Nokia Turns to Microsoft for Smartphone OS

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Nokia announced on Friday that it struck a deal with Microsoft to use Windows Phone 7 as its primary smartphone operating system. The two companies are calling the deal “a broad strategic partnership” that will “create a new global mobile ecosystem.”

Along with Windows Phone 7, Nokia will use Microsoft’s Bing search engine and Microsoft adCenter for in-app advertisements, and will merge its Ovi app store into Microsoft Marketplace. Microsoft promised to start using Nokia Maps for its location services, and will take advantage of Nokia’s customer billing services in regions where credit cards aren’t widely used to make it easier for potential customers to use Windows Phone Services.

Nokia’s Stephen Elop (left) and Microsoft’s Steve Ballmer (right)

Nokia will also be directly involved with Microsoft in “a shared development roadmap to align on the future evolution of mobile products.”

The deal should help Nokia compete against Apple’s iPhone and Google’s Android OS. While Nokia is still the big name world wide in the mobile phone market, it has been losing marketshare to Apple and Google.

Working with Nokia is potentially a good move for Microsoft, too, since it can get its new mobile OS on more handsets and into more customer’s hands.

“Nokia and Microsoft will combine our strengths to deliver an ecosystem with unrivalled global reach and scale,” said Nokia CEO Stephen Elop. “It’s now a three-horse race.”

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19 Comments Leave Your Own

geoduck

said Nokia CEO Stephen Elop. ?It?s now a three-horse race.?

No it’s a two horse race with the third sitting in a pot of glue.

Of course some would argue that it IS a three horse race: Apple, Android, and RIM and Nokia/MS not even on the track.

Interesting that Stephen Elop worked for Microsoft before going to Nokia. Don’t suppose THAT had anything to do with this decision.

OldMorris

Boneheads, but their back is against the wall. I suspect that this solidifies android, iOS and RIM as the winners in this deal.

FlipFriddle

Yech, what a creepy photo.

mhikl

Stephen, count your fingers.

Tiger

The Derp is high.

geoduck

I just checked and NOK lost 13% on this announcement. Looks like the markets think it’s a dumb idea too.

Bosco (Brad Hutchings)

Microsoft licensing WP7 is a better model than either Apple or RIM have. For one thing, there isn’t anticipation about “will Apple make an iPhone mini?”. Chances are, one of its licensees will do it, just like in the Android ecosystem. It also puts a hefty check on Microsoft that will make it difficult to go down the Apple road of arbitrary rules that make profit for Apple and consternation for everyone else involved (developers, content owners, customers). Handset makers won’t put up with MS taking all the profits when the Android alternative is readily available to them.

But ultimately, this is about numbers. Google’s super-low friction model can get all handset makers making hundreds of millions of Android phones. Apple’s and RIM’s capacities top out at what they can do, and are far less. Microsoft requires time to build these licensing partnerships and ramp up relationships. If they can offer a premium experience to Android at low unit cost and run on basically the same hardware platform, they might have a place next to the big boy, and that place might be bigger than what Apple and RIM can do without licensing. This isn’t the early 90s all over again; it’s the early 90s all over again in spades.

Lee Dronick

I feel that this is a better thing for Nokia than choosing Android. It is also a win for MicroSoft.

jfbiii

Definitely a win for Microsoft Phone. I think it’s now very much more likely to make a serious dent in Androids market share. For Nokia, though, it looks a little like desperation. And that press release…full of laugh points.

Love the “can you believe this jackass” expression on Ballmer’s face. He knows who won today.

OldMorris

Bosco your analysis plays for sure…

we’ll see how this plays out.

Bryan Chaffin

The thin, plaintiff wail you hear is the sound of taps wafting across the ether.

The company would have been better off forking Android and maintaining control of its own destiny.

I suspect this will go don as one of the biggest blunders in tech and business history.

mhikl

Nokia is such a trusting fool. And M$ is so supportive, long after it’s no longer to their interest. Not!

mhikl

The tech cemetery is in a fever of expansion.

Bryan Chaffin

That article appears to have been pulled, daemon.

RonMacGuy

You know, what I notice most about this article is that picture. Not that Steve Jobs is a Spring Chicken, but compared to Apple and Google this just comes across to me as two overpaid corporate executives that fit what most of us view as overpaid corporate executives (old, fat, white guys in suits) taking a photo op.  It just reeks of “We run enormous bureaucratic nightmares of companies that turn slower than the titanic, but as old, fat, white guys in suits that are overpaid for what we do we think we actually have a clue what young people in the world want in technology.”

Pretty funny if you ask me!!

Lee Dronick

See yesterday’s Joy of Tech comic

Bryan Chaffin

See yesterday?s Joy of Tech comic

Brilliant! :D

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