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Nokia's restructuring: Low-end phone chief Mary McDowell, marketing chief Jerri DeVard, and...
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Thursday, June 14, 2012, 9:26 AM ETNokia's restructuring: Low-end phone chief Mary McDowell, marketing chief Jerri DeVard, and "Markets" chief Niklas Savander (handles supply chain/sales) are leaving. In addition, a plant and two R&D facilities are being shuttered. During a CC, Nokia said it would focus its resources on major markets, and that it's working with Microsoft (MSFT) to develop cheaper Windows Phone devices - the latter is critical if Nokia wants to stem market share losses to low-end Android gear. NOK -12.9%.
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This news story has 21 comments:
I hope MSFT does eventually take over NOK I think it would be best for all parties involved.
http://bit.ly/LWKlIM
Expect more than 1 Billion Euro in deficit, and Nokia must acknowledge that if you cannot beat them (Android) then join them.
It sacrificed the large, low margin SE Asian market for entrance into the higher margin US on the assumption it could still hold, or get back, the SE Asian market as it transitioned to a more modern OS.
The transition is still early phase and Nokia has a lot f prop software and engineering expertise it is still bringing to the fight.... we'll see I guess.
http://bit.ly/KGXxj8
World record in rate of shareholder destruction.
Simply incredible.
http://bit.ly/L3tmEf
Fault for shareholder destruction lie with the previous management.
Incredible how emotions and irrationality can seize hold of investors and observers.
My guess is that he believed he couldn't make all the job-loss and plant closing announcements all at once. This may have been too politically expensive. Remember, he has a former Prime Minister on the board as well as other high status members of Finland's society. Thus, it was split into two over the last 6 months.
Also, as typical with entrenched culture-the management structure had plenty of VPs operating their own little empires. Elop's response was to set up his own management team (hand-picked people) that oversees the entire structure. Elop recent move shows that it is now the time to remove all the little emperors in the organization.
It is now Elop's team in place - as it should be. He is currently getting blamed for much of Nokia's bad news. Going forward, it is his responsibility for any success or failure.
My bet is that there are too much opportunity available for this company to fail.
This is going to be the last time I invest in a Euro company. These guys have no sense of urgency and no tolerance for pain. The platform is burning and yet they're milling around watching soccer. I guess if I live in a socialist culture where I'm paid to do nothing, I would question the value of hard work, too.
Nokia has too many valuable assets, too strong a brand and balance sheet to fail. Yet here we are, staring at the funeral price sheets, trying to pick out the cheapest lot and coffin.
Should Nokia fail, it would take with it Microsoft's dream of mobile domination. MSFT stock will become dead money again. No one will care about Windows 8, 9, 10, 20. Microsoft needs to acquire Nokia right now to save MSFT's business. Time is burning...
Remember you don't need to outrun the bear (Apple) you just have to outrun the other guys being chased (Android/samsung etc...)
Sell the Mobile Bus. and patents to Microsoft ?