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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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RE: is this any surprise?
By mcnabney on 3/8/2011 2:57:56 PM , Rating: 1
I can spend $9B on whores, it doesn't mean I know anything about sex.

Microsoft is only good at extending their monopoly. Take the Xbox for instance. They had to pillage PC gaming in order to build market share. Because RIM and Apple also had Office functionality Windows Mobile had to compete on their own innovation (without monopoly leverage) and they obviously failed. In this case with Nokia, MS is trying to outright BUY market share. They aren't even giving away the OS, like Google. They are paying companies to use theirs.


RE: is this any surprise?
By Smilin on 3/9/2011 4:25:14 PM , Rating: 2
Not really much point in talking to you if you're just going to spew hyperbole.

You think the Xbox is successful today because it somehow leveraged the Windows "monopoly"? Explain good sir...I'm all ears.

"microsoft doesn't innovate" is a tired argument disproven over and over and over and over again. Yet still the irrational nutbags come out of the woodwork to repeat it.


"Mac OS X is like living in a farmhouse in the country with no locks, and Windows is living in a house with bars on the windows in the bad part of town." -- Charlie Miller














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