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Nokia and Microsoft have entered a smartphone development arrangement, the 2 businesses announced last week. Nokia said it will phase out its Symbian OS. Symbian, which has been losing market share to Android can be exchanged by Microsoft's Windows Phone 7. Experts questioned Nokia's move, and investors agreed as Nokia stock decreased 14 percent in the news. This could help both Nokia and Microsoft never need a personal loan to grow. Resource for this article - Nokia-Microsoft smartphone alliance doubted by insiders, markets by MoneyBlogNewz.
About the Nokia-Microsoft alliance
The Nokia-Microsoft smartphone alliance has left industry specialists wondering why the largest handset maker in the world would have anything to do with Microsoft. The Windows Phone 7 will be replacing the Symbian OS by Nokia even though the phone got a 36.6 market share in the fourth quarter of 2010. The list that has Android at 25.5 % market share and iOS that has 16.7 percent industry share does not even show Windows Phone 7 since it has so few users. The “principle smartphone strategy” could be what Nokia utilizes the Windows Phone 7 for now. Market smartphones can be put together by Microsoft and Nokia working together. Microsoft's Bing can be the default search motor on Nokia phones. Maps for Nokia will start to be used by Microsoft. This could be for all services.
Microsoft benefits at Nokia's expense
Microsoft will most likely gain from the partnership. Nokia, on the other hand, won't. One of the largest distributers in the world for cellular devices will now be something Microsoft has access to. What Nokia gets is access to Windows Phone 7. It's a mobile operating system that practically has never existed. Several suggest that when Stephan Elop left Microsoft to become CEO of Nokia in Sept, it started a conspiracy of the Nokia/Windows Phone 7 arrangement. The smartphone relationship is characterized as subversion that gives Microsoft big-time smartphone development capability without the hassle of really trying to buy Nokia.
Investors doubt alliance will be successful
Nokia stock went down 14 percent because of the Microsoft-Nokia smartphone announcement. July 16 was the last time a huge drop occurred in Nokia stock like this. Many experts are saying that Nokia made the deal for free. Google and Apple will now take over the smartphone market. It could be a while before the Nokia Windows Phone 7 headsets come out. It is expected to be in 2012. The Android and Apple iOS will advance even more while the Symbian will die soon. Microsoft is accustomed to slapping operating systems on 3rd party hardware. The OS by Nokia has always been original. It's likely that a challenge Nokia sees with Apple is the iOS getting changed on the iPhone. It would be exchanged with the webOS. It seems impossible.
Citations
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
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