View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. Technology
  2. Software
September 10, 2010

Nokia dumps boss for Microsoft exec

Redmond's business division head replaces under fire OPK

By Steve Evans

Troubled mobile phone maker Nokia has ditched boss Olli-Pekka Kallasvuo and replaced him with Microsoft executive Stephen Elop, boss of Redmond’s Business Division.

Kallasvuo has been facing increasing pressure over the last few years as Nokia has struggled to keep up with the likes of Apple, HTC and BlackBerry in the smartphone development field. The Finnish company’s most recent financial results revealed a 40% slump in profits on the back of two profit warnings and a 40% dive in share price value between March and June this year.

Despite the poor performance Kallasvuo was confident about Nokia’s future. "The global handset market has continued to grow at a healthy pace, led by some of the less mature markets where Nokia is strong," he said at the time. "In smartphones, we continue to renew our portfolio. We believe that the Nokia N8, the first of our Symbian3 devices, will have a user experience superior to that of any smartphone Nokia has created."

However the company has clearly decided that he has had enough time to turn around Nokia’s performance. "The time is right to accelerate the company’s renewal; to bring in new executive leadership with different skills and strengths in order to drive company success," the firm said.

Stephen Elop, the first non-Finn to lead Nokia, has also held positions at Juniper Networks, Adobe Systems and Macromedia. "The Nokia board believes that Stephen has the right industry experience and leadership skills to realise the full potential of Nokia," said Nokia chairman Jorma Ollila. "His strong software background and proven record in change management will be valuable assets as we press harder to complete the transformation of the company."

Gartner analyst Nick Jones believes that the appointment may not be the big leap forward that Nokia needs to make if it is to remain competitive against other smartphone developers.

Content from our partners
Scan and deliver
GenAI cybersecurity: "A super-human analyst, with a brain the size of a planet."
Cloud, AI, and cyber security – highlights from DTX Manchester

"I am in two minds about this," he wrote. "Microsoft have many of the same problems as Nokia in terms of innovation, especially in the smartphone business. I’m not sure he brings any specific skills that will fix Nokia’s challenges. My personal view is that Nokia’s board have made a safe choice when they should have made a courageous choice. Although, having an ex-Microsoft person running Nokia suggests lots of interesting possibilities for the future."

Elop will begin his new role on September 21.

Websites in our network
Select and enter your corporate email address Tech Monitor's research, insight and analysis examines the frontiers of digital transformation to help tech leaders navigate the future. Our Changelog newsletter delivers our best work to your inbox every week.
  • CIO
  • CTO
  • CISO
  • CSO
  • CFO
  • CDO
  • CEO
  • Architect Founder
  • MD
  • Director
  • Manager
  • Other
Visit our privacy policy for more information about our services, how Progressive Media Investments may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.
THANK YOU