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Nokia CEO Stephen Elop
"I'm gonna make him an offer he can't refuse."

Nokia ruffled more than a few feathers when it announced that it would be shacking up with Microsoft when it comes to smartphone operating systems. Feeling the heat from smartphone operating systems like Apple's iOS and Google's Android, Nokia is winding down its efforts with MeeGo and Symbian in order to embrace the nascent Windows Phone 7 (WP7) operating system.

Now, a new report from BusinessWeek suggests that Nokia was offered a sweet deal to go with Microsoft’s WP7 operating system over the rival Android OS. BusinessWeek says that Nokia will receive roughly $1B as a part of a 5-year deal with Microsoft.

Microsoft, of course, will also profit handsomely from its $1B investment if Nokia's WP7 offerings take off in the marketplace. Unlike with Google's freely available Android OS, Nokia will pay Microsoft a royalty fee for each WP7 handset that it sells.

“This gives Microsoft scale and allows Nokia to rip out costs,” said Colin Gillis, an analyst at BGC Partners in New York, who recommends buying Microsoft shares. “Microsoft is getting the platform boost.” 

Although $1B USD is a nice motivator to adopt WP7, Nokia's Stephen Elop claims that Nokia would have gotten lost in vast sea of me-too Android devices, and that the Microsoft partnership gives it a chance to shine. “A decision to go with Windows Phone creates a very different dynamic. Windows Phone is a challenger. It becomes a three-horse race,” said Elop according to Mobile Beat.

Nokia’s Symbian operating system has been under a constant assault from Android. Android overtook Symbian as the world’s best-selling smartphone operating system in Q4 2010 (33.3 million units versus 31 million units).

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By sprockkets on 3/7/2011 7:42:31 PM , Rating: 2
This doesn't make any sense. Nokia would have been 1 of 5 major brands selling android phones - paying them $1 billion not to embrace android would be stupid, on microsoft's part.

All I wanted was Nokia to release an updated N900. That probably will not happen now. For that, screw you microsoft.

RE: eh
By Johnmcl7 on 3/7/2011 8:21:41 PM , Rating: 2
Same here, I feel the N900 was generally underrated but I'm pretty gutted there's not going to be a dual cortex A9 follow up as currently there's not much else I'm interested in. Absolutely no interest in WP7 which is pretty much the polar opposite of the Maemo implementation in the N900.


RE: eh
By Denigrate on 3/8/2011 8:55:15 AM , Rating: 2
Actually, I'm not so sure there won't be a N900 successor. I believe the original release mentioned that Nokia would still be developing some MeeGo phones. I love my N900, and had a Nokia 770 which I also loved.

So there's still some hope for a next generation N900 phone.

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