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Nokia takeover rumored to be behind development bottleneck shareholders too much intervention

https://cdn.pixabay.com/photo/2017/01/29/13/20/mobile-devices-2017978__340.png
https://cdn.pixabay.com/photo/2017/01/29/13/20/mobile-devices-2017978__340.png

After a lapse of more than half a month, Microsoft to buy Nokia mobile phone department rumors again. The difference is that the price of Microsoft's Nokia phone business fell to $ 19 billion from $ 30 billion a month ago.

On June 2, Nokia officials began to rumor, saying that the rumors are unfounded.

Interestingly, the acquisition rumors bustled at the same time, Nokia Greater China, South Korea, and Japan Senior Vice President Liang Yumei left on June 1, by Nokia Global Sales Senior Vice President Zhao Colin took over the business in China.

Liang Yumei's Greater China business grew 30% in the first quarter of this year, the highest growth rate in all regions of Nokia."Liang Yumei as a Nokia executives working for many years, it must have deep feelings for Nokia, leaving should be one of the most helpless choice.AI media consulting general manager Zhang Yi pointed out that although the low Nokia mobile phone manufacturers have been squeezed in China, in the high-end smartphones and beat Apple and other emerging Android mobile phone manufacturers. But that doesn't mean Nokia has failed to implement a transformative mobile internet strategy for several years.

Although the richness of the Nokia App Store program is not as Apple App Store, in terms of the usefulness of the application, it is not inferior to Apple."The problem with Nokia today is that its board of directors and shareholders are interested in the short-term benefits of stock price volatility and are able to continue to support the decisions of the company's management."Zhang Yi pointed out that Nokia's problems today and Motorola's year from the mobile phone market peak fall, encountered a "big business disease", the company's shareholders may be too much involved in the company's management and decision-making, " Liang Yumei departure reasons should also be based on this.”

In fact, the Nokia Board of directors and shareholders of the company's business intervention traces, during the period of Nokia's leadership has been manifested. Last July, on the eve of his departure, Nokia'S CEO Kang Pei Kai said the board should be asked questions about his personal future.

"If the company's shareholders intervene too much, it will make it difficult for the company's management to make bold decisions. In the mobile phone industry is so competitive today, no decisive and wise decision is difficult to win in the future market competition. Zhang Yi said.

In fact, the success of Motorola today on Android phones is one of the best proof."Motorola lost Nokia's key reason is that shareholders too much intervention in business decisions, resulting in new product development and listing time is too long, can not keep up with the speed of market development."Motorola China company a middle told the "first financial daily", Motorola mobile phone business CEO Sanjay Jia took office after not long, began to spin-off mobile phone business, the main reason is to shareholders no longer interfere with the company's business decisions.

After nearly two years of efforts, although Motorola Android phone market share is still inferior to Samsung and HTC, but also successfully set up the image of the smartphone manufacturers.

Review Motorola mobile phone business turn over history, it is not difficult to understand Elop after joining Nokia, there will be Microsoft's acquisition of Nokia mobile phone department rumors. With the year Sanjay Jia approach is somewhat similar, Elop took office, Nokia's terminal and service business division set up an intelligent terminal and mobile phone two different business departments, and Nokia's second quarter of this year's earnings will be according to the new operating structure to provide financial information and sector performance.

"First mobile phone division split into two major sectors of smartphones and non-smart phones, the smartphone Department and Microsoft cooperation space naturally enlarged.Mr. Zhang said that if Microsoft had a capital partnership with Nokia's smartphone business, there would be more room for Elop to make business decisions.

Independent IT reviewer Wang Bin also said that Microsoft in the intelligent terminal needs a very focused partner, only in this way can resist the threat of Google and Apple on its future market. If you can use the capital to bind the global mobile phone market ranked first Nokia, will be the best choice.