Nokia has just publicly announced that they will be adopting Windows as their main smartphone strategy, and it’s getting mixed reactions in the blogosphere and beyond. Just after the news was announced, Nokia shares took a nosedive, and declined $1.46, or 13% in value.
Few could have imagined, years or months ago, that the majority of Nokia devices will be running Windows 7 in the future. Today, it’s looking likely to happen. While the details of the arrangement have yet to be finalized, you will see in the video below that they are taking it quite seriously. As we all know, things happen quickly in the mobile world. With Android overtaking iOS as the world’s most popular mobile operating system, and with Blackberry and Symbian in rapid decline worldwide, it’s hard to predict what mobile operating systems will look like five years from now. Times really have changed since iOS and Android came onto the scene. Today both are enjoying considerable dominance in the mobile smartphone market. Faced with dwindling market share, Nokia has taken its first bold step to change its circumstances. As such, a partnership with Microsoft has been formed. The latest announcement details plans for a broad strategic partnership to build a new global mobile ecosystem.
The deal between Microsoft and Nokia is likely to mean the following:
- Nokia will adopt Windows Phone as its main smartphone strategy, so expect Windows Phone 7-powered Nokia devices
- Nokia will employ its expertise in hardware design, and language support to help drive the future of Windows Phone
- Bing will power Nokia’s search services, which is likely to disappoint Google
- Nokia Maps will become a core part of Microsoft’s mapping services, andwill be integrated with Microsoft’s Bing search engine
- Nokia’s content and application store will be integrated into the Microsoft Marketplace
What does this mean for iOS, Android and BlackBerry devices? It’s likely that the mobile space is about to heat up a notch further. Nokia will be able to provide significant insight into how quality phones are made, and this will present new and serious challenges to established players like Motorola, HTC, Samsung, and others. Nokia has been losing market share globally due to lack of interest in Symbian, while Microsoft has been struggling to gain market share. In order to challenge the likes of iOS and Android in the mobile scene, it really does appear that a partnership was necessary for both parties involved. Nokia will benefit from Microsoft’s software expertise while Microsoft will benefit from Nokia’s global reach and market share. It’s important to remember that Nokia still continues to sell significant numbers of so-called “dumbphones” worldwide, and these are likely to continue. These phones, mostly sold in emerging markets will likely continue to have Symbian on them. Symbian will become a franchise business, and Nokia is expected to sell significant numbers before halting the development it.
What do you think? Was this a strategic mistake, or will both parties benefit? Obviously, the market has reacted negatively, but that doesn’t mean you have to. Nokia has always had a knack for producing quality phones, and we expect the future to be no different. Will Nokia be able to regain its place at the top of the mobile podium? It also begs one specific question, burning in the mind of every phone fan – why not Android?