Daunting Task

By Reuters  |  Print this article Print

Stephen Elop, a Canadian Microsoft executive, is joining Nokia as CEO.

Elop told the news conference North America was a critically important market and would be "an area of emphasis."

Ollila said of Elop: "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."

Nokia shares rose almost 7 percent but later lost most of their gains to trade up 1.9 percent at 7.89 euros by 1405 GMT (10:05 a.m. EDT). The European technology index was flat.

"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," said Inge Heydorn, fund manager at Sentat Asset Management.

"Elop faces a daunting task. Nokia has lost its leadership in high-tier phones and has struggled with the rise of Internet-led services," said Ben Wood, head of research at UK-based telecoms analyst firm CCS Insight.