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Nokia plans on phasing out Symbian in favor of Windows Phone 7, which will likely propel Microsoft into the number 2 spot in global smart phone sales by OS.  (Source: Nokia via Engadget)

With Microsoft focusing on providing a slick OS for its phones, Nokia can focus on its hardware fully, for the first time in some time.  (Source: Genius Reviews)
Nokia's new CEO also fires back against criticism by Google

While Symbian isn't exactly a household name in America, for years it sat on top of global smart phone sales, thanks to market leader Nokia's support.  With today's announcement of a strategic partnership with Microsoft, Symbian's owner Nokia let slip a market-moving detail: it is phasing out Symbian for Windows Phone 7.

And just like that Windows Phone 7 has been slated to, in all likelihood, claim the #2 spot  in smart phone global sales by operating system.

I. Becoming a Giant Overnight

The decision to phase out Symbian was revealed in a slide deck presented by Nokia's new CEO Stephen Elop and Nokia CFO, Timo Ihamuotila, at Nokia's Capital Markets Day.

Nokia will continue to support Meego, its joint Linux smart phone OS which it is developing with Intel.  But Meego will only be on a small selection of handsets, where as Windows Phone 7 will be loaded on the majority of Nokia smart phones, according to illustrations in the deck.

It can not be discounted the role Mr. Elop's former executive position at Microsoft played in the two companies coming together.  However, beyond any personal connections, the move makes sense on a number of levels for both firms.  

For Microsoft it's a complete game changer.  Rather than have to chip away and slowly rise in market share like Android, it's punched an instant ticket to the big time.  And with updates soon airing to smooth out its OS's rough edges, Microsoft looks to be in a very, very good position.  It may still lack a handful of features found in iOS and Android, but it arguably offers the most innovative and intuitive interface on the market today.  And its app market is rapidly expanding, further remedying one of its few remaining weaknesses.

For Nokia the move is also a huge opportunity.  As the recent slip to number 2 showed, people aren't exactly very enthusiastic about Symbian anymore.  With its OS budget dramatically slashed over the next few years, Nokia indicates that it will focus more on hardware.  This could be just what the doctor ordered, for the world's struggling largest phone maker.  And the partnership with Microsoft should allow it to expand its smart phone offerings and visibility in the large U.S. market -- a place where it has struggled in recent years.

Probably the biggest risk is for Microsoft to alienate its other partners, like HTC, LG, and Samsung.  All the Nokia hoopla may turn them off and make them devote more effort to Android -- or it could have little effect.  Which is the case remains to be seen.

II. Nokia Fires Back at Google Over "Turkey" Remark

In related news, Nokia CEO Stephen Elop lit up Twitter with a sharp-witted response to Google's earlier insult.  This morning Google engineer Vic Gundrota posted, "two turkeys don't make an eagle, but at least the consumer will have more choice for the menu, as #nokia goes windows"

Showcasing his sound knowledge of American history, Mr. Elop fired back [post], "Or this: Two bicycle makers, from Dayton Ohio, one day decide to fly."

It seems a bit unfair to label Windows Phone 7 a turkey given its radical reinvention of the Windows smart phone platform and relatively short evaluation period on the market.  Whether it's a turkey or an eagle should be seen in a couple of years -- after all, Android looked as much or more like a "turkey" in its first year or so on the market as Windows Phone 7 might today.

More than likely the typically reserved Google is lashing out, based on a bit of discomfort.  Before it seemed to have no real competition for the world #1 spot in the smart phone race.  Apple was unlikely to challenge it, as it was forever constrained to a single proprietary handset model.  And a sinking Nokia seemed equally unlikely to challenge.

Now a resurgent Nokia is back and will soon be offering handsets with a hot new OS -- Windows Phone 7.  The picture has changed dramatically, overnight.

Thus, much like Apple noisily berated Google as Android emerged as a true challenger to iOS in 2010, Google's mud-flinging appears to be found in a bit of frustration and concern.  Amusing commentary aside, it's a sign that Google is taking this merger seriously -- and is likely more than a little worried.


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Good.
By TheRequiem on 2/11/2011 11:10:30 AM , Rating: 5
It's for the better anyways... Microsoft has always been good about planning these thing's and Nokia didn't really have a choice, they need something competitive. They have a great developing WP7 platform. People change and so do the trends.




RE: Good.
By Tony Swash on 2/11/11, Rating: -1
RE: Good.
By omnicronx on 2/11/2011 1:12:32 PM , Rating: 2
Please Troll.. go crawl back into whatever hole you just came out of.

Half the BS you just posted is not even correct. Especially the little tidbit about Nortel at the bottom. Going bankrupt had absolutely NOTHING to do with Microsoft.


RE: Good.
By Tony Swash on 2/11/11, Rating: -1
RE: Good.
By omnicronx on 2/11/2011 2:28:53 PM , Rating: 3
The article is clearly bias.

Look at the 'What happened' section of each partnership. Every other section shows why MS's ties with their partners lead to them no longer using MS products. (lets not get into the fact that timelines done line up, certain facts are incorrect and some of the responses don't make any sense)

So please enlighten me as to what exactly they are trying to imply in the Nortel portion other than trying to make a cheap shot?

It even seems to get lazier as the article goes on. How is "Bing did ship on some devices but in October 2009 Droid came to Verizon." even a response? It does not even make any sense.


RE: Good.
By Luticus on 2/11/2011 2:46:23 PM , Rating: 2
yum yum, troll cookies :)

They should hang a sign that says don't feed the trolls on DT :D I can't ever resist either, don't feel bad...

Personally i recall a young apple lying face down in the gutter before the return of jobs. I think we can put "track records" aside... they obviously don't mean much.


RE: Good.
By Tony Swash on 2/11/11, Rating: -1
RE: Good.
By Cheesew1z69 on 2/11/2011 4:08:57 PM , Rating: 2
RE: Good.
By bigboxes on 2/13/2011 9:12:16 PM , Rating: 1
Welcome back, reader1. :eyeroll:


RE: Good.
By Smilin on 2/11/2011 3:36:38 PM , Rating: 3
The Nortel deal was related to unified communications not smartphones.

It produced the only dual forking (RCC + Enterprise Voice) approved IPPBX the CS1000. Dual forking is significant because it bridges the Cisco/Avaya dominated RCC space and the more advanced Microsoft owned Enterprise voice space...in other words it allows Microsoft to poach customers that already have significant investment in competitor products.

Nortel is gone (snatched up by Avaya or gone under can't remember) but Microsoft is now crushing the #2 Cisco in the Unified Communications world. Lotus isn't even dust on the horizon anymore.

I'm not sure about the rest of the track record but this particular partnership was a well executed move by MSFT.


RE: Good.
By omnicronx on 2/11/2011 1:23:47 PM , Rating: 2
FYI This comes from the same people that claimed in december that 'Android not helping Verizon fight the iPhone'.


RE: Good.
By Da W on 2/11/2011 2:35:57 PM , Rating: 2
You spend post and post bitching against Microsoft these last few days. What's your goal in it?


RE: Good.
By omnicronx on 2/11/2011 2:48:44 PM , Rating: 2
The last few days ha!.. he only ever responds to MS and Apple articles, and has been doing so far at least a year heh.

Also known resident DT Apple troll..

In fact I should slap myself for even answering his posts...


RE: Good.
By Tony Swash on 2/11/11, Rating: -1
RE: Good.
By Luticus on 2/11/2011 4:13:00 PM , Rating: 5
First off, you never have to do anything. The computing market hasn't ever been Microsoft exclusive. Microsoft may be dominating the desktop space but it's not the only game in town, never was.

Second, for a company that produces "third rate software" it's a wonder to me why it's office and operating system products are kicking the crap out of FREE ALTERNATIVES all day long. Interesting...

Third:
quote:
the great beached whale looks like it might be slowly dying.

Good luck with that...


RE: Good.
By Tony Swash on 2/11/11, Rating: -1
RE: Good.
By maven81 on 2/14/2011 2:22:46 PM , Rating: 5
"I worked in a large organisation (10,000 employees) Windows and Office were obligatory for eight fucking hours every day of my working life. This was an experience shared by millions of other people. Nobody chose Windows at work, that was all that was on offer. I was a Mac user the whole time so I knew exactly how inferior and awful the Microsoft stuff was but still I had to face it every day of the working week."

And I worked in a large ad agency that had 500 mac users. So did they not have a support staff because mac is all flowers and rainbows and "just works" or was it a bigger nightmare then supporting PC users? I'll give you 1 guess.
Currently I work in a place where I'm forced to work on a mac 8 hours a day. There's no real reason for this since all the adobe applications I use work just as well on a PC and sometimes BETTER. But I'm forced to use this fisher price "my first OS" crap that has such a hard time with things like memory management that often the computer will freeze for 20 seconds at a time. It has a hard time talking to the windows network (and the retards that designed this OS chose to use an image of a PC with a blue screen as an icon for the windows machines, really classy stuff). I could list a million things about it that make me want to throw this thing out the window every day. So don't tell me how it's superior.


RE: Good.
By sxr7171 on 2/12/2011 11:34:10 PM , Rating: 2
The FREE alternatives are worth what they cost. It would takes many millions to try to even try to wrestle away MS's monopoly in those areas. Yes, that's how powerful being in that position is. How can you use anything other than Office if you expect to get by in the world?


RE: Good.
By FITCamaro on 2/13/2011 11:47:40 AM , Rating: 2
Don't see why not. You don't need Outlook to send email. You don't need Word or Excel to make spreadsheets. Open Office is compatible (not saying its as good. no where close).

Google Docs is coming on strong as well.

Microsoft is just the standard that everyone else has to develop to. But for many of people, they don't NEED the complexity of Office. They just don't know anything else.

I use it because my company does and I can get it for nothing.


RE: Good.
By semiconshawn on 2/11/2011 4:46:13 PM , Rating: 3
Dying with record profits. My kinda of dying. If I was you I would rant and cry as well. Looks like the company you have nightmares about just became a HUGE player in the mobile sector overnight. Pee your pants little man the boogie man commeth......


RE: Good.
By Tony Swash on 2/11/11, Rating: -1
RE: Good.
By semiconshawn on 2/11/2011 6:10:26 PM , Rating: 2
Wow what a pointless exercise. You want to poll about 2yrs from now? I say 150%. Ill meet you here in 2 YEARS to see who is right. bwahaha.


RE: Good.
By Tony Swash on 2/12/11, Rating: 0
RE: Good.
By sxr7171 on 2/12/2011 11:54:04 PM , Rating: 2
They could in 6 months if they really are on the ball and 12 months if they are slacking. I would agree with you on that. If they know what's best for them 6 months is what they would do. But one thing you are forgetting the immense brand recognition Nokia enjoys worldwide. Sadly most of these are dumbphones. However, nobody can put inexpensive hardware in the hands of people like Nokia can. So they do have to find ways to make basic WP7 phones and also some compelling high end WP7 phones. Clearly they have some history in both arenas. This could play out in any number of ways, but if these companies are serious it does have the potential to be a major contender. For MS this is potentially a near instant 30% global smartphone share. It just has to be implemented with some dedication. The rapid changes are a good sign. If both parties leverage this deal to the maximum, it could accomplish much more than you expect.


RE: Good.
By sxr7171 on 2/12/11, Rating: 0
Feature phones
By log on 2/11/2011 2:00:52 PM , Rating: 2
So what about feature phones? What are they getting. It's great smartphones are getting WP7, but Nokia does more than smartphones. And lots of type phones as opposed to touch phones. And sells a lot in less developed markets. What are these phones getting? Surelly it's not WP7?

Feature phones make a large base of Nokia portfolio. Certainly aren't just going to leave the market!




RE: Feature phones
By Luticus on 2/11/2011 2:49:30 PM , Rating: 2
meego :P


RE: Feature phones
By Smilin on 2/11/2011 3:53:08 PM , Rating: 3
The appeal of a feature phone is simplicity and price. Price is dropping like a rock and WP7 is in many ways simpler to use than a feature phone.


RE: Feature phones
By Stoanhart on 2/11/2011 4:30:23 PM , Rating: 2
How long will feature phones continue to exist? As the cost of smartphones comes down, I suspect they will eventually be the only phones. Sure, some models might ship with a simplified homescreen/shell that looks and feels like a feature phone for those who don't want a smarthphone, but underneath they'll be running the same OS and probably be able to support the same apps.


RE: Feature phones
By acer905 on 2/11/2011 7:28:38 PM , Rating: 2
Feature phones will continue to exist as long as they don't require data plans. The cost of smartphones may be dropping, but you still have to pay hundreds of dollars a year more, and many people just don't care.

A phone should make calls, look decent, and be cheap so when it breaks it doesn't break the bank as well.


RE: Feature phones
By nikon133 on 2/13/2011 3:57:07 PM , Rating: 2
I think it was said somewhere they will keep Symbian for feature phones. For a while, at least; as price of the hardware goes down, I would expect them to put (customised) WP7 on feature phones as well, at some point.

I think this is good move for Nokia, and even better for MS. They could have gone for Android but, considering how strong Android market already is, they would be just another Android phone maker.

Being first exclusive WP7 smart phone maker - and famous one too - MS will treat them much better than Google would, and they will stand out much more than with Android on their handsets.

And MS gets one of the most charismatic brands in mobile phone industry to sell their OS. MS, being American brand, will help Nokia sell better in US, while Nokia will help MS sell better in their traditional markets, like Europe and Asia.

Unfortunately we cannot branch in two realities so we'll never be able to compare how would Nokia and MS fare without this coalition, but I believe that being OS on Nokia smartphones will multiple WP7 sales, stimulate developers and boost WP7 market share much faster than it would grow without Nokia.

It is also likely to polarise other WP7 makers, but while some might drop WP7 and concentrate on Android, those that will remain will put better effort on their WP7 models.


Ben Franklin picked the turkey
By nafhan on 2/11/2011 12:26:48 PM , Rating: 3
If nothing else, this will give Nokia a way to differentiate itself from the hordes of Android device manufacturers.
It's certainly a very decisive move, and I think it will either kill Nokia and severely curtail MS as a major player in the smartphone market, or (as the title suggests) make WiNokia the #2 phone platform.
The one bad thing from an MS perspective is that this may sour relationships with other manufacturers.




RE: Ben Franklin picked the turkey
By micksh on 2/11/2011 12:59:15 PM , Rating: 3
quote:
The one bad thing from an MS perspective is that this may sour relationships with other manufacturers.

True. Given Nokia's development speed and current workforce reduction the results of this will appear no earlier than late 2012. WP7 is not doing very well now.
If now HTC and Samsung lose interest in WP7 it simply will not survive by that time. Then Nokia will lose 2 years and will switch to Android.


RE: Ben Franklin picked the turkey
By nikon133 on 2/13/2011 4:19:38 PM , Rating: 2
We might have to wait for phones designed from the scratch, but we will see WP7 Nokias this year.

Think of it - WP7 hardware requirements are well known and Nokia can get generic PC boards from Foxcon or some other far east hardware manufacturer; I don't expect they are producing their current electronics anyway. They already have chassis like N8, X6... that should be easy enough to modify for new logic.

Almost 2 years for such operation? No way. I'd expect to see them end of Q2 or beginning of Q3 this year.


RE: Ben Franklin picked the turkey
By micksh on 2/14/2011 12:54:21 PM , Rating: 2
You could check Wikipedia and find that Nokia has its own factories.

By the year end dual core CPUs in cell phones will be standard. Nokia has no experience in designing such phones. They always were couple of generations behind in CPU architecture.

Their flagship, N8 has 680 MHz ARM11 CPU and is severely underpowered for WP7. Such phone was only possible to exist because Symbian has very low hardware requirements.

They could, of course, outsource boards to Asia. Good luck competing with companies like ZTE and Huaiwei then.


EU action
By mcnabney on 2/11/2011 11:14:22 AM , Rating: 5
Waiting for the EU to fine Microsoft for not allowing WP7 users to choose their browser when the device is first purchased.




RE: EU action
By djcameron on 2/11/2011 11:30:32 AM , Rating: 2
Naw, the EU will like this choice because it's Nokia. Watch for Google and Apple to become the new EU ATM.


RE: EU action
By danobrega on 2/13/2011 9:19:04 AM , Rating: 2
Shouldn't WP7 have a dominant market position for that to happen?


Wait, whu?
By Smilin on 2/11/2011 11:49:43 AM , Rating: 2
quote:
More than likely the typically reserved Google is lashing out, based on a bit of discomfort.


LOL. They lash out a LOT in discomfort.




RE: Wait, whu?
By Pirks on 2/11/2011 2:02:53 PM , Rating: 1
Try not to lash out when a chair is flying your way...


RE: Wait, whu?
By Smilin on 2/11/2011 3:50:30 PM , Rating: 3
..or just got kicked square in the sack. :)

Google is quite the big baby when things don't go their way. Their professionalism slips a lot (the bing clickthrough thing, releasing exploits without telling the owner)


RE: Wait, whu?
By semiconshawn on 2/11/2011 5:02:42 PM , Rating: 3
How about China? Talk about a fit. Moral issues asside you dont go to another country and break their laws because you are pissed at them. Leave yes if you want but damn... you are sitting at the grown up table now act like you belong.


LOL
By iluvdeal on 2/11/2011 4:21:00 PM , Rating: 3
Nokia stock got hammered on this announcement and over 1000 Nokia workers walk out in protest in Finland, no joke. Is Elop still getting paid by Microsoft? How much stock does he have with them?

This reminds me of Palm partnering with industry laggard Sprint when they released the product that was suppose to save their company, the Pre. It didn't.




RE: LOL
By B3an on 2/12/2011 2:01:59 PM , Rating: 2
The Nokia workers who walked out where the ones who work on the Symbian OS which is being pahased out. If they done a good job in the first place and made an OS that was actually good and kept up with the times, then this would not have happened. It's there own fault.


RE: LOL
By themaster08 on 2/12/2011 6:52:33 PM , Rating: 2
To add to your comment, Nokia's stock price actually rose during speculation of a transition to Windows Phone 7. It's only since Elop made his brutally honest statement about Nokia's market stance and Symbian being a burning platform, that their stock price has tanked.


RE: LOL
By Smilin on 2/14/2011 9:38:15 AM , Rating: 2
It's just profit-taking. Buy on the rumor, sell on the news. Go look at MSFT stock anytime they have posted a record quarter..it tanks.


Say what?
By gstrickler on 2/12/2011 9:09:48 AM , Rating: 2
quote:
And just like that Windows Phone 7 has been slated to, in all likelihood, claim the #2 spot in smart phone global sales by operating system.

Jason, what are you smoking? Likely? Nokia is tanking, they'll be lucky if they hold on to the #3 spot. They should have partnered with HP and used WebOS. Even with their current size, they would have been a me too competitor with Android.




RE: Say what?
By cmdrdredd on 2/12/2011 9:24:59 AM , Rating: 2
I think so too, I mean maybe in smaller markets where touchscreen phones don't have the popularity and things like that this partnership can have impact. In a market as saturated with smartphones as the US and other major countries that have access to iPhone (which dominates in the US by a good bit), and various Android products there is no reason to think they will have a huge benefit from this partnership or penetrate the over saturated markets.


Not a Good Idea
By tech329 on 2/11/2011 8:45:52 PM , Rating: 3
MS has had it's share of mistakes and they're always in the limelight because it's Microsoft.

However, to think that those past flubs are an indicator of what MS is capable of achieving is a huge mistake. MS has an unparalleled storehouse of technical expertise it brings to the table. Their past mistakes have value because they can draw on them and apply the things learned. A resurgent and forward looking Microsoft coupled with all they know in no way can be taken lightly.




By andrewdover on 2/14/2011 8:24:25 AM , Rating: 2
These things can usually be understood by looking at the personal motivations of each CEO.

Mr Ballmer is desperate to avoid a total disaster on WP7. If the Nokia deal does not help WP7 much, as I expect, then he might have thrown good money after bad. It depends on exactly how much "marketing assistance" Microsoft will have to pay Nokia.

Mr Elop was hired to make a dramatic change, and so he made one. Not too surprising that he defines Microsoft as a supplier rather than one of the competition. Still holding Microsoft stock also adjusts his thinking patterns. But the use of stock options as CEO compensation also biases him towards the "hail mary pass". (Options are just as worthless if the company goes bankrupt or the stock stays below the strike price)

My guess is that there will be no Nokia WP7 phones by the end of the year, and Nokia will have tried to change horses halfway across the creek. I hope it works out though.




As the recent slip to number 2
By Ushio01 on 2/11/11, Rating: 0
typical MS
By superPC on 2/11/11, Rating: -1
RE: typical MS
By cditty on 2/11/2011 11:45:42 AM , Rating: 3
You know, Google buys most of it's 'new' innovations as well.


RE: typical MS
By Smilin on 2/11/2011 11:51:32 AM , Rating: 5
Shutup! Google invented Linux! And Java. And youtube. And office.


RE: typical MS
By 1reader on 2/11/2011 1:30:48 PM , Rating: 2
Fool! Apple invented everything. All other products are just higher quality and lower cost knockoffs.


RE: typical MS
By Smilin on 2/11/2011 3:55:01 PM , Rating: 2
Your argument was beautiful, wonderful, magical. I concede.


RE: typical MS
By superPC on 2/11/11, Rating: -1
RE: typical MS
By weskurtz0081 on 2/11/2011 12:22:18 PM , Rating: 5
So, if you were running a business, and you had a chance to make yourself more competitive and get your produce out there, or try to fight it out against established competition that got a jump on you.... you would choose to fight it out?

You might want to stick with working for other people and not making strategic business decisions.


RE: typical MS
By woofersus on 2/11/2011 12:15:09 PM , Rating: 4
Not to mention Apple's software that came from acquisitions, (iTunes, Final Cut, Logic, etc.) or the major OS components that came from the NeXT acquisition, or the cpu's in all their mobile devices that came from the PA Semi acquisition, the multi-touch and gesture features that came from Fingerworks. They even bought Power Computing just to shut down the market for other PowerPC based computers.

I'm not saying it's bad necessarily. Strategic partnerships and acquisitions aren't some sort of cheap shortcut. They're good business. (when they work) These companies wouldn't be in the position they are if they hadn't started small at one point and grown. Microsoft has been around for a while, and been in the smartphone business for a while too.

Besides, Microsoft isn't buying Nokia here. If they hadn't worked hard to develop their new mobile OS Nokia wouldn't have wanted it. After All, they could have teamed up with Google but didn't.


RE: typical MS
By StraightCashHomey on 2/11/2011 1:01:32 PM , Rating: 4
Try convincing the stockholders of Microsoft and Nokia that it's better to do things "the hard way", and see how that goes. Post your results here.

By the way, Microsoft has its fingers in products other than cell phones and mobile devices. I know that many DailyTech posters measure a company's success on their tablet and mobile OS marketshare, but trust me, there are other things out there. Just a few.


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