Nokia and Microsoft declared their intention to have partnership on making WP7 based Smartphone in the Market, the announcement was an unexpected, though Nokia CEO Stephen Elop – an ex-Microsoft executive – promised to share “the new strategy on February 11″ which would “transform the company.” and the move is a dramatic shift for the Finnish handset maker, which is completely abandoning that is still the market leading, albeit flagging, mobile phone operating system.
Nokia is intending to fully transform its OS to Microsoft based OS, so it will be interesting to know how Nokia’s customers would react to this news?
“It is now a three-horse race,” said Stephen Elop, Nokia CEO, who was drafted in from Microsoft last September to turn Nokia around.
The deal marks a major breakthrough for Microsoft which after years of struggling to establish itself in wireless will get its software into upwards of 30 million smartphones sold by Nokia every quarter. Nokia also plans to use Microsoft’s Bing search engine across its cellphones, opening up a huge market for Microsoft as it seeks to challenge Google as the world’s leading search engine.
Windows 7 will now be Nokia’s “principal smartphone strategy.” In addition to ditching Symbian as its flagship OS, Bing will be the default search engine on Nokia phones (Nokia Maps will continue, and they’ll be folded into Bing search). Nokia’s application store will be swallowed whole by Microsoft Marketplace.
This partnership will cause big reduction in employment in Nokia around the world, especially with a dramatic reduction in research and development spending.
An open letter on Nokia’s Conversations site, penned jointly by Stephen Elop and Steve Ballmer, sets out the foregoing details along with the following statement of intent:
“There are other mobile ecosystems. We will disrupt them. There will be challenges. We will overcome them. Success requires speed. We will be swift. Together, we see the opportunity, and we have the will, the resources and the drive to succeed.”
With these sentences we could just hope a swift movement in next generation smartphones and other services that these two giants bring forward. I think that the announcement would never satisfy the Nokia’s fans and customers around the world though this deal could bring an opportunity for Nokia to grow up in America. Looking from the side of Microsoft this deal is really great since their WP7 hasn’t made any success story yet though the WP7 OS is worth one. And the Nokia is the The biggest phone maker in the world (28.2% of the market at the end of last year). This may help Microsoft to reach the world’s Smartphone business in the future. Anyway, what do you think about this strategy movement? Do you think that the deal would help either of the Companies?
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