Monday, April 18, 2011

Nokia and Microsoft Partnerships

Windows Phone 7 In a potentially revolutionary announcement, Nokia has reached an understanding with Microsoft to migrate from the long-running Symbian, to Windows Phone 7 platform.

This seems to be a clear shift from Microsoft's approach that the user experience belonged to Microsoft, and no OEM would be allowed to change it.

But, it seems that the rules may be bent just a little bit for Nokia. In response to a question if Nokia will be able to "customize everything on Windows Phone 7 in order to differentiate itself?", Stephen Elop, said "Yes!". However, he added that minimal use of this capacity would be made, and compatibility would be a key concern.

This is a potential win-win situation for both organizations, as Nokia gives it's dying smartphone market a boost, and Microsoft gets an OEM, that's not just an OEM, but much more.

This development is also expected to make Intel's future entry into this fiercely-competitive market that much more difficult, as it has virtually no presence in this domain.

Nokia has not announced any forecasts for the launch of the first Windows Phone 7. However, it mentioned that 2011-2012 will be the year of transition to build the planned mobile ecosystem. Also, Nokia's full-year prospects of its Devices & Services business are subject to significant uncertainties. This might be another reason for Nokia not announcing any forecast regarding the launch.

Experts are expecting the first Nokia Windows Phone 7 device by the fourth quarter this year, with Nokia's engineering teams already working hard on it. Nokia expects to sell about 150 Million Symbian based devices this year and release its first MeeGo based product later this year.

On Nokia’s blog, Stephen Elop and Steve Ballmer commented about the Nokia-Microsoft partnership, saying that Nokia plans to usher a revolution in the smartphone market and be much more than another OEM. Nokia can potentially include contributing expertise on hardware optimization, language support, customization of the software and expects to bring Windows Phone to a larger range of price points, market segments and geographies.
He was optimistic on Nokia's chances of beating the fierce competition, quoting speed, determination and resource quality as some qualities that would enable it to succeed.

But competition is not nearly the end of Nokia's troubles. According to Finnish publication Helsingin Sanomat, over 1,000 Nokia employees staged a walk-out at company's Tampere office this afternoon to protest the shift towards Windows Phone and the expected job cuts. Tampere office houses nearly 3,000 employees - half of whom are said to be working on projects related to the nearly-extinct Symbian platform.

Nokia's unprecedented announcement has clearly ruffled many feathers, with Nokia planning to gradually phase out Symbian and backburner all MeeGo development while transiting to Windows Phone 7 platform. It was announced that Espoo's worldwide workforce will take a hit, and people with Symbian-focused software products would be the most affected.

In a related development, Nokia's shares on the New York Stock Exchange dived by over 14% at the time of this writing, while Microsoft prices have taken a hit of over 1%. However,both the Dow and NASDAQ indices are positive.


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Tags:  Nokia Microsoft Windows Phone 7 Symbian MeeGo Launch

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