Stephen Elop’s task on turning Nokia Mobile phones business to Microsoft compatible has come to end: Microsoft Corporation and Nokia Corporation today announced that the Boards of Directors for both companies have decided to enter into a transaction whereby Microsoft will purchase substantially all of Nokia’s Devices & Services business, license Nokia’s patents, and license and use Nokia’s mapping services.
Microsoft will pay EUR 3.79 billion to purchase substantially all of Nokia’s Devices & Services business, and EUR 1.65 billion to license Nokia’s patents with EUR 5.44 billion all-cash transaction. Under the terms of the agreement, Microsoft will acquire substantially all of Nokia’s Devices and Services business, including the Mobile Phones and Smart Devices business. Microsoft is acquiring Nokia’s Smart Devices business unit, including the Lumia brand and products. The deal includes, among other things, the Nokia Asha brand.
The transaction is expected to close in the first quarter of 2014, subject to approval by Nokia shareholders, regulatory approvals and other customary closing conditions. Microsoft has agreed to a 10 year license arrangement with Nokia to use the Nokia brand on current Mobile Phones products. Nokia will continue to own and maintain the Nokia brand.
Following the transaction, Nokia plans to focus on its three established businesses: NSN (network infrastructure and services), HERE (mapping and location services and Advanced Technologies (technology development and licensing).
Stephen Elop will be coming back to Microsoft, and he will lead an expanded Devices team, which includes all of our current Devices and Studios work and most of the teams coming over from Nokia. As part of the acquisition, a number of key engineering leaders will be joining Microsoft from Nokia. Approximately 32 000 employees are expected to transfer to Microsoft. Among them, 4 700 in Finland. Microsoft is getting several of the cellphone industry’s better-known leaders in one shot — and Nokia’s remaining leadership will be mostly unrecognizable to long-term fans.
I was fearing that this could happen already two years ago. Now it has happened. Microsoft’s acquisition of Nokia’s Devices & Services business has more implications for Nokia than you might suspect at first glance. Nokia CEO Stephen Elop is stepping down ahead of transition to Microsoft. Nokia’s Chairman of the Board Risto Siilasmaa will be Nokia’s interim director. Timo Ihamuotila will be interim CEO.
Forbes analyst Tero Kuittinen is surprised by Stephen Elop activities: Elop chose Nokia to become Microsoft Windows operating system company and ther operating systems, development stopped completely. Now he’s decided to sell Nokia’s smartphone unit at greatly reduced prices … Microsoft, a company in which he returns, Kuittinen says. Nokia Sells Handset Business To Microsoft At A Shockingly Low Price tells that it cannot be said that Nokia‘s decision to sell its handset unit to Microsoft is a surprise. But what definitely are surprises are the timing and the price. Nokia’s glory days of 110 B euro market cap are long gone – yet it’s a visceral shock to see the Devices and Services unit sold under 5.5 B euros.
Etla research director Jyrki Ali-Yrkön says that Nokia phones sales to Microsoft is a sign of the error from the previous move: “As a result, the company acknowledges that Microsoft’s operating system is not enough to save Nokia” Something similar I was thinking more than 2 years ago at my Nokia future: Windows Phones 
posting. And the current news clearly shows that the previous decision – the Windows Phone operating system transition – was not correct.
The press conference is held today at 11 am in Espoo Dipoli.
This is the end of the Nokia as I used to know it…. Nokia’s importance to Finland has been in 90′s and since the early 2000′s insane. It has pulled the tail of starring in other IT companies in the world, and helped the Finnish international. Now, a big part of it is gone.
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Tomi Engdahl says:
Nokia notice reveals: Elop acknowledged to get 18.8 million from the Microsoft transaction
Ex – Nokia CEO Stephen Elop acknowledges 18.8 million of bonuses and share- based remuneration, the company’s mobile phone business was sold to Microsoft realized.
Value of share-based incentives , a total of 14.6 million , it is estimated the sixth day of September, the company’s share price at the . Nokia’s share was at that time just risen sharply after the announcement of the news of the acquisition .
The amount may still rise if the Nokia share tilts prior to the implementation of the Microsoft – marketed early next year .
In addition, Elop gets Nokia wages, severance pay , and full bonuses, a total of 4.2 million.
In the sale agreement, Microsoft will pay 70 percent of the premium to Elop , Nokia 30 percent.
Fees are based on Elop’s agreement. Among them were told the company’s extraordinary general meeting invitation background material. The meeting will be held on 19 November. There has to agree that the mobile phone business is sold to Microsoft.
“Yes, that amount hurjalta sounds, but first need to take a closer look , what the premium is based on the ” comments Shareholders Federation President and CEO Antti Lahtinen
” If you think of Nokia’s performances in his time , so is it that it is responsible for ,” Lahtinen.
Lahtinen believes that bonuses will now give the impression that Nokia’s Elop government would be given the task of selling phones, and the government of his order would bring the target premium . The fact that Microsoft will pay most of the fees Elop , hinted Lahtinen ‘s view, the fact that the majority of the fees agreed only at closing.
Source: http://www.hs.fi/talous/Elop+kuittaa+Microsoft-kaupan+toteutuessa+188+miljoonaa+euroa++summa+voi+viel%C3%A4+nousta/a1379557110752?ref=hs-top4-2
Tomi Engdahl says:
Nokia’s Elop Set To Receive $25 Million Bonus After Acquisition
http://news.slashdot.org/story/13/09/19/1834224/nokias-elop-set-to-receive-25-million-bonus-after-acquisition
“Stephen Elop, the former Nokia Oyj chief executive officer who is rejoining Microsoft, is set to get more than $25 million if the Finnish company completes the sale of its handset business to the software maker. Microsoft will pay 70 percent of the projected total amount of about 18.8 million euros ($25.5 million), and Nokia the remainder, according to a proxy filing by Nokia today.”
Tomi Engdahl says:
Prestigious financial magazine mocking Elop huge bonus
“Greedy bankers now has a competitor,” writes the Financial Times.
The Economic Journal Financial Times fascination 18.8 million euros, leaving a bonus, the Nokia’s Stephen Elop, Nokia’s mobile phone business was divested.
The magazine pointed out that the fee is in stark contrast with what Elop is Nokia’s head got around to it.
- What’s the management’s remuneration has been talked about? Does anyone else has had such a peculiar idea that the incentive scheme should be in line with the shareholders’ profits? Tell me it is Nokia’s investors, FT writes.
Nokia’s market value of about 28 billion euros, Elop was hired as President and CEO, FT says. Now that Elop is returning to Microsoft, that amount has shrunk to about 18 billion.
Microsoft will pay 70 percent of the premium Elop, Nokia’s share, but is still about six million.
- In short, Nokia’s Elop shareholders pay one million euros from 1.5 billion euros to each of the market value of the company under his leadership lost.
Source: http://www.iltalehti.fi/talous/2013092017511986_ta.shtml
Tomi Engdahl says:
Elop’s “exit package” raises the consternation
If the President and CEO during the company’s collapse, it washed up on the brink of bankruptcy and sold eventually forced the gap-called cheap price, it is seldom rewarded. Nokia’s Stephen Elop, however, is a sign for the 18.8 million of such extra premium.
The case is not, at least not likely to dispel suspicions that Elop’s real task was to calculate the value of Nokia and organize it a friendly price of Microsoft’s arms. These may be semi-seriously by many conspiracy theories to prop up appropriately by the fact that 70 percent of the reward comes from Microsoft, not Nokia.
Evening Times calculates the fuss reward after Stephen Elop’s total catch of Nokia sprints will increase to 40 million.
Minister of Labour Lauri Ihalainen, in turn, thought that the premium to confirm the doubts that “the gig Elop came here for.”
Source: http://www.tietokone.fi/artikkeli/uutiset/elopin_lahtopaketti_herattaa_tyrmistysta
Tomi Engdahl says:
Nokia’s Last Great Deal: Zero to $7.2 Billion
http://online.wsj.com/article_email/SB10001424127887324807704579084953639710932-lMyQjAxMTAzMDEwOTExNDkyWj.html
ESPOO, Finland—Nokia Corp. was desperate. But don’t think of it as a victim.
Most of the world’s attention will wander from the Finnish company when it completes its sale to Microsoft Corp. in March. Nokia, however, won’t fade into obscurity as 56,000 people will continue competing with Ericsson on wireless networks and Google Inc. on mapping software. The company will also put loads of cash into developing new technology.
Nokia’s prospect for transformation, however, is built more on what it isn’t rather than what it can become. In recent years, wireless networks customers sometimes avoided the company over fears the handset business would eventually sink the ship. Also, the heavy investment into quality mapping tools was essentially ignored by potential buyers who didn’t want to purchase such a critical bit of software from a hardware competitor.
Directors, many of whom were brought in about the time Mr. Siilasmaa was named chairman in May 2012, were well aware of the problems in the device business and itching for a solution from Chief Executive Stephen Elop’s management team.
“I and the others took a sober view,” Mårten Mickos, a Finnish businessman who joined the board in 2012, said. “We knew it could end in a few different ways, but not many different ways.” In other words, a one-time giant in its industry was running out of options.
The Microsoft solution, Mr. Siilasmaa said, has been “liberating” for Nokians and inspired massive appreciation in value, with shares jumping 63% following the Sept. 3 announcement. Nokia’s stock had been under severe pressure in the years leading up to the sale, with investors giving no credit to Mr. Elop’s job cuts, strategy changes and investment in alternative businesses.
But when the call came, Mr. Siilasmaa held his poker face. In a hastily arranged conference call with directors, the decision was made to respond by telling Mr. Ballmer “no way are we going to talk about that, no.” Eight months later, Microsoft agreed to pay $7.2 billion for a devices business that analysts assigned little value to and customers saw as a cancer.
To be sure, Nokia’s board has presided over a massive destruction of shareholder value—the stock fell 95% between its 2000 peak and the Microsoft deal.
At Nokia, the board played the role of resident skeptic, pressure-testing strategies and privately discussing business plans and the effectiveness of the leadership with Mr. Elop’s lieutenants while the CEO wasn’t in the room.
“Many boards have failed spectacularly in technology companies, and people are wondering why,” Mr. Siilasmaa said, noting directors often have great resumes, but don’t know how to play well with others. Mr. Mickos said boardrooms too often become wars of vanity.
These boards fail by “not recognizing a failed strategy, waiting way too long to do anything,” Mr. Siilasmaa said.
Once the unprofitable handset business is gone, Nokia is set to become a company more akin to Sweden’s Ericsson, which also opted out of the mobile devices in 2012 with the sale of its Sony Ericsson joint venture to partner Sony Corp.
Tomi Engdahl says:
Nokia still working on Android phone, won’t cancel until November. Foxconn already made 10K prototypes
http://www.unwiredview.com/2013/09/19/nokia-still-working-on-android-phone-wont-cancel-until-november-foxconn-already-made-10k-prototypes/
Over the weekend New York Times and The Verge reported that before they decided to sell mobile business to Microsoft, Nokia was working on a cheap Android phone codenamed “Mountain View” as a “Plan B” – if they failed to break through with Windows Phone.
Today Chinese site and Weibo account CTechnology, with a pretty good track record of China based smartphone leaks, has more details about this cheap Nokia Android.
The device, based on Qualcomm Snapdragon 200 8225Q chip, was being developed and tested by Nokia’s Beijing based R&D team, and was already at somewhat advanced prototype stage. In fact, before the announcement of sale, Foxconn has already manufactured and delivered a batch of more than 10 000 prototype Mountain View units.
And now for the most interesting part. Mountain View development hasn’t stopped just yet. Foxconn is still making more of them, Beijing based Nokia R&D teams are still working on it, and the project will not be cancelled until/if Nokia shareholders approve Microsoft deal at General Meeting in November.
Though the likelihood of Nokia mobile business buyout not going through is extremely low, stranger things have happened. And with tensions between Nokia and Microsoft surfacing already, nothing is guaranteed 100%, until it finally happens.
Tomi Engdahl says:
Windows Phone overtakes Apple’s market share … in India
Yarr, feel me salty wake on y’r chops, fruity boy
http://www.theregister.co.uk/2013/09/19/microsoft_windows_phone_beats_ios_india/
Windows Phone has confounded the sceptics by beating iOS for the third consecutive quarter to take second place in the Indian smartphone market, but analysts have warned handset branding will be key to its future growth there in the wake of Microsoft’s Nokia buyout.
Redmond was quick to issue a release online this week, touting IDC Asia Pacific Mobile Phone Tracker stats for Q2 which showed its market share up to 5.4 per cent, placing it second behind Android and ahead of iOS and BlackBerry in one of the world’s fastest growing markets.
DC analyst Kiranjeet Kaur told El Reg that Windows Phone 8 had increased its share from around three per cent a year ago, largely thanks to a “conscious effort” on behalf of Nokia to go after the lower price segment with its Lumia 520 – which retails for about Rs.10,000 (£100).
With India overtaking Japan as the world’s third largest smartphone market earlier this year, these small percentages translate into not insignificant volume sales, she added.
Windows Phone shipments grew from 100,000 to 500,000 units over the past year.
“The Lumia 520 is a very good phone because it can be affordable – not for people who want very cheap phones but somewhere in the lower mid-range,” she said. “It has also been helped by the Nokia brand, which is quite strong in India, with good distribution.”
Nokia was named winner of India’s annual Brand Trust Report in February for the third year in a row and has a long history in the sub-continent, but Microsoft will have to cope without the name once its acquisition of the Finnish giant’s device business goes through.
“We will have to see how Microsoft makes the transition to just ‘Microsoft Lumia’. Brand will play a very big part,” said Kaur.
“People bought the Lumia because of its associations with Nokia”
Tomi Engdahl says:
Elop’s contract was to boil the analyst: “Nokia’s twisted heads go down in history”
Nokia familiar with the analyst Tero Kuittinen wonder how the Board was able to approve Stephen Elop clause that gave the huge sum of money.
Nokia’s interim CEO Risto Siilasmaa told reporters on Friday night that Elop is determined by the sum of the premium directly to the CEO’s contract terms and conditions, which are Nokia’s Board of Directors approved in 2010.
Elop may be a result of the Terms of nearly 19 million, while Microsoft to buy Nokia’s mobile phone business. Microsoft will pay 70 percent of the premium Elop.
Business magazine Forbes column analyst Tero Kuittinen wonders how when Jorma Ollila led by the Nokia Board of Directors may approve an agreement wonderful.
Kuittinen hints that point out that, when Elop in the spring of 2011, “driven by Symbian plunge” the notorious burning ferry, there is a memory, it already knew what kind of money you could get if you sold the mobile phone unit to Microsoft. Kuittinen, however, scroll the responsibility Elop rather than the government’s shoulders.
- Elop can hardly be blamed for the fact that he was seeking money. However, our Board of Directors qualifications and motives must be suspect when it came to disperse the company’s managing director, Kuittinen writes.
- How should the government in 2010, could not have known, that it is of Nokia’s mobile phone unit to sell cheaply to 2013? If the Government did not have any information as to why it would create a compensation package that favors such a conclusion? Kuittinen asks.
- Nokia was facing uphill battle in the spring of 2011. But thanks to the government, it took in that battle of the general’s chair, which had been promised a large sum of money when they drop. Nokia executives will remain the company’s history as one of the gang’s screwed up, which has led to major companies in the post-war period, the analyst writes.
Source: http://www.iltalehti.fi/talous/2013092317521165_ta.shtml
Tomi Engdahl says:
FT: Nokia to defend Elop’s agreement
According to the company the changes were necessary for three reasons.
First, they prevent Elopia to resign. Without the change, Elop could resign and still receive a full reward. Microsoft wants to keep Elop to the phone business.
Second, the original contract listed Microsoft as one of the companies to whom Elop should not move. This had to be removed.
Thirdly, it was agreed, what would happen if a contract phone business in crashes: Elop can return to the CEO, but losing share-based remuneration.
Source: http://www.iltalehti.fi/talous/2013092317524469_ta.shtml
Tomi Engdahl says:
Helsingin Sanomat on Tuesday revealed today that selling mobile phone business the most money making possible way for Stephen Elop to leave. It is the change of ownership Elop is the most richest possible way to leave: He will benefit EUR 14.6 million more than its predecessor.
The agreement in this regard was much better than his predecessor, Olli-Pekka Kallasvuo.
Previously, Nokia’s interim CEO Risto Siilasmaa had argued that Elop’s contract was essentially identical to that of his predecessors.
Sources:
http://www.iltalehti.fi/talous/2013092417526342_ta.shtml
http://www.iltalehti.fi/talous/2013092417526170_ta.shtml
Tomi Engdahl says:
If Nokia would have given Elop fired, or this would have left the job after a change of major, he would have been EUR 4.2 million in severance pay. Now, not Microsoft, Elop transaction, the huge 14.6 million in premium.
The arrangement shows Nokia’s U.S. Securities and Exchange Commission filings with the delivery of the documents, which show Elop and Nokia’s agreement filed compensation against acquisition. The agreement shows that Elop is promised in case of sale, one year basic salary and the bonus.
Source: http://www.iltalehti.fi/talous/2013092417527623_ta.shtml
Tomi Engdahl says:
Finnish media: Nokia pleads with Elop to accept smaller bonus – Elop claims he needs full $25M for his divorce
http://bgr.com/2013/09/24/nokia-elop-bonus-scandal/
According to the early Wednesday morning edition of Finland’s biggest newspaper Helsingin Sanomat, Nokia has pleaded with former CEO Stephen Elop to accept a smaller bonus in order to silence the roar of disapproval and protest now roiling Finland. Drama in Nokia’s home country escalated on Tuesday as it was revealed that Risto Siilasmaa, Nokiia’s chairman of the board, had misrepresented facts last weeks when he claimed that Elop’s bonus arrangements were similar to those of previous chief executives. Nokia was forced to admit on Tuesday morning that Elop had in fact received a contract that seemed to have been designed to guarantee a quick $25 million pay-off if Elop was able to sell the handset unit. According to Helsingin Sanomat, Nokia is now srcambling to contain the public relations damage the ongoing drama is causing. Asking Elop to accept a smaller bonus might silence some of the critics
Tuesday night’s big drama in Finnish media circles is being driven by the Helsingin Sanomat scoop that Elop is resisting Nokia’s pleas to reduce his bonus because he is getting divorced. Apparently Mr. Elop believes he cannot make his wife accept a reduction in the $25 million severance package. It is safe to say Finland has never witnessed melodrama like this when it comes to the best known company in the country.
Finnish media has traditionally treated Nokia with kid gloves, not really going out of its way to investigate the board’s actions. It seems that Nokia has been caught off guard by the new aggression of several leading Finnish news organizations.
One pivotal moment was perhaps Siilasmaa’s claim on Friday that Elop’s contract was “essentially the same” as the contracts of the previous CEOs. A few years ago, journalists might have taken that at face value.
Tomi Engdahl says:
Elop’s contract reportedly gave him a big incentive to tank Nokia’s stock, sell company
http://bgr.com/2013/09/24/nokia-ceo-elop-contract-details/
Wild-eyed believers in the Grand Elop Conspiracy might feel a little less crazy this morning. Frequent BGR contributor Tero Kuittinen, writing over at Forbes, points us to some reports in the Finnish press showing that former Nokia CEO Stephen Elop actually did have massive incentives in his contract to tank Nokia’s shares and sell the company off.
What’s even more striking, Kuittinen notes, is that “Elop’s bonus did not require an increase in Nokia’s share price” but instead “only required an increase in the share price from the absolute bottom… driving down the share price by 80% and then bouncing it a bit would be enough.”
This news all came to light after Nokia told members of the Finnish press last week that Elop’s contract was “essentially the same” as the one written for former Nokia CEO Olli-Pekka Kallasvuo. Once Finnish papers actually checked Nokia’s claim against Securities and Exchange Commission documents, however, they discovered key differences between the two and forced Nokia to admit that its claim about the two contracts being roughly the same was incorrect.
For his part, Elop will walk away with a $25 million payday once Microsoft finalizes its deal to acquire Nokia’s handset and services divisions, so at the very least we know that he’s not feeling too broken up about his decision to sell parts of the once-iconic Finnish smartphone manufacturer to the company where he’s now a leading candidate to become the next CEO.
Many people in Finland are unsurprisingly not happy with this state of affairs, however, and The Financial Times reports that Finnish politicians from both the right and the left are seething that Elop is getting $25 million for selling off pieces of Nokia to Microsoft. Center-right Prime Minister Jyrki Katainen, for instance, called the payment “outrageous”
Tomi Engdahl says:
Robocars, backseat fun, satnav 2.0: Meet the bit of Nokia Microsoft didn’t buy
Exec veep on the ‘slow’ pace of Windows 8, Ballmer, patents and more
http://www.theregister.co.uk/2013/09/24/new_nokia_devices_whynot/
Nokia has sold its phone-making wing to Microsoft, heaving off the division that made it one of the most recognised brands on the planet.
But that doesn’t mean it’s out of the hardware game.
“We have sold our device business for a reason, but that doesn’t keep us out of the device business,” Halbherr said. Just don’t expect to see Nokia making phones again – or at least any time soon.
“We are not prohibited from making any communication device. We will concept and think about new forms of devices,” he said.
“It would be wrong now to think about this from a phone perspective. With the cloud and the internet-of-things, we’re seeing a convergence of form factors where you do a few things well in a totally seamless way.
“We will still surprise people with leading-edge hardware.”
Halbherr joined Nokia when the Finnish giant bought his mapping company – just one of several related acquisitions, the biggest of which was satnav biz Navteq for €7.7bn. Now he runs Nokia’s HERE project, which gathers up users’ whereabouts to map out traffic hot spots and places where folks like to meet or visit – and uses that data to efficiently direct people and recommend things to do.
That’s the theory at least. HERE is licensed to companies ranging from Amazon and Microsoft to camera manufacturers that want to tag photos with the latest information about their surroundings: snap a pic of a high-street and labels for the individual shops, their customer ratings and related data can be pulled in, for example.
“[Microsoft CEO] Steve Ballmer said our apps need gas – and maps are the gas. What he didn’t say is that there are very few suppliers of that gas,”
As for the future, HERE team’s latest partnerships point to the sort of tech Nokia could end up producing next: the corp’s engineers are working with Mercedes-Benz to produce semi-automated and fully-automated software-controlled car driving. Halbherr says this system feeds on HERE’s real-time mapping data, which (we’re told) is updated 2,700,000 times a day.
HERE can also do entertainment: the driver gets maps and traffic info while the kids on the backseat get distractions. In a way, the car today resembles the PC business before standards for connecting stuff together arrived.
“The car companies are ultimately like orchestras, with a massive amount of intellectual property to coordinate. We should not draw analogies with phones or PCs too quickly,” he said. “We don’t have the deconstruction of automative that took place with personal computers and the barriers to entry are much higher. Yes, there are new entrants like Tesla, but not so much, still. It’s not that easy to build a car.”
“Nokia is three things. The first is NSN [Nokia Solutions and Networks]. We all know the numbers, it’s profitable and it’s 100 per cent owned by Nokia. The second is our Advanced Technologies Group: it does the research and development, and it has some product capability, to some extent, to experiment. It’s an amazing generator of intellectual property – and that’s a technology-licensing business and it’s growing. Then there’s HERE. All intellectual property in all aspects of HERE is being retained.”
Tomi Engdahl says:
When the middle class is being deceived
Business leaders unreasonable fees, the elite and the Gluttony capital district tax paradise contats receive regular employees feel betrayed. This is the assessment experts. What does all this imply?
In recent weeks, the news has undermined confidence in the rapidly ordinary wage earners of society and the reasonableness of the top-level sense what is right and wrong
Elite play politics often conceived as an error: it only thinks about the legality of its operations – it is not what it looks like.
The people are stirred up, among other things, the Nokia head Stephen Elop dubious merits received a gigantic bonus pot, elite exuberance telling Björn Wahlroos unofficial biography , Mr. Casimir Ehrnrooth tax haven, hidden in millions and Jorma Ollila secret held by a foreign investment company.
At the same time, is said to have structural changes “bittersweet each of the” . Wage increases were followed close to the zero line of the employers requirement, and the purchasing power of a wage-earner may even decrease.
- This is quite hard to break it, from the social contract is said to be a question of political history at the University of Helsinki, Professor Pauli Kettunen says.
- The middle class will have to get used to the idea that the elite groups do not belong anymore, “us”, but rather represent global capitalism, outside the national society.
Our highly trained, the working middle class is the main source of economic growth. The idea of ’middle-class’ project, which through training and by working to become wealthy, is disappearing.
- It is very difficult, if people lose hope, or the idea that they can build their lives rationally. The idea of the social and economic rise has brought stability and predictability to society, and now it is disappearing, communications lecturer at the University of Anu Kantola says.
Middle-class status is difficult to overstate, the researchers say. If the middle class does not ensure the subsistence of his act work in practice, the whole of society, it does not do any of the.
- Our society is the idea that power can be taken out when the greatest possible proportion of the population is educated and connected to the world of work, Anu Kantola says.
The public sector is largely a justification for the working middle class depends on. It is alarming in terms of public debate, more and more often repeated view that the productive and valuable work focuses almost exclusively in the export sector, for example, is not the state or municipalities.
- The welfare state legitimacy is essential that the middle class is experiencing the welfare state as their own
- Unemployment and Non-aside has been seen for a long time really expensive for society, but for now, this attitude is disappearing, Anu Kantola says.
- These two phenomenon is a clear gap. To achieve success in working through is becoming more difficult, but at the same time emphasizes the importance of the work even more.
The difficulty is often to achieve the objectives of the surrounding reality, not an individual is performing.
In reality, the work does not seem to matter how enriching to make an effort, but fortunes are earned just by other means than an employed person. Then the motivation drops.
- Middle-class life has become much more risk based and more dangerous. Over time, this can lead to committed employees finding it more difficult than before, says Anu Kantola.
Especially a lot of employees believe in eating kicks among the shared management of the enormous fees. Also, the premiums lame arguments. For example, Nokia Elop explained due to the premium only award.
- It was said to legitimize the premium, although really it should alert you that there is a structural element – the contract – which can produce such an outcome, Kettunen says.
What discontent
channeled?
While continuing to dissatisfaction and uncertainty exacerbated by social confrontation. For example, in the United States are already talking about making a general of the elite “one percent” who live at the expense of another 99 per cent.
- European Even the middle class no longer feel the old structures to work, it is quite clear, Weems says.
A striking feature is the lack of political alternatives. No one does not offer a credible alternative for cutting policy and able to compete in marketplace, and the Left in the lagging historically unprecedented hit rock bottom.
If a credible political alternative does not exist, which is channeled discontent? Historical examples do not bode well.
- Most of the middle-class discontent talking about fascism and national socialism, the rise in the background, Kettunen says
- It seems that the discontent is already a pretty widespread.
Source: http://www.taloussanomat.fi/tyo-ja-koulutus/2013/09/25/kun-keskiluokka-petettiin/201313205/139?rss=4
Tomi Engdahl says:
Nokia’s gaffe gets the attention of the world – “Embarrassing”
Nokia incorrect information on the former Managing Director, Stephen Elop agreement has attracted a lot of attention abroad.
Prestigious Financial Times article characterizes the Nokia error “embarrassing”, as it happened in the middle of Elop’s premium news stirred up by the “people’s anger”.
Reuters notes that Elop contract design is typical of American business leaders agreements.
In the United States takeovers are common, so they are often prepared for determining executive compensation for certain contracts, which will be paid with the change of control. The compensation is to ensure that the arrangements for managing the company operates in the best interests of the public even in the event that he loses his job.
Financial Times, Nokia Sources close to the government have questioned the whether the mobile phone business of selling single trigger a change of control clause and the guarantee Elop Agreement are in lieu. According to Nokia, the expression, however, relates to the takeover in addition to situations in which a large part of the company is sold.
Source: http://www.iltalehti.fi/talous/2013092517530858_ta.shtml
Tomi Engdahl says:
Nokia Siilasmaa: “I underestimated created a stir”
Nokia’s Chairman of the Board, Risto Siilasmaa to defend Stephen Elop plush termination payments.
According to Siilasmaa Elop’s contract is in accordance with international practice, and it was a last minute change in affordable Nokia shareholders.
Check out the final value of the package depends on when Nokia’s phone business will be transferred to Microsoft, because the lion’s share of the fees are tied to Nokia’s shares. If the sale had taken place on Wednesday, Elop’s severance pay would be 21.5 million euros
- But you have to remember that Nokia’s shareholders are paying for this 30 per cent, Siilasmaa says BTI’s interview.
Siilasmaa, anticipates that the transaction take place next year in the first quarter.
Chairman of the Board understands that the public debate has focused on the feelings that arouse bonus questions.
For this reason, the agreement was modified
In recent days, has wondered why Nokia moved to Elop’s director of contract on the same day as the Agreement on trade in phones with Microsoft was signed.
- Without the change, Elop would have to resign and get the same great reward immediately and Nokia would have had to pay for it completely.
Elop’s management contract is far less expensive than his predecessor in the event that the company would be sold off in his pool. This has given rise to speculation that Nokia and Elop are doing contract in 2010 anticipated that the phones will soon be the new host.
Siilasmaa, the change was not due to “in any way that would have predicted something like the situation.” He points out that selling clause of executive agreements in line with international practice.
- High-manager of the company may possibly have to negotiate the sale of the company, where he often actually lose their job or position. Nokia’s Elop as the government did with such an agreement, so that the President would have the interests of the shareholders in the same direction.
Siilasmaa says that he suggested Microsoft CEO Steve Ballmer the participation in the payment of Elop’s severance packages.
I told him that the Finns and the importance of the interests of all is, if we can show that Nokia’s shareholders do not pay all of that amount.
Anticipate, therefore, that the fees generated fuss?
- It was a very predictable, but still underestimated the outcome. I fully understand that these amounts is very difficult to comprehend. The government must focus on shareholders’ interests. International practices are difficult to change.
Source: http://www.iltalehti.fi/uutiset/2013092517533117_uu.shtml
Tomi Engdahl says:
Analysis of iPhone 5s costs
http://allthingsd.com/20130924/teardown-analysis-shows-iphone-5s-costs-at-least-199-to-build-173-for-the-5c/?mod=tweet
Tomi Engdahl says:
Do you still remember? This is why Nokia chose Windows Phone
What happened during those months when Nokia pondered their options as Google’s Android and Microsoft’s Windows Phone from before February 2011?
This issue has risen to the surface again in recent weeks, as Nokia’s CEO Stephen Elopia has been accused of a Trojan horse, a plan from the beginning was to take the Nokia Windows Phone camp. Similarly, the public has been speculated that this was precisely the plan to our Board of Directors, the Company hired manager from Microsoft.
This is not the old newspaper articles that seem to have been, at least in the public domain on the plan.
Financial Times the government at the time led by Jorma Ollila said that “as anyone with a new manager, he has a mandate to look at things through the eyes of the most recent, but he was not hired to shake up the strategy.”
At the time, Nokia’s strategy was based on company’s self-developed by the Symbian and MeeGo operating systems.
Business Week article contains an interesting little reminder that when Elop had been Microsoft’s Office business manager prior to joining Nokia’s lead. A couple of years before the partnership negotiations had led to Microsoft’s Elop side of the negotiations, in which Microsoft was trying to get Nokia to make Windows Mobile phones. In return, Microsoft had promised to make a version of Office to Symbian devices. The negotiations broke down at the time, but Microsoft Office agreed to do some Symbian devices.
Business Weekissä Elop says that Google had refused to give any concessions to Nokia to use Android, in contrast to Microsoft.
“It did not feel right,” Elop said in the article of Nokia Group. “We would have been just one of Android distributor.’s Not Nokia!, We must fight!”
Elop also said that Google “acted as if it was already won., Apple and Android deserve a real competition.”
Unlike Google, Microsoft offered many carrots Nokia Windows Phone defection to the camp, which clearly has been driven by Nokia, Microsoft’s direction.
End of the article, Elop said that Microsoft’s acquisition has never been the subject of negotiations. The partnership with Microsoft “is a lot easier than the acquisition.”
The old reading articles serve as a reminder that Microsoft’s choice was by no means self-evident, and that Android would have been “obvious” choice.
Source: http://www.tietoviikko.fi/kaikki_uutiset/muistatko+viela+taman+takia+nokia+valitsi+windows+phonen/a933430
Tomi Engdahl says:
Nokia Board Has Discussed Pursuit of Alcatel
Nokia Directors Explore Options, but No Formal Talks With Alcatel-Lucent
http://online.wsj.com/article/SB10001424052702304526204579097711244440486.html?KEYWORDS=nokia
Nokia Corp.’s NOK1V.HE -0.49% board of directors has discussed pursuing a tie-up with Alcatel-Lucent ALU.FR +5.37% following Nokia’s recent deal to sell its handset business to Microsoft Corp., several people familiar with the deliberations said.
Nokia’s internal discussions on the issue are part of a broad review of many potential options for its future business strategy. It has discussed “all options” concerning a potential Alcatel-Lucent deal but no formal discussions with the French company have been initiated, these people said.
Over the summer, Nokia bought Siemens AG out of its NSN wireless networks venture for €1.7 billion SIE.XE -0.31% . Once the mobile-phone business is gone, Nokia will focus on growing the wireless networks business and its mapping software business.
A spokesman for Alcatel-Lucent declined to comment. A Nokia spokeswoman also declined comment.
Nokia’s board met last week to discuss future strategy and other matters. One person familiar with the company’s plans said the Finnish company is far from making firm decisions on some of its of future plans.
Tomi Engdahl says:
Dawn of the iPhone soured success story
http://www.ft.com/intl/cms/s/2/63cbe32a-bd15-11df-954b-00144feab49a.html#axzz2fsRgMTwY
Mr Kallasvuo took over from Mr Ollila as chief executive in 2006, charged with continuing the success story that had seen Nokia transformed under Mr Ollila’s leadership from a sprawling conglomerate into the world’s biggest mobile phone-maker.
Instead, the storyline was turned on its head by the entry of Apple into the market with its flashy iPhone, heralding a shift from the basic handsets made by Nokia towards a new generation of smartphones.
“There have been issues about how quickly we were to turn around after we saw there was a sea change,” says Mr Ollila in an interview.
Under mounting pressure from investors over the plunging share price, Mr Ollila says Nokia’s board launched a review in October to assess how well strategy was being implemented. In late May, he says, the board concluded it should seek a new chief executive.
“Stephen stood out because of his strong background in the software industry,” says Mr Ollila. “He has an energetic and motivating leadership style and a record in change management.”
Tomi Engdahl says:
A Timely Revision of Elop’s “Burning Platform” Memo
http://slashdot.org/story/13/09/25/1648215/a-timely-revision-of-elops-burning-platform-memo
“Microsoft’s purchase of Finnish phone-maker Nokia will enrich the latter’s CEO, Stephen Elop, to the tune of roughly $25.4 million.”
“As Elop came aboard Nokia in 2011, he wrote the infamous ‘burning platform’ memo, in which he suggested that radical moves would be necessary to halt the company’s market-share declines.”
Tomi Engdahl says:
A Timely Revision of Elop’s ‘Burning Platform’ Memo
http://slashdot.org/topic/cloud/a-timely-revision-of-elops-burning-platform-memo/
In light of the Nokia CEO’s big payout, maybe it’s time to revisit his grand plan for saving the Finnish phone-maker.
Big paydays for CEOs (deserved or undeserved) are nothing new. But Elop’s payout carries a faint whiff of scandal: according to the BBC,
As Elop came aboard Nokia in 2011, he wrote the infamous “burning platform” memo, in which he suggested that radical moves would be necessary to halt the company’s market-share declines. Elop subsequently abandoned Nokia’s homegrown operating systems—most notably Symbian—in favor of Windows Phone, before selling the bulk of the firm to Microsoft. That proved an excellent move for Elop, who made a lot of money as a result, but maybe not so great a development for Finland, where Nokia was a crown economic jewel.
In light of all that, maybe it’s time to revisit Elop’s “burning platform” memo and give it a rewrite
“So here’s what we’re going to do: first, I’m going to spend a lot of time publicly denigrating Symbian, even though we continue to sell millions of phones equipped with that operating system. That’s what successful CEOs do—insult their core product, even if it commands a healthy percentage of the world market. Then I’m going to chuck the software in favor of Microsoft’s Windows Phone, which has negligible market-share.”
“Trust me, our market-share won’t collapse in record time, and nor will our stock price. I don’t have any reason to see the stock price fall, believe me.”
“And Meego? Sorry, we gotta drown that baby. Sometimes that’s what being CEO is all about: drowning babies.”
“As our market-share continues to not-crash, we’ll release a couple phones running Windows Phone. Those devices will sell pretty well, mostly because Microsoft and various carriers will throw millions of dollars into marketing them”
“As a result of our efforts, Windows Phone will gain a couple points’ worth of market share, even as Nokia continues to bleed cash. But that’s okay, because my old friends at Microsoft—realizing that Windows Phone is basically dead without Nokia’s full commitment to the platform—will swoop in and purchase our long-storied company, turning it into a glorified hardware-manufacturing arm.”
“In exchange for so drastically affecting Nokia’s market-share and stock price and selling its hardware unit, I’ll be given $25 million, none of which I’ll give back”
Tomi Engdahl says:
Professor Seppo Ikäheimo A-Studio Talk: Elop’s premium at the back of the breach of contract?
Accounting Professor Seppo Aalto University Ikäheimo points out that Nokia did not change control of the mobile phone trade. He suspects that Nokia will have to pay Stephen Elop left the commission for breach of contract.
Accounting Professor Seppo Aalto University Ikäheimo points out that Nokia did not change control of the manufacture of mobile phones were sold to Microsoft. Nevertheless, Nokia Stephen Elop to pay a record premium. Ikäheimo believes that the amendment of the agreement underlying Elop is Nokia’s breach of contract.
- Surely it so happened that a competitor Elop went to work. He switched to a competitor! That was not the original agreement in accordance with the law at all. If he had done so in the original agreement, so he would not have received any compensation, Professor Seppo Ikäheimo claims.
“The violation only option”
Source: http://yle.fi/uutiset/professori_seppo_ikaheimo_a-studion_talkissa_elopin_palkkion_takana_sopimusrikkomus/6852432
Tomi Engdahl says:
A former Nokia employees Studio Talk: Nokia-trade began to be prepared when Elop came to the house
Nokia’s former shop steward Mikko Sea Branch of Oulu believes that Nokia and Microsoft trade began to be prepared as soon as Stephen Elop joined the company three years ago: the staff is just waiting for information about the transaction.
Nokia’s former shop steward Mikko Sea Branch of Oulu believes that Nokia’s mobile phone business to Microsoft is prepared in three years – ever since I was hired Stephen Elop, Nokia.
Trade marks were preparing their own operating systems, Symbian and MeeGo down driving, plant locations, specialization and redundancies.
Cost cutting workers could be seen in everyday life even in small matters.
“Elop is good to talk”
Sea Branch pointed out that Nokia’s smart phones sold one million per day, while Nokia’s Elop was hired to lead. Today, they are sold to a million a week.
- Yes Elop is good to talk to. He declares at the time when speaking. The results are others, a former shop steward Sea Branch says.
According to him, Elop had promised that the German plant will not be closed. It was closed a week later.
Source: http://yle.fi/uutiset/entinen_nokialainen_a-studio_talkissa_nokia-kauppaa_alettiin_valmistella_kun_elop_tuli_taloon/6852347
Tomi Engdahl says:
Nokia the largest drop among the international brand comparison, Apple’s number one
Nokia’s brand has lost its value the most recent international brand comparison: ranked 57, while a year ago the investment was 19
The world’s most valuable brand rose to Apple
Next is Google.
Thirdly, Coca-Cola
Source: http://www.iltalehti.fi/talous/2013093017548253_ta.shtml
Tomi says:
Bill Gates out, and Jorma Ollila into Microsoft?
Microsoft’s three major shareholders have undertaken to wrench the company’s founder, Bill Gates aside from the government, Reuters news agency reported.
Reuters ‘s surprise report does not name the investors, who believe that Gates was an obstacle to the regeneration of the company and not let the future CEO of this situation, the necessary freedom of action. The report said Gates pushed out of the three investors are among the 20 largest shareholders and their total holding of about five per cent.
Gates owns 4.5 percent of Microsoft’s shares. He has a sales program, according to which the shares are sold to the final in 2018.
Yesterday, the Economic Sanomat wrote that Nokia’s former CEO Jorma Ollila be a candidate for the Board of Directors of Microsoft. These speculations do not seem to be more common than coincidentally happened the same-time news coverage.
Source: http://www.tietokone.fi/artikkeli/uutiset/bill_gates_ulos_ja_jorma_ollila_sisaan_microsoftille
Tomi Engdahl says:
Buying IP Is Not for the Faint of Heart
http://www.designnews.com/author.asp?section_id=1365&doc_id=268222&cid=nl.dn14
This month, Microsoft announced that it had reached an agreement to purchase Nokia’s handset business for $7.2 billion. Recalling that two years ago, Google purchased Motorola’s handset business for nearly twice that much, ($12.5 billion), it seems like Microsoft got a steal of a deal. Or did it?
Being on an engineering development team, working countless days and nights toward the day when your product finally launches, you always had the vision that you had designed the best device the world could ever see. The marketing launch would be glorious. But then, you’d watch the fanfare quickly fade into absolute oblivion, due to the sheer number of competitors who concurrently developed a closely related offering. That once-in-a-lifetime project for which you missed your kid’s birthday and ate cold pizza for dinner four nights a week during tool-release time turned out to be just a tiny, meaningless cog in the gigantic machine called the telecom industry. You had nearly sacrificed your wife and family for what? A crumby commodity, just like corn or pork bellies. So what was the point?
I think Google would say the intellectual property (IP) was the point. IP was the jewel in the $12.5 billion buyout of Motorola — its IP portfolio. Motorola had amassed a healthy library of very desirable patents over the years
As I read about the deal between Nokia and Microsoft, I noticed Microsoft paid a very healthy $7.2 billion, but only for the handset business. The deal did not include the ownership of Nokia’s patent and IP portfolio. Instead, Nokia agreed to license the IP for Microsoft’s use but maintain full ownership of its coveted portfolio. So was this a good buy? Microsoft’s stockholders didn’t think so, and the NAV of Microsoft fell sharply on the news.
Microsoft’s funds would have been better spent if they just stayed in the bank. Handset businesses cost a lot of money to run. Development requires large, multi-disciplined teams of people, all drawing nice salaries, and tooling alone can cost millions of dollars for a mass production launch. The completion is fierce, and losing money is a very realistic scenario. The bank may only pay a 0.9 percent return, but it’s guaranteed, and it’s positive.
Tomi Engdahl says:
What should Microsoft’s next CEO look like?
http://seattletimes.com/html/businesstechnology/2021988711_microsoftneedsnextxml.html
Since Microsoft CEO Steve Ballmer announced he would retire once his successor has been found, rumors and speculation have surrounded the company’s search for a new leader. Several tech and business experts offer their ideas.
some of the top-rumored candidates: Alan Mulally, Ford’s chief executive and former Boeing Commercial Airplanes CEO; Paul Maritz, Pivotal chief executive, former VMware CEO and a former top-ranking Microsoft executive; Stephen Elop, most recently Nokia CEO, who will return to being a top-ranking Microsoft executive once the company’s purchase of Nokia is finalized; and Tony Bates, former Skype president and current Microsoft executive vice president for business development and evangelism.
Of Elop, Cusumano says: “I just don’t really get it.”
Sure, Elop has experience with telecommunications and mobile devices, which is important for any high-tech CEO, but “his time at Nokia was basically a disaster,” Cusumano said.
“ I don’t know if anyone could have saved Nokia in that situation. But I ask myself: ‘What did he do?’
Iim O’Reilly, an open-source advocate and founder and CEO of the computer book publisher and conference host O’Reilly Media, believes Microsoft needs a leader who can shake things up and make the company less arrogant, more humble.
“Companies that are established so long in a leadership position — it’s very hard for them to become underdogs again,” he said. “I think, culturally, Microsoft doesn’t know how to be hungry. They need somebody who’s hungry.”
O’Reilly believes Elop “has that hungry entrepreneurial spirit. When I knew him at Macromedia, he was such a ball of energy in terms of making things happen.”
Maritz’s greatest strength, aside from his knowledge of Microsoft, is “he deeply understands the cloud — what it’s about, what the opportunities are there,” O’Reilly said.
Tomi Engdahl says:
Microsoft’s $7.2 Billion Nokia Bet Not Luring Apps
http://www.bloomberg.com/news/2013-10-09/microsoft-s-7-2-billion-nokia-bet-not-luring-apps.html
Microsoft Corp. (MSFT)’s $7.2 billion pairing with Nokia Oyj (NOK)’s handset business is failing to win over the software developers who are crucial to its success.
“With or without Nokia, Microsoft needs to demonstrate that they can capture a material segment of the mobile market,” Smith said in an interview. “We will wait and see.”
Yet interviews with more than a dozen developers show that the odds remain stacked against Microsoft — even with the Nokia deal, which is set to close in the first quarter of 2014. Developers said that while Nokia’s handset business gives Microsoft a ready pipeline of Windows Phone devices, it isn’t enough to overcome a lack of users, or the cost and confusion related to the technical specifications of writing for the company’s phone and tablet devices.
Ultimately, it comes down to where developers can make money — and that’s not with Microsoft
“What basket would you put your eggs?”
Microsoft, based in Redmond, Washington, currently has more than 175,000 applications for Windows Phone, compared with more than 900,000 for Apple iOS and more than 1 million for Google Android — and even those apps that it does have typically come to its platform later than for rivals.
The paucity of applications has impeded gains in Microsoft’s smartphone market share. The company had 3.7 percent of the global smartphone market in the second quarter, compared with 79 percent for Android and 13 percent for Apple, according to IDC.
Microsoft executives said they are well aware of the shortcomings and said that adding Nokia will help.
Tomi Engdahl says:
Nokian mobiilitaipaleella oikeita ja vääriä valintoja
http://www.tietokone.fi/artikkeli/uutiset/nokian_mobiilitaipaleella_oikeita_ja_vaaria_valintoja
Tomi says:
Jorma Ollila to Helsingin Sanomat: I admit my mistake
Jorma Ollila says Helsingin Sanomat, the grief and shock were the top layer of emotion when he heard of Nokia to sell to Microsoft.
In an interview Ollila says, from were Nokia’s decline began. According to Ollila, Nokia lost its leadership position, while the competitors were able to sniff the new wind better. As a result, Apple took over the phone market.
Ollila to admit that he was involved in making the wrong decisions, but he is nevertheless a gracious to himself.
- This sort of thing is clear, if you start to worry about the mistakes of the past, you can’t do your job, he says in an interview.
Source: http://www.iltalehti.fi/talous/2013101717615155_ta.shtml
Tomi Engdahl says:
Revelation: only in second candidate Elop Nokia’s executive
Jorma Ollila, screened from the American technology company, the second man of Nokia’s Chief Executive Officer. Once the best candidate suddenly withdrew from the race, Stephen Elop was hired.
Jorma Ollila says today published Impossible success in the book in detail, how to Stephen Elopista became CEO of Nokia.
The CEO search was launched in the early summer of 2010, when the task performed, Olli-Pekka Kallasvuo, Nokia had already lost confidence
After the preliminary work of consultants Ollila Task Force chose the screening of the final five candidates in the United States, as well as Nokia’s Anssi Vanjoki inside and Savander.
Ollila, rose to number one candidate for the American well-known technology company second in command. “He was fifty years old leader, who had worked for the company for a long time, and the increased number of tasks, the current strong position.”
Jorma Ollila says he met the number one candidate twice and had spoken with him three times. This technology companies in the world felt deeply, and his leadership style and values pleased Ollila.
“After much thought, however, decided to withdraw from the candidate be. The reasons were not related to Nokia, but his private life.”
Ollila says his American number one candidate would have been “definitely the right choice to Nokia and Nokia to him.”
The best candidate following the withdrawal of Americans missed the final stretch a Canadian Microsoft Office group leader and member of the Executive Stephen Elop.
Elopissa was Ollila’s view, enthusiasm and know-how, and he felt the Nokia’s excellent. According to Ollila, Elop’s speech sounded like a machine and idea generator.
Final candidates were the second-best American Elop and the best Finnish Anssi Vanjoki.
Source: http://www.tietoviikko.fi/uutisia/paljastus+elop+vasta+kakkosehdokas+nokian+johtoon/a939087
Tomi says:
Ollila to keep the lack of software know-how due to Nokia’s destruction
According to this, the company’s downhill is not a single reason, but ultimately it was a software expertise with their infirmities, that despite numerous attempts to repair failed.
“The mobile phone unit in Silicon Valley was once a thousand people, who had to sniff the new trends in software development. But we did not succeed in the same way that Google and Apple later. This is the basic Nokia’s failure, ” says Ollila for HS.
Ollila says that the selection of the new Windows Phone operating system arrived at after careful consideration, and the solution was recommended for both indoor and outside. Was wrong, the best known results.
“We managed to create a Microsoft operating system products and competitive alternative to the dominance of the two companies,” Ollila said in an interview.
About selling to Microsoft:
“Dramatic and bold decision, which is likely to be correct,”
Source: http://www.tietokone.fi/artikkeli/uutiset/hs_ollila_pitaa_ohjelmisto_osaamisen_puutetta_syyna_nokian_turmioon
flat screen tv says:
I seldom drop comments, howevrr i did a few seatching and wund up heree Microsoft
to buy Nokia
Tomi says:
Tim Cook says Nokia died because it didn’t innovate, Microsoft now copying Apple’s strategy
http://www.theverge.com/2013/9/19/4747676/tim-cook-nokia-no-innovation-microsoft-copying-apple-strategy
n an extensive interview published today by Bloomberg Businessweek, Apple CEO Tim Cook shares his thoughts on Microsoft’s planned acquisition of Nokia’s mobile phone business. “Everybody is trying to adopt Apple’s strategy,” says Cook. “We’re not looking for external validation of our strategy, but I think it does suggest that there’s a lot of copying, kind of, on the strategy and that people have recognized that importance.”
“To not innovate is to die.”
Tomi says:
Ollila, met in the summer of 2010 in the United States five Nokia external candidates, of which there remained two respectable candidates.
- Ykkösehdokkaakseni increased the known American technology company second in command. He was fifty years old leader, who had worked for the company for a long time, and the increased number of tasks, the current strong position, Ollila says in his book.
Technology & the economy, according to information the candidate was a follower of Apple’s business at the time, Tim Cook.
Ollila, does not confirm the information, but Cook could be Ollila’s favorite – at least in the book description fits very well.
Source: http://www.tietoviikko.fi/uutisia/oliko+applen+tim+cook+ollilan+suosikki+nokian+johtoon/a939174
Tomi Engdahl says:
Trend Researcher: When Apple introduced the iPhone, Nokia focused on reducing the charging plug size
Nokia did not believe that the computer manufacturer Apple could build the phone. So claims the future of the Swiss research firm Future Matters founder, Lars Thomsen, who say they know very well the Nokia leadership, and that he had been involved in witnessing the fall of 2007 the company’s mistakes.
Apple, the company introduced the iPhone in January 2007.
- At the beginning of 2007, Nokia felt that he was king of the world. When Apple mentioned at that time to build the iPhone, I was personally involved in witnessing what kind of atmosphere where Nokia was. It was thought that the computer manufacturer, with a market share of computers was less than one percent [percentage was actually bigger than the claims Thomsen, eds. note.], does not know how to build a phone,
Nokia Thompsen presented as an example of how a company can lose a period of uncertainty, and completely loses market share.
- Nokia was thought that waiting for the first. Internally, the gossip was that iPhones break easily, the batteries do not last at all, and people do not want that kind of phone.
However, Apple took over the smartphone market in three quarter. The first quarter, Nokia just waited. Nokia believed that the iPhone would only pioneers. When the next two quarter iPhone sales continue to increase, not known where to Nokia’s success is due.
- Only Nokia woke up. Korean Samsung and LG on the other hand bought iPhones as soon as the first in the queue when they came into the shops, flew back to Korea, venting their phones, and immediately began to manufacture its own equipment. They have not previously had no market share in smartphones, Thomsen says.
- Nokia E90 interested in at the same time, the model plug. That’s how it could be reduced 3.5 mm standard 1.8 millimeter standard. Engineers had the task bouquet and the company’s management support for this task.
The Future of Research, Nokia’s case says that the company did not recognize the so-called “Tipping Point”. Thomsen points out that the company is in the late stages, when the trend is clear
According to Thomsen, too many companies are not yet at the stage to react when the first popcorn slams. Then it is too late.
The example he takes the electronics, which will last a generation now only 10-11 months. Picture Tube Industry transition from liquid crystal displays took only 150 days. Changes in images from the film to digital lasted 210 weeks.
Source: http://yle.fi/uutiset/trenditutkija_kun_apple_esitteli_iphonen_nokia_keskittyi_latauspistokkeen_pienentamiseen/6891393
Tomi Engdahl says:
Elop: Nokia’s name may disappear altogether
Stephen Elop, Nokia-branded phones may be a point in history.
Elop to defend the British Daily Telegraph haastatetlussa a fee, which will be given to Nokia’s phone business will be sold to Microsoft. Microsoft’s service returning Elop said that the premium model of the Board of Directors carefully formulated so that it is in the interests of the shareholders. He pointed out that when he became President and CEO of Nokia, the company was clearly going downhill.
Elop, Microsoft does not yet have final decision on how your company will start selling smartphones. The Lumia name is only one option.
Elop believes it is possible that the Nokia-branded phones will completely disappear after ten years.
- We find out what brand consumers respond positively, which leads to the best message and the best opportunities for success, Elop said.
Elop said Microsoft has a number of well-known brands such as Xbox, Office and Surface, but the Lumia is also known for.
But in ten years, a lot can happen.
Source: http://www.iltalehti.fi/talous/2013102317639310_ta.shtml
Tomi Engdahl says:
Microsoft working on own branded phone
http://www.dnaindia.com/money/report-microsoft-working-on-own-branded-phone-1918343
Two months after acquiring Finnish handset maker Nokia for $7.2 billion, US-based software giant, Microsoft, is planning to launch its own Microsoft-branded Windows phone soon.
Confirming speculation of Microsoft’s first handset launch, a Mircrosoft senior executive speaking on condition of anonymity said that this was part of the company’s strategy to become a devices and services company, from an erstwhile Rs only-software’ company, which it declared at the time of Nokia’s acquisition.
However, the date of launch was not yet confirmed, he said.
Tomi Engdahl says:
Nokia shareholders approve Microsoft deal
http://www.theverge.com/2013/11/19/5121278/nokia-shareholders-approve-microsoft-deal
Nokia shareholders have approved a deal allowing Microsoft to purchase the Finnish smartphone maker’s Devices and Services unit. 99.7 percent of shareholders who participated in the vote agreed with the Microsoft sale, representing around four-fifths of Nokia’s shares, according to the Financial Times.
Some shareholders were understandably upset over the sale of a Finnish national icon, but that hasn’t stopped the majority from approving a deal worth around $7.2 billion.
The acquisition will see former Nokia CEO Stephen Elop return to Microsoft early next year to run an expanded devices and services team at the software giant.
Tomi Engdahl says:
Siilasmaa : What could have been done differently?
Nokia’s interim CEO , Risto Siilasmaa, the meeting was to receive a lot of criticism phones to sell to Microsoft.
Nokia’s interim CEO Risto Siilasmaa responded to criticism of the general meeting of shareholders .
“What decision-making in various stages could have been done differently? ”
“If we had chosen Android , no one can know where we would be now on the market . Globally, there are 500 Android manufacturer with four 000 Android device . Majority of these are loss-making companies, products,” he said.
Source: http://www.kauppalehti.fi/etusivu/siilasmaa+mita+olisi+voinut+tehda+toisin/201311570675
blackberry tracking says:
I do agree with all the ideas you have presented to your post.
They’re very convincing and can definitely work.
Nonetheless, the posts are very quick for beginners.
May just you please prolong them a little from subsequent time?
Thank you for the post.
Tomi Engdahl says:
Nokia hands over the keys: Keilaniemi will get Microsoft flag
According to Nokia, the Keilaniemi building staff working for the majority of the works in Devices & Services business, so Microsoft transaction the property becomes Microsoft’s office. Nokia announced this on the staff today.
Microsoft is committed to managing Keilaniemi in the heart of the building.
After the completion of the majority of the workforce Nokia will continue the company’s premises owned Karaportti. Some of the moves in the Otaniemi Open Innovation House office, with a staff of Nokia’s research team.
Karaportti the midpoint of the first moves of the management and support functions.
Nokia’s Extraordinary General Meeting approved on Tuesday, essentially in the Devices & Services net sales to Microsoft. The Transaction is expected to close during the first quarter of 2014.
Source: http://www.tietoviikko.fi/kaikki_uutiset/nokia+luovuttaa+avaimet+keilaniemeen+nousee+microsoftin+lippu/a949038
Tomi Engdahl says:
Angry Nokia staff protest Microsoft deal in China
The workers, united, won’t have their pay depleted!
http://www.theregister.co.uk/2013/11/22/nokia_protests_dongguan_china/
Hundreds of Nokia workers in China have protested the firm’s recent decision to sell its devices unit to Microsoft, complaining that they were forced to sign new contracts on worse terms.
The disgruntled employees stood outside a Nokia plant in the southern city of Dongguan, holding signs with slogans that read “Legally protect our rights” and “Demand fair compensation”, according to Reuters.
“We will definitely continue to fight until we get what’s fair,” one worker surnamed Zhang told the newswire.
The workers are apparently claiming that the deal signed with Microsoft has affected their compensation.
Tomi Engdahl says:
Microsoft to win EU okay for $7.3 billion Nokia deal: sources
http://www.reuters.com/article/2013/11/22/us-microsoft-nokia-eu-idUSBRE9AL0V320131122
Microsoft is set to secure unconditional EU regulatory approval for its proposed 5.4-billion-euro ($7.30 billion) takeover of Nokia’s mobile phone business, two people familiar with the matter said on Friday.
Tomi Engdahl says:
Nokia made the two best in the history of the Finnish corporate trade?
Nokia’s Annual General Meeting blessed the previous week sales of mobile phone operations to Microsoft . Sales of mobile phones has prompted a wide range of opinions on conspiracy theories ever since. Maybe a little less attention has been paid to do an overall assessment of Nokia’s two acquisitions in the current year.
In early July, Nokia Siemens acquired a 50 percent stake in NSN network company to. The purchase price net of half of the company was EUR 1.7 billion, with the total value of the company at a price calculated to EUR 3.4 billion. Purchase price was considered low.
In early September, only three months later, Nokia said the sale of its mobile phone operations to Microsoft. Total purchase price amounted to EUR 5.4 billion.
At the moment, Nokia’s market value is $ 6 in the share price of about € 22.4 billion. Prior to these two trade in the Nokia share price was around 3 euros, which is the company’s market capitalization was approximately EUR 11.2 billion. The company’s market value has since climbed to the summer reading about 11 billion.
Nokia’s share price rose sharply after the sale of the mobile phone functions. Post-trade price appreciation, investors find it worthless feature for Nokia.
If the future is guesswork is taken, the current estimate of the stock market is pretty clear: Nokia made a good deal. Finland, it would be desirable, however, that even Microsoft did a good deal.
Source: http://blogi.sijoitustalous.fi/3271/nokia-teki-kaksi-suomen-yrityshistorian-parasta-kauppaa/
Tomi Engdahl says:
Collapse of Nokia took 15 000 jobs in Finland – “indicates purification”
Nokia’s collapse has exported at least 15 000 jobs, survives Employment and Economic Development Department of the calculations. Except includes NSN’s and subcontractors of both companies by the personnel reductions.
“Structural change is a good thing. It tells the purification, although it has some nasty consequences, “said Lautanala SAK in Helsinki at a seminar organized on Tuesday.
Change due to a large number of people will have at least temporarily unemployed.
Source: http://www.tietoviikko.fi/kaikki_uutiset/nokian+romahdus+vei+15+000+tyopaikkaa+suomesta++quotkertoo+puhdistumisestaquot/a951555
Tomi Engdahl says:
DOJ gives OK to Microsoft-Nokia deal
http://news.cnet.com/8301-10805_3-57614232-75/doj-gives-ok-to-microsoft-nokia-deal/
Microsoft’s planned $7.2 billion acquisition of Nokia’s devices and services business wins approval from the Justice Department, but it still has to face the European Union.
“We look forward to the date when our partners at Nokia will become members of the Microsoft family, and are pleased that the Department of Justice has cleared the deal unconditionally,” said a Microsoft spokesperson in a prepared statement.
Reuters reported in October that the European Commission would decide by December 4 whether or not to clear the acquisition.
Tomi Engdahl says:
European Commission clears Microsoft’s Nokia purchase
http://www.zdnet.com/european-commission-clears-microsofts-nokia-purchase-7000023936/
Summary: The EU has approved Microsoft’s planned purchase of Nokia’s mobile devices and services business.
In a press release dated December 4, the Commission said it had investigated potential compeition concerns and found none.
“In 2012, almost 700 million smartphones and 162 million tablets were sold worldwide. The Commission assessed the effects of the acquisition on competition in the field of smart mobile devices (including smartphones and tablets). The Commission found that the overlap of the two companies’ activities in this area is minimal and several strong rivals, such as Samsung and Apple will continue to compete with the merged entity,” the release added.