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Nokia CEO Stephen Elop.  (Source: WPCentral.com)

Newly appointed President of Nokia Inc. (US), Chris Weber.
Microsoft to pay out billions in blockbuster deal with Nokia

While the blockbuster deal that's amped to put Windows Phone 7 on all Nokia smartphones --essentially phasing out Symbian and making WP7 the world's second-most popular mobile OS in its place -- is supposed to benefit both parties involved, it has thus far been met with mixed reaction. 

The day the deal was announced Nokia's shares dropped 14 percent, and a number of employees -- many on the beleaguered Symbian side -- used the company's flextime program to go home early.

Then, at the Mobile World Congress event in Barcelona over the past weekend, Nokia CEO Stephen Elop was forced to go on the defensive, Business Insider reports, after an audience member asked if he was a Trojan horse. 

"The obvious answer is no," Elop replied. "We made sure that the entire management team was involved in the process, and of course the board of directors of Nokia are the only ones that can make this significant of a decision about Nokia. They made that final decision on Thursday night."

The question was an obvious reference to Elop's past at Microsoft, where he was an executive for two years before taking the top spot at Nokia. To some, it may seem a little strange that Nokia would make such a partnership with Microsoft, particularly after its 10-year investment into Symbian. 

Elop also had to defend his shares of Microsoft stock, which Business Insider reports to be approximately 130,000 shares worth nearly $3.18 million.

Conspiracy theorists received additional ammunition Friday, when Nokia announced Chris Weber as its new president of Nokia Inc. (US) and head of the North American market after current president, Mark Louison, "decided to leave Nokia and pursue new career opportunities." Weber spent 16 years at Microsoft, where he held executive positions as high as corporate vice president.

While solid details of the agreement between the two companies have not been released, news surfaced over the weekend that sheds light on just how big the deal is. According to Computer Worldwhile showing a slide that portrayed Microsoft's investments flowing in Nokia's direction, Elop said, "the value transferred to Nokia is measured in Bs not Ms." Meaning, Microsoft pay-out to Nokia in the deal would be in the billions, not millions, of dollars. No additional details were given, like over how many years the investments would take place.

We also learned that Google was actively pursuing Nokia in what could have been a similar deal, but Microsoft won out, according to Elop. "If you combine the current market share of Android with the market share that Nokia could deliver to Android over the next couple of years, it’s a very large number. One could believe the mobile industry thereafter would be some form of duopoly," Elop said. The decision to go with Microsoft over Google was made to change the dynamic and make it "a three-horse race," as Elop said. Presumably, the multi-billion-dollar investment doesn't hurt, either.

As for availability, a top executive told Computer World that the first WP7-powered Nokia's will be available this year.



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Symbian wasnt cutting it.
By Mitch101 on 2/14/2011 9:24:04 AM , Rating: 5
I also heard Google was very miffed about the deal.

After 10 years of symbian it didnt stop the rise of iPhone and Android. Its smart of Nokia to realize they needed to change because symbian wasn't catching on. Its a shame I heard good things but Im sure Microsoft will pick up a few of the developers they need not be such run aways.

Nokia gets a check and Microsoft gets a major boost. Should help recoup part of what they lost to Android and iPhone market share and gives them a Phone OS thats on par with Android and iPhone. Had google got the deal no one would complain. Since Microsoft got the deal people are crying foul as expected.

If you dont like Windows Phone 7 you haven't tried one your just looking at 2-3 features you think are important and discounting the device. By the time the Nokia devices launch with Windows 7 there will be no more excuses on what Windows Phone 7 is missing. Then will begin the reversal of what Android and iPhone are missing. XBOX, Remote Administration, Full Exchange Integration, Sharepoint Integration, etc.




RE: Symbian wasnt cutting it.
By Mitch101 on 2/14/2011 9:28:27 AM , Rating: 2
BTW I found some people people with Palm Pre devices apparently the state in Charlotte NC bought some for their staff. They all hate them with a passion. Which explains why I never encountered anyone with a Palm Pre prior.

It also explains why they sold some devices. Must be someone who was overly attached to his Palm 3/Palm 5 in a purchasing power position who made the choice to get Palm Pre's without determining what was best.


RE: Symbian wasnt cutting it.
By Lonyo on 2/14/2011 9:44:31 AM , Rating: 2
If you read Anandtech, you would know they look very favourably upon WebOS, and see a lot of potential. The actual execution of first gen devices is not so good though, but they aren't (presumably) the worst thing in the world, they have received some praise, and the OS was deemed worthy of a look by HP since they bought Palm for it.


RE: Symbian wasnt cutting it.
By Mitch101 on 2/14/2011 10:11:27 AM , Rating: 3
I went by word of mouth on someone who is forced to use one on a daily basis for their job not someone who had one for a few hours/days to write an initial impression on.

Reviews fail to deliver long term satisfaction. When you start to discover the devices limitation/design flaws and how solid the device/software is you didn't initially discover in the first few moments you had the device.

Its why you never take the sales pitch or review about a device as final gospel and their capability you talk to others who have implemented the software and the issues and limitation they have discovered over time. Its why McCaffee can test high on Anti-Virus software but once you use the software, deal with virus definition/engine updates, deal with their TAMS that you realize the software and company lacks a lot of quality and professionalism. Same with hard drives right now Segate has 1.5tb and 2tb hard drives reviews are great but they have a very high failure rate several months down the road.

Initially reviews might look good but long term exposure is a review I look for and they say the Palm Pre is horrendous.


RE: Symbian wasnt cutting it.
By Da W on 2/14/2011 10:55:49 AM , Rating: 3
Windows phone begins to be annoying when you have 40+ apps. It also needs custom skins to have a beautiful home screen. Almost no apps uses live tiles, and the home page with big squares boxes can be annoying after a while.
I would like better hardware too. Except for HTC surround (which is a Nexus One with a speaker), OEMs didn't push their best effort for the device. There is no new hardware announcement for WP7 while we got a Tegra 2 fucking 3D device on android.
Why do i have to use the camera button to take a picture and not tap on the screen?
Apps loading is slow as hell. And there are a bunch of popular apps, but as far as local apps go (read french-canadian apps) it's still all iPhone country and there won't be WP7 until we see VOLUME.

All that to say, i love my phone, best music device on the planet and very usable in portrait mode using only your thumb. But there is still a long road ahead. We need volume! We need support for other SoCs. We need updates that will bring more than copy and paste.


RE: Symbian wasnt cutting it.
By noirsoft on 2/15/2011 2:52:08 AM , Rating: 3
quote:
Why do i have to use the camera button to take a picture and not tap on the screen?


Because it's impossible to tap on the screen and not move the phone, thus changing your shot? Because it's simply better to use the button so that you get the shot you actually want? Because anyone who uses a camera knows what to do?


RE: Symbian wasnt cutting it.
By JHBoricua on 2/14/2011 11:13:22 AM , Rating: 2
They probably don't like them because of the lack of apps compared to the iPhone and android. But then again, as you stated, they were bought for work and as such WebOS is more than capable. Me thinks they are just a whinny bunch.

I owned a Pre since launch time and IMHO it has the best mobile experience compared to the iPhone and Android. Multitasking on WebOS is a thing of beauty that I've yet to see on IOS or Android. What it lacked was the apps and Palm did a horrible job in that department. I currently own an Optimus LG because I got tired of waiting for a new WebOS device and, while I like the apps available in the Android ecosystem, Android is WAY behind in the user experience side of things. I won't be buying the new webOS devices this year either as I want to see how HP executes, but if they get their stuff together, switching back to a WebOS device will be a no brainer for me.


RE: Symbian wasnt cutting it.
By jvillaro on 2/14/2011 10:14:27 PM , Rating: 2
Anandtech also liked WP7 very much and of coarse noted what its lacking, but overall they liked it


RE: Symbian wasnt cutting it.
By michael67 on 2/15/2011 4:07:03 AM , Rating: 2
I actually also like WP7, same as i do my Android Desire, what i really don't like is the connection both companies have whit advertising companies and the impact it can have on my privacy.

I was really setting my hopes on MeeGo as it was more developed by hardware companies, then companies whit ties whit the advertising world.

Because sorry to say i don't trust those basters at all, I see my phone the same way as a diary, as it has intimate moments of my life stored on them.
And whit location tagging and faster 4G, the line between what i consider privet, and what they consider privet and they can get, is getting thinner by the day.

because no one has the right to see ore has access my privet moments of MY LIFE.


RE: Symbian wasnt cutting it.
By Mitch101 on 2/14/2011 9:44:14 AM , Rating: 2
Posting a lot to myself because I had to deal with my wife iPod/iTunes

Over the past week my wife's iPod died where the buttons wouldn't work and she purchased a refurbished one from the Apple store. We couldn't give up the few devices we have that the iPod plug into and she likes the device. I had to re sync her device and she wanted to add new music too it since it had been a long time.

The iPod itself is a very nice device like I said but the iTunes software is a total piece of SHYT compared to Zune. Yes I said Zune. WTF is with saving songs to a playlist? Why cant I right click and just send to the device? iTunes is F-ing horrible software.

On a Zune you name your devices like Mikes and Lisas. You can right click on any media and send to Mikes and this album send to Lisa. When the devices are powered on they transfer via Wifi or by plugging it in via USB. How in the world can anyone mock the Zune when the software is worlds better than what Apple threw up. I was blown away by how lousy the iTunes software was compared to Zune marketplace.

It occurred to me again the reason they mock the Zune is simply because they never used it and that why they dont know how bad iTunes overcomplicated what could be much simpler.


RE: Symbian wasnt cutting it.
By Tony Swash on 2/14/2011 2:17:03 PM , Rating: 2
quote:
Over the past week my wife's iPod died where the buttons wouldn't work and she purchased a refurbished one from the Apple store. We couldn't give up the few devices we have that the iPod plug into and she likes the device. I had to re sync her device and she wanted to add new music too it since it had been a long time.

The iPod itself is a very nice device like I said but the iTunes software is a total piece of SHYT compared to Zune. Yes I said Zune. WTF is with saving songs to a playlist? Why cant I right click and just send to the device? iTunes is F-ing horrible software.

On a Zune you name your devices like Mikes and Lisas. You can right click on any media and send to Mikes and this album send to Lisa. When the devices are powered on they transfer via Wifi or by plugging it in via USB. How in the world can anyone mock the Zune when the software is worlds better than what Apple threw up. I was blown away by how lousy the iTunes software was compared to Zune marketplace.

It occurred to me again the reason they mock the Zune is simply because they never used it and that why they dont know how bad iTunes overcomplicated what could be much simpler.


I was trying to think of what your comment reminded me of and then it struck me. You sound just a like a Mac user from the 1990s dark ages, back when Windows ruled and what Microsoft did actually mattered. Right down to the fact that your wife went with an iPod because it was "compatible".

The custom Apple 30 pin connector (and the strict control over the number of SKUs) is one of smartest moves Apple ever made. Right now one of the key advantages that iPhone has over Android (and there are others) is that so many third party accessories are iPod/iPhone/iPad compatible, the size of the iDevice add on ecosystem is vast compared to any of the competition. Consumers notice such things.


RE: Symbian wasnt cutting it.
By NellyFromMA on 2/14/2011 2:55:33 PM , Rating: 2
I couldnt possibly agree less with this. I cringe at the thought of needing ANOTHER propietary cable that does NOTHING other than over charge me for something I've been doing forever. Only the most dedicated mac users can appreciate the 'feature' of this proprietary connector. Mini USB FTW, as long as the phone manufacturer doesn't put it in an awkward place.


RE: Symbian wasnt cutting it.
By Mitch101 on 2/14/2011 3:01:43 PM , Rating: 2
I agree my car uses Usb or Blue tooth to stream its music library through my stereo and the list of supported players is pretty much anything with a USB port down to USB thumb drives.

This proprietary connection is nothing more than when IBM tried to force Microchannel as a standard that you would have to go through them to license.


RE: Symbian wasnt cutting it.
By Tony Swash on 2/14/2011 5:35:19 PM , Rating: 2
quote:
I couldnt possibly agree less with this. I cringe at the thought of needing ANOTHER propietary cable that does NOTHING other than over charge me for something I've been doing forever. Only the most dedicated mac users can appreciate the 'feature' of this proprietary connector. Mini USB FTW, as long as the phone manufacturer doesn't put it in an awkward place.


I think your are missing my point.

I wasn't arguing whether the bespoke 30 pin Apple connector for iDevices was a good or bad thing, either technically or from the point of view of the convenience of the end user. I am expressing no view of that.

I am saying that using a bespoke connector makes enormous business sense for Apple. If the i-Devices used, lets say, a standard USB connector then all the vast number of accessories for the i-Devices would also be available for Android, Rim or (if anyone can find one) a WP7 phone. Instead as it stands now if you start collecting such accessories soon you will find switching to another device brand very difficult.

This is exactly the position that many DSLR camera owners find themselves in. They are often locked into a camera brand by their expensive lens collection. I committed to a Nikon DSLR early on and soon had quite a collecting of lenses, the cost of these lenses together is now actually more than the camera. I now buy camera's that are compatible with my lens collection.

It's pretty clear that that is what Apple has done with the 30 pin connector. I would do it to if I were them.


RE: Symbian wasnt cutting it.
By davmat787 on 2/15/2011 1:38:33 PM , Rating: 2
Proprietary interfaces cuts both ways however. Yes, it will mentally "lock" someone in to Apple, but conversely it can lock a potential customer out as well. Their collection of standard cables will not work for their shiny new iThingy, so have to buy a $30 dollar cable that does the exact same thing as their $2 standard USB cable. This does not build goodwill either.

Proprietary cuts both ways by its very nature. I would guess if you look back on computer technology as a whole, proprietary interfaces can be more detrimental to a company than going with the standards.

If you ever worked on a Packard Bell PC, I think you know what I mean.


RE: Symbian wasnt cutting it.
By nikon133 on 2/14/2011 3:26:47 PM , Rating: 2
3rd party accessories are available because there are so many iPhones out there, and they share only 2 different shapes nowadays - 3G/3Gs and 4 shape. Number of accessories (like Logitech speakers I have) are shipped with couple of replaceable plastic holders that will hold iPhone and couple of iPods.

It is nothing to do with connector - you would have as many accessories if iPhones and iPods ended up with, say, micro USB connector instead of proprietary one.

Android, on the other side, has too many different shapes with different positions of connector that it is impossible to make universal accessory for all, or at least majority of Android phones.

Back to the original poster - I agree with him, iTunes is horrible piece of software, at least from my perspective as Windows user. That is one of my major caveats with 3Gs I am currently using and might be deciding factor in my choice of next smartphone, whenever I decide to replace my 3Gs.

Which is sad because I'm quite happy with 3Gs.


RE: Symbian wasnt cutting it.
By Tony Swash on 2/14/2011 7:06:52 PM , Rating: 2
quote:
It is nothing to do with connector - you would have as many accessories if iPhones and iPods ended up with, say, micro USB connector instead of proprietary one.


Again I think my point is being misunderstood. I am not arguing that using a bespoke 30 pin connector increases the number of accessories for i-devices compared to say a mini-USB port.

I am arguing that if i-devices used a mini-USB port then accessories could be built that were compatible with both Apple and to other non-Apple devices. And that would make switching to other devices a bit easier.

As it stands as consumers accumulate 30 pin accessories so a switch to another non-Apple device becomes harder to contemplate as it would involved ditching those devices.


RE: Symbian wasnt cutting it.
By drycrust3 on 2/14/2011 10:23:49 AM , Rating: 3
quote:
Then will begin the reversal of what Android and iPhone are missing. XBOX, Remote Administration, Full Exchange Integration, Sharepoint Integration, etc.


... antivirus software.
quote:
To some, it may seem a little strange that Nokia would make such a partnership with Microsoft, particularly after its 10-year investment into Symbian.

Since they were supplying software to other mobile phone manufacturers, it is logical to believe this division of the company ran at a profit, at least until Elop arrived anyway.
quote:
Microsoft to pay out billions in blockbuster deal with Nokia

Microsoft is in this to make a profit.


RE: Symbian wasnt cutting it.
By Mitch101 on 2/14/2011 11:24:48 AM , Rating: 2
quote:
... antivirus software.

LOL. Charlie Miller ring a bell for the iPhone SMS Virus?
Although Droid has been hit twice with side loaded apps sending data off to china if you allowed the app access to all parts of your device. Get what you dont pay for sometimes. I think all phones will need something its just inevitable.

Reminds me I was reading a while ago about how hackers like to sit in coffee shops hacking through people who walk in with their MAC's and the comment they made was classic. The best thing about MAC users is none of them believe they need anti-virus software so after breaking into a MAC nothing is looking for you. Your free to move about and do and look at what you want because there are no alarms to trigger. While a windows PC user will always run security software you have to watch what you do because the wrong move will set off an alarm. This makes sense to me and as the larger the mac base grows the bigger the fall will end up being with mac users and their ignorance to why you run anti-anything software. As to why it hasn't happened yet someone said the majority of good hackers have moved to hacking smart phones they are everywhere and contain everything the home machine does that hackers want. Once again everyone is going to have to run some level of anti-anything software in time on smartphones.

Nokia makes some nice phones in a hardware way I see this as a win for Microsoft and I totally agree Microsoft is in this to make a profit and in order to do so they need exposure. This should help out a lot.


RE: Symbian wasnt cutting it.
By Tony Swash on 2/15/2011 10:59:30 AM , Rating: 2
quote:
LOL. Charlie Miller ring a bell for the iPhone SMS Virus?
Although Droid has been hit twice with side loaded apps sending data off to china if you allowed the app access to all parts of your device. Get what you dont pay for sometimes. I think all phones will need something its just inevitable.

Reminds me I was reading a while ago about how hackers like to sit in coffee shops hacking through people who walk in with their MAC's and the comment they made was classic. The best thing about MAC users is none of them believe they need anti-virus software so after breaking into a MAC nothing is looking for you. Your free to move about and do and look at what you want because there are no alarms to trigger. While a windows PC user will always run security software you have to watch what you do because the wrong move will set off an alarm. This makes sense to me and as the larger the mac base grows the bigger the fall will end up being with mac users and their ignorance to why you run anti-anything software. As to why it hasn't happened yet someone said the majority of good hackers have moved to hacking smart phones they are everywhere and contain everything the home machine does that hackers want. Once again everyone is going to have to run some level of anti-anything software in time on smartphones.

Nokia makes some nice phones in a hardware way I see this as a win for Microsoft and I totally agree Microsoft is in this to make a profit and in order to do so they need exposure. This should help out a lot.


Dream on!

I love this meme - it's so desperate :)

Soon, one day soon, real soon, just around the corner, Macs will get hit and then they will get just as much malware at Windows - you see, one day reeeeal sooon!

Dream on dude - in the meantime 99.99% of malware hits Widows. If you want to know why here is a nice overview.

http://rixstep.com/2/20100214,00.shtml

By the way the notion that the Microsoft Nokia deal means that WP7 is just going to take over the Nokia smart phone market share - or even a significant portion of it - is just laughable. There is a very interesting but very long and very detailed analysis of the outlook for Nokia in the next two years (summary - it aint good), including an analysis of the outlook for the WP7 Nokia phones, here

http://communities-dominate.blogs.com/brands/2011/...


RE: Symbian wasnt cutting it.
By Luticus on 2/16/2011 9:38:58 AM , Rating: 2
This article is a bogus piece of crap that basically compares todays mac technology with windows technology from the 90's. 100% pure FUD.


RE: Symbian wasnt cutting it.
By jvillaro on 2/14/2011 10:59:34 PM , Rating: 2
Ok... well lets see...

iPhone has it's virus, aymbian has had it share and antivirus software. Android has it's share (and some antivirus software in its app store, including AVG for example)... So whst's you're point?

Samsung, Sony Ericsson and al others had already dropped symbian long before Elop arrieved... so whats your point?

Microsoft is in it to be a player in the market, not be excluded, they will spend what ever amount to have people using their products. As they'd said before, they don't even care if you have pirated versions of windows, just that you have windows on your pc...

So what's your point? Ahh! I see, to seem dumb! Good job!


RE: Symbian wasnt cutting it.
By Exodite on 2/15/2011 3:54:39 AM , Rating: 2
2-3 features that WP7 lacks, S^3 has and that I believe are important.

* Multitasking.
* Not being tied into propriety software for even the most mundane of tasks (Zune).
* Not being tied into a locked and controlled platform, both as a developer and an user.

I could go on.

WP7 has its place, certainly, and while I personally don't like the UI there's no denying it's a step up from what S^3 offers at the moment.

Unfortunately WP7 is technically inferior, in many cases by design, to S^3 on an almost unimaginable level.

Right now, using my gf's N8, I can connect an USB stick to the phone and stream a Matroska-contained HD-rip from the stick, over the phone and directly to the TV using HDMI out.

Meanwhile WP7 can't even provide mass storage mode without a dedicated, propriety, software solution.

No doubt this deal is great for Microsoft but it's going to be horrible for Nokia.


RE: Symbian wasnt cutting it.
By CharonPDX on 2/18/2011 9:18:20 PM , Rating: 2
I think the main reason is because Symbian was open source. If they had gone to Android, people would have said "yay" because it would be moving from one OS OS to another.


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