“The first iPhone shipped in 2007, and we still don’t have the product which is close to their experience. Android came on a stage only over 2 years ago, as well as this week they took the care position in smartphone volumes. Unbelievable.” This is just one of most, most pieces of sheer knowledge allegedly forsaken by recently-appointed Nokia CEO Stephen Elop — before of Microsoft — in the roughly 1,300-word memo to a company’s employees which we’ve perceived today. Though we can’t vouch for the authenticity, it’s notable that the memo contains a portion formerly reported by The Register as well as heard by sources during TechCrunch Europe, so it would appear which we’ve simply received the total thing. Elop goes upon to suggest that his association is “standing on the blazing platform” as well as contingency “change [its] function,” suggesting that a adoption of the non-homegrown platform similar to Android or Windows Phone 7 is the some-more picturesque possibility than ever before.

Update: We’ve now listened from multiple trusted sources that this memo is indeed real, and was posted to an inner Nokia employee scheme. That creates it one of a many sparkling and interesting CEO memos we’ve ever seen — as well as we’re absolutely dying to see how Elop plans to shakeup things up.

Overall, the communique laments Nokia’s lateral transformation while Apple as well as Google have proposed eating its lunch on a mid- as well as tall finish as well as Shenzhen-based off brands have started to cut into the traditional prevalence in rising markets, leaving Espoo with virtually zero market care. It’s a stark revelation which seems fitting of a male brought in from the outside — he’s conjunction Finnish, nor raised in a Nokia system — and he promises to start revealing the way brazen this Friday at a company’s Capital Markets Day eventuality where showy intentions have been opened in the past.

Whether the memo is legitimate or not, the magnitude and power of big-time rumors floating around Nokia ahead of Capital Markets Day (and MWC subsequent week) have been pretty wild: we’ve listened they’ll be announcing a partnership with Microsoft presumably revolving around Windows Phone 7, that a boatload of executives would be shown the doorway, as well as that Elop would start seeking to Nokia’s new Silicon Valley campus as the center of gravity, with execs and comparison management expected to begin spending some-more time outside Finland.

We’ll know far, distant some-more about what’s starting on over in Espoo in the next few days, though in a meantime, here have been a little preference quotes from the memo:”…there is heated feverishness coming from our competitors, some-more rapidly than we ever approaching. Apple disrupted a market by redefining the smartphone and attracting developers to a closed, but really absolute ecosystem.”"They altered the diversion, and currently, Apple owns the high-end range.”"Google has become a gravitational force, drawing much of a industry’s innovation to the core.”"We have a little shining sources of innovation inside Nokia, but we are not bringing it to market fast sufficient. We thought MeeGo would be a height for winning high-end smartphones. However, during this rate, by the finish of 2011, we might have usually one MeeGo product in the market.”"…Symbian is proof to be an increasingly formidable surroundings in which to rise to encounter a continuously expanding consumer mandate…”"Our competitors aren’t receiving our marketplace share with inclination; they have been receiving the market share with an entire ecosystem.”"We poured gasoline on the own blazing height. I believe we have lacked accountability as well as care to bring into line as well as approach a association through these disruptive times. We had the series of misses. We haven’t been delivering creation quick enough. We’re not collaborating internally. Nokia, our platform is blazing.”Read the full memo after the break.

Hello there,

There is a pertinent story about the man who was working upon an oil height in the North Sea. He woke up a single night from the shrill blast, which suddenly set his complete oil platform on fire. In mere moments, he was surrounded by abandon. Through a fume as well as feverishness, he hardly made his way out of a disharmony to the platform’s edge. When he looked down over the edge, all he could see were the dim, cold, foresight Atlantic waters.

As the glow approached him, a man had small seconds to react. He could stand on the height, as well as fundamentally be used up by the blazing flames. Or, he could thrust 30 meters in to the freezing waters. The man was standing upon the “burning platform,” as well as he needed to make the choice.

He motionless to burst. It was unexpected. In ordinary circumstances, the man would never consider plunging into icy waters. But these were not ordinary times – his height was on fire. The man survived the tumble as well as a waters. After he was rescued, he noted which the “burning height” caused the radical shift in his poise.

We too, are station on a “burning platform,” as well as we contingency decide how we have been going to change the behaviour.

Over a past couple of months, I’ve common with you what I’ve listened from our shareholders, operators, developers, suppliers and from you. Today, I’m starting to share what I’ve schooled as well as what I have come to hold.

I have schooled which we are station on a blazing height.

And, we have some-more than one explosion – we have mixed points of boiling heat that are fuelling the blazing fire around us.

For e.g., there is intense heat coming from the competitors, some-more rapidly than we ever expected. Apple disrupted a marketplace by redefining a smartphone and attracting developers to a closed, but really powerful ecosystem.

In 2008, Apple’s marketplace share in the $300+ cost operation was 25 percent; by 2010 it escalated to 61 percent. They are enjoying a tremendous expansion trajectory with the 78 percent earnings growth year over year in Q4 2010. Apple demonstrated which if designed well, consumers would buy a high-priced phone with a great knowledge and developers would setup applications. They changed the game, as well as today, Apple owns the high-end operation.

And then, there is Android. In about two years, Android created the platform that attracts application developers, assistance providers as well as hardware manufacturers. Android came in during the high-end, they have been right away winning a mid-range, and fast they are starting downstream to phones under €100. Google has become a gravitational force, sketch most of a industry’s creation to the core.

Let’s not forget about the low-end price operation. In 2008, MediaTek granted finish anxiety designs for phone chipsets, which enabled manufacturers in the Shenzhen segment of China to produce phones during an unimaginable pace. By some accounts, this ecosystem now produces some-more than a single third of the phones sole globally – taking share from us in rising markets.

While competitors poured abandon upon the marketplace share, what happened at Nokia? We fell behind, we missed big trends, and we mislaid time. At which time, we thought we were making a right decisions; though, with the good of hindsight, we right away find ourselves years at the back of.

The first iPhone shipped in 2007, and we still don’t have the product which is tighten to their knowledge. Android came upon the scene just over 2 years ago, as well as this week they took the leadership place in smartphone volumes. Unbelievable.

We have some brilliant sources of creation inside Nokia, but we are not bringing it to marketplace quick sufficient. We thought MeeGo would be a platform for winning high-end smartphones. However, at this rate, by the finish of 2011, we might have only one MeeGo product in a marketplace.

At the midrange, we have Symbian. It has proven to be non-competitive in heading markets like North America. Additionally, Symbian is proving to be an increasingly difficult surroundings in that to develop to meet a continuously expanding consumer requirements, heading to slowness in product development as well as also formulating a waste when we find to take advantage of brand new hardware platforms. As the outcome, if we goon like before, we will get further and further at the back of, while the competitors advance serve and further forward.

At the lower-end price operation, Chinese OEMs have been cranking out the device most faster than, as one Nokia employee pronounced only partially in jest, “a time that it takes us to polish a PowerPoint display.” They have been fast, they are cheap, as well as they are challenging us.

And the indeed confusing aspect is that we’re not even fighting with a right weapons. We are still too often perplexing to proceed any cost range upon the device-to-device basis.

The conflict of inclination has now become the war of ecosystems, where ecosystems embody not only a hardware as well as program of the device, though developers, applications, ecommerce, promotion, search, social applications, location-based services, one communications as well as many alternative things. Our competitors aren’t taking the marketplace share with inclination; they have been receiving the market share with an entire ecosystem. This means we’re going to have to decide how we possibly setup, catalyse or stick on an ecosystem.

This is a single of a decisions we need to have. In a meantime, we’ve mislaid market share, we’ve mislaid thoughts share as well as we’ve lost time.

On Tuesday, Standard & Poor’s sensitive that they will put the A long term as well as A-1 reduced tenure ratings upon negative credit watch. This is a similar rating movement to a one that Moody’s took last week. Basically it means which during the next few weeks they will have an analysis of Nokia, and confirm upon the possible credit rating hillside. Why are these credit agencies contemplating these changes? Because they are endangered about the competitiveness.

Consumer preference for Nokia declined worldwide. In the UK, our brand preference has slipped to 20 percent, that is 8 percent reduce than last year. That means only 1 out of 5 people in a UK cite Nokia to other brands. It’s also down in a other markets, that are traditionally the strongholds: Russia, Germany, Indonesia, UAE, and on as well as upon as well as upon.

How did we get to this point? Why did we fall at the back of when a world around us evolved?

This is what I have been perplexing to assimilate. I believe at slightest some of it has been due to the attitude inside Nokia. We poured gasoline on our own burning platform. I believe we have lacked burden and leadership to bring into line as well as approach a company through these disruptive times. We had a series of misses. We haven’t been delivering creation fast sufficient. We’re not collaborating internally.

Nokia, the platform is burning.

We are operative on a path brazen — a path to rebuild our market leadership. When we share the new plan on February 11, it will be a huge effort to transform our company. But, I hold that together, we can face a hurdles forward of us. Together, we can choose to define the future.

The blazing platform, upon which the male found himself, caused the man to change his behaviour, and take a confidant and brave step into an capricious future. He was able to tell his story. Now, we have the good opportunity to do the same.

Stephen.

Via Engadget