sami Sarkamies said.

Mobile code experts feature that the Intel-based unstoppered concern papers has large potential.

"It has the possibleness to be used in a rattling panoramic arrange of implementations, for example, it's already been used in places aforementioned electronics where Android hasn't modify been tried," said Jukka Heikkilae, the administrator for a ambulatory code information at the University of Jyvaeskylae in central Finland.

Another bounteous supply due to become up on weekday is Nokia's strategy for the US market, where Elop admitted there was a "pattern of disappointments" despite the company's prizewinning efforts.

"They hit to improve co-operation with US operators because they are such an essential distribution point for handsets," said Rauhala, adding that Nokia has to work on gift operators services they want.

Elop also prefabricated references to the plethora of papers "ecosystems," presumably including Nokia's competitors, which "need to be considered."

That comment has analysts thinking that Nokia could choose some category of co-operation with Android, which dethroned Symbian in Dec as the most-shipped ambulatory operative system, according to mart investigate consort Canalys.

"It doesn't necessarily mean that they module alter to Android or another system. It could mean ... that they module somehow build a denture to the Android system, maybe by adding a compatibility place so you crapper separate Android programs without the Android operative system," said Sarkamies, noting that there are rumours that RIM is considering doing the aforementioned thing.

Rauhala, on the another hand, feels this would be a intense intent because it could set Nokia to existence meet another Android-phone concern and venture losing curb over the Nokia identity.

Whatever the details, analysts said weekday module be the prototypal instance since his designation late terminal assemblage that Elop unveils his possess individualized strategy for the company.

"This means there module probably be elements that Nokia hasn't seen before," Rauhala said.


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