Nokia (NOK) Investors Tell CEO They Are Losing Their Patience
At the annual general meeting in Helsinki, shareholders of Nokia Corporation (NYSE:NOK) told the CEO Stephen Elop that their patient is wearing thin as the company is struggling to compete against companies like Samsung and Apple. The shareholders said that Elop should reconsider the decision to switch to Microsoft Windows Phone. Elop used to be employed by Microsoft.
“You’re a nice guy … and the leadership team is doing its best, but clearly, it’s not enough,” said a shareholder named Hannu Virtanen at the meeting. “Are you aware that results are what matter? The road to hell is paved with good intentions. Please switch to another road.”
Many shareholders are still holding their Nokia stock despite poor results because they are sentimental about the company’s rebirth after the collapse of the Soviet Union in the early 1990s. Finnish pension fund and major Nokia shareholder, Ilmarinen, cut their stake by 27% in Q1.
“We make adjustments as we go. But it’s very clear to us that in today’s war of ecosystems, we’ve made a very clear decision to focus on Windows Phone with our Lumia product line,” said Elop. “And it is with that that we will compete with competitors like Samsung and Android.”
Nokia sold a total of 5.6 million Lumia handsets in the first quarter. This is up from 4.4 million in the previous quarter. However Nokia’s total marketshare is still only around 5%. Apple and Samsung dominate over half the market.
Earlier today, we reported that Nokia has confirmed a new device called the Lumia 928. This 4.5-inch touchscreen device is expected to arrive later this month.
Correction: This article has been corrected. Previously we wrote that Ilmarinen was the company’s second largest shareholder, but that is not the case. Thank you for the correction Seppo Sahrakorpi (comment #1) on this article.