Drumbeat builds for Nokia CEO to resign over failure to produce iPhone rival

invisibleSHIELD case for iPad“Nokia could oust its CEO if the company doesn’t turn its performance around, multiple analysts said today,” Electronista reports.

“Investors are upset that Nokia hasn’t been able to produce a true iPhone rival or take other steps to improve its financial health and are thought to be blaming company leader Olli-Pekka Kallasvuo for much of the trouble,” Electronista reports. “Both Alan B. Lancz & Associates and MKM Partners believe Nokia’s board could be under extreme pressure if there aren’t signs of improvement by the summer, when the N8 ships.”

Electronista reports, “Nokia still has the largest portion of the phone market but has slid to below 37 percent as Apple, RIM, Samsung and other companies have all drawn customers away… Kallasvuo’s performance has been even more in question relating to US performance, as he had promised to address a then-low 20 percent American market share but has left it with just 7 percent.”

Full article here.

MacDailyNews Take: While you’re at it, rename the company Jokia.

39 Comments

  1. And what wasn’t mentioned is that Nokia’s large market share doesn’t translate to large profits, as the majority of that large market share are cheapest, throw-away, razor-thin profit margin dumbphones that they sell throughout Africa, Asia and the rest of the developing world.

  2. @European

    Keep telling yourself that and perhaps you’ll feel better. Even if they sell a ton of crap, it’s still crap and they lag the true leaders.

  3. There are millions of users who don’t need or want a smartphone; people who just want
    phones that make calls and handle voicemail without a lot of whistles and bells. If Nokia concentrated on that market, instead of trying to come up with an iPhone killer, they’d be just fine.

  4. Dear Nokia stockholders…

    When you’re done with your drum, please loan it to Microsoft shareholders. They really need to use it.

    Love,
    The entire civilized world

  5. @justme2

    That’s exactly the kind of thinking that will sink a company like Nokia. Yes, there are people who just want basic phones now in the short term. But in 3-5 years almost everyone will be using a smartphone. That’s all that will be available. Nokia has to come up with a good offering in this area or they’re screwed long term.

  6. @ European:

    Nokia won’t be selling the most phones if their trend continues.

    And Nokia is far, far behind in the smartphone race, which is where the entire industry is going. I can buy an iPhone for $99. Why would I get a very limited give-away phone, which is about all Nokia sells in the U.S.?

    Nokia will die unless it quickly abandons Symbian as a smartphone OS or radically improves the OS into something competitive with the iPhone. The only other option is to leapfrog Apple, and good luck with that one.

  7. @ European,

    There are no US makers to put together. The Blackberry is made in Canada. Almost all other cell phones sold in North America are made in one of the two Chinas or S. Korea. Apparently about 10% are made in Europe.

    What’s the matter European? Can’t you market cell phones without the European Common Market subsidies?

  8. Apparently, ‘European’ wasn’t referring to the devices actually manufactured in the US; he was (likely) referring to Motorola (the US company), as well as Apple.

    As acid said, Nokia is becoming Dell of cellphones. Cheapest, crappiest devices, sold at razor-thin margins. It would be just fine to sell these devices to the developing world if it were actually a sustainable business model. Just like it isn’t working anymore for Dell (which actually has a massive enterprise market, mind you, and Nokia doesn’t), it won’t work for Nokia either.

    If you are cellphone maker today, the only way to sustain your business is to compete in the market segment where profits can actually be made. This is becoming a massive challenge for Nokia.

  9. Nokia’s cheap phones still have a place in the developing countries where it is still cheaper to put up a cell tower than run wires to all the places. And where many, many people’s yearly income is only 2 or 3 times what a smart phone costs.

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