Analysts not impressed with Nokia’s incoming CEO Elop

Apple Online Store“Stephen Elop, Nokia Corp.’s newly appointed chief executive, may bring with him software expertise and a U.S. address book from his time at Microsoft Corp., but he doesn’t tick all the boxes, analysts said Friday,” Aude Lagorce reports for MarketWatch.

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“While his U.S. perspective will be valuable to Nokia, which has struggled for years to establish a footprint in the world’s biggest smartphone market, Elop lacks any visible ties to the operators that control the distribution network in the country,” Lagorce reports. “Part of the reason why Nokia never managed to achieve more than a marginal presence in the U.S. is because it has failed to establish strong relationships with the likes of Sprint-Nextel, AT&T and Verizon Wireless, a joint venture of Verizon Communications and Vodafone Group. Elop’s appointment will do little to address that issue.”

“Another preoccupation is Elop’s lack of experience in hardware design. Though the success of Apple Inc. with the iPhone is proof of consumers’ thirst for better and simpler operating systems, the look and feel of a new handset remain crucial to its success,” Lagorce reports. “‘Elop is a software engineer with U.S. experience and that is a positive. But it remains to be seen how well he will do on hardware devices. Engineers don’t have a great track record of designing attractive handsets,’ Neil Mawston, an analyst at Strategy Analytics, cautioned.”

Full article here.

MacDailyNews Take: eFlop. Overseeing a monopoly (Microsoft Office) is helluva lot easier than trying to turn around a mess like Nokia in a vain attempt to catch up to Steve Jobs. Nokia still makes horse buggies years after Apple introduced the spaceship. Maybe Nokia should concentrate on their specialty — crap margin, low-end, mechanical-buttoned candy bar cellphones — hope they can coast along on emerging markets while they try to figure out what businesses to try next (kitchen appliances? floor wax? breakfast sausages?) before the money runs out?


  1. Nokia has the hardware chops.

    It just sucks when it comes to software. Windows phone 7 will save the day. If Windows phone 7 won’t cut the mustard, salvation is just another name change away. Those Microsoft marketing guys are brilliant.

  2. There may be in a real head to head battle. I think Dell is thinking about going into the kitchen appliances, floor wax, or breakfast sausages before their money runs out in the next 2 years.

  3. I had a Nokia phone. Once. The hardwarwe was good for the time (late 90’s) but Nokia went downhill right along with Sony and for the same reasons… Too many fragmented model lines and dreadful interfaces.

    Think Elop will solve this? Not holding my breath.

  4. Nokia has ZERO focus. Think about it. Cnet lists over 200 different models of Nokia phones for sale. And how many OSes do they have now? Various flavors of Symbian, plus Meegoo and they also seem to be dabbling with MS. Their attempts at an app/game store (OVI) have actually been called by the press “a complete disaster.”

    They need to pick one OS and two or three standard phone models and make them decent. I.e. one touch screen phone, one slider phone and one candy bar phone. All those models simply confuse customers and screw up your logistical support. Then MAYBE, maybe something good could happen.

  5. OMG ChrissyOne, I didn’t think you were old enough to remember those days! Great line! And by the way, that company you are referring to, is now close to leaking red – and not transmission fluid. Although the economy hasn’t helped, a lack of vision regarding product, demographics and user interface has slowed them down seriously.

  6. It remains to be seen what Mr. Elop has to bring to table, only thing going for Nokia is market share… But how long can they hold that?
    At high end they are “trying” to beat Apple, android and blackberry (that’s more like the whole world of smart phones)
    At mid they are battling samsung, sonyericson etc (ok margins, but nothing like the high end)
    And lower end they have Chinese manufacturers… Like ZTE etc. (where chunk of nokia’s marketshare comes in)

    To complicate things Nokia opened a new front in services where they “tried” to bring an ecosystem like apple and blackberry where apps and services integrated seamlessly with the hardware…

    So in a nutshell they are trying to play catchup and at same time trying to change themselves and at sometime cater to a fast evolving segment like smart phones… Talk about too many fronts to fight war on!

    Seriously too much, too little time, need Devine intervention here

  7. My first brand new bike off the showroom flor was a Suzuki DS80. I was 12. The next one was a ’97 Valkyrie tourer. I laughed a Harleys after that. ” width=”19″ height=”19″ alt=”wink” style=”border:0;” />

  8. Adding a little clueless Ballmer MS flavor via Elop to Nokia won’t staunch the bleeding there.

    I am still a little amazed how quickly Google responded to the iPhone with Android back when, though I’m sure when the CEO of Google was on the board at Apple and first saw the iPhone he immediately must’ve secretly rallied his troops. Can’t board members be sued for this kind of self-serving traitorous activity? It’s one of the few times Steve Jobs didn’t see that one coming or woulda drop-kicked Eric out on his googly butt.

  9. @C1
    Yeah, I haven’t owned a Harley since. Went through a series of sport bikes including Suzuki GS and the original Honda Interceptor (awesome bike in ’82). Currently own Honda 919 now, but the main ride is my convertible Mini Cooper (no helmet!).

    I’m anxiously awaiting the HTC patent infringement suit to go to court. I don’t hear much on the progress of that suit, but that will shed some light on the future of Android, WebOS (HP) and new multi-touch stuff from BlackBerry. I would think Apple would want to aggressively push this through the legal system, but it awfully quiet. Google argues that Android was in the works long before the introduction of the iPhone, but there is little doubt in my mind that Schmidt abused his position on the Apple board to assist Android development.

  10. @ChrissyOne
    Now I am 100% positive that you are my kind of woman. The V6 powered Valkyrie was dubbed the “Mother of All Cruisers” in 1997 and my father-in-law kept visiting the local Honda shop to dream about owning one. Years later he sold his Harley Sportster 1200 and bought a 2005 Honda Shadow 750C. The Valkyrie was just too much bike by that point. RIP, O.J. Templin!

  11. Anyone else think there is a reason that Microsoft is not pulling an HP and suing to keep Elop from working at Nokia? It seems obvious to me that they are happy at the move because he will force them to use Windows Mobile 7 and give Microsoft something they really needed: sales.

  12. @ KingMel

    Not to pick nits… But it’s a flat 6.

    The problem is that now I have to buy a Triumph Rocket III, because once you go that big you don’t go back. The Valkyrie was the finest, most powerful, comfortable, and pleasurable bike I’ve ever owned. Sadly, money pressures forced me to sell my baby several years ago.

    …but I keep looking at that Triumph. mmmhmmm….

  13. Will there be Win7 Nokia phones, will Nokia buy Microsoft’s mobile biz or vice versa, will Nokia start making something they really know such as rubber boots and toilet paper? They need to do something that is not imitating iPhone so maybe automobile related stuff?

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