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Nokia CEO states he is not a Trojan horse, conspiracy theories killed

By | February 13, 2011, 10:51am PST

Summary: It seems that many Nokia fans and employees are fired up and feeling betrayed by the Nokia Microsoft partnership, but there really is no big conspiracy or evil plan here.

The conspiracy theorists came out in force this weekend after the early Friday morning announcement that Nokia would roll out Windows Phone smartphones in the future. It was said that Elop was the 8th largest Microsoft stockholder and owned no Nokia stock and that he was a trojan horse that came to Nokia with a plan all along to work with Microsoft’s Windows Phone.

In regards to the shares, apparently Elop started to sell his shares, but was forced to halt sales after Nokia and Microsoft started working through CEO negotiations. He also was not able to purchase Nokia stock because of the rules regarding stock ownership so those making a major deal out of his stock and tying it to some conspiracy need to reevaluate this idea. He stated he will be purchasing Nokia stock as soon as the rules allow him to. Actually, if he ends up keeping his Microsoft stock I would think Nokians would be comforted in knowing he has a vested interest in making the Windows Phone deal succeed.

Earlier today at Mobile World Congress Nokia held a press event where CEO Stephen Elop was present and during the Q&A period someone actually asked him straight up if he was a trojan horse. He said that he was not and that the entire Nokia management team was involved in the Nokia Microsoft partnership. There are many Finnish Nokia management people and I doubt a new CEO could come in and just make such a major decision without complete buy in and approval. The board of directors has to be involved with decisions of this magnitude and it is rather ridiculous to think he is a dictator that just came into Nokia and decided to go rogue and partner with Microsoft on Windows Phone.

I know this deal is painful for many Nokia personnel and fans, but as Mr. Elop clearly stated in his burning platform memo things were not good at Nokia and something radical had to be done to get them back into the high end smartphone game. As a Nokia fan myself, I have sad feelings about what might become of the Nokia that I have liked for so long since the openness and customizability of their platforms and the Finnish influence are things that appealed to me. Then again, it has been a few years since really innovative and exciting products have been released and times change.

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Matthew Miller started using a Pilot 1000 in 1997 and has been writing news, reviews, and opinion pieces ever since.

Disclosure

Matthew Miller

Matthew is a professional naval architect by day and a mobile gadget freak at all other times. He purchases his own devices and then sells them on eBay or Craigslist to buy more. Many other devices are sent for review on a 30-day loaner basis and then returned to the carrier or manufacturer. If any are provided as “long term loaner units” this will be clearly disclosed in his reviews.

Biography

Matthew Miller

Matthew Miller started using a mobile devices in 1997 and has been writing news, reviews, and opinion pieces ever since. He is a co-host with GigaOM's Kevin Tofel on the MobileTechRoundup podcast and an author of three Wiley Companion series books. Matthew started using mobile devices with a US Robotics Pilot 1000 and has owned over 125 different devices running Palm, Linux, Symbian, Newton, BlackBerry, iOS, Android, webOS, Windows Mobile, and Windows Phone operating systems. His current collection includes an HTC Radar 4G, Dell Venue Pro, Apple iPad 2, HTC Flyer, Samsung Galaxy Nexus, Nokia N9, Apple iPhone 4S, MacBook Pro, and many more, along with tons of accessories and classic devices like the Apple Newton MessagePad 2100 and Sony CLIE UX50. Matthew can be found on various discussion forums under the user name of "palmsolo".
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RE: Nokia CEO states he is not a Trojan horse, conspiracy theories killed
tomlin21-24319035676893835085146735905770 11th Oct
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Yes, a lot of Nokia fans and Open Source community got upset, and think Elop might have been pushed it. They are forgetting one simple fact. Board's decision is ultimate. One thing for sure, Nokia's board might have given a thought and looked at various factors such as:
1. Developer support
2. Ecosystem
3. Could save in R&D and support in advertising, so they could save in those areas and concentrate their budget to enhancing hardware and marketing.

Yes, Google can support them in these areas, but I am not sure because Nokia has to compete with already established OEMs in Android market like Samsung, HTC, LG etc. They might have taken a look at Sony Ericsson. Sony Ericsson was late into WinMo party with their XPeria 1. Eventhough that phone was compelling, it was poorly sold. Xperia 2, and on are eventhough powered by mighty Android, Sony Ericsson is not doing good. Sony Ericsson also has good h/w designs, but their sales are comparable to LG, not with Samsung or HTC. Thats why Nokia wanted something new, which is not saturated with other makers. They have chosen Windows phone 7 for this reason. It has strong developer base, building up greater ecosystem with services like Bing, Zune, XBox Live, Office with One Note etc. It has greater integration with cloud and its concept with Hubs is fresh. Also they get support from Microsoft for Ads and R&D.

I, for one, wouldn't have bought Nokia Andriod for sure, because I am already happy with my HTC EVO 4g, and Samsung Galaxy Tab and probably would have gone to Atrix 4G or Inspire 4G but never to Nokia Android in near future.

I think this is good step made by Nokia's board. It is a win win for both MSFT and NOK if Nokia can bring out phones in the next 3 to 4 months.
@Rama.NET
I don?t know how ot break this to you, but they listed the last week in November as the debut of the Nokiasoft phone. I honestly believe this was setup in September of last year, as Elop has only been with Nokia since September 21, 2010. Which is a very short time to forge a deal of this size, without insider help. Elop was sent to Nokia as a transition person. In two years time Nokia will either be a subsidiary of Microsoft , or will not exist at all.
@Rick_K Oh God, you're a frickin' idiot just like these 9/11 and moon landing assh*les.
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Sad to see Nokia go.
trentreviso 13th Feb 2011
Nokia was once the largest company in Finland, and the largest manufacturer of cell phones in the world. According to Wikipedia, in 2003 Nokia alone accounted for 3.5 % of Finland's GDP!

It's sad to see Nokia close up shop like this. It will be a big blow to Finland.
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Close Up shop? In what way?
Mister Spock 13th Feb 2011
@trentreviso, it appears that Nokia just signed a deal that will ensure that will not happen.

If you follow the news, you would have read about the partnership.
@Mister Spock

Considering:
1) Nokia has been on the delcine for years.
2) WinPhone 7 is DOA I'd say it will be the beginning of the end.
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Simply unbelievable!
andesia 13th Feb 2011
This was 2009: http://www.microsoft.com/presspass/press/2009/aug09/08-12pixipr.mspx
And in 2011 the same guy acts as Nokia CEO (come on, him and Ballmer on stage... what does that have anything to do with Nokia?) achieving this:
1) destroy Nokia's existing ecosystem (Symbian was still the largest smartphone OS worldwide), alienating developers, etc.
2) tie Nokia's future to a pricey (roayalties!) and so far unsuccessful mobile OS, not allowing for any plan B if things turn sour
3) apparently Nokia got no special bargain from the deal, while MS gets a monopolistic (as usual) foothold in Nokia (with its huge customer base), hijacks former OVI store traffic, gets OVI maps FOR FREE, while it asks for royalties on its OS!!!!!
4) the burning platform stunt is a textbook example of PR, when you need to set up the audience as if the world is ending (come on, Nokia was in no such plight, it was struggling but retained its n.1 position in many fields, its business continued to grow, etc.) to justify otherwise unacceptable solutions.
Really how MS could be allowed to do this (gobble up a company the size of Nokia for free) is just amazing! I wonder if there will be grounds for an action against Elop by shareholders. But, in any case, that's how MS always won in the market. Not by providing the best products (that was usually accomplished by others such as Apple, Lotus, Netscape, Sun, Google, etc.) but by copying and then stifling the competition.
Congratulations Microsoft! So long Nokia!
@MSPawar
Billions? Yet they ask for royalties on WM7? And the stock plunges 20%? I doubt it, but time will tell.
@andesia If you didn't understand what the article was let me explain it to you. MS is paying Nokia billions of dollars for expertise that Nokia brings. MS will do the R&D on the software side. Whats wrong to ask for licensing fee for the OS which automatically indemnifies Nokia from any patent lawsuits which may be leveled against the OS ?
@1773
I was reading your link... "bidding war against Google"? For what? Android is free, so it could not have been on the software cost. Moreover... "hinting"? Hints are vague: is this "billion" story true or not? What Microsoft got, on the contrary, was not just hinted, it was plainly stated.
But even if so, why tying up one's hands ONLY with Microsoft? Motorola, who was far worse off than Nokia, chose Android and succeeded. What really is puzzling and suspicious is the way Nokia -according to the news- is obliterating its OSs and rules out trying other options (e.g. Android). Why not trying both?
Furthermore, the latest Nokia WinPhone pics... what is cool about them is the phone... not the OS... it could have been loaded with anything. Another PR stunt for WM7.
So again, this whole story stinks. And while for MS it makes total sense to drive Nokia in this direction, for Nokia it really does not, based purely on common sense.
But again, time will tell...
@1773 Sorry for the late post, but as I was supposing...: http://www.engadget.com/2011/02/15/debunk-elop-never-said-microsoft-is-paying-nokia-billions-of-do/ So, no billions, not even millions, from MS, as expected.
What MS achieved was a silent, costless, buyout of Nokia, plain and simple. And many share the same view: http://westudymedia.wordpress.com/2011/02/12/apple-outsider-%C2%BB-microsoft-buys-nokia-for-0b/ Much better that others had suggested, i.e. buying nokia with real money! How could Jorma Ollila and the other Nokia's shareholders allow all this is really a mistery... Again, just consider it from a risk perspective: all risks to Nokia, all risk free gains to MS! Simply unbelievable!
@andesia
Are you willing to take an Android phone that has no Android Marketplace, no Gmail, no Youtube, etc? Those are NOT free! OEMs pay Google for those!
@day2die
Without supporting facts/docs/links to your claims just ranting.
@day2die

Link please. Thanks.
@day2die
Get your facts right! There are NOT charge for gmail or youtube, Android Marketplace or any other google apps. Google pay OEMs if they install google search by default.
they kind of missed it: if you really want to go big with smartphones, be original and give users a choice regarding the os. I buy a phone and you provide a rom images of wp7, android, symbian etc . Just like a pc where the hardware vendor gives me drivers and i install whatever os i want to. Lots of vendors do that, some even released them as opensource to be included in linux kernel.
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Smart decision
jackbond 13th Feb 2011
Get paid to use the best mobile operating system. Only an idiot would have turned that deal down.
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For the MCSE every decision is MS
Richard Flude Updated - 13th Feb 2011
They haven't the objective skills nor the knowledge to choose anything else. Hasn't work well for them in the enterprise, it won't for Nokia either.
@jackbond
Extremely subjective: Given the tepid sales of Windows phone 7 series OS phones. I can?t see how anyone could say it is the ?best mobile operating system? with a straight face. Changing one set of icons to larger monochromatic icons (tiles) is not that innovative. Are you implying tying this to Microsoft?s other product as being the reason it is the best? Or is it the position of the NBM: since it?s from Microsoft, it must be the best.
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The worst way to announce this partnership
goblem Updated - 13th Feb 2011
The announce regarding their "primary OS" killed off their existing ecosystem in exchange for a supposed successful product which resembles more to the game menus than to a fully matured operating system. They sold the jewel from Europe's crown as Ballmer's hooker and still they pretend us to get exited. UNBEALIVABLE. I still expect some strikes in Espoo asking for Elop's head and a new tenure to levarage NOKIA's current assets, streamlined development process, infinitely better quality and reliability. Just thinking after Nokia was pretending to get billions after this deal: has anybody showed Elop that only on Friday Nokia lost more than FIVE BILLIONS (-14%)? Did anybody ask this vodka addictive about a cost evaluation for finishing the UI for Symbian and close integration with Qt versus the migration of everything to WP7 plus the learning curve for it? About the ruined DEVELOPERS community versus the dreamed MS mobile developers community? Just asking... After this movement I expect that all Nokia's BOD members be asked about their incomes through an off-shore schemes, about any bank account in Switzerland... The previous CEO, Olli-Pekka Kallasvuo, was accused once about tax evasion. It is simply beyond any reasonable logic what happened there.
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"Will" and "if".....
Economister 13th Feb 2011
amount to nothing. What if "will" turns into "didn't" and "if" does not materialize?

This blog does not reassure me st all.
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I bet all the haters here and outside are either wary or ignorant of the fact that Nokia is going to become the next DELL for Mobiles in this decade of Smartphone taking over PCs. If it's not such a good deal, why would GOOG VP post such a nasty tweet out of despair.

Now, the whole Android community is shaking, including Samsung, LG, HTC and rest. I bet everyone will jump out of Android bandwagon and move to WP in forthcoming months, before Nokia takes over the whole Mobile/Smartphone market back.

I feel HTC, DELL & Samsung will dump Android in days to come for WP, Sony can't do that, so would partner with GOOD. MOTO fingers crossed.

Long live Nokia.

BTW, in any absolute terms, WP ecosystem is much much much larger than Android / RIM / WebOS / Simbian. WP runs on Windows and .NET. Also, as MS stated in CEC 2011, if Windows 8 is going to be the one running in Smartphones as well (ARM/et. all), it's going to be the NEO for next 20 years.
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Dead pan humour aside
guihombre 13th Feb 2011
@jinishans,
I can't help thinking that dead pan parody would be funnier if I understood the NEO reference. NEO?
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Oops !
jinishans 13th Feb 2011
@guihombre The one going to save and rule the Smartphone world !
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@jinishans

Windows Phone 7 is more like Windows 9x. Eventually that merged into XP. Windows 8 will likely have multiple shells so a phone can easily dock and drive a display, mouse and keyboard with a full blown Explorer shell and run all your normal Windows apps. Then it would have a mobile shell. Or perhaps these would be VMs with shared access to data on the device. You'd likely have four in total. One that's media/TV centric, one that's tablet-oriented, one for smaller screen phones and one for desktop mode.

It would switch automatically, using sleep states on SSDs to quickly load each OS VM. It could be a very interesting partnership. Windows 8 on ARM leads to all sorts of interesting possibilities. I imagine you could cram an awful lot of ARM cpus in a desktop chasis. If Windows 8 scales well across many cores, you could have 64 core ARM chips at 2 GHz each that rival Intel's best and likely beat it in power usage.
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He's not a trojan he's just wrong
guihombre 13th Feb 2011
There is indeed something wrong with Nokia, it has a lot of talent and they can't deliver. There's nothing more wrong with Symbian than was wrong with Android 1.6.

Yet Google empowers its people and they can deliver, and Nokia disempowers its people and they cannot.

Now he's done the ultimate disempowerment. The whole OS is taken out of their hands!

Instead of improving Symbian, they're going to be tweaking WP7, a phone platform that's losing. Plus switching to a search engine that's reduced to copying Google results. He's competing by tying one hand behind his Nokias back.

Why?

When he fails (this will), just boot him out as quick as you can and save what you can of Nokia.
@guihombre "a phone platform that's losing. Plus switching to a search engine that's reduced to copying Google results.Can you provide any facts that corroborate your statements ?
against Microsoft that it does not allow you the ability to look at things logically, or objectively.

If you convince yourself that a person standing in front of you is a murderer, you will jump at everything he does as you are freightened that he was attepting to kill you.

That is why understanding the benefits of the deal is beyond your scope of understanding: You are too biased to see the truth.
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Matt, you are the eternal optimist
Dietrich T. Schmitz, ~ Your Linux Advocate 13th Feb 2011
But I still like you and enjoy reading your blog.
Unfortunately, in the case of this story, I cannot agree with you.

Unless there is a shareholder uprising or some other form of legal intervention to block this joint venture, I see a relatively bleak outlook for Nokia, which will go the way of Novell, embrace, extend, extinguish.
@Dietrich T. Schmitz, Your Linux Advocate

Amazing that MSFT can still engage in this anti-competitive tactic a full decade after they were declared to be an illegal monopolist by the governments! MSFT should be put out to pasture!
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Contributr
Curious about what you think was best strategy
palmsolo (aka Matthew Miller) 13th Feb 2011
@Dietrich T. Schmitz, Your Linux Advocate Thanks Dietrich, I don't expect people to always agree with me and like hearing differing opinions. Do you think Nokia should have went with Android, improved Symbian through Qt, or focused on MeeGo? I personally would like to have seen some MeeGo products released, along with WP7. As much as I was a fan of Symbian, it wasn't really appealing to new smartphone customers and caused me lots of trouble too.
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Nokia employees just got raped.
MSFTWorshipper 13th Feb 2011
Elop is obviously a MSFT trojan horse. The stock selling should be the ULTIMATE clue. He's there to wreck what's left of a once-proud company.
Well, what would he have answered to that question?

Though I don't believe that's it's a conspiracy in the sense of hidden loyalties or labyrinthine plans hatched by a monocled Ballmer dispatching his minions.

I don't know many CEOs, but I have seen many people jump from a company to its vendor/customer. The pattern usually is that the relationship between the companies weakens. I think it's because the new employee wants to demonstrate up front that the loyalties are with the new firm and so he cuts the business with the old firm or engages in hard-ball negotiations.

As I said the other day, I'm pretty sure this was the Nokia Board's plan and Elop was the guy who looked like he would best execute it.

I believe in the business deal as an ideal, a way to give parties a chance to have a meeting of the minds so both come out ahead for having signed on the dotted line. But the realist in me knows that a lot of folks take the Donald Trump "Art of the Deal" approach, which is all about [I think the verb I need would not pass muster, its root may be found in the name of a drink that is part orange juice and part vodka, if my mixology is up to muster]ing the other party.

I don't have a crystal ball and I certainly cannot peer into the hearts of men and ascertain true motives. Something about this deal feels like the Yahoo! deal to me, and what has that company done in the past couple of years? Hired an ax-wielding CEO who emphasizes short-term gains and engineering/r&d cuts. Celebrate Ms. Bartz as one might, I can't really say that Yahoo! thrived for making that deal.

But, as Peter Marshall used to say on "The Hollywood Squares" whenever a contestant chose the absolute wrong square, "This might work out."
If Stephan Elop is not a trojan, then why did he sign the company over to Microsoft within his first six months as the CEO? He only became the CEO of Nokia on September 21, 2010. By February of the following year he, make a major deal with his former employer? Something smells fishy in this scenario. If he still has a large investment in Microsoft stock there is an issue with this. I do find it funny that he was working in Microsoft?s mobile platform, then suddenly he moves to a competitor, and that competitor chooses to use the OS by his former employer. I wonder if he?s going to move beck to Redmond now, after Nokia goes under? Microsoft now has access to 100% of Nokia?s IP and patents.
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Call it computer phones; would ya?
ferrel1 15th Feb 2011
Nokia made/makes really good "cell" phones. I just bought one. Cell phone usage is not all about paying for data services and cramming computer functions sliced down into small devices. Watching movies or training videos on that tiny screen while waiting to get your teeth cleaned is entertaining and useful. It's the whole virtual social thing a pen, paper and stamp just can't do. However.... money is in the gadgets and the more fun you can have with your palms the more you might hand over the cash. Will MS deliver that under the Nokia hardware name or just use their base before selling licenses to everyone? We'll see. No doubt I'll be discussing that over my phone when it gets further down the road.
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RE: Nokia CEO states he is not a Trojan horse, conspiracy theories killed
jackson1984-24316069205748857739440257893812 11th Oct
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RE: Nokia CEO states he is not a Trojan horse, conspiracy theories killed
tomlin21-24319035676893835085146735905770 11th Oct
I just stumbled on your own website when i accustomed to be lookng on google. I've to say the data right here was by far the most complet that I learned an reebok nfl jerseys yplace.

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