Nokia Corporation (NYSE:NOK) Investors Criticize Windows Only Strategy

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Stephen Elop, CEO of Nokia Corporation (ADR) (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V) is being criticized by the shareholders for limiting Nokia to Windows only operation in the annual investor’s conference. The investors hold the view that Elop is degrading the company and taking it downwards. Tiger cubs likely find the situation amusing.

Nokia Corporation (NYSE:NOK) Investors Criticize Windows Only Strategy

Nokia Strategy

“You’re a nice guy … and the leadership team is doing its best, but clearly it’s not enough,” shareholder Hannu Virtanen told Elop, Reuter’s reports. “Are you aware that results are what matter? The road to hell is paved with good intentions. Please switch to another road.”

Investors are losing their confidence in the company, and the shares are just floating around the $3 mark. The shares of the Finnish company had declined from almost $60 when this mobile maker was one of the most dominant players in the mobile phone market. However, Elop said that there was no other alternative.

Elop’s Strategy

Two years back, Elop released a ‘Burning Platform’ memo in which he raised concerns about the fundamental problem of the vendor at that time. Two days after he issued the memo in the public, Elop signed an agreement with his previous employers at Microsoft Corporation (NASDAQ:MSFT) to design and provide an operating system for the Nokia phones. But there has not been any major success achieved till yet.

CEO said that the adjustments and changes in strategies made are in the process, but as of now Nokia is very clear that it would go with its strategy of Windows Phone with the Lumia Product line and is determined to compete with the likes of Samsung Electronics Co., Ltd. (LON:BC94) (KRX:005930) and Apple Inc. (NASDAQ:AAPL).

The total Lumia units sold by Nokia Corporation (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V) in the first quarter were 5.6 million units. This was an increase over 4.4 million from the previous quarter. The market share of the company is still 5 percent. The other two rivals, Apple and Samsung Electronics Co., Ltd. (LON:BC94) (KRX:005930), have captured almost half of the market share together.

What Analysts Think of Nokia

Magnus Rehle, senior partner in Greenwich Consulting, said that Elop has worked and achieved on decreasing cost but not too much to increase the market share.

According to analysts, Nokia Corporation (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V) should adopt the strategy of manufacturing and selling the cheaper smartphones if it has no Plan B. The low price phone of Nokia should have some features of Smartphones like its Asha handsets in the developing economies.

According to the sources, Nokia may also sell higher end Lumia phones through Verizon Wireless along with its current agreement with AT&T Inc. (NYSE:T)

 There is however, not much expectation that the shares of Nokia Corporation (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V) will have any significant rebound in the U.S. smartphone market in the near term.


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