Nokia appoints Microsoft executive as new head

Finland's Nokia has appointed Microsoft business manager Stephen Elop as its new chief executive.

Mr Elop - the first non-Finn to head Nokia - will replace Olli-Pekka Kallasvuo, a lifelong employee who had been chief executive since 2006.

The appointment may mark a sea-change in strategy at the top of the Finnish mobile phone giant.

In July, Nokia reported a 40% slump in second quarter profits, as it struggled to break into the smartphone market.

Mr Kallasvuo has been facing increasing pressure to quit this year after Nokia issued two profits warnings and its share price fell by more than 40% between March and June.

Markets took the news of Mr Elop's appointment well, with Nokia shares up about 6% in early trading on Friday.

Experience

Mr Elop, who will take up his new position at Nokia on 21 September, is currently the head of Microsoft's Business Division.

Prior to working at Microsoft, he has also held senior positions at Juniper Networks, Adobe Systems and Macromedia.

Mr Elop said his job was to "take the organisation through a period of disruption".

He said that the technology world was facing a "moment of fundamental disruption" thanks to the advent of the smartphone, social media such as Facebook, and "cloud computing" which uses the internet to increase the capabilities of home computers.

In a statement, Nokia chairman Jorma Ollila said: "The Nokia board believes that Stephen has the right industry experience and leadership skills to realise the full potential of Nokia.

"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".

BBC News