Nokia Hires Former Microsoft Executive as New CEO (NASDAQ: MSFT)

Nokia has hired former Microsoft (NASDAQ: MSFT) executive Stephen Elop to serve as its new chief executive officer in a move to reclaim lost ground to Apple and Google which has removed more than $161 billion worth of its market value.

Elop, 46, will take over as president and CEO of the world’s largest phone manufacturer beginning on September 21^st, the company said in a statement. Elop will replace Olli-Pekka Kallasvuo, becoming the first non-Finnish individual to head the company.

ATP investor Jesper Kruger said to the San Francisco Chronicle that “We view the appointment of a leading software executive to the CEO role as a positive.” He added, “Earlier management grossly underestimated the challenges related to moving from a hardware-driven business model to software.”

Elop said on Friday that the two companies may do more work together, as both Microsoft and Nokia have struggled to compete with Apple and Google in their smart phone software. Nokia has been forced to cut prices and sacrifice profits to defend its market share, and is now tasked with building a smart phone with the same mass appeal that the iPhone has.

“My job is to take the organization through a period of disruption and ensure that we are meeting the needs of customers while delivering superior financial results,” said Elop at a press briefing in Espoo.

Microsoft Corp (NASDAQ: MSFT) CEO Steve Ballmer said in a statement that Elop was a “good steward of the brand and business in his time here.” Ballmer did not name a replacement, but said that a team of executives will report to him directly in the interim.

Shares of Microsoft Corp (NASDAQ: MSFT) traded down 0.67% during mid-day trading on Friday, ending the week at $23.85.