Nokia embraces Microsoft’s Windows Phone 7 OS

Friday, February 11, 2011, 12:27 by Tech Correspondent

Here is good news for Nokia lovers who are disappointed with Nokia’s Symbian or MeeGo OS. Now, your new Nokia phone will run Windows Phone 7 OS and you will be able to surf the Web on your Nokia phone using Bing instead of Google.

All this will happen soon as Microsoft and Nokia have announced a mobile phone partnership under which Nokia will use Microsoft’s Windows Phone 7 operating system. This initiative has been taken to recover Nokia from competitive failings and to take on Google and Apple in the fast-growing smartphone market.

Windows Phone 7 will become Nokia’s principal OS and on the other hand, Nokia would help Microsoft to develop mobile phones globally. Not only this, Nokia will use many Microsoft online services, many of which trail Google rivals, such as Bing for search and maps and AdCenter for advertisements. Also see: Nokia plans for 2011

nokia wp7 phone photo

Photo: Nokia WP7 concept / rendering

So, now you can expect a slew of Nokia phones based on Windows Phone 7. But, this will take quite a bit of time and in the meantime we have to worry whether we will get any new phones from Nokia.

Nokia, once, was the top player in the mobile phone industry. But slowly, its own Symbian and MeeGo operating systems started falling behind in the race with Apple’s iPhone and Google’s Android OS. Related: Android topples Symbian as world’s No. 1 mobile OS

On the other hand, users have started embracing Microsoft’s Windows Phone 7 OS. WP7 OS is picking up slowly but quite well in the market. Infact, Windows 7 OS trials Google’s Android in terms of developer interest and the breadth of phones available in the market. Suggested read: WP7 plans for 2011 include Mango update

The partnership between Nokia and Microsoft will not only benefit the two companies, but also the users as Nokia is termed as a great brand and users will be more happy to accept new Nokia phones with the new operating system that leverages advanced features and technologies.

On the other hand, this alliance will give Microsoft access to the world’s largest phone maker and its huge market share. Microsoft left no stone unturned to penetrate the mobile phone market. And the partnership with the No. 1 mobile phone manufacturer will be beneficial for it. Windows Phone platform had a 2 percent market share in the last quarter. The platform is widely recognized by as a leading edge technology but has not yet gained too much of success among consumers.

However, there remains confusion on how this alliance will extend to another hot new market. The announcement of this partnership was accompanied by a YouTube video that features Microsoft and Nokia’s chief executives talking about the alliance. Microsoft’s chief executive, Stephen Elop said, “Nokia and Microsoft intend to enter into a strategic alliance. Together, we will bring consumers a new mobile experience, with stellar hardware, innovative software, and great services. We will create opportunities beyond anything that currently exists.”

Microsoft CEO Steve Ballmer said the partnership brings the brands mobile consumers want, like Bing, Office, and of course Xbox Live.

In the entire scene, the biggest loser is MeeGo. One press says, “MeeGo becomes an open-source, mobile operating system project. MeeGo will place increased emphasis on longer-term market exploration of next-generation devices, platforms and user experiences. Nokia still plans to ship a MeeGo-related product later this year.”

Nokia’s key focus remains on WP7, but we think it won’t let go MeeGo so early, after all yet another flavor of Linux, the very popular open-source operating system. MeeGo may yet end up in other devices like tablets. Related: Nokia MeeGo tablet leaked

Elop said, “Nokia expects 2011 and 2012 to be transition years.” Analysts believe that the deal would have a negative impact on Nokia’s margins in the short-term. However, Nokia said its operating margin would be “10 percent or more” after the transition period.

“They’ve announced a big tie-up with Microsoft but at the same time they haven’t cut R&D. Given that the people who were positive on the stock were looking for mid-teens devices margins by 2012, we can see some cuts to estimates,” Richard Windsor, global technology strategist at Nomura said.

A handset analyst from Gartner said, “I don’t see LG, Samsung, HTC carrying on with Windows Phone. They’re betting everything on (Google’s) Android. Nokia’s obviously going to have a much deeper integration than the others.”

We expect Nokia mobile phones to be more than twice as powerful, post this partnership. Users will play a major role in the entire game. They are the real judges to decide the future of the partnership. But we do expect the alliance to give both Nokia and Microsoft a route to the future.

Tagged with: , , ,
Both comments and pings are currently closed.

Comments are closed for this Article !