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Technology Wars – Nokia reshuffles its Management and Divisions once again to turn the Tide of the Smartphone War

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Nokia has been losing the smartphone wars to RIMM,Apple and Google . Despite having a long history,R&D and supply chain in the mobile handset market,it has lost the initiative to these  technology behemoths.With a pleothera of new entrants lining up new devices , Nokia chances of regaining its dominant position and reversing its marketshare losing trend is very close to zero.After reporting a horrendous first quarter results,Nokia is trying a different tack.It is shuffling the managment  once again and creating a new “smartphone” division to bring new ideas into its staid mobile division.Despite plenty of resources , Nokia has been way behind the product curve in the smartphone market.Though it shows the company has realized its precarious position in the technology space,I don’t think it will take a massive effort to turnaround.Not to say that it has not been done before . IBM , Kodak and plenty of other companies managed to turn themselves around and are quite successful.

Nokia Names New Smartphone Executive to Fend Off Apple, Research In Motion – Bloomberg

Nokia Oyj, the world’s biggest maker of mobile phones, promoted a 20-year company veteran to head a new smartphone division as it tries to stem customer losses to Apple Inc. and Research In Motion Ltd.

Anssi Vanjoki, who has been with Nokia since 1991 and currently runs the marketing unit, will be the new smartphones chief, the Espoo, Finland-based company said in a statement today. Mary McDowell, who heads corporate development, will take over as the head of low-end mobile phones, replacing Rick Simonson, who will leave company.

Chief Executive Officer Olli-Pekka Kallasvuo’s changes today mark the third time in nine months the company has reshuffled executives and operations as Nokia loses ground to Apple’s iPhone and RIM’s BlackBerry. He announced a “solutions unit” to speed cooperation in August, and shifted Simonson from finance chief to low-end phones in October.

“This continuous set of reorganizations gives just one message to investors — that Nokia is really unaware of what they should be doing,” said Jari Honko, a Helsinki-based Swedbank analyst with a “reduce” rating on Nokia shares. “The catchup game is still going on.”

Nokia fell 10 cents, or 1.1 percent, to 8.70 euros. The shares have dropped 2.5 percent this year, valuing the company at 32.6 billion euros ($41.5 billion).

‘Negative Reaction’

“The negative market reaction is probably due to Rick Simonson leaving,” said Sami Sarkamies, a Helsinki-based analyst at Nordea Bank who has a “strong buy” rating on Nokia. “He was well appreciated by investors as former CFO and hadn’t been that long in his current position.”

Kai Oistamo will leave as devices chief and replace McDowell as the head of corporate development. McDowell and Vanjoki will report directly to Kallasvuo in their new positions. Simonson, who has headed low-end mobile phones in the seven months since stepping down as chief financial officer, will exit the company at the end of the year, Nokia said.

Three years after Apple introduced the iPhone, Nokia is still struggling to develop a handset with the same mass appeal. Nokia reported first-quarter earnings on April 22 that missed analysts’ estimates and cut its margin target, sending the stock down 14 percent.

Smartphone prices declined to 155 euros in the first quarter from 190 euros in the third as new lower-priced models outsold the outdated high-end portfolio, the company said.


Sneha Shah

I am Sneha, the Editor-in-chief for the Blog. We would be glad to receive suggestions, inputs & comments on GWI from you guys to keep it going! You can contact me for consultancy/trade inquires by writing an email to

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