The decline of Nokia

The Supremacy of Nokia, which was established in April 1998 and has been the market leader in phone industry ever since, has ended after 14 long years. The finish company has been leafrogged by Samsung after recording just 83 million
units as compared to the South Korean multinational company’s 88 million units.

These disturbing figures sums up the rapid loss of market share and lack of conviction and dynamist that seems to have tied up to the direction of the company. Nokia had never thought that their new Lumia 900, equipped with Microsoft
Windows Phone operating system, will be a big failure before launching it at the start of this year.

Nokia only managed to solf million of these devices during the January-March quarter. The finish company is not meeting user’s requirements at the age of growing trends and innovation. And keeping in mind Apple, for example,  sold
an average of 23 million iPhones per quarter last year, they have a responsability.

Last week, Nokia warned investors that the first two quarters of this year will be negative. As a result, within days, the company made 21% of its capital stock.

"Nokia will not achieve its goal of selling 37 million this year Lumia." Stephen Elop questioned the strategy for Nokia pattern.

At the beginning of the millennium, Nokia worth 300,000 million Euros in stock, double the national budget of Finland. Today that value has been reduced to a mere 12,000 million, as compared to Apple’s 460,000 million Euros.

Nokia’s woes have risen since 2007, when Apple launched its iPhone and RIM launched the BlackBerry.

"I think it was the stupid arrogance of their executives when they were at the top of the podium," said an Indian engineer who worked 25 years for Nokia. "I remember, in 1999, the CEO, Jorma Ollila, launched the idea that Nokia
should have a broad product catalog, with telephones of all ranges for all audiences.Thus were born hundreds, thousands of Nokia models. Apple later showed that a sufficient model."

In September 2010, when it became obvious that Nokia was losing the battle in the lucrative smartphone market, or smart phones, they hired Stephen Elop to get that company out of trouble.

However, Nokia has faild to turn the tables ever since he joined as their shares plummet from 8.20 to 3.10 Euros. They, meanwhile, had 63% market share of smartphones, this figure has been reduced to 11%.

In February 2011, Elop announced a new strategy with Microsoft making phones with  Windows operating system and replacing the idea of Symbian operating system. Although they have failed to deliever, the users have swere expectation
from the finish company.

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Posted by Farasat Ali on Apr 23 2012. Filed under Sci-Tech. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry