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» Microsoft Rescues Nokia Rescues Microsoft
Post : Feb 24, 2011 | View : 1 | Tag : Internet

Stephen Elop took and Nokia made the jump off its burning Symbian platform today and jumped on Microsoft’s Windows Phone 7 platform below. Together, the two companies want to create the “third ecosystem“.

It has not been much of a secret, but at least it is now official. Nokia will refocus its software strategy to Windows Phone 7 and make Microsoft’s software its “primary” platform play. According to Elop, Windows Phone 7 will stretch across all price segments of phones and will extend “beyond anything that currently exists.” There was no information about MeeGo and I am sure that we aren’t the only ones wondering what will happen to the partnership with Intel. The netbook UI of MeeGo is apparently canceled already. In a Twiiter post, the company said that “MeeGo will be an opp to learn/explore future disruptive platforms, devices & experiences. Expect a device before end of 2011.” The purpose of MeeGo has certainly changed.

While Steve Ballmer is welcoming Stephen Elop with open arms, this isn’t a one-sided partnership. In fact, Ballmer could not have hoped for a better turn of events in order to be able to support Windows Phone 7 whose sales have been everything else but encouraging. Despite an aggressive introduction of the platform in Q4 of last year, Windows Mobile 6 still outsold Windows Phone 7 and Microsoft has lost market share at a dramatic pace. It is not entirely out of the question that Nokia just jumped from a burning platform onto the Titanic.

However, Windows Phone 7 was the only true opportunity for Nokia, as the company described Android as a rival over the past few weeks. Microsoft holds an opportunity for Nokia that will either help the company to see into a brighter future or lose everything it has. It will be interesting to see the direction Nokia takes. It already has acknowledged that Apple owns the high-end and that Android dominate s the mid-range of smartphones. A press release indicates that Nokia will aim to be, once again, everything to everyone: “With smartphones and mobile phones, Nokia’s reach wraps around the entire globe. Nokia is ready to connect the next billion.”

Elop’s history at Microsoft makes this new partnership special. The tight alliance goes beyond anything we have seen from any other smartphone developer before. Microsoft hay not have been happy with the rather generic Windows Phone 7 devices that have come to market so far, but this partnership may push companies such as HTC, LG or Samsung even closer to Android. It will be up to Nokia to prove that it can compete on a hardware level with the leading group of smartphone builders today.

Investors have little faith that the Nokiasoft strategy will work. Nokia’s shares dropped 13.7% following the announcement.

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