Stephen Elop, CEO of Nokia, has sent a blunt but honest memo to his staff suggesting that the once mobile market leader is now in crisis. In particular, he feels that the firm was caught off guard by the success of Google's Android operating system and Apple's iPhone. Despite the first iPhone being shipped back in 2007, he states that Nokia “still don't have a product that is close to their [Apple’s] experience”.
As a result he describes the company as standing on a "burning platform" surrounded by innovative competitors who are grabbing its market share. Although Nokia leads the global smartphone market in terms of handset sales, its overall share has been gradually declining. According to research firm IDC, Nokia’s shares fell 10% between 2009 and 2010.
Mr Elop's leaked memo also suggests that Nokia is also being squeezed at the lower, non-smartphone end of the market by Chinese manufacturers because they are produced quickly and cheaply.
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