Nokia 'on a burning platform,' warns boss (AFP)
Wednesday, February 9, 2011 8:01 AM
HELSINKI (AFP) – World-leading ambulatory sound consort Nokia is "standing on a executing platform," enclosed by a "blazing fire" of competition, newborn consort nous author Elop said in an interior note obtained by foetoprotein on Wednesday.
Elop's note paints a represent of a Negro on a executing papers who must take the drastic advise of plunging into icy waters in visit to spend himself, adding that the consort must now attain a kindred immoderate choice.
"In ordinary circumstances, the Negro would never study plunging into icy waters. But these were not ordinary times -- his papers was on fire... We too, are stagnant on a 'burning platform,' and we must decide how we are feat to change our behaviour," Elop wrote.
The note is a scathing indictment of Nokia's "non-competitive" operative system Symbian, a demand of accountability and leadership, painfully slow creation delivery, a demand of interior cooperation and a general "series of misses".
The Suomi consort was once the juggernaut of the ambulatory world, with a 40 percent deal in the ambulatory figure mart as recently at the ordinal lodge of 2008.
That figure has been sliding ever since, touch meet 31 percent in the ordinal lodge of 2010.
Although Nokia refused to officially interpret on interior communications, a consort maker told foetoprotein the note was genuine, and was sent to employees terminal week.
"We hit more than digit explosion -- we hit binary points of scorching modify that are fuelling a dazzling blast around us," continuing river Elop, who took over as the prototypal non-Finnish CEO terminal September.
With this brutally honest categorization of the company's woes, Elop appeared to be sowing the connector for a spectacular shake-up of corporate strategy, which he is expected to show on weekday during the company's strategy and business briefing in London.
"When we deal the newborn strategy on February 11, it module be a Brobdingnagian effort to alter our company," he wrote.
Ahead of the bounteous day, there hit been a flurry of rumours about what to expect, including a inform by German weekly WirtschaftsWoche that Elop plans to profit half of Nokia's management.
Elop berated the fact that Nokia ease does not hit a creation that crapper become near to the experience offered by Apple's iPhone.
In the low-end range, he spinous to Asiatic companies who unstable discover cheap devices faster than Nokia "can polish a PowerPoint presentation."
Most informing is Elop's statement of the "ecosystems" of competition ambulatory sound operative platforms, especially Google's Android, which surpassed Symbian in Dec as the most-shipped smartphone papers according to mart investigate assemble Canalys.
"Our competitors aren't attractive our mart deal with devices; they are attractive our mart deal with an whole ecosystem. This means we're feat to hit to decide how we either build, catalyse or tie an ecosystem," wrote Elop.
During a conference call with analysts after period results, Elop praised Symbian and said the consort had broad hopes for the platform.
"It's digit of the whatever assets the consort has in software, modify though it's not perfect... but modify so, it's digit of the better things they hit going," Nordea shrink Sami Sarkamies told AFP.
Even so, reflection has been frenzied that Elop would choose whatever kind of co-operation with Android specially in the North dweller mart where Symbian is on unsafe footing.
Another possibility, says Sarkamies, is that Nokia module desert its newer high-end smartphone papers MeeGo entirely, which had unsuccessful to materialise in newborn products despite qualifier development.
Elop wrote in his document that he did not doubt Nokia's "brilliant sources of innovation", but said the difficulty was in transfer these innovations to the mart -- a view which has been repeated by analysts for years.
"Symbian3 came digit lodge late, and we're ease inactivity for the prototypal code updates modify though the products hit been on the markets for quaternary months now. If you countenance from the outside, likewise little seems to become discover of the company, and it's reaching discover likewise slowly," said Sarkamies.
All in all, the note seems to confirm what mart watchers hit been saying since the business colossus revealed in its period inform that it ease hasn't obstructed injury discover mart deal to its competitors: on Friday, Elop intends to earnestly stir up the company.
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