Nokia, Microsoft Work Quickly to Sign Definitive Agreement
April 21, 2011 7:59 AM
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Nokia President and CEO Stephen Elop (left) and Microsoft CEO Steve Ballmer.
Will begin volume device shipments in 2012
Another hurdle in the blockbuster Nokia/Microsoft deal
announced in February
has been crossed. Today, both companies announced the signing of a definitive agreement on their partnership -- ahead of schedule, too.
"At the highest level, we have entered into a win-win partnership," Nokia President and CEO Stephen Elop,
a former Microsoft executive himself
in a press release
. "It is the complementary nature of our assets, and the overall competitiveness of that combined offering, that is the foundation of our relationship."
With some of the paperwork out of the way, the companies also used the announcement to boast about "significant progress on the development of the first Nokia products incorporating Windows Phone," adding that personnel have already begun work in earnest on joint engineering efforts.
A few more details of the partnership were also released:
In addition to providing the hardware, Nokia will also be responsible for mapping, navigation, and other location-based services for the new ecosystem.
Microsoft will provide Bing search services, as well as muscle in terms of advertising, social media, gaming, etc.
All Nokia developers get free Windows Phone developer registration.
A new Nokia-branded app store "that leverages the Windows Marketplace infrastructure" will open.
Nokia will offer operator billing expertise, so that Microsoft can take advantage of Nokia’s billing agreements with 112 operators in 36 markets.
According to the release, "volume device shipments" of Nokia devices running Windows Phone will begin in 2012.
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4/21/2011 12:34:59 PM
In the most rent quarter Apple overtook Nokia to become the world's largest phone vendor in terms of revenue.
Apple's iPhone revenue of $11.9 billion surpassed Nokia, which saw its revenue shrink to $9.4 billion.
Apple took the top position in just fours years from a position of having zero products or profile in the mobile phone industry.
Microsoft and Nokia will have a very tough time catching Apple (and Android). I expect Nokia's sales and revenues to fall further in the next year before any possible turn around.
Generally two drowning men cannot help each other - they just drown together. Nokia/Microsoft have just two - maximum three - years to pull this off. I just cannot see them doing it.
"Paying an extra $500 for a computer in this environment -- same piece of hardware -- paying $500 more to get a logo on it? I think that's a more challenging proposition for the average person than it used to be." -- Steve Ballmer
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