Monday, February 14, 2011

The real reason why Nokia chose Windows Phone 7


Choosing Windows Phone 7 as Nokia's primary smartphone strategy is  actually in line with their Symbian strategy. Nokia really had to find a replacement for Symbian as a smartphone OS. There is really not much more than can do about making a OS designed for a keypad friendly to a touchscreen. 

By 2011 this is what their line-up will look like by the 3rd quarter of the year:
  • High end: WP7
  • Mid Level/Entry Level Smartphone: Symbian S^3
  • Feature Phone: Symbian S40
Technically, right now Nokia does not have a "high end" smartphone. The N8's price is really more mid-level and it competes against one year old Android in price point.

By 2012:
  • High end: WP7
  • Mid Level: WP7
  • Entry Level Smartphone: Symbian S^3
  • Feature Phone: Symbian S40

If Nokia had chosen Android, well they could, and would have to put it, on all their smartphones as soon as possible. If Nokia promoted Android as their premium product, it would promote all their competitors mid and entry level Androids. This kill all their mid-level Symbian's today. What would they do with their existing stocks. Sell them at fire sale prices?

Right now though. Unless there is no Apple iOS, Google Android or Microsoft WP7 option at the same price point. It does not make sense to buy a Symbian S^3 anymore.

Nokia may try to support it. Nokia will try to convince there is still a future in Symbian, but who will still build apps for it? Symbian S^3 is dead. Nokia will try to flog Symbian S^3 into the market until, WP7 can be feasibly sold at lower price points.

Besides, once they finish their Symbian stocks, they can always use Android in the lower end smart phones.

Nokia CEO Stephen Elop - First priority is beating Android

Engadget reports that Nokia CEO Stephen Elop said in his speech the the Mobile World Congress that Nokia's "first priority is beating Android."

Forbes reports that the selection of Windows Phone 7 as Nokia primary smartphone strategy and this war against Android is because "the viral popularity of Google’s Android platform. Elop spent much of the hour-long event, which was held in a dimly-lit Barcelona casa, emphasizing the threat that Android poses to all the players in the mobile ecosystem should it be allowed to grow too dominant. Android’s rapid growth, said Elop, could turn the mobile industry into a duopoly, split between Android and Apple’s iOS devices."

This argument from Nokia is totally ludicrous. There was a time, not so long ago, that they were the "Android" of Mobile Operating Systems. In fact, Android has not yet reached the heights that the Symbian OS once held. 

It looks like this is an extension of the Microsoft v. Google fight. Someone should remind Mr. Elop that he is CEO of Nokia and not Microsoft. His priority should be to make Nokia No. 1.

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