Nokia - Smart Phones, Dumb Company?

News that Nokia is looking to replace it's CEO - WSJ:

The world's largest handset making is calling for a new CEO, sources told the Wall Street Journal on Monday. WSJ Corporate Bureau Chief Andrew Dowell and Dow Jones Newswires' Rob Armstrong join the Digits show to discuss possible successors to Olli-Pekka Kallasvuo, and how heavily Nokia should focus on a new mobile software strategy.

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While Nokia continues to sell more cellphones than any other manufacturer, it has failed to keep up with advances by such rivals as Apple Inc. and makers of smartphones running Google Inc. operating software.

The Espoo, Finland, company's failure to get back in the race has taken a toll. Its stock rose eight cents to $8.82 in 4 p.m. New York Stock Exchange trading Monday but is off nearly 42% since April 19.

This is a story that starts pre-iPhone - before this blog even started in 2007 we had done analysis showing Nokia was losing ground on usability of its handsets, and the tardiness of their response to the iPhone has been an indication that the corporate culture is unable to come to grips with the new smartphone market. There has been a few chairs shifted at the top, but we suspect more root and branch change to company culture is required* - a totally independent unit in another country perhaps?

Still, its not just Nokia that is struggling - news out today that 70% of iPhone users would buy a new iPhone, but only 20% of Android users will buy a new Android - the reason is also one of Nokia's main problems:

Google has to work with .... handset manufacturers who have their own agenda. Unfortunately that agenda very often conflicts with customer needs. Old habits die hard for this manufacturers who still insist on adding more crap to the phone and complicating them. The lesson that everyone should learn from Jobs is less is more. Less is more.

For "Handset manufacturers", replace with "Nokia".

*Removing a CEO is seldom enough to change the culture of a company, which is usually promulgated by senior middle managers proecting their own positions.