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Nokia admits Microsoft Windows Phone is 'risky' and 'unproven'
FINNISH PHONE FIRM Nokia had admitted to the world what everybody knew - its partnership with Microsoft is extremely risky and Windows Phone is an uncompetitive platform to play with.
In a US Securities and Exchange and Commission (SEC) filing, Nokia admitted that it is taking a number of big risks by going with Microsoft and Windows Phone instead of the larger and more established smartphone operating system Android.
It said, "The Windows Phone platform is a very recent, largely unproven addition to the market focused solely on high-end smartphones with currently very low adoption and consumer awareness relative to the Android and Apple platforms."
"Our expected transition to the Windows Phone platform may prove to be too long to compete effectively in the smartphone market longer term given the ongoing developments of other competing smartphone platforms."
Nokia also said that the partnership could erode its brand identity in particular markets. For instance, Nokia is currently strong in China, and having a Microsoft association could actually impair its market position over there.
And instead of coming out with the usual PR guff about Symbian and Meego still being important parts of its future, Nokia is honest about how the outside world is viewing the switchover.
The report said, "Our mobile operator and distributor customers and consumers may no longer see our Symbian smartphones as attractive investments during the transition to Windows Phone."
"This would result in a loss of market share, which could be substantial, during the transition and which we may not be able to regain when quantities of Nokia Windows Phone smartphones are commercially available."
Of course, it's an SEC filing, so Nokia is duty bound to outline all the risks involved in going with Microsoft.
But nevertheless, it admits that using Android as a platform wouldn't have carried as many risks as going with Windows Phone, so the question is, why did it? In end, it might be simply that it has a billion reasons that might have helped. µ
Tags: Microsoft
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High profit
You think you're smarter than top PC OS & top Phone OS CEO's? Really?
What they are cooking is something that will stagnate Apple and kill RIM. They are not revealing they plans to world+dog. What Nokia's New CEO was bringing in was this very deal from M$ and it's the co. approach. The future of SmartPhones and SmartTablets is total integration of WP8 to Win8 & Office and some server products that you just have to guess.
No other company can provide this.
AND this is just old NT 6.2 codebase + server & phone, but what happens closer to end of this decade will blow your socks & pants off!! Wait for Windows X
First destroy the customer loyalty to the brand built over 2 to 3 decades by promising to run the product on exactly what the customers were trying to avoid in the first place.
Then, erode market value by the above and make the most reckless strategic possible to spook real and phantom investors to dump shares in order to drive the value of the blue chips to zero in no time.
Then pay a nominal sum (e.g. 1 US dollar) for all the intellectual property and hardware base worth billions globally when the company is financially dead.
1,2,3. Its easy when you know how.
Comments miss the core of the thing. It is true that Nokia+WP7 is a very risky venture. BUT, the core is NOT the phone or OS. The core is ECOSYSTEM, there is one by Apple and one by Google. Nokia has ambition not be relegated as a provider of (cheap) hardware for somebody's ecosystem - Master of the Ecosystem is milking giantillions of money just for being an owner.
The only possibility of trying to establish third ecosystem in which Nokia can have stake is by joining with Microsoft. Microsoft has deep pockets, has drive to become player in mobile, has been in the past able to break into areas dominated by others (e.g. games/XBox). So at least from the size, money and skills point of view Nokia+MS has a chance to succeed. But it is still a risky venture and a bumpy road ahead.
Pure corporate maneuvering....nobody would think this is a reasonable course of action, were they truly thinking of the health of Nokia!
The company has been sold away.
And yes...WP7 was obviously dead on arrival...it would have been an uphill battle HAD they arrived with a decent alternative...as it is now....it's a joke.
Sheep = iPhone or how to try and buy a personality.
Droid = Pretty cool but getting fragmented and the software is not always written to scale correctly.
Windows Phone 7 = I want all the stuff that works for Apple and all the cool options of droid and throw in things that neither of them can do like X-Box, Sharepoint, and more exchange functionality.
Im sorry but none of you have used Windows Phone 7 to know how damn good it is.
I believe nokia didnt really had a choice.
When we look at symbian or meego, symbian is losing its ground very fast.
Meego, is far unproven.
They didnt went for Android. They know they cannot complete with HTC or Samsung. I bet Nokia CEO Elop knew about windows phone 7 all along and helped his old company microsoft.
Now, nokia shouldnt complaint. Without windows phone 7, they will be losing money on symbian and meego.
I dont see windows phone 7 as a fail. Everyone i know love it. In fact, 93% of people with windows phone 7 are satisfied and would recommend the phone to people.
However, windows phone 7 still needs a lot of work. Looking how its features are limited as compared to other platform, I belive Microsoft really needs to push it hard, in terms of marketing or improve the os itself.
It truly is suicide.
Sure their mismanagement and last minute lash-ups to Symbian leave them much hope to start with, but jumping to WM7 (even with a big brown envelope on the table) just doesn't make sense.
Their claims of not being able to distinguish themselves if they went Android is also nonsensical. Just have a look at an HTC Android. HTC sense and all its widgets gives the phone a pure HTC feel. Sure we all know it's Android underneath, but I'd think twice before I moved from my HTC Android phone because of all the widgets I'd lose.
I guess what they really mean is that they don't think they can compete with world+dog producing quality Android devices and that it's far easier to compete with the small number producing WM phones... Just a word of warning Nokia, HTC are in that camp too!
I had a windows mobile phone once, it was like Windows 98 on your cell phone. It would freeze and crash all the time.
Nothing like having a phone that you cant make phone calls with!
Nokia and Microsoft are holding hands for their leap over a cliff.
These filings now prove that Microsoft is going to give Nokia preferential treatment over current Windows Phone 7 OEMs (eg HTC, Samsung, LG). For the current Windows Phone 7 OEMs, this is a slap in the face.
An example of the fallout: Sony-Ericsson previously displayed a Windows Phone prototype it had completed. Now we hear that that prototype will never be released. Sony-Ericsson and the other OEMs obviously don't want to play second fiddle to Nokia, or be under restrictions that Nokia doesn't have.
The deal will be the end of current OEM's dealings with Windows Phone 7. Expect to see HTC, Samsung and LG pull out.
Nokia's bizarre behaviour includes:
1. Going 100% Windows Phone and betting the company (rather than dip toes in the water, like the other OEMs).
2. Telling the world about it a year before a handset will be on the market.
3. Announcing it before the deal has been signed or finalised.
The deal is so reckless and utterly destructive to Nokia that one wonders what is really going on.
Microsoft knew that Windows Phone 7 had failed with HTC, Samsung and LG. Obviously Microsoft panicked, and then signed a preferential deal with Nokia.
The deal will fail, and Windows Phone 7 will fail (it has already failed).