Nokia has lost a significant market share in the smart phone space mainly due to the rise of iPhone and Android. So does Nokia need a new CEO ?
There have been several reports this week that Nokia needs a new CEO and some analysts have even suggested that Nokia needs a Silicon Valley CEO. The Finnish phone maker is going to declare financial results for the last 3 months later today and some are fearing that the the company might announce a drop in revenue.
Olli-Pekka Kallasvuo is the current President and CEO of Nokia Corporation. He’s been with Nokia for 30 long years and was appointed the CEO in 2006. We can’t doubt his experience and knowledge about the industry. OPK has had an uphill task to revive Nokia . He must also satisfy angry investors and win back customers.
Nokia is still the world’s largest maker of handsets if you take into account the number of handsets it ships every quarter. But sadly the volume game is not working in Nokia’s favor as the competition such as Apple and HTC are shipping fewer handsets but making more profit per handset sold. Nokia barely has few offerings in the >$500 category.The ASP or Average Selling Price of Nokia handsets are pretty low compared to other manufacturers. Nokia had taken some corrective action by reducing it’s handset portfolio. Phones like C3,E5 , C6 are really great handsets if you look at the value for money they provide. But they are available only in limited markets as of now.
One of the reason’s Nokia seems weak now is that company has depended too much on the Symbian platform. The UI seems dated compared to the competition. The first Symbian ^ 3 handset – the Nokia N8 certainly seems impressive and an attractive offering.Maemo seemed a great effort and MeeGo has high expectations.But is it enough ?
Nokia does have a problem but it’s here to stay. We need to wait for Symbian 4 and MeeGo handsets before we decide on Nokia’s future.Nokia’s biggest problem is not the competition but the calendar. Many users have jumped ship after waiting tirelessly for a handset to be available in stores after public availability.
We are not aware if the Nokia top brass is aware of the real market situation. We don’t think Nokia needs a new CEO . They just need to react to the market faster.Let’s find out what Nokia has to say in their earnings call !
Does Nokia need a new CEO ? what do you think ?