Market Currents
Ilari Nurmi, Nokia's (NOK) VP of product marketing and the exec responsible for its smartphone...
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Friday, October 5, 2012, 1:39 PM ETIlari Nurmi, Nokia's (NOK) VP of product marketing and the exec responsible for its smartphone strategy, has left the company for unknown reasons. Nurmi's departure comes as speculation grows CEO Stephen Elop will get axed next year if Nokia's Windows Phone 8 sales disappoint, and 3 months after chairman Risto Siilasmaa talked about having a "contingency plan" (believed by many to be Android) should WP8 fail to meet expectations.
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This news story has 58 comments:
Sounds like accountability at work by Elop, plain and simple
http://reut.rs/PF58lt
Meanwhile, Nokia is just going with one carrier in the U.S. (AT&T)and it looks like the same for Canada (Rogers). If that is the case, that is a firing offence (perhaps why this person was let go?).
I personally like them going with WP8 (WP7 has received excellent reviews from what I've seen, and WP8 sound like it will be even better), but clearly Microsoft doesn't consider it to be a monogamous relationship. That's ok, but then why couldn't Nokia have done the same - similar phone but running on Android as well as WP8. I'm no techie, so maybe I'm out to lunch on that, but I don't see why they had to go with only one platform. Doesn't seem like Samsung and HTC do that. Another strategy issue. All of the features that the 920 has could have worked on Android as well, and then they wouldn't be betting on having to convince users to switch platforms in order to buy Nokia.
There's one other issue that is concerning me - the "perception becomes reality" issue. I do see some commentators on Seeking Alpha and even in the product reviews dissing Nokia. The criticism is never directed at the new Nokia phones directly, which by all accounts have received rave reviews, but rather comments like how long they are going to survive, too bad it's a Windows phone, and now even that Microsoft is going to bring out their own phone to compete (if they did, bye bye Samsung, HTC and Nokia products for Windows platforms - I can't believe MSFT would be that stupid). If enough people think the platform is going to fail, or the company itself is going to disappear, then that perception can become reality because of the perception. It almost arouses the conspiracy theorist in me - are there people out there who want it to fail, but because they can't diss the phone, they just say that "no one buys Nokia anymore" or "too bad it's a Windows phone". Nokia needs to convince people that they will be around. Hope they do get someone who knows how to market, and hope they go with more than one carrier!
long NOK
They would have to maintain an extra developers' team, just to make sure all Nokia programs would be as good in Android as they are on Windows Phone. That costs time and money...
Also, making sure the hardware would work just as well on Android would've mean yet another software team... and we all know programming for Android is a living hell.
Get it straight and don't try to confuse the readers who in the end want to make money with investment news. False news reports steer everyone away from valid investment opportunities. You should be ashamed of posting these incomplete reports.
http://reut.rs/TaADtT
<< Ilari Nurmi, who was vice president of product marketing and responsible for the company's smartphone strategy, confirmed to Reuters in an email that he recently left the Finnish phone company.
He did not make clear whether he left of his own accord, and the company declined to comment on the circumstances of his departure. >>
regards.
This was a poorly written summary with 1 half fact and 3 pieces of speculative gossip.
An accurate summary would be "Nokia marketing executive responsible for smartphone strategies has left the company of his own accord and declined to comment on the circumstances."
But, of course SA knows actual facts doesn't grab headlines like fluff gossip right?
http://reut.rs/R5TPUC
I've noticed a very disproportionate number of the rude and hostile responses to posts on tech companies come from Apple, Nokia, and RIM investors (in no particular order). Sadly, there's something about smartphones that brings out this behavior. In the cases of Nokia and RIM, I think the phenomenon is strengthened by the defensiveness some feel over the way the companies have performed lately.
http://seekingalpha.co...
On a personal level, I'm rooting for Nokia and Windows Phone in general to succeed. The more competition the smartphone industry sees, the better it is for enthusiasts such as me. And I like the way that Microsoft really thought outside the box (or outside the icon, you could say) in developing WP.
But like you said, Nokia does have a lot of challenges before it, and I think it's hard to overlook that when writing about the company. I was really hoping that the Lumia 920 would have a 41MP sensor like the PureView 808. That would have significantly boosted the odds of the phone turning into a game-changer. Barring that, it would have been better if the 920 was released around the same time as the iPhone 5, but it looks like Microsoft's WP8 release schedule prevented that.
Actually, it features quotes from multiple analysts and fund managers. It looks as if you didn't pay close attention to the text, just as you didn't pay close attention to the text of the Friday article.
"but no serious enterprise engaged in the reporting of news should use an opinion and pass it on as original up to the minute news reporting"
Hence my use of the term "speculation grows." Providing background commentary and insight is part of what Market Currents does (along with news reporting). You clearly only see what you wish to see, and are happy to leave good manners by the wayside while doing so.
While I disagree with the headline, and that the "power" in the words you chose I also disagree with Reuters way of typing it.
SA needs to have a different layout, looking on Reuters today, then this headline comes from Reuters. How would you design the web page to include this information.
Quote start.
SCARDINO PREPARES TO QUIT NOKIA AFTER LEAVING PEARSON Days after announcing her departure from the helm of Financial Times owner Pearson, Dame Marjorie Scardino is preparing to give up her role as vice-chairman of troubled phone-maker Nokia
Quote end.
Link of proof http://reut.rs/SFXhZo with notice of that you can see this news at the bottom of page.
Your so called "news" report was neither news nor a veritable report citing executives at the company as the source of your gossip. You attempted to mislead investors and readers of this forum and you were caught. Clearly, you have no regard for the ethics of journalism.
As an example... Goldman Sachs downgraded NOK to Sell... but instead of following their own advise, Goldman Sachs are holding 61 Million NOK shares, not selling.
Why don't GS follow their own advise? Since they predict the stock to go down even more... They should have sold already. What are they waiting? Are GS managers dumb or is this Sell rating a complete and utter bull$hit?
Kind of strange... eh? The only certainty I have is GS Sachs is contradicting themselves. ("Do as I say, not as I do!")
You're insane. Every company uses false advertising. Apple's way worse on that and nobody ever gets fired. Have you ever tried to replicate a Siri's ad? Then do try it, by all means.
Of course he wasn't fired for such a stupid detail. Doh.
There is a warning for Q3 and lowered sales, that simply is not good if they are true.
http://bit.ly/TaEOFX
Nokia´s limit, with only going for (T) is also not good, Nokia needs to be selling to everybody and it is the phones that sell, not the sale representatives. There have been plenty of SA saying, no Lumia here in a AT&T Store.
The last days of well below average numbers of NOK stocks being sold, is also a very grim reminder of a potential huge drop in share price. Q3 is expected to be very bad, and the very slow launch of Lumia 920/820 is simply unacceptable, but it is the result of bad management from Microsoft, 2 months is utterly and completely unacceptable, and initial sales momentum have dried out.
Q4 in January, is the quarter the investors are waiting for, did the Microsoft launch pay off, the trend will be in the numbers. There is the result if Long Nokia pay´ed of or not.
So, this is not bad news at all.
1. I expect 2012-Q3 to be a bit above or a bit below Q2 in earnings. NSN and old Navteq should be above, and devices ~ up or down a bit. This would be a great net plus for the stock. If Q3 is a bottom, looking at buying intent, Q4 should be a ripper on the upside!
2. ATT knows what it's best for it. Apple iPhone!
ATT has sabotaged Lumia sales since the introduction of the Lumia 900. There have been many reports, including my personal experience, where I went to buy a Lumia 900 and was continuously given reasons to go with the iPhone, and drop the Nokia phone. BAD NEWS FOR NOKIA IN GOING WITH ATT as primary sales partner for the L920! With partners like that you don’t need any enemies.
What should also be said about Nokia is that it appears not to have done anything about it!
How much of the responsibility lies with Nurmi, versus his bosses is unknown to me. However, I think Nokia needs somebody in the marketing post who understands the US marketplace as well as the global marketplace. Nokia's strength has traditionally been outside the US, although at its peek (pre iPhone launch) they had reasonable market share. Nevertheless, Nokia never really 'captured' the US market when they had the chance for a variety or reasons; but one of these strikes me as being that they seem to lack marketing intuition in their blood. Nokia is a great engineering company; they know how to design and develop world class products and technologies; at the same time, one might argue that they must have been good at marketing otherwise how would they have become the No.1. player in the market by the late 1990s and early part of this decade. My answer would be that although they have some marketing competence, they don't seem to exhibit it their DNA (if you will excuse this overworked analogy). Consequently, when faced with a need to be really creative in their marketing message, effective in the timing and mode of product launch they seem to fall rather short of the mark.
I am long Nokia and have been so since the summer. As stated in previous comments, I acknowledge that from an investment point of view it will remain a rocky ride for the next few quarters and everything rests on their success of the 920 and 820 sales (at a profitable price point) to lift them back into the game. I don't doubt Nokia can produce excellent and possibly the best phones, but at the end of the day whether the market buys into this fact depends upon more than the product. It ultimately depends upon potential consumer perceptions. Managing perceptions is what counts in this game (assuming you have a half-descent product). As an investor, I really hope that the next person to take charge of the flagship phone line for Nokia really has marketing in his or her DNA and not just on their Powerpoint slides!
Almost every company in the world does the same. Marketing is almost always misleading. How many Apple's marketing guys were fired for their misleading Siri ad? None... because nobody really cares about misleading ads. Nobody, except for a few weasels who want to see companies like Nokia go bankrupt.
The "misleading ad" was reported mostly in the USA. In Europe, not so much.
Can you say... Lobbies!?
When the bicycle teaser showed up a few days before the event, I commented on some forum that it better be shot with the 920. If you're showing off a feature like OIS and not using the actual device, it's misleading. and since it didn't say anywhere that it's simulated, I assumed it's real.
I don't think the Lumia marketing was good before with the 900, they couldn't get people to buy it. A change was needed anyway. but this might have been the final straw
All this hypocrit whining about Nokia's "fake commercial" is simply coming from the competition, their shareholders or Nokia shorters.
Nokia was only too polite to excuse themselves for the confusion they apparently created... among all those poor naive people who also thought they got wings by drinking RedBull.
Strategy would imply they're not happy with the choices they made and are making changes (or that he was pushing for something other than WP which would mean senior execs aren't happy with that platform).
The reality is, here's a guy in charge of the failed marketing of the Lumia line, probably was responsible for the fake video fiasco (even if he didn't know about it, he's their senior smartphone marketing exec, he should have).
So he got fired for bad performance, it happens. how do you go from that to the speculations about Elop being next?
Seeking Alpha is becoming an amateur FUD spreading site
Apple promises a feature they can't possibly deliver.
What Nokia did is no different than what's standard in the marketing industry.
So... why the grudge against Nokia and not any other company?
Why doesn't the US mainstream media ever talk about Apple's sci-fi ads?
Makes no sense seeing what is a perfectly normal ad being so bashed by the US press... I suspect Google and/or Apple are using their piles of cash to lobby against Nokia and I'm happy that lobbying culture stays mainly in the US.
Lobbying is a despicable culture.
Elop is one of the hottest tech managers right now and Apple could sure use his mojo...
PS. Ever thought about a confidentiality clause?
I expect that this is due to the poor execution of marketing the best, or at least two of the top, phones on the market (900 and 920.)
I have a Lumia 900 and an very impressed. My family has HTC Evo and iPhone 4s and I am very unimpressed.
The camera of the 920, high quality in every aspect, obsession with the small details and the MSFT ecosystem is what will keep me coming back for more.
I wish NOK the best, my opinion is that their 920 will be in the top spot vs. the iPhone 5. Unfortunately for NOK, is that the sales will not reflect their quality products, thanks to poor marketing.
lets all follow suit. If SA receives enough complaints then maybe that will change the way he uses his own personal bias while reporting on Nokia
I for one think that "speculation" from 3rd party unconfirmed sources should not be included at all.
regards.
Over the last dozen years, I've been accused of being biased against Apple, Google, Nokia, Qualcomm, RIM, and probably one or two other companies with mobile exposure. I hope you see the irony in that, given how many of those companies have been at odds with each other. I hope you can also see that I made an attempt to respond to criticism here when many other writers wouldn't have bothered.
I try to be even-handed when discussing tech companies, but I don't expect everything I write to meet with the approval of those who react angrily to anything they find to be critical about a favored company. It's as true with Apple or RIM as it is with Nokia.
One final point: those sources weren't "unconfirmed." Read the Reuters article about Elop, and you'll see the names of the fund managers and analysts suggesting Elop's job could be on the line are provided. With that I've said my final word on this subject.
I am in no way trying to influence how you should write your articles. But in terms of this specific post I think you should have just stuck with the facts related to Ilari Nurmi and left mr Elop out of it.
You know what is a real "fact" this link right here http://reut.rs/SG4AlS
Its the chairman of Nokia defending Elop. btw have you ever written a article about this particular piece?
That's why it was called speculation. Either way, their comments aren't "unconfirmed."
"btw have you ever written a article about this particular piece?"
Actually, I did write about that piece. Thanks for asking.
http://seekingalpha.co...
That said, Nokia needs to get real aggressive with the launch of Lumia 920. How about pricing it at $99 with a 2yr contract on ATT? Then offer customers who bought the Lumia 900 an upgrade special of $49 if they traded in their old L900. Then turn around and sell the used Lumia 900 for $249 to the prepaid market.
They would have lines around the block! Come on Nokia, you can do it!