Nokia’s decision to opt for Microsoft’s Windows Phone 7 (WP7) platform as its primary smartphone OS, rather than Android, was prompted by a desire to avoid a “duopoly” in the mobile industry between Google/Nokia and Apple, CEO Stephen Elop told reporters at a press conference in Barcelona on the eve of the GSMA Mobile World Congress.
Elop said that the Finnish handset giant had been “suited” by both Google (Android) and Microsoft in the weeks leading up to the tie-up with Microsoft announcement. “A decision to swing to Android would have tilted the mobile ecosystem in the direction of a duopoly, but we wanted to create a challenger,” he said.
Elop noted that the new partnership will initially operate as a straightforward OEM deal, which will see Nokia pay Microsoft a fee to use its software. But he also talked up the significant “value transfer” in financial terms that would come Nokia’s way as a result of reduced operating expenses and new revenue streams such as access to Microsoft’s search and advertising capabilities. This financial contribution would be “in the billions not the millions,” Elop said.
Nokia was unable to give a firm timeframe on when its first WP7 phone would appear but it is hopeful for a launch before year end.
Elop said that the Finnish handset giant had been “suited” by both Google (Android) and Microsoft in the weeks leading up to the tie-up with Microsoft announcement. “A decision to swing to Android would have tilted the mobile ecosystem in the direction of a duopoly, but we wanted to create a challenger,” he said.
Nokia was unable to give a firm timeframe on when its first WP7 phone would appear but it is hopeful for a launch before year end.
