Nokia reshuffles top execs after poor quarter

Dylan Bushell-Embling
19 Oct 2009
00:00
News
Daily News

One day after posting its first quarterly loss in over a decade, Nokia has embarked on another reorganization, splitting its mobile phone division into two.

It has appointed CFO Rick Simonson as head of the mobile phones division while Jo Harlow will run the smartphones group, Nokia said on Friday.

The global head of sales, Tim Ihamuotila, will fill the CFO chair. Both Simonson and Ihamuotila will remain members of Nokia's group executive board.

The move comes one day after Nokia posted a €913 million ($1.36 billion) quarterly net loss, its first such loss in over a decade.

Nokia said handset volumes were down 8% in the quarter, and the company is trailing in key areas such as smartphones and services and across the board in the US market.

Its share of the smartphone market fell sequentially from 41% to 35%. While Nokia has said its future lies in the services business, consumers have met its Ovi app store and Comes With Music service with indifference.

The company's share of the US market has shrunk from 35% in March 2002, to 7% in June this year.

Analysts have pointed to Nokia's failure to adapt to changing US consumer tastes, and its inability to find a phone that can match the iPhone or BlackBerry, as reasons for the decline in the world’s biggest single market.

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