Nokia-Microsoft connections unlikely to interrupt mobile industry

Nokia and Microsoft have entered a smartphone development agreement, the two corporations announced last week. Nokia will ditch its effective, however declining Symbian OS for Microsoft’s Windows Phone 7. The wisdom of the connections seemed in question as Nokia stock fell 14 % on the day the connections was announced. This could help both Nokia and Microsoft never need a personal loan to grow.

What the Nokia-Microsoft is

The idea that Nokia would consider making a deal with Microsoft confused many people as the Nokia-Microsoft smartphone alliance came together. Nokia can be replacing its Symbian OS, which was the industry innovator with a 36.6 market share in the fourth quarter of 2010, with Windows Phone 7. There are so few people using the Windows Phone 7 that the list doesn't even put it on there. The Android has a 25.5 % industry share and the iOS has a 16.7 percent share though. The "principle smartphone strategy" can be what Nokia utilizes the Windows Phone 7 for now. Sector smartphones will be put together by Microsoft and Nokia working together. For a default search engine, Microsoft Bing could be used. Nokia phones will all use this. Microsoft services will start to use Nokia's Maps.

Helps Microsoft far more than Nokia

It has been suggested by experts the partnership is something Nokia won't gain from however Microsoft will. Microsoft gets to plug into one of the largest cellular phone distribution networks in the world. But Nokia gets Windows Phone 7, a mobile operating system that, compared to Android and Apple, was virtually dead on arrival. Some insiders suggest the Nokia/Windows Phone 7 arrangement is a conspiracy that started when Stephan Elop left Microsoft in Sept to become CEO of Nokia. The smartphone partnership is characterized as subversion that gives Microsoft big-time smartphone development capability without the hassle of actually trying to purchase Nokia.

It won't last, in accordance with investors

Nokia stock went down fourteen % because of the Microsoft-Nokia smartphone announcement. July 16 was the last time a huge drop occurred in Nokia stock like this. Experts are saying that Nokia has given itself away for free and ceded the smartphone industry to Google and Apple. Nokia Windows Phone 7 handsets won’t hit the market until 2012. Symbian will die on the vine while Android and Apple’s iOS continue to advance. Microsoft is accustomed to slapping operating systems on 3rd party hardware. However Nokia has always developed its own OS. Replacing iOS with webOS on the iPhone is something Nokia sees as a challenge with Apple probably. It could possibly be bad for business.

Information from

Business Week

businessweek.com/news/2011-02-11/nokia-tumbles-on-concern-that-microsoft-deal-may-kill-company.html

Wired

wired.com/gadgetlab/2011/02/microsoft-and-nokia-team-up-to-build-windows-phones/

PC World

pcworld.com/businesscenter/article/219431/nokiamicrosoft_alliance_is_a_win_for_apple.html

PC Magazine

pcmag.com/article2/0,2817,2380144,00.asp