Nokia, the world's top cellphone maker, brought in Microsoft's Stephen Elop to replace its embattled chief executive and lead a renewed effort to compete in the smartphone market. Canadian Elop, the head of Microsoft's business division, will take over from Olli-Pekka Kallasvuo, whom Nokia has been looking to replace for several months, on September 21.
Nokia shares were up 5 percent to 8.13 euros at 0810 GMT. The stock has roughly halved since Kallasvuo took the helm in June 2006. "It is good that something is happening," said Inge Heydorn, fund manager at Sentat Asset Management. "They have had problems for a long time and have been behind the curve on trends for the past few years. I think it could be good to get new influences, thoughts and ideas," Heydorn said.
Hiring Elop is a major shift at the top of the company - he is the first non-Finn to run the company in its 145-year history. Also, eight of the current 10 executive board members are Finns. "His strong software background and proven record in change management will be valuable assets as we press harder to complete the transformation of the company," chairman Jorma Ollila said on Friday. Under Kallasvuo, who has spent more than half of his life at the company, Nokia has struggled to keep up with new rivals like Apple and Google in the smartphone market.
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