Stephen Elop#"Burning Platform" memo

Elop was born in Ancaster, Ontario, Canada,{{cite web | url=http://www.businessweek.com/magazine/content/09_27/b4138032168910.htm | archive-url=https://web.archive.org/web/20090628000156/http://www.businessweek.com/magazine/content/09_27/b4138032168910.htm | url-status=dead | archive-date=28 June 2009 | title=Bio: Stephen Elop | work=Bloomberg Businessweek | date=25 June 2009 | accessdate=10 September 2010}} as the second of three children in a family.{{Cite web|url=https://asokan.org/operation-elop/|title = Operation Elop}} His mother was a chemist and his father was an engineer at Westinghouse Electric Corporation. Both of them still live in Ancaster.{{Cite news|url=https://www.theglobeandmail.com/report-on-business/careers/careers-leadership/stephen-elop-putting-nokia-back-in-the-race/article534292/?page=all|title = Stephen Elop: Putting Nokia back in the race|newspaper = The Globe and Mail|date = 23 March 2012|last1 = Reguly|first1 = Eric}} His grandfather was a wireless operator who used morse code from ships in both the First World War and Second World War. Elop was influenced by and learned much about technology from his grandfather.{{Cite web|url=https://www.youtube.com/watch?v=kOxCtZSi_Jw|title=Stephen Elop | Telstra: Five key attributes of transformative businesses|date=4 December 2016 |via=www.youtube.com}}

From 1981, Elop studied computer engineering and management at McMaster University, Hamilton, Ontario. After his first year at the University, Elop wrote the user operating manual, called the Orange Book, for the campus's new computer system,{{cite news|url=https://www.theglobeandmail.com/report-on-business/careers/careers-leadership/stephen-elop-putting-nokia-back-in-the-race/article534292/|title=Stephen Elop: Putting Nokia back in the race|work=The Globe and Mail|date=23 March 2012|last1=Reguly|first1=Eric}} VAX-11/780.{{Cite web|url=https://issuu.com/mcmasterengineering/docs/macengineer_fall_2015_final_3|title=MacEngineer Fall 2015 by McMaster Engineering Alumni - Issuu|website=issuu.com|date=7 October 2015 }} During that time he helped lay 22 kilometres of Ethernet cables around campus to build one of the first computer networks in Canada.{{cite web | url=http://www.linkedin.com/pub/stephen-elop/1/3a0/b31 | title=Stephen Elop's profile | work=LinkedIn | accessdate=10 September 2010}}{{cite web | url=http://www.businessweek.com/print/magazine/content/11_24/b4232056703101.htm | title=Stephen Elop's Nokia Adventure | work=Bloomberg Businessweek | date=2 June 2011 | accessdate=2 June 2011}}{{dead link|date=April 2023|bot=medic}}{{cbignore|bot=medic}} He graduated second in his class with a bachelor's degree in 1986. In 2007, McMaster's Faculty of Engineering made Elop the second L.W. Shemilt Distinguished Engineering Alumni Award winner and in 2009, he was awarded an Honorary Doctor of Science Degree by McMaster.{{cite web|url=http://alumni.os.mcmaster.ca/s/1439/index.aspx?sid=1439&gid=1&pgid=1440|title=McMaster Alumni Community - Stephen Elop '86|work=mcmaster.ca}}

After graduating, Elop joined a Toronto-based software development firm called Soma Inc. Soma was later acquired by Lotus Development Corporation of Massachusetts, United States, and Elop moved over, serving as director of consulting.{{Cite web|url=https://www.nbcnews.com/news/us-news/microsofts-new-employee-man-two-reputations-flna8C11069381|title = Microsoft's new employee is a man of two reputations|website = NBC News| date=3 September 2013 }} In 1992 he became CIO of Boston Chicken,{{cite web | url=http://www.computerworld.com/s/article/9057001/Who_is_Microsoft_s_new_business_division_leader_Stephen_Elop_ | title=Who is Microsoft's new business division leader, Stephen Elop? | work=Computerworld | date=11 January 2008}} until the firm filed for Chapter 11 bankruptcy in 1998.{{cite web | url=http://www.fool.com/EveningNews/foth/1998/foth981007.htm | title=A Chicken Autopsy | work=Fool.com | date=7 October 1998 | url-status=dead | archive-url=https://web.archive.org/web/20110822022520/http://www.fool.com/EveningNews/foth/1998/foth981007.htm | archive-date=22 August 2011 | df=dmy-all }}

In 1998 he joined Macromedia's Web/IT department and worked at the company for seven years,{{citation needed|date=July 2021}} where he held several senior positions, including as: general manager of the e-business division; executive vice president of worldwide field operations; COO;{{Cite web|url=https://www.sec.gov/Archives/edgar/containers/fix066/913949/000119312505009939/dex993.htm|title = Macromedia Names Stephen Elop CEO}} and finally as CEO from January 2005{{cite web | url=https://www.adobe.com/macromedia/ir/macr/news/2005/q305_pressrelease02.html | title=Macromedia Names Stephen Elop Chief Executive Officer; Rob Burgess Continues As Chairman | publisher=Macromedia | work=adobe.com | date=19 January 2005 | access-date=17 February 2011 | url-status=dead | archive-url=https://web.archive.org/web/20110214181332/http://www.adobe.com/macromedia/ir/macr/news/2005/q305_pressrelease02.html | archive-date=14 February 2011 | df=dmy-all }} for three months before their acquisition by Adobe Systems was announced in April 2005.{{cite journal | url=http://www.hs.fi/talous/artikkeli/Kenraali%E2%80%9D+Elop+astuu+Nokian+johtoon/1135260042762 | title="Kenraali" Elop astuu Nokian johtoon | date=10 September 2010 | journal=Helsingin Sanomat | language=Finnish}}{{cite web | url=http://blogs.computerworld.com/how_will_stephen_elop_fare_at_microsoft | title=How will Stephen Elop fare at Microsoft? | work=Computerworld | date=11 January 2008 | access-date=17 February 2011 | url-status=dead | archive-url=https://web.archive.org/web/20110708191517/http://blogs.computerworld.com/how_will_stephen_elop_fare_at_microsoft | archive-date=8 July 2011 | df=dmy-all }} Due to family reasons, Elop lived at his Canadian home in Limehouse, Ontario, commuting to work in California with Air Canada.{{Cite web|url=https://www.canadianbusiness.com/business-strategy/canadas-global-leaders/|title=Canada's global leaders - Canadian Business}}

During Elop's tenure, Macromedia continued to deliver widely used software suites like Studio 8.{{cite web|url=http://devopssummit.sys-con.com/node/117426|title=Macromedia Unveils Studio 8: "A Huge Leap Forward," Says CEO Stephen Elop - DevOps Summit|work=sys-con.com}} Based on the performance of the company during this time, Elop was able to guide the company through a successful acquisition that benefited shareholders. With an exchange of $3.4 billion in stock, the acquisition combined the companies’ document management, web publishing and online video delivery tools. It proved to be a profitable move for Macromedia shareholders. After the announcement of the agreement, Macromedia shares were valued at $41.86, notably above the then current market value of $33.45.{{cite web|url=https://www.macworld.com/article/1044307/adobe.html|title=Adobe to buy Macromedia for $3.4 billion|date=18 April 2005|work=Macworld}}{{cite web|url=http://news.investors.com/technology-tech-exec-qanda/072705-410293-macromedia-adobe-a-digital-experience-deal-awaits-final-oks-merger-would-unite-the-acrobat-and-flash-wares-that-make-share-content.htm|title=Macromedia-Adobe: A Digital Experience; Deal Awaits Final OKs; Merger would unite the Acrobat and Flash wares that make, share content|author=PATRICK SEITZ|work=Investor's Business Daily}} It has been claimed Elop pushed Macromedia Flash Player to get into the mobile market. At Macromedia, Elop was nicknamed "The General" due to his military-style haircut.{{Cite web|url=https://www.computerworld.com/article/2538617/it-management/who-is-microsoft-s-new-business-division-leader--stephen-elop-.html|title = Who is Microsoft's new business division leader, Stephen Elop?|date = 11 January 2008}}

He was then president of worldwide field operations at Adobe, tendering his resignation in June 2006 and leaving on 5 December.{{cite web | url=https://www.adobe.com/aboutadobe/pressroom/pressreleases/200606/061506StephenElop.html | title=Adobe Announces Resignation of President, Worldwide Field Operations | publisher=Adobe Systems | work=adobe.com | date=15 June 2006 | accessdate=30 January 2012}} Elop was paid a $500,000 salary with $315,000 bonus and $1.88 million severance package during his time at Adobe.{{cite web |url=http://www.siliconbeat.com/2008/01/11/microsoft-beware-stephen-elop-is-a-flight-risk/ |title=Microsoft beware: Stephen Elop is a flight risk {{!}} SiliconBeat |website=www.siliconbeat.com |url-status=dead |archive-url=https://web.archive.org/web/20100608100324/http://www.siliconbeat.com/2008/01/11/microsoft-beware-stephen-elop-is-a-flight-risk |archive-date=2010-06-08}}

After leaving Adobe, Elop was COO of Juniper Networks for exactly one year from January 2007 – 2008.{{cite web | url=http://www.siliconbeat.com/2008/01/11/microsoft-beware-stephen-elop-is-a-flight-risk/ | title=Microsoft beware: Stephen Elop is a flight risk | work=SiliconBeat | date=11 January 2008 | accessdate=17 February 2011}} During his short tenure he drove an internal overhaul and was credited for applying operational efficiency.{{Cite web|url=https://www.networkworld.com/article/2282222/lan-wan/coo-departure-a-short-term-blip-for-juniper.html|archive-url=https://web.archive.org/web/20180520033250/https://www.networkworld.com/article/2282222/lan-wan/coo-departure-a-short-term-blip-for-juniper.html|url-status=dead|archive-date=20 May 2018|title = COO departure a short-term blip for Juniper|date = 11 January 2008}}{{Cite web|url=https://www.fiercetelecom.com/telecom/elop-jilts-juniper-for-microsoft|title = Elop jilts Juniper for Microsoft|date = 11 January 2008}} In late 2007 Elop was approached by Microsoft CEO, Steve Ballmer, with whom he met several times including chairman Bill Gates. Juniper's CEO Scott Kriens intended to name Elop as the new CEO before Elop revealed he was leaving for Microsoft. Elop named this his toughest professional moment in a Bloomberg interview.{{cite news | url=https://www.bloomberg.com/news/articles/2009-06-25/bio-stephen-elop | title=Bio: Stephen Elop | newspaper=Bloomberg.com | date=25 June 2009 }} Juniper's stock price rose 75% throughout 2007.

Elop's spell at Microsoft started on 11 January 2008, as the head of the Business Division, responsible for the Microsoft Office and Microsoft Dynamics line of products, and as a member of the company's senior leadership team. He was effectively leading the largest division of the world's largest software company (as the Business Division was Microsoft's largest source of income). It was during this time that the Business Division successfully released Office 2010,{{cite web | url=http://news.cnet.com/8301-13860_3-20001553-56.html | title=Microsoft's big gamble with free Office | work=CNET | date=1 April 2010 | accessdate=21 November 2011}} giving record profits for the Business Division.{{Cite web|url=https://mashable.com/archive/elop-ceo-nokia|title=Nokia Hires a New CEO from Microsoft|first=Ben|last=Parr|date=10 September 2010|website=Mashable}} He became known as an operator and a change agent because of successes at Microsoft.{{cite web|url=http://fortune.com/2010/09/10/can-stephen-elop-fix-nokia/|title=Can Stephen Elop Fix Nokia?|work=Fortune}} Businessweek credited Elop with pushing Microsoft to develop cloud-based versions of the company's programs, and asserted that this helped Microsoft maintain its dominance, while holding off startups looking to disrupt its traditional business model.{{cite web|url=https://news.yahoo.com/pros-cons-making-stephen-elop-microsoft-next-ceo-185546579.html|title=The pros and cons of making Stephen Elop Microsoft's next CEO|date=6 September 2013|work=Yahoo News}} Also during his tenure as president, the Business Division formed an alliance with Nokia on 12 August 2009 to bring Microsoft Office Mobile to Symbian OS.{{Cite web|url=https://bits.blogs.nytimes.com/2009/08/12/microsoft-nokia-alliance-an-assault-on-blackberry/|title = Microsoft-Nokia Alliance: An Assault on the BlackBerry|date = 12 August 2009}}{{Cite web|url=https://www.youtube.com/watch?v=49_xRsOASTY|title=- YouTube|website=www.youtube.com}}{{Cite web|url=http://www.theguardian.com/business/2009/aug/12/nokia-microsoft-office-deal-smartphones|title=Nokia and Microsoft agree Office deal|date=12 August 2009|website=the Guardian}}

On 10 September 2010, it was announced that Elop would become Nokia's CEO, replacing the dismissed Olli-Pekka Kallasvuo, and becoming the first non-Finnish director in Nokia's history. Nokia's chairman Jorma Ollila commented: "Stephen has the right industry experience and leadership skills."{{Cite news |url=https://www.independent.co.uk/news/business/news/nokia-fires-boss-it-battles-turn-around-its-fortunes-2076496.html |archive-url=https://ghostarchive.org/archive/20220525/https://www.independent.co.uk/news/business/news/nokia-fires-boss-it-battles-turn-around-its-fortunes-2076496.html |archive-date=25 May 2022 |url-access=subscription |url-status=live |title=Nokia fires boss as it battles to turn around its fortunes|date=23 October 2011|newspaper=The Independent }} Some analysts predicted closer Nokia and Microsoft cooperation following Elop's debut.{{Cite news |url=https://www.nytimes.com/2010/09/11/technology/11nokia.html|title=Nokia Chooses a Microsoft Officer as Its New Chief Executive|first=Kevin J.|last=O’Brien|newspaper=New York Times |date=11 September 2010}} His tenure began on 21 September.{{Cite news|url=https://www.nytimes.com/2010/09/27/technology/27nokia.html|title=Nokia's New Chief Faces Culture of Complacency|first=Kevin J.|last=O’Brien|newspaper=New York Times|date=26 September 2010}} His family stayed in Canada. On 11 March 2011 Nokia announced that it had paid Elop a $6 million signing bonus, "compensation for lost income from his prior employer," on top of his $1.4 million annual salary.{{cite news | url=http://www.geekwire.com/2011/nokia-pays-big-bucks-elop | title=Nokia pays big bucks for Elop: Former Microsoft executive receives $6M signing bonus |publisher=GeekWire | date=11 March 2011 | accessdate=11 March 2011}}

At the time of Elop's appointment, Nokia had been struggling in the face of increasing competition. The company's overall mobile phone market share in Q3 2010 was 28.2 percent, its lowest share since 1999, and a decline of 8.5 percent compared to the same quarter in 2009.{{Cite web |last=Andrew |first=Keith |date=2010-11-10 |title=Nokia's worldwide share falls to 10 year low as Android surpasses BlackBerry and iOS |url=https://www.pocketgamer.biz/nokias-worldwide-share-falls-to-10-year-low-as-android-surpasses-blackberry-and-ios/ |access-date=2025-05-11 |website=www.pocketgamer.biz |language=en}} On his first day as CEO, Nokia also announced yet another delay of the release of its flagship, the Nokia N8.https://www.independent.co.uk/tech/nokia-delays-n8-launch-to-october-2085791.html

On his first day of work as CEO, Elop e-mailed every Nokia employee asking what changes they like to see at Nokia and what they do not. Elop was open to the employees and gave them the chance to voice their opinions - unusual for Nokia under his bureaucratic predecessors and chairman. Elop approached employees with his personal stories of "At Microsoft we beat Google [referring to Microsoft Office and Google Apps]. We can beat Apple just as well." During a private presentation to employees in 2011, Elop called for open dialogue within the company's environment.{{Cite web|url=https://theappshoppe.wordpress.com/2011/11/24/exclusive-nokia-and-windows-7-sea-ray-smart-phone-video-and-report/|title=Exclusive Nokia And Windows 7 "Sea Ray" Smart Phone Video And Report|date=24 November 2011}}

During Elop's tenure (2010 to 2014), Nokia's stock price dropped 62%, their mobile phone market share was halved, their smartphone market share fell from 33% to 3%, and the company suffered a cumulative €4.9 billion loss.{{cite book|last1=Cord|first1=David|title=The Decline and Fall of Nokia|date=April 2014|publisher=Schildts & Söderströms|isbn=978-951-52-3320-2|pages=277}}

Sometime in early 2011, Elop issued a company internal memo titled "Burning Platform",{{cite news |title=Full Text: Nokia CEO Stephen Elop's 'Burning Platform' Memo |url=https://blogs.wsj.com/tech-europe/2011/02/09/full-text-nokia-ceo-stephen-elops-burning-platform-memo/ |accessdate=28 September 2011 |newspaper=Wall Street Journal |date=9 February 2011 | archive-url=https://web.archive.org/web/20110211203320/https://blogs.wsj.com/tech-europe/2011/02/09/full-text-nokia-ceo-stephen-elops-burning-platform-memo/ | archive-date=11 February 2011}} which was leaked to the press.{{cite web | url=https://www.engadget.com/2011/02/08/nokia-ceo-stephen-elop-rallies-troops-in-brutally-honest-burnin/ | title=Nokia CEO Stephen Elop rallies troops in brutally honest 'burning platform' memo? (update: it's real!) | work=Engadget | accessdate=10 December 2012 | last=Zieler | first=Chris| date=8 February 2011 }} The memo likened Nokia's situation in the smartphone market to a person standing on a burning oil platform ("platform" being a reference to the name given to operating systems such as Symbian, Apple iOS and Google Android). It also mentions the introduction to a "new strategy" on 11 February. Elop stresses in the memo how significantly the market has changed:

The battle of devices has now become a war of ecosystems, where ecosystems include not only the hardware and software of the device, but developers, applications, ecommerce, advertising, search, social applications, location-based services, unified communications and many other things. Our competitors aren't taking our market share with devices; they are taking our market share with an entire ecosystem. This means we're going to have to decide how we either build, catalyse or join an ecosystem.{{Cite news |url=http://www.theguardian.com/technology/blog/2011/feb/09/nokia-burning-platform-memo-elop|title=Nokia's chief executive to staff: 'we are standing on a burning platform'|date=9 February 2011|newspaper=The Guardian }}{{Cite web|url=https://www.disruptivetelephony.com/2011/02/nokia-and-the-ongoing-war-of-ecosystems.html|title=Nokia and the Ongoing "War of Ecosystems"|website=Disruptive Telephony}}

The memo was not intended for the public but was eventually leaked by Engadget on 8 February 2011, becoming widely circulated and receiving a large deal of attention.{{Cite news|url=https://business.financialpost.com/technology/qa-with-nokia-ceo-stephen-elop |title=Q&A with Nokia CEO Stephen Elop|newspaper=Financial Post |date=April 2011|last1=Hartley|first1=Matt}} The "new strategy" bit highly speculated to tech bloggers that Nokia would form an alliance with Microsoft, particularly after Google's Vic Gundotra tweeted "Two turkeys do not make an Eagle" shortly after the leak. It was then reported that Nokia's VP Anssi Vanjoki originally said this quote in 2005 about BenQ's purchase of Siemens's mobile phone business.{{Cite web|url=https://www.engadget.com/2011/02/09/googles-vic-gundotra-on-nokia-two-turkeys-do-not-make-an-eagl/|title = Google's Vic Gundotra on Nokia: 'Two turkeys do not make an Eagle' (Updated)| date=9 February 2011 }}

The memo was seen by some in the media as a necessary wake-up call for Nokia,{{cite web | url=https://www.bbc.co.uk/blogs/thereporters/rorycellanjones/2011/02/nokias_burning_platform.html | title=Nokia's burning platform | publisher=BBC | work=BBC Online | date=9 February 2011 | accessdate=21 November 2011}}{{Cite web|url=http://roopc.net/posts/2013/looking-back-burning-platform-memo/|title=Looking back at the "burning-platform" memo – roopc.net|website=roopc.net}} and Engadget called it "one of the most exciting" CEO memos they have seen. However Nokia's Board of Directors saw the memo as an act of misjudgment and Chairman Jorma Ollila bitterly criticized it at a board meeting.{{cite news | url=http://www.hs.fi/sunnuntai/Mies+joka+teki+myyj%C3%A4n+ty%C3%B6n/a1380341110125?ref=hs-hitaat-e-1 | title=Mies, joka teki myyjän työn | work=Helsingin Sanomat | date=29 September 2013 | last=Miettinen | first=Anssi}} This leaked memo (along with the new strategy two days later) led to the term "Elop effect" being used by opponents of the strategy. The term was coined by former Nokia executive Tomi Ahonen,{{Cite web|url=https://seekingalpha.com/article/916271-how-stephen-elop-destroyed-nokia|title=How Stephen Elop Destroyed Nokia (NYSE:NOK) | Seeking Alpha|website=seekingalpha.com|date=10 October 2012 }} who said it "combines the Ratner effect with the Osborne effect", meaning both publicly attacking one's own products and promising a successor to a current product too long before it is available.{{Cite web|url=http://communities-dominate.blogs.com/brands/2011/08/coining-term-elop-effect-when-you-combine-osborne-effect-and-ratner-effect.html|title=Coining Term: "Elop Effect" when you combine Osborne Effect and Ratner Effect|website=Communities Dominate Brands|access-date=2018-10-11}}

In an interview with the Financial Post, Elop described the memo as "a very powerful statement of the reality of the situation without a lot of marketing polish on it."

File:Stephen Elop, CEO of Nokia (15246202295).jpg]]

On 11 February 2011 in a press conference in London, Elop officially announced the new strategy for Nokia, which involved a "strategic partnership" with Microsoft and shifting its smartphone strategy to Microsoft's Windows Phone, whilst gradually phasing out their in-house Symbian and MeeGo operating systems (expected it to be finalized by 2016, but actually finished in January 2014, and plans for any MeeGo devices beyond the Nokia N9 were scrapped). Elop also quoted Winston Churchill, "The pessimist sees the difficulty in every opportunity, but an optimist sees the opportunity in every difficulty."{{Cite web|url=https://www.independent.co.uk/news/business/analysis-and-features/nokia-bets-farm-microsoft-merger-2212543.html |archive-url=https://ghostarchive.org/archive/20220525/https://www.independent.co.uk/news/business/analysis-and-features/nokia-bets-farm-microsoft-merger-2212543.html |archive-date=25 May 2022 |url-access=subscription |url-status=live|title=Nokia bets farm on Microsoft merger|date=12 February 2011|website=The Independent}} The final decision of a partnership with Microsoft was made the night before the conference. Nokia chairman Ollila supported the Microsoft alliance and predicted the business will strongly recover.{{Cite web|url=http://yle.fi/uutiset/nokias_ollila_vigorously_defends_microsoft_alliance/5081491|title=Nokia's Ollila Vigorously Defends Microsoft Alliance|date=16 February 2011|website=Yle Uutiset}}

Questioned on why he decided to go with Windows Phone rather than choosing Android, Elop said: "The fundamental thing we were looking at was the ability to differentiate. As a member of the Android ecosystem, there were ways that we could see that we could differentiate, but we were worried over time how much differentiation we could continue to maintain or extend." The move was seen as a risky 'all-eggs-in-one-basket' strategy,{{Cite web|url=https://www.windowscentral.com/new-book-looks-stephen-elops-reign-nokia-and-calls-him-one-worlds-worst-ceos|title=New book takes a look at Stephen Elop at Nokia|date=8 October 2014|website=Windows Central}} inspired by his previous success at Macromedia by putting all focus on Flash in the early 2000s.

The first Nokia Windows Phone smartphone shipped in November 2011, the Nokia Lumia 800, was made in the form of a device design identically similar (only an additional camera button was added) to the Nokia N9, the first MeeGo device. The N9 enjoyed positive reviews for attractive hardware and a well-designed software experience—though at launch reviewers noted that a healthy software ecosystem was non-existent and would almost certainly not develop. However Elop stuck with the Microsoft deal, saying that MeeGo development will not continue even with the N9's success, a move that was widely criticised.{{Cite web|url=http://blog.gsmarena.com/nokia-will-not-return-to-meego-even-if-n9-turns-out-to-be-a-hit-says-stephen-elop/|title=Nokia will not return to MeeGo even if N9 turns out to be a hit, says Stephen Elop|website=blog.gsmarena.com|date=26 June 2011 }}

From Q3 2010 to Q3 2011, Nokia's smartphone sales had steeply declined by 34 percent, from 27.2 million units to 16.8 million.{{Cite web |date=2011-10-20 |title=Nokia Q3 2011 - on the road to recovery? |url=http://www.allaboutsymbian.com/news/item/13430_Nokia_Q3_2011-on_the_road_to_r.php |access-date=2025-05-11 |website=All About Symbian |language=en}} In the next year-on-year results, and following the release of its first Windows Phones, its smartphone sales had declined by more than half, from 16.8 million to 6.3 millon units.https://uk.finance.yahoo.com/news/2012-10-26-nokia-market-share-death-in-smartphones.html?guccounter=1

In an interview held late 2012, Elop stated the reason for switching to Windows instead of Android:

"the single most important word is 'differentiation'. Entering the Android environment late, we knew we would have a hard time differentiating."{{cite web | url=http://news.cnet.com/8301-1035_3-57559620-94/nokia-on-the-edge-inside-an-icons-fight-for-survival/ | title=Nokia on the edge: Inside an icon's fight for survival | publisher=CBS Interactive | work=CNET | date=18 December 2012 | accessdate=3 September 2013 | last=Cheng | first=Roger}}

Following the launch of the Nokia Lumia 920 flagship and its positive reception and apparent strong sales, Elop said to an Yle newscaster in December 2012: "...if you think about the last year, it's been a very difficult year. We've made many difficult decisions, we've made changes. But what we've also been doing is our very best work in making great products and getting them to consumers. So whether it's the Lumia 920, whether it is your Asha Full Touch products - the people of Nokia are doing their best work, but what's happening now, is that it's not us saying that, it's the people around the world. Our employees are feeling that, [...] so that creates a sense of hope and optimism. Now at the same time, we know we have a lot of hard work still had [...] but there's that sense that the hard work, that that seesaw has really begun to pay off. You feel that in the company."{{Cite web|url=http://mynokiablog.com/2012/12/18/video-stephen-elop-interviewed-by-yle-on-positive-nokia-lumia-920-feedback/|title=Video: Stephen Elop interviewed by YLE on Positive Nokia Lumia 920 feedback|date=18 December 2012|website=My Nokia Blog}} He also thanked the Finnish shareholders for supporting Nokia during its "darkest days."{{Cite web|url=https://www.youtube.com/watch?v=7-lJjLWMdgk|title=Stephen Elop Speaks|date=20 December 2012 |via=www.youtube.com}}

The company's fortunes in mobile phones began recovering in 2013, with sales of smartphones increasing to 8.8 million in Q3 2013, or 14.8 million if including the Asha models that were also marketed as "smartphones".https://www.juniperresearch.com/press/smartphone-shipments-reach-a-record-250m-in-q3-201/ Its best-selling model was the Nokia Lumia 520, although as a budget class product it suggested that Nokia continued to struggle in the high-end market,{{Cite web |last=Warren |first=Tom |date=2013-10-29 |title=Nokia Lumia sales hit record 8.8 million in Q3, North America doubles |url=https://www.theverge.com/2013/10/29/5041666/nokia-lumia-sales-q3-2013 |access-date=2025-05-11 |website=The Verge |language=en-US}} despite positive reception of the award winning Nokia Lumia 1020 cameraphone.

During his tenure, Elop faced vocal criticism from both industry specialists and employees.{{cite news | url=https://www.theguardian.com/technology/2013/apr/01/nokia-stephen-elop-interview | title=Nokia's Stephen Elop: 'It's a point of disruption' | work=The Guardian | date=1 April 2013 | accessdate=28 September 2013 | last=Garside | first=Juliette}}{{cite news | url=http://www.ibtimes.co.uk/articles/359731/20120705/jean-louis-gassee-nokia-elop-android-fire.htm | title=Former Apple Exec Jean-Louis Gassée: Nokia Should Fire CEO Stephen Elop | work=International Business Times | date=5 July 2012 | accessdate=26 September 2013 | last=Chapman | first=Matthew}} In 2011, Elop announced that some 11,000 employees would have to be laid off as part of a plan to "restructure" Nokia's business, and in June 2012 it was announced that further 10,000 layoffs were in order and that several facilities would have to be closed down due to budget cuts.{{cite web | url=http://technology.inquirer.net/12903/nokia-ceo-admits-failure-to-foresee-fast-changing-industry | title=Nokia CEO admits failure to foresee fast-changing industry | work=The Inquirer | date=18 June 2012}}{{cite web | url=http://news.cnet.com/8301-1035_3-57452963-94/nokia-plans-10000-layoffs-cuts-second-quarter-outlook/ | title=Nokia plans 10,000 layoffs, cuts second-quarter outlook | publisher=CBS Interactive | work=CNET | date=14 June 2012}} Some critics, especially in Finland, started to speculate that Elop could be a trojan horse, whose mission was to prepare Nokia for a future acquisition by Microsoft.{{cite news | url=http://www.hs.fi/talous/Oliko+Stephen+Elop+vain+Microsoftin+myyr%C3%A4+/a1378174919563 | title=Oliko Stephen Elop vain Microsoftin myyrä? | work=Helsingin Sanomat | date=3 September 2013 | accessdate=26 September 2013 | last=Hänninen | first=Jyri | language=Finnish}}{{cite web | url=http://www.globalpost.com/dispatch/news/regions/europe/111014/nokia-workers-ceo-microsoft-iphone-linux | title=Nokia workers ask, is chief executive a Microsoft mole? | work=GlobalPost}}{{cite web | url=http://www.dailytech.com/Nokia+CEO+Denies+Being+Trojan+Horse+Another+Former+Microsoft+Exec+Appointed/article20897.htm | title=Nokia CEO Denies Being Trojan Horse, Another Former Microsoft Exec Appointed | work=DailyTech}}{{cite web | url=http://appadvice.com/appnn/2012/07/nokia-consultant-says-stephen-elop-windows-phone-a-monumental-mistake | title=Nokia Consultant Says Stephen Elop, Windows Phone A Monumental Mistake | work=AppAdvice| date=5 July 2012 }}{{cite web | url=http://www.winrumors.com/nokia-employees-still-worried-that-elop-is-a-microsoft-mole/ | title=Nokia employees still worried that Elop is a Microsoft mole | work=winrumors.com | url-status=dead | archive-url=https://web.archive.org/web/20130929121620/http://www.winrumors.com/nokia-employees-still-worried-that-elop-is-a-microsoft-mole/ | archive-date=29 September 2013 | df=dmy-all }} When confronted with the theory by an anonymous attendee of the 2011 Mobile World Congress, Elop denied the speculation stating, "The obvious answer is, no. But however, I am very sensitive to the perception and awkwardness of that situation. We made sure that the entire management team was involved in the process [...] Everyone on the management team believed this was the right decision," referring to Nokia's adoption of Microsoft's Windows Phone operating system.{{cite web | url=http://www.businessinsider.com/nokia-ceo-elop-denies-being-trojan-horse-for-microsoft-2011-2 | title=Nokia CEO Elop Denies Being "Trojan Horse" For Microsoft | work=Business Insider | date=13 February 2011}} Elop denied the accusations again in an interview in 2014.{{Cite web|url=http://www.theguardian.com/technology/2014/apr/29/stephen-elop-microsoft-nokia|title=Stephen Elop: I wasn't a Trojan horse for Microsoft at Nokia|date=29 April 2014|website=the Guardian}}

In the book The Decline and Fall of Nokia published in 2014, author David J. Cord firmly rejects the idea that Elop was a Trojan Horse. He claims that all of Elop's decisions were logical when they were made, and he also cites the testimony of other Nokia executives who were part of those decision-making processes.{{cite book|last=Cord|first=David|title=The Decline and Fall of Nokia|date=April 2014|publisher=Schildts & Söderströms|isbn=978-951-52-3320-2|location=Helsinki|pages=283–286}} Another book published later in 2014 called Operation Elop also refutes the Trojan Horse claims. Its Finnish authors, journalists from Kauppalehti, noted that Elop "made monumental mistakes - but all in good faith."{{Cite web|url=https://www.neowin.net/news/new-book-claims-microsofts-stephen-elop-wasnt-a-trojan-horse-at-nokia---just-a-bad-ceo/|title=New book claims Microsoft's Stephen Elop wasn't a 'Trojan horse' at Nokia - just a bad CEO|website=Neowin}}

In May 2013, after the two years that he had been granted for the transition to the Windows Phone platform, Elop was pressed by Nokia's shareholders about the lack of results compared to the competitors and the insufficient sales figures to secure the company's survival. During the annual general meeting, several shareholders voiced that they were running out of patience with Elop's efforts in putting Nokia back to the smartphone race. Elop replied that there was no turning back on his decision of adopting Windows Phone, while some analysts criticized Elop for closing doors to alternative strategies and going all-in with Microsoft's operating system. Some analysts speculated that Nokia had already lost the smartphone race to Samsung and Apple, and that if they were to regain their position in the market, it would have to be by means of low-end devices such as the Asha.{{cite web | url=https://www.reuters.com/article/us-nokia-agm-idUSBRE9460LV20130507 | title=Nokia investors tell CEO their patience running thin | publisher=Thomson Reuters | work=Reuters | date=7 May 2013}}

In June 2013, it was reported that Microsoft had been to advanced talks for buying Nokia, but the negotiations had faltered over price and worries about Nokia's slumping market position.{{cite news|url=https://www.wsj.com/articles/SB10001424127887323393804578555783340654630|title=Microsoft Explored Deal for Nokia |last1=Terlep|first1=Sharon|last2=Berman |first2=Dennis K. |last3=Ovide |first3=Shira|date=19 June 2013|work=The Wall Street Journal|publisher=Dow Jones & Company|accessdate=20 June 2013}} As of June 2013, Nokia's mobile phone market share had fallen from 23%{{cite web | url=http://www.gartner.com/newsroom/id/1924314 | archive-url=https://web.archive.org/web/20130124004042/http://www.gartner.com/newsroom/id/1924314 | url-status=dead | archive-date=24 January 2013 | title=Gartner Says Worldwide Smartphone Sales Soared in Fourth Quarter of 2011 With 47 Percent Growth | work=Gartner}} to 15%, their smartphone market share gone from 32.6%{{cite web | url=http://www.itpro.co.uk/630880/mobile-sales-soar-as-nokia-share-falls | title=Mobile sales soar as Nokia share falls | publisher=Dennis Publishing | work=IT Pro | date=9 February 2011 | accessdate=14 September 2013 | author=Alvaro Guzman}} to 3.3%,{{cite web | url=http://seekingalpha.com/article/1658662-can-microsoft-turn-things-around | title=Microsoft Corporation (MSFT): Can Microsoft Turn Things Around? | work=Seeking Alpha | date=27 August 2013 | accessdate=14 September 2013}} and their stock value dropped by 85% since Elop's takeover.{{cite web | url=https://finance.yahoo.com/news/nokias-ceo-stephen-elop-experiment-100000899.html | title=Nokia's 'CEO Stephen Elop' Experiment Fails | work=Yahoo! Finance | date=31 May 2013}} On 3 September 2013, it was announced that Microsoft had agreed to buy Nokia's mobile phone and devices business for 5.4 billion euros (US$7.2bn; £4.6bn) and that Elop would stand down as Nokia's CEO to become Executive Vice President of the Microsoft Devices Group business unit.{{cite web | url=https://www.bbc.co.uk/news/business-23940171 | title=Microsoft to buy Nokia phones unit | publisher=BBC | work=BBC Online | date=9 March 2013}}{{cite web | url=https://www.microsoft.com/en-us/news/press/2013/Sep13/09-02AnnouncementPR.aspx | title=Microsoft to acquire Nokia's devices & services business, license Nokia's patents and mapping services | work=News | date=3 September 2013 | accessdate=3 September 2013 | publisher=Microsoft}} On the day's press conference, Elop said Nokia had much to be proud of, saying "We have transitioned through a period of incredible difficulty and we are now delivering the best products we have ever delivered, while simultaneously having changed our culture and the way we work." He also said he felt sadness as it changes what Nokia stands for, but added that Nokia products will become an even stronger competitor together with Microsoft.{{Cite web|url=https://www.forbes.com/sites/erikkain/2013/09/03/microsoft-tumbles-nokia-soars-on-buyout-news/|title=Microsoft Tumbles, Nokia Soars On Buyout News|first=Erik|last=Kain|website=Forbes}}{{Cite web|url=https://www.youtube.com/watch?v=FU-a9uztdNw|title=Nokia Microsoft Webcast Press Conference September 3,2013|date=3 September 2013 |via=www.youtube.com}} Elop was said to bring a unique set of skills back to Microsoft, given his varied leadership experience and proven ability to manage products and divisions at the company (i.e. Microsoft Office).{{cite news|url=http://www.businessweek.com/articles/2013-09-05/nokias-stephen-elop-microsoft-ceo-front-runner|archive-url=https://web.archive.org/web/20130906164852/http://www.businessweek.com/articles/2013-09-05/nokias-stephen-elop-microsoft-ceo-front-runner|url-status=dead|archive-date=6 September 2013|title=Nokia's Stephen Elop, Microsoft CEO Front-Runner|author=Peter Burrows|work=Businessweek.com|date=5 September 2013 }}

After Elop stepped down as CEO of Nokia, Risto Siilasmaa replaced him as interim CEO before the appointment of Rajeev Suri. Nokia's devices and services business would ultimately become Microsoft Mobile on 25 April 2014.{{cite web | url=http://www.gmanetwork.com/news/story/357903/scitech/technology/the-death-of-nokia-and-the-rise-of-microsoft-mobile | title=The death of Nokia and the rise of 'Microsoft Mobile' | work=gmanetwork.com | date=22 April 2014}}

Despite Nokia's major decline in market share, it continued to be the second largest mobile phone manufacturer overall at the time of the Microsoft sale completion in 2014. This was mostly from sales of its basic feature phones: specifically in the high-profit and competitive smartphone market, Nokia did not make the top eight list of manufacturers.{{Cite web |title=Market Monitor : Q1 2014 :: Handset & Smartphone Markets Landscape |url=https://www.counterpointresearch.com/insights/market-monitor-q1-2014-handset-smartphone-markets-landscape/ |access-date=2025-05-11 |website=www.counterpointresearch.com}}

Controversy arose around Elop receiving a €18.8 million bonus after Nokia sold its mobile phone business to Microsoft and he stepped down as the CEO.{{cite news|url=http://yle.fi/uutiset/nokia_boss_elop_to_make_188m_from_microsoft_deal/6840388|title=Nokia boss Elop to make €18.8m from Microsoft deal|date=19 September 2013|work=YLE News|accessdate=28 September 2013}}{{cite web | url=http://bgr.com/2013/09/24/nokia-elop-bonus-scandal/ | title=Finnish media: Nokia pleads with Elop to accept smaller bonus – Elop claims he needs full $25M for his divorce | work=BGR | date=24 September 2013 | accessdate=28 September 2013 | last=Kuittinen | first=Tero}} The controversy was further fueled after it was revealed that his contract had been revised on the same day as the deal was announced.{{cite news | url=http://yle.fi/uutiset/new_nokia_twist_-_elops_contract_revised_same_day_as_microsoft_deal/6847697 | title=New Nokia twist - Elop's contract revised same day as Microsoft deal | work=YLE News | date=24 September 2013 | accessdate=28 September 2013}} Moreover, the chairman of Nokia's Board of Directors gave initially incorrect information about the contract to the public, and had to correct his statements later.{{cite news | url=http://www.hs.fi/talous/Nokia+antoi+v%C3%A4%C3%A4r%C3%A4%C3%A4+tietoa+Stephen+Elopin+toimitusjohtajasopimuksesta/a1379911626849 | title=Nokia antoi väärää tietoa Stephen Elopin toimitusjohtajasopimuksesta | work=Helsingin Sanomat | date=24 September 2013 | accessdate=26 September 2013 | last1=Pietiläinen | first1=Tuomo | language=Finnish | last2=Tyynysniemi | first2=Matti}} Shortly before his departure from Nokia, Elop had filed for divorce, which he also cited as a reason to reject a renegotiation of the controversial bonus.{{cite news|url=http://yle.fi/uutiset/hs_nokia_and_elop_discuss_smaller_golden_handshake_package/6848137|title=HS: Nokia and Elop discuss smaller golden handshake package|date=25 September 2013|work=YLE News|accessdate=28 September 2013}} He claimed he couldn't afford a reduction of the payoff because his wife would demand half of it.{{Cite web|url=https://www.ibtimes.co.uk/nokia-payoff-elop-stephen-mobile-phone-microsoft-509030|title=Nokia CEO Stephen Elop Claims $25m Payoff Justified by Divorce|date=25 September 2013|website=International Business Times UK}} Elop also enjoyed a preferential tax status in Finland, a 35% fixed-rate income tax irrespective of the size of income, while typical tax payers in Finland pay a progressive income tax.{{cite news|url=http://yle.fi/uutiset/elop_enjoyed_preferential_tax_status_in_finland/6842147|title=Elop enjoyed preferential tax status in Finland|date=20 September 2013|work=YLE News|accessdate=28 September 2013}} Approximately 70% of the bonus costs were absorbed by Microsoft during the acquisition, the majority of which came in the form of accelerated stock awards.{{cite news|url=http://www.ft.com/intl/cms/s/0/8c4f2a5e-2212-11e3-bb64-00144feab7de.html#axzz3KyBiACay|title=Finnish fury over Elop's €18.8m award|work=Financial Times|date=20 September 2013|last1=Milne|first1=Richard}}

Criticism spread to politics, with Prime Minister of Finland Jyrki Katainen telling Finnish television that the payoff was "quite outrageous", and that it cannot be justified given the country's difficult economic times. Jutta Urpilainen, the minister of finance, wrote on her blog "In addition to the general toxic atmosphere, it [the payoff] may be a threat to social harmony".{{Cite news|url=https://www.ft.com/content/529a62c6-22fb-11e3-86d6-00144feab7de|title=Anger at Elop's Nokia pay-off spreads|first=Richard|last=Milne|newspaper=Financial Times|date=22 September 2013}} Some Nokia employees and investors also shared concerns.{{Cite web|url=https://www.helsinkitimes.fi/columns/columns/business-view/7803-stephen-elop-s-18-8-million-payoff-2.html|title=Stephen Elop's €18.8 million payoff|website=www.helsinkitimes.fi|date=26 September 2013}}

A quote has been attributed to Elop by some online sources claiming that he said, at the end of his speech to the Nokia board following the Microsoft acquisition: "we didn't do anything wrong, but somehow we lost". The claim also mentions that the quote was followed by emotional "tears" from Elop and other Nokia executives who were present.{{Cite web |last=Butterfield |first=Scott |date=2016-03-11 |title=“We didn’t do anything wrong, but somehow, we lost…” |url=https://www.cuinsight.com/we-didnt-do-anything-wrong-but-somehow-we-lost/ |access-date=2025-05-11 |website=CUInsight |language=en-US}} However, Microsoft Azure architect Clemens Vasters published an article on LinkedIn claiming that this is fake and "nonsense", citing the full press conference video that is publicly available on YouTube that does not feature the quote or emotions.{{Cite web |last=Vasters |first=Clemens |date=December 4, 2016 |title=Fakes, Nonsense, and a Crying CEO |url=https://www.linkedin.com/pulse/fakes-nonsense-crying-ceo-clemens-vasters/ |access-date=2025-05-11 |website=LinkedIn |language=en}}

In 2014, Elop returned to Microsoft as executive vice president of the Microsoft Devices Group.{{cite web|url=https://www.pcmag.com/article2/0,2817,2471790,00.asp|title=Microsoft's First Non-Nokia Lumia Device Coming Nov. 11|work=PCMAG}} From that point, Elop focused on the team's “mandate to help people do more” and their interest in "[putting] the entirety of the Microsoft experience in people's hands." Some major developments from the group included new Nokia, and later Microsoft-branded Lumia smartphones, the launch of new products including Microsoft HoloLens{{cite magazine|url=https://www.wired.com/2015/01/microsoft-hands-on/|title=Project HoloLens: Our Exclusive Hands-On With Microsoft's Holographic Goggles|date=21 January 2015|magazine=WIRED}} and the Microsoft Band,{{cite web|url=https://www.theverge.com/2014/10/29/7118533/microsoft-health-band-hub-for-fitness-data|title=Microsoft's health revolution is here, starting with a $199 fitness tracker|author=piercedavid|publisher=Vox Media|work=The Verge|date=29 October 2014}} and the spin out of Nokia MixRadio{{cite web|url=https://techcrunch.com/2014/11/18/microsoft-considering-spinning-out-nokia-mixradio/|title=Microsoft Spinning Out Nokia MixRadio|author=Steve O'Hear|publisher=AOL|work=TechCrunch|date=18 November 2014 }} to Japan's Line Corporation.

On 17 June 2015, Elop was laid off from his position at Microsoft as part of massive job cuts in the Microsoft Devices Group. According to Microsoft CEO Satya Nadella, "Stephen and I have agreed that now is the right time for him to retire from Microsoft. I regret the loss of leadership that this represents, and look forward to seeing where his next destination will be."{{cite web | url=https://blogs.wsj.com/digits/2015/06/17/text-microsoft-ceo-satya-nadellas-email-to-employees-on-changes/ | title=Text: Microsoft CEO Satya Nadella's Email to Employees on Changes | work=wsj.com | date=17 June 2015}}

On 16 March 2016, Australia's largest telecommunications provider Telstra announced that Elop would be joining the company in a newly created position as Group Executive Technology, Innovation and Strategy.{{cite web | url=http://www.telstra.com.au/uberprod/groups/webcontent/@corporate/@about/documents/document/uberstaging_299257.pdf | title=Telstra Group Executive Appointments Letter | date=16 March 2016 | accessdate=16 March 2016}}{{Cite web|url=https://www.smh.com.au/business/12b-down-and-counting-telstras-andy-penn-hires-nokias-burning-man-stephen-elop-20160316-gnk907.html|title=$12b down and counting, Telstra's Andy Penn hires Nokia's burning man Stephen Elop|first=Colin|last=Kruger|date=16 March 2016|website=The Sydney Morning Herald}}{{Cite web|url=https://www.mobileworldlive.com/asia/asia-news/telstra-appoints-elop-as-technology-chief|title=Elop is back with leading role at Telstra|date=16 March 2016}}

In his first speech at a Telstra conference in September 2016, Elop cited Nokia as an example of a "great" company that can self-assess and "transform" when necessary, referencing its success as a networks equipment supplier.{{Cite web|url=https://www.itnews.com.au/news/how-stephen-elop-plans-to-help-telstra-transform-438207|title=How Stephen Elop plans to help Telstra transform|website=iTnews}} He said that Telstra was also needing a necessary transformation to become more of a technology company.{{Cite web|url=https://www.afr.com/companies/telecommunications/telstras-stephen-elop-says-curation-is-the-key-to-the-telcos-technology-shift-20161118-gssp3n|title=Telstra's Stephen Elop says curation is the key to the telco's technology shift|date=21 November 2016|website=Australian Financial Review}}

Elop was dismissed from Telstra as part of its restructuring on 31 July 2018.{{Cite web|url=https://www.itnews.com.au/news/telstras-head-of-technology-out-in-restructure-499249|title=Telstra's head of technology out in restructure|website=iTnews}}

On 17 September 2019, APiJET, a Seattle-based joint venture of Aviation Partners, Inc. and iJet Technologies which makes real-time aircraft data analytics, announced that Elop had been named its CEO.{{Cite web|url=https://apijet.com/blog/2019/09/16/apijet-names-leading-tech-executive-stephen-elop-new-ceo/|title=APiJET Names Leading Tech Executive Stephen Elop New CEO|date=2019-09-16|website=APiJET|language=en|access-date=2019-09-18}}

As of January 2021, Stephen Elop has terminated his assignment as CEO to APiJET, serves on the APiJET board and is senior advisor to APiJET.{{cite web |title=Meet the team |url=https://apijet.com/about/#team |website=Company Overview |publisher=APiJET, LLC |access-date=26 January 2021 |location=Seattle, WA}}

In an interview, Elop said that he sees his Canadian roots as a "significant source of strength in the world", and he added "I will forever in my life be a Canadian, first and foremost."

In his spare time, Elop is an avid recreational pilot, owning a Cessna CitationJet. Elop is also a fan of the Vancouver Canucks ice hockey team.{{Cite news|url=https://www.ft.com/content/5eaa9514-3b94-11e0-a96d-00144feabdc0|title=Man in the News: Stephen Elop|newspaper=Financial Times|date=18 February 2011}} During his time working for Macromedia and Adobe in the mid-2000s, Elop occupied his weekends with his children.

Elop was married to Nancy from Wyoming, Ontario who he first met when studying at McMaster. They have five children: triplet girls, an adopted Chinese girl, and a boy. In August 2013 he filed for divorce from his wife of 26 years, having been separated since October 2012. Elop listed for sale his US$5 million mansion in Redmond, Washington, U.S., which he purchased in 2008 and lived in with his family.{{Cite web|url=https://www.realtor.com/news/celebrity-real-estate/ex-nokia-ceo-stephen-elop-selling-seattle-mansion/|title=Ex-Nokia CEO Stephen Elop Selling Seattle Mansion for $5 Million|date=11 January 2014|website=Real Estate News & Insights | realtor.com®}} The divorce finalised on 3 July 2014.

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