Nokia’s Questionable Move to Partner with Microsoft

February 17th, 2011 | Uncategorized | SK | 1 Comment

The writing was on the wall and it took an outsider to decide that Symbian OS is not going anywhere and that Nokia management needs to do something drastic. Elope did a good job with that strategy. However, picking Microsoft Phone 7 OS exclusively for Nokias’ smartphones is a risky move.
Microsoft Phone 7 has decent reviews but it overall Microsoft mobile operating system has negative brand recognition. HTC realized the hard way and is primarily making Android phones.
No one has reported the details of the deal but I would imagine that Microsoft has doled out some cash upfront or done the deal to minimize risk for Nokia. An example of such risk reduction is if certain number of phones do not sell by June 2012, then Microsoft is going to pay Nokia certain amount of cash.
My opinion is that Nokia should have diversified its risk by building phones on both Android and Windows platform. Within a couple of years, Nokia would have known which operating system is selling more and concentrated on that.

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