Nokia's 'Unpolished Gems'
He said there is an "embarrassment of riches" within Nokia, but that those riches can only be realized if the true value of the gems can be released. There are some that can be polished into something shiny and profitable (my words, not his…), while the company will be "setting aside those that are less relevant."
Elop was addressing analysts and investors on today's third-quarter earnings conference call, during which he explained the reasons behind 1,800 job cuts and lower-than-expected sales. He said he is focused on developing a clearer strategy for Nokia and a "greater focus on execution." (See Euronews: Oct. 21, Nokia Reports Q3 , and Nokia Cuts Jobs .)
One issue Elop and his team need to address is an ongoing components shortage that Nokia says held back its third-quarter handset sales, affecting in particular the "low end of the market" where it is very strong. The shortage, which hampered the sourcing of components such as displays and cameras, is set to continue into the fourth quarter and into 2011, noted the CEO.
In the third quarter, Nokia sold 83.9 million devices, down 9 percent year-on-year and 4 percent compared with the second quarter.
And that's not Elop's only concern.
He also noted that Nokia is "characterized as a place where it is hard to get things done," while a lack of success in North America is "characterized as a weakness." The vendor has also been challenged by the way it is organized, he noted: Products and solutions have been developed by individual teams in isolation, which isn't very efficient, hence the "streamlining" announced today that will see 1,800 staff lose their jobs.
Elop, though, is "very excited" about the applications development of the MeeGo operating system, which he believes will attract greater developer interaction with Nokia, which has decided to focus on Qt as the "sole application development framework will ensure that applications will continue to be compatible with future evolutions of Symbian as well as upcoming MeeGo products." (See Nokia Updates Qt.)
Less exciting is what's going on around those operating systems: There aren't going to be any MeeGo products until 2011, while the Symbian community is close to meltdown. (See Symbian Chief Exits and NoGo for MeeGo.)
In addition, Nokia says it is supporting HTML5 "for development of Web content and applications for both Symbian and MeeGo platforms."
— Ray Le Maistre, International Managing Editor, Light Reading