Menu
Nokia facing 'crisis', warns CEO

Nokia facing 'crisis', warns CEO

Leaked memo warns of competitors stealing marketshare

Nokia is facing a potential crisis, according to warnings reportedly issued to staff by its chief executive.

In a memo from Nokia CEO Stephen Elop, seen by Engadget and verified by various news outlets as official, Elop said Nokia stands on a burning platform surrounded on all sides by fast-growing competitors. Nokia declined to confirm the accuracy of the reports.

Nokia had been surprised by the success of the Apple iPhone, as well as the Google Android operating system, he admitted. Nearly four years on from the iPhone launch, he said, we still don't have a product that is close to their experience.

In the message, being branded by observers as unusually frank in the corporate world, he wrote: Android came on the scene just over two years ago, and this week they took our leadership position in smartphone volumes. Unbelievable."

We have some brilliant sources of innovation inside Nokia, but we are not bringing it to market fast enough, he wrote. We thought MeeGo would be a platform for winning high-end smartphones. However, at this rate, by the end of 2011, we might have only one MeeGo product in the market.

Elop said lower end phones, made and sold in vast numbers, are also presenting a serious problem for the company. They are fast, they are cheap, and they are challenging us.

Nokia still sells the most smartphones of all manufacturers globally, the BBC reported, but its marketshare lost 10 percentage points to 28 percent in the last year alone.

We poured gasoline on our own burning platform, Elop reportedly wrote in the memo. I believe we have lacked accountability and leadership to align and direct the company through these disruptive times. We had a series of misses. We haven't been delivering innovation fast enough. We're not collaborating internally.


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags smartphonesNokiaGoogleApplePhonesconsumer electronics

Events

Why experience is the new battleground for partners

Join us for an exclusive webinar, in association with Hewlett Packard Enterprise and Technology Services Industry Association (TSIA) and learn about the latest industry insights and how technology services continue to evolve to deliver differentiated value, and how partners can be successful in 2021 and beyond.

Featured

Slideshows

The Kiwi channel gathers for the 2020 Reseller News Women in ICT Awards

The Kiwi channel gathers for the 2020 Reseller News Women in ICT Awards

Hundreds of leaders from the New Zealand IT industry gathered at the Hilton in Auckland on 17 November to celebrate the finest female talent in the Kiwi channel and recognise the winners of the Reseller News Women in ICT Awards (WIICTA) 2020.

The Kiwi channel gathers for the 2020 Reseller News Women in ICT Awards
Leading female front runners honoured at the 2020 Reseller News Women in ICT Awards

Leading female front runners honoured at the 2020 Reseller News Women in ICT Awards

The leading female front runners of the New Zealand ICT industry joined together for the annual Reseller News Women in ICT Awards event at the Hilton in Auckland, during which hundreds of guests celebrated 13 outstanding individuals who won awards, chosen from more than 50 finalists representing over 30 organisations.

Leading female front runners honoured at the 2020 Reseller News Women in ICT Awards
Channel gathers to celebrate the Reseller News Innovation Awards 2020 winners

Channel gathers to celebrate the Reseller News Innovation Awards 2020 winners

More than 500 channel leaders gathered in Auckland on 21 October at the ​Reseller News Innovation Awards ​2020 to celebrate the achievements of the New Zealand technology industry's top partners, start-ups, vendors, distributors and individuals.

Channel gathers to celebrate the Reseller News Innovation Awards 2020 winners
Show Comments