Nokia Boss Sends Memo Suggesting Mobile Phone Company Is In Crisis
The chief executive of the mobile phone manufacturer, Nokia, Stephen Elop, has sent a memo to his staff which suggests that Nokia is in crisis.
The leaked memo sent by Nokia’s boss, Stephen Elop, warns staff that the mobile phone company is in crisis with more pioneering rivals taking its share of the mobile phone market.
Mr Elop told staff that Google’s success with its Android operating system had been a surprise while the Apple iPhone had also caught them out.
Mr Elop said Nokia still didn’t have a product to rival the first iPhone let alone the iPhone 4. He admitted that despite only arriving on the market two years ago Android had overtaken Nokia in terms of smartphone volumes.
Nokia however does still lead the smartphone market as far as the number of handsets sold but its market share is falling. This is something of a concern for Nokia when competitors such as Apple and HTC have seen their share go up.
An analyst at the research firm CCS Insight, Ben Woods, told the BBC that the memo “shows that he has inherited an organisation that is in much worse shape than he anticipated and the work that will be required to get it back on track should not be underestimated”.
Nokia also faces competition from the growing number of Chinese mobile phone manufacturers which are both fast and cheap. Stephen Elop has quite a job on his hands trying to get Nokia back up and competing again with the likes of Apple and Google.