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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 callmeroy on 3/10/2011 3:43:16 PM , Rating: 2
You are trying too hard to hate Microsoft....calm down...

1) I never understand why they were sued for including IE with their OS...I think it was wrong they were found guilty of any bad doing there...I mean its their friggin OS, duh...of course they are going to include their browser. Its like if you by a GM car are you shocked that GM branded parts (ACDelco for instance if I'm not mistaken0 are used.

The only thing I did thing was stupid of MS is originally it was said "if you uninstall IE that basically would render the OS unusuable because the browser is integrated into the OS"...I'm glad they were found guilty on that angle of it.

2) Hate to tell you in your naive little world but this is how business runs. You think MS is honestly the only corp that ever made a deal that essentially amounted to a pay off for a business partner to NOT do something? If so ...holy crap you have a pure and rainbow bright view of the world.

3) Microsoft 'won' the desktop OS market because they were smarter about it. Apple distribution lagged behind Microsoft for years...particularly back in the Win 95 - Win 98 days...Microsoft simply got more copies of their product out the door AND on top of that...I honestly believe the flexibility of WinTel systems was attractive to many many people....where as apple was looked at as closed and propreitary...with a Windows system the user felt they had more options and more control -- software selection , peripherals and upgrade paths. That is a HUGE advantage for a computer OS to offer.

As for the OEMS being "forced" -- that is utterly ridiculous...yeah Microsoft FORCED their OS ....Microsoft is a SOFTWARE company first and foremost...they needed computers to use their product -- for their product to be worth anything...Thats like saying an engine manufacturer forced Ford to use their engines or ELSE! Absurd.

BTW -- for as long as I can remember (I build my own system s now) you could always chose 'no os' when you ordered from most computer companies. So that makes that point even less valid.


"Let's face it, we're not changing the world. We're building a product that helps people buy more crap - and watch porn." -- Seagate CEO Bill Watkins














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