Nokia's new CEO has sent an frank and frank memo to his staff that suggests the phone hulk is in crisis.
Stephen Elop describes the firm as station on a "burning platform" surrounded by innovative competitors who are grabbing its marketplace share.
In particular, he said, the firm had been held off ensure by the success of Google's Android working network and Apple's iPhone.
BBC News has accurate that the memo is genuine.
"The initial iPhone shipped in 2007, and you still do not have a product that is shut to their experience," Mr Elop wrote in the note that was distributed to the Finnish company's staff and was initial published by technology website Engadget .
"Android came on the stage only over two years ago, and this week they took the care location in smartphone volumes. Unbelievable."
Although Nokia leads the universal smartphone marketplace in conditions of handset sales, its on the whole share has been steadily declining.
According to investigate firm IDC, Nokia's share fell from 38% in 2009 to 28% by the finish of 2010.
Meanwhile its rivals, inclusive Apple and HTC have seen their share increase, or sojourn constant.
Ben Wood, an researcher at investigate firm CCS insight, mentioned the memo showed that Mr Elop has a "deep bargain of the serious constructional problems Nokia is facing".
"I regard it shows that he has hereditary an organization that is in sufficient worse figure than he expected and the work that will be compulsory to obtain it back on follow should not be underestimated," he told BBC News.
Mr Elop's leaked memo moreover suggests that Nokia is moreover being squeezed at the lower, non-smartphone finish of the marketplace by Chinese manufacturers.
"They are fast, they are cheap, and they are challenging us," he wrote.
Nokia is expected to publicly residence its future plan at a media eventuality this Friday.
Mr Wood mentioned that he considered Mr Elop would use the lecture as a luck to situation a "mea culpa".
"He will use it to say 'we are not in a great position, you have been outgunned and if you are to redeem you are going to have to take a few extreme decisions'."
Mr Wood mentioned this could engage using Android or Microsoft's Windows Phone 7 working systems.
"No options will be ruled out," he said.
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