Nokia Q2 profits drop, CEO wants exit talk to stop one way or the other

“Nokia reported on Thursday a sharp drop in second-quarter profits, increasing the pressure on embattled Chief Executive Olli-Pekka Kallasvuo,” Tarmo Virki reports for Reuters.

Nokia “has been rocked by two profit warnings and a management shakeup in the second quarter alone as it struggles to keep pace with smartphone rivals,” Virki reports. “Nokia is looking for replacement for Kallasvuo, who has spent more than half of this life at the company, sources told Reuters earlier ths week. Kallasvuo may be ousted already this month, the Wall Street Journal reported.”

MacDailyNews Take: When Steve Jobs pulled that first iPhone out of his pocket and began his demonstration, ol’ Olli likely made himself quite the pants full.

Virki continues, “A Nokia spokeswoman declined to comment after the result on whether Kallasvuo still enjoys board support.”

“Kallasvuo, a 57-year old former company lawyer and chief financial officer who married a veteran Nokia attorney, told CNBC television that talk of his exit was hurting the company and had to stop,” Virki reports. “‘There has been a lot of speculation on my position, on myself, during the last couple of weeks and that is not good for Nokia and must be brought to an end one way or another,’ a frustrated Kallasvuo said.”

MacDailyNews Take: Then step down if you can’t take the heat. “MeeGo,” indeed.

Nokia’s underlying second-quarter earnings per share fell 27 percent from a year ago to 0.11 euros… Nokia had warned on June 16 that phone sales and profits in the quarter would be weaker than earlier forecast, with the Finnish firm forced to slash prices to battle against Apple’s iPhone… ‘Kallasvuo is saying that N8 is going to deliver the best user experience that you’ve ever seen on Symbian. Well, that’s great, but what about the best experience versus your competitors? That’s what matters and we just don’t think that it’s going to be enough,’ said Gartner analyst Carolina Milanesi.”

Full article here.

MacDailyNews Take: Gartner’s Milanesi is absolutely correct. It won’t be nearly enough.

Apple’s iPhone is a ‘niche product.’Nokia CEO Olli-Pekka Kallasvuo, April 17, 2008


  1. Amazing to wittness over the years this once SO VERY ARROGANT CEO become a defensive whiney, sniveling, POOR ME Schmuck!!!!!

    I say GOOD RIDENCE!!!! Nokia SMOKIA!!!

    At this point they no chance of a competitive product.

    Poor Oily…. Who moved your cheese?

  2. Why on earth do they have to stay with symbian? Put the target higher a little bit. Just a little bit. They know they can’t compete with iPhone but they can compete with the droids, right? Just switch to android, be a player and get along with other droids. They’ll live. There are plenty enough nokia fanboys living in caves that will be quite happy with nokia droids… and try to mantain them… keep it realistic.

  3. Why doesn’t Nokia and the others just stop pushing those sad iPhone killers and just make old school cell phones? You all are good at that not smart phones. That war is over and Apple won!

    Get back at Apple by letting your cell phones tether Apple WiFi devices! Make an iBridge! Sprint has some but they cost too much. Just make iBridge a feature in your cell phones. Done. You are back in the game (for now).

  4. He actually started the talks by saying that.
    If Apple sells 12-15 million iPhones this quarter it will crush Nokia and become the largest mobile phone manufacturer by revenue.

  5. However, Apple would then make an AirPort bridge to 3G or 4G for the car. So people could tether their Apple WiFi devices while on the go and cut you out again. That sucks!

  6. The Nokia syndrome is exactlly what is predicted to happen at Microsoft. Once on the slippery down hill slide, things happen fast. Falling confidence by customers makes sales drop, which makes people less confident.

    Once Microsoft is less than 50% browser share, less profitable than Apple, less market cap than Apple, people start to see the slide and not just the BS.

    Bloggers are already predicting the MS slide…. These articles never were written before, MS was too powerful. But now……. once the parts are in place, things will happen quickly.

    Just a thought……. (chicken little was right, just not about what was falling!! ” width=”19″ height=”19″ alt=”grin” style=”border:0;” /> )


Reader Feedback

This site uses Akismet to reduce spam. Learn how your comment data is processed.