This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Nokia Chief Announces Cuts, Spots Gems

NEW YORK ( TheStreet) -- Nokia (NOK) announced plans to cut staff and said it lost more market share in the third quarter due to parts shortages in its lower priced phones.

The Finnish phone giant said it will cut 1,800 employees, or 1.4% of its 128, 237-person staff. The cuts will be focused mostly on its Symbian/smartphone unit and also in its Ovi wireless services business, new CEO Steve Elop told analysts on an earnings conference call Thursday.
Nokia N8
Nokia N8

The cuts come as Nokia attempts to turn around its performance as it continues to fall behind smartphone sales trends led by rivals including Apple's (AAPL) iPhone and Google's (GOOG) Android devices.

Looking ahead, Elop, who came to Nokia from Microsoft's (MSFT) business software unit earlier this year, warned that a shortage of parts like screens and cameras will continue to impair the company's production of low priced phones into 2011.

This is an unpleasant development for Nokia, given that its key strength has been its steady performance in cheaper phones despite stumbles in the smartphone market.

Asked if Nokia would consider abandoning its Symbian/MeeGo operating system in favor of other software like Android or Microsoft's Windows 7, Elop said probably not. This should quiet speculation that Nokia was throwing in the towel on its own sputtering software push.

Nokia's goal, Elop told analysts, was to have a sustainable, differentiated and complete solution in smartphones. "When you consider alternatives it is unclear how we could maintain differentiation on those paths," said Elop.

Elop, it can now be said, prefers the integrated approach of software, hardware and services on Nokia's own designs. This is an Apple-like approach to phones and not a Motorola (MOT) or Samsung-type focus primarily on hardware.

As for Nokia's timing for re-entry into the U.S. market, Elop said it was too early to make any specific announcements, but added that Nokia's global strategy has been successful. In the U.S., where the telcos determine what phones are accepted and sold, Elop said he planned to spend time working on these partnerships.

After a strong start in the U.S. over a decade ago, Nokia has now nearly completely exited the market, due to an inability to mollify the big telcos, namely AT&T (T) and Verizon (VZ).

In his conference call summary, Elop said while it was still "early days" in his turnaround bid, he added that there were many "unpolished gems" at Nokia.

Nokia shares, which have fallen 20% in the past year, rose 4% to $10.83 in early trading Thursday.

--Written by Scott Moritz in New York.

>To contact this writer, click here: Scott Moritz, or email:

To follow Scott on Twitter, go to

>To send a tip, email:

Readers Also Like:

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $95.18 0.00%
FB $117.43 0.00%
GOOG $692.36 0.00%
TSLA $232.32 0.00%
YHOO $36.01 0.00%


Chart of I:DJI
DOW 17,750.91 -140.25 -0.78%
S&P 500 2,063.37 -18.06 -0.87%
NASDAQ 4,763.2240 -54.37 -1.13%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs