We knew this day was coming. In the recent shareholder’s meeting in Helsinki, Finland; Nokia shareholders have shown displeasure on the company’s policy of focusing on a single platform, i.e. the relatively new Windows OS. In the meeting, many shareholders said that their patience was running thin and that the company should take some drastic measures like switching to another OS to get back in the smartphone race.
Back in 2011, when Nokia had announced their partnership with Microsoft, we expected it only to be a part of the big plan of the finnish Smartphone maker. However, we were quite surprised later on when Stephen Elop, the current CEO added that the company would only be focusing on the windows platform.
Although this year, the company has been making progress after a very bad 2012, the current quarterly reports are not that satisfying. Nokia managed to sell over 5.6 million units of Lumia smartphones this quarter up from the 4.4 million units sold last quarter, however even this growth is no match for the smartphone sales of the companies like Apple and Samsung. Lumia phones have not been able to capture the market like the android phones and clinging on to it might not be the best solution for their problems.
“You’re a nice guy … and the leadership team is doing its best, but clearly, it’s not enough,” one shareholder, Hannu Virtanen, told Elop. “Are you aware that results are what matter? The road to hell is paved with good intentions. Please switch to another road,” he said.
Although investors are still keeping Nokia stocks hoping for the best, many institutional investors have already reduced their stake in the company. The company’s second largest shareholder, Finnish pension fund Ilmarinen, recently reduced their stake in the company by 27%.
However, Elop made it very clear to the shareholders that the company would stick to the present strategy making adjustments in due course and would continue to fight in the market with Lumia smartphones.
Now, we don’t really know where the company will end up with Microsoft’s windows platform especially when they are not the only ones in the market to supply windows devices. But we don’t think that Nokia would be able to pose a threat to its competitors like Samsung and Apple unless and until they come up with a completely new and innovative strategy.
So, do you think Nokia should change their strategy?