Could Nokia's (NOK) Management Shake-Up Be Just What the Doctor Ordered?
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Nokia (NYSE: NOK), in desperate need of an adrenaline shot in the premium cell phone market in order to fend off rivals that are continuing to gain momentum, has decided that a shakeup of its management team could do the trick.
Despite almost never-before-seen turnarounds in global financial markets, Nokia shares have languished as investors are betting that the company's profits will underperform its peers in the handset market.
To get the creative juices flowing, Nokia has turned to placing sales chief Anssi Vanjoki at the head of a new business unit, which will look to improve on the company’s fledgling smartphone portfolio. Elsewhere, Mary McDowell will move in to take over the company’s mobile phone unit from the retiring Rick Simonson.
"In addition to extending our leadership in mobile phones, we are decisively moving to respond faster to growth opportunities we expect in smartphones and mobile computers," says Olli-Pekka Kallasvuo, CEO of Nokia. "Nokia's new organizational structure is designed to speed up execution and accelerate innovation, both short-term and longer-term. We believe that this will allow us to build stronger mobile solutions - a portfolio of products and integrated services that connect people and enable new ways of communicating, sharing and experiencing mobility."
Nokia will need to come up with something under its new management team to compete with the ever-popular Apple (NASDAQ: AAPL) iPhone and the myriad of Google (NASDAQ: GOOG) Android-based devices flooding the smartphone market.
The company has not yet released a successfully popular smartphone device since the N95 in 2006.
Nokia’s revenue fell 19 percent last year, while its operating profit plummeted 76 percent. Shares of the company on the New York Stock Exchange are down 2.5% to $10.95 in late market movement today.
Despite almost never-before-seen turnarounds in global financial markets, Nokia shares have languished as investors are betting that the company's profits will underperform its peers in the handset market.
To get the creative juices flowing, Nokia has turned to placing sales chief Anssi Vanjoki at the head of a new business unit, which will look to improve on the company’s fledgling smartphone portfolio. Elsewhere, Mary McDowell will move in to take over the company’s mobile phone unit from the retiring Rick Simonson.
"In addition to extending our leadership in mobile phones, we are decisively moving to respond faster to growth opportunities we expect in smartphones and mobile computers," says Olli-Pekka Kallasvuo, CEO of Nokia. "Nokia's new organizational structure is designed to speed up execution and accelerate innovation, both short-term and longer-term. We believe that this will allow us to build stronger mobile solutions - a portfolio of products and integrated services that connect people and enable new ways of communicating, sharing and experiencing mobility."
Nokia will need to come up with something under its new management team to compete with the ever-popular Apple (NASDAQ: AAPL) iPhone and the myriad of Google (NASDAQ: GOOG) Android-based devices flooding the smartphone market.
The company has not yet released a successfully popular smartphone device since the N95 in 2006.
Nokia’s revenue fell 19 percent last year, while its operating profit plummeted 76 percent. Shares of the company on the New York Stock Exchange are down 2.5% to $10.95 in late market movement today.
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