“Nokia Oyj revamped its management team for the second time in seven months, placing veterans in two key roles to revive its core business units and fend off rivals like Apple Inc.,” Tarmo Virki reports for Reuters
“Nokia’s management has been under increasing criticism from analysts and shareholders as its share price has missed the market’s recovery, and the firm’s profits are set to miss the economic upturn this year as its smartphone portfolio flounders,” Virki reports. “Sales chief Anssi Vanjoki will lead a new solution business unit, which will include company’s smartphones and services operations, while Mary McDowell will take over the company’s key mobile phones unit from Rick Simonson, who will retire.
“It is really surprising how often Nokia is reorganising management, as is the frequency, and investors should be worried about the pace,’ said Swedbank analyst Jari Honko,” Virki reports. “Nokia has long said it aims to shift executives around to keep management fresh, but the pace of Nokia’s latest reshuffle — it did a similar revamp last October — reflects the steep challenges facing the firm.”
Virki reports, “Nokia has not been able to make a serious challenge to Apple’s iPhone in the three years since it was introduced. Its last hit smartphone model, the N95, was unveiled in 2006.”
MacDailyNews Take: That was, of course, before Apple showed the world what a smartphone is really supposed to be.
Virki continues, “Hurt by recession and weak portfolio, Nokia’s revenues fell 19 percent last year, while operating profit dropped 76 percent. The value of the company’s brand — one of its key assets — dropped 58 percent in just one year, according to a global study by Millward Brown.”
Full article here.
MacDailyNews Take: History is littered with companies that couldn’t adapt to change quickly enough.
[Thanks to MacDailyNews Readers “Larry S.” and “Robert S.” for the heads up.]