“Nokia Corp. said it was replacing embattled Chief Executive Olli-Pekka Kallasvuo with Microsoft Corp.’s Stephen Elop, as the world’s largest handset maker seeks to reverse steep declines in earnings and market share that have decimated its share price,” Christopher Lawton and Gustav Sandstrom report for The Wall Street Journal.
“‘The time is right to accelerate the company’s renewal,’ Nokia’s Chairman Jorma Ollila said in a statement. ‘The Nokia Board believes that Stephen has the right industry experience and leadership skills to realize the full potential of Nokia,'” Lawton and Sandstrom report. “Mr. Elop, the 46-year old head of Microsoft’s business division, is scheduled to start on September 21.”
“‘My role as leader of Nokia is to lead this team through the period of change, take the organization through this period of disruption…to meet the needs of its customers, while delivering superior financial performance,’ Mr. Elop said at a news conference in Helsinki,” Lawton and Sandstrom report. “Mr. Elop’s main task will be to develop a credible challenger to Apple Inc.’s iPhone, something Mr. Kallasvuo failed to achieve during his four-year tenure. Many analysts feel that Nokia was caught flat-footed by the iPhone’s success and blame its weakness in smartphones for shaving about 70% off [about US$90 billion] of Nokia’s market value over the past three years.”
Read more in the full article here.
MacDailyNews Take: Clueless. In fact, Alicia Silverstone would have a better chance of turning Nokia around.