The Do-It-Yourself Elop Analysis

Ok. If you don't want any of my analysis or commentary or rants. Just the facts. Then Elop can be evaluated as Nokia CEO, for Nokia Corporate total results during his tenure. Or, because Nokia just now sold its total handset unit to Microsoft, it can be useful to see what results did Elop achieve at that handset unit (this includes both smartphones and featurephones). And lastly, since Elop did make a major change to Nokia's largest and most profitable division, the smartphone unit, it is a detail worth considering. No more analysis, just the facts...

NOKIA CORPORATION UNDER ELOP

First 6 months - Corporate quarterly revenues up 26% from 10.0B Euro to 12.6B Euro
Next 2.5 years - Corporate quarterly revenues down 55% from 12.6B Euro to 5.6B Euro

First 6 months - Corporate quarterly profit up 200% from 295M Euro to 884M Euro
Next 2.5 years - Corporate quarterly profit of 884M Euro turned into loss of -115M Euro

During first 6 months - Standard & Poor's rating for Nokia A, Moody's rating A2, Fitch's rating A 
On last day of office - Standard & Poor's rating for Nokia junk, Moody's rating junk, Fitch's rating junk

On day before Elop announced as new CEO - Nokia share price $9.70
On day before Elop released his Burning Platforms memo - Nokia share price $11.28 (up 16%)
On day before Nokia announces Elop to step down as CEO - Nokia share price $3.90 (down 65%)


NOKIA HANDSET UNIT PERFORMANCE UNDER ELOP

First 6 months - Handset quarterly revenues up 25% from 6.8B Euro to 8.5B Euro
Next 2.5 years - Handset quarterly revenues down 69% from 8.5B Euro to 2.6B Euro

First 6 months - Total handsets profit first 6 months 1.8B Euro 
Next 2.5 years - Total handsets loss next 2.5 years 361M Euro

First 6 months - North America quarterly handset volume flat from 2.6M units to 2.6M units
Next 2.5 years - North America quarterly handset volume down 80% from 2.6M units to 0.5M units

First 6 months - China quarterly handset volume up 13% from 19.3M units to 21.9M units
Next 2.5 years - China quarterly handset volume down 81% from 21.9M units to 4.1M units

Nokia handset market share when Elop started - 33%
Nokia handset market share when Elop departed - 14%

Nokia ranking handsets when Elop started - 1st
Nokia ranking handsets when Elop departed - 2nd

Gap to leader when Elop started - Nokia 50% bigger than number 2 (Samsung)
Gap to leader when Elop departed - Samsung 30% bigger than Nokia

This handset unit has now been sold (plus patents and mapping licences) for 5.3B Euro to Microsoft


NOKIA SMARTPHONE DIVISION PERFORMANCE UNDER ELOP

First 6 months - Smartphone quarterly revenues up 29% from 3.4B Euro to 4.4B Euro
Next 2.5 years - Smartphone quarterly revenues down 73% from 4.4B Euro to 1.2B Euro

First 6 months - Smartphone quarterly profit up 94% from 283M Euro to 548M Euro
Next 2.5 years - Smartphone quarterly profit of 548M Euro turned into loss of -168M Euro

First 6 months - Smartphone quarterly volume up 18% from 24.0M units to 28.3M units
Next 2.5 years - Smartphone quarterly volume down 74% from 28.3M units to 7.4M units

Nokia smartphone market share when Elop started - 35%
Nokia smartphone market share when Elop departed - 3%

Nokia ranking smartphones when Elop started - 1st
Nokia ranking smartphones when Elop departed - 9th

Gap to leader when Elop started - twice as big as number 2 (RIM) or number 3 (Apple)
Gap to leader when Elop departed - Samsung smartphones is 12x bigger than Nokia smartphones


Worst CEO ever? You make the call. Was Nokia smartphone unit truly in catastrophic trouble before the Burning Platforms memo? You make the call. Did the Elop Effect turn strong growth into collapse? You make the call.

Comments

[Interested to know]

It's beggars belief that Elop and Ballmer are going to get away with this.

[Interested to know]

Microsoft+Nokia at least lead the industry in astroturfing.

They are experts in diverting attention away from the catastrophes that they create.

[Conspiracy]

IF, Elop and Ballmer and Nokia board, were even placed under investigation (of the obvious), it would have only positive impacts to both blue and white collar workers.

Blue collar workers would feel that the law is the same for all and the white collar workers (=F100 CEOs) would be more cautious in the future.

But that is never going to happen. Someone wrote a great comment in Uusi Suomi, that now all three major mobile OS's are in US under NSA and Jorma Ollila was given his current position with Shell, if he made sure, that Nokia, the rebel and pioneer in mobile, would be sold to Microsoft. This agreement, of course, was made in one of the Bilderberger meetings :)

Makes sense if you think about it. Long gone are days when Big Elephants danced ;)

[indiephone]

And this person may very well be Microsoft's new CEO?

They're screwed.

Okay they're screwed in any case but still...

[zlutor]

@Conspiracy: "now all three major mobile OS's are in US under NSA" - actually not three but all four (yours + Symbian) are control of USA companies...

Remember the very first movement was outsourcing Symbian to Accenture...

[zlutor]

@Conspiracy: not to mention S30 and S40 phones being heavily used in countries in Asia, Middle East and Africa...
But it is really just a conteo...

[Giacomo Di Giacomo]

@Zlutor: Outsorcing does not mean giving control. Accenture does what their customers tell them. And, by the way, Accenture is not USA, but Irish. Nevertheless, I agree with the NSA conspiracy theory.

[foo]

Why compare the first 6 months with the next 2.5 years? It makes it seem that the collapse was slow.

You should compare the first 6 months with the next 6 months. That is enough to show the Elop Effect.

[Brock]

Nokia + Android = Newkia!!!
http://www.androidauthority.com/nokia-android-phone-newkia-264160/

Made my day!

[vladkr]

Tomi:

Who won the "guess Elop's departure" contest ? Or do you consider Elop is not out yet ?

[vladkr]

@Conspiracy:
Elop hasn't been investigated when he sold formerly successful Macromedia to Adobe. Unfortunately, I doubt he can be worried. These kind of cheaters often win.

[e_lm_70]

@Vladkr

"Elop hasn't been investigated when he sold formerly successful Macromedia to Adobe."

Elop bought tons of Nokia stocks at the lowest price, knowing well, that MicroSoft was about to buy the money losing division (he made it as money losing, before was a money maker) ... only for this he should be investigated and lock in jail .. together with all the BoD members that did the same.

But, in Finland nobody did anything even if Tomi made an open letter with all the crimes made by Elop as CEO of Nokia.

[Prasenjit Singh Bist]

Dear Tomi,

Elop the cancer was finaly cured but what a sacrifice had to be made the prized possession of D&S unit.. Look at that son of satan he spent last 2 yrs meeting and identifying the personnels MSFT will need and the patents and the designers and then the Trojan showed his colours.

Some will say its a board decision but Elop was CEO he runs day 2 day operations he proposes to board and that idiot that fatso craeted this circumstances.

But the BoD and chairman did the right, without Nokia going bankrupt and making it prey to vultures they prudently gave the shark what it wanted and saved Nokia though at a huge price.

I was wondering had Nokia continued with Meego and not bashed Symbian rather shared the updates that were to come etc etc we could have been in a different world. Nokia had the market share, money power and influence but this ass hole made Nokia loose.
Nokia spent money on Anna, Belle, Belle Refresh but people had given up on Symbian and Elop the great ass leader had done it..

Also too an extent OPK was wrong in 2009 they should have gone all guns blazing on Maemo rather than merging with moblin and loosing time.. these small things really complicated syuffs for Nokia.

Also I belive Tomi that Symbian 3 team should have focussed more on the UI part and Web technologies eve if that meant loosing some core s60 features... they could have added them over the time.. That would have given Symbian 3 a better fresh appearance .

Anssi Vanjoki was a fighter he knew the scale Symbian was playing at and the premium Nokia could have but why on earth was Elop the Asshole made CEO.

I have a few questions that I request you to please reply.
1. Who could be possibly the new Nokia CEO now?
2. Nokia retains Nokia brand and in analyst call the CFO spoke about monetization through new products, is there any comment from you on that?
3. Can we see Jolla play a role in next chapter of Nokia something NeXT did for apple.

Thanks,

[vladkr]

@e_lm_70 :
Elop and Ballmer paraded in Finnish parliament, and even met Finnish Prime Minister, although they certainly don't deserve such an honour (I was already disgusted that Elop was invited in presidential parties on Finnish Independence day).

Although like you, I'd like to see Elop, Ballmer (and all their team) follow the fate of Maddoff, I still doubt they'll risk anything.

That's quite unfair, I agree...

[Henry]

The bare numbers taken by themselves are simply appalling. 6-7 years ago I would have spoken of 'science fiction', if someone had showed me such forecasts for the mighty Nokia. Vanjoki is perfectly right in his definition of 'complete failure'. Tomi, at this point you could insert also the number of the people made redundant, comparing with the previous management, so the picture will be complete :-{

[oli]

No argue, Elops is the greatest trojan horse in economical industries

[Esau]

Tomi and Risku were fools a few days ago. Now they present the absolute truth. What happened to Finnish press?

[Esau]

Nokia headquarters is (was) located at the best possible place westwards from Helsinki. In a beautiful island and marina area. You cannot avoid seeing 'Nokia' when you drive to any of the best suburbans in Espoo (western Helsinki suburbans).

'Auto Here' is great for finding a route to avoid seeing 'Microsoft' neons.

[Esau]

It was Siilasmaa that had to sign the papers. He is a fool that Microsoft professionals choose as a sheep. Even his English linguisting abilities are quite limited. Why did Ollila choose a sheep like him?

[Esau]

No one has an answer. I will answer myself. I saw the TV-show with Ollila just after the MS deal. He was like an animal pushed towards a corner.

Ollila said that he was convinced that European software cannot compete with American software. WHAT? Nokia using SAP and a Finnish guy called Linus Torvalds driving mobile to Android? WHAT (the f)?

I do repeat my question. Why did Ollila choose a Windows-sheep like Siilasmaa? Why?