“Nokia Corp. will get billions of dollars from Microsoft Corp. to ditch its current smart-phone software in favor of Windows Phone 7, Nokia CEO Stephen Elop said Sunday, in a defense of the deal,” Peter Svensson reports for The Associated Press. “Nokia, the world’s largest maker of phones, and Microsoft announced their alliance Friday. Both investors and employees reacted with dismay: Nokia’s stock dived 14 percent and Finnish employees used flex time to go home early.”
“On Sunday, a day ahead of the start of the Mobile World Congress cell phone trade show in Barcelona, Elop told press, analysts and industry players that apart from the benefits of the alliance that were laid out Friday, Microsoft is paying Nokia billions of dollars to switch to Windows Phone 7,” Svensson reports.
Svensson reports, “Elop, a former Microsoft executive, said Finland-based Nokia had been courted by Google Inc. as well, which sought to convince it to use its popular Android software for smart phones. Microsoft’s payments are recognition that Nokia had ‘substantial value to contribute,’ said Elop.”
Read more in the full article here.
MacDailyNews Take: Ballmer*Elop=Failure²
@DRMSSDB sez: “At least with regard to Apple, competition really will not affect the products they develop.”
Well, from your discussion that is a useful statement. However, competitive forces are actually always of concern to humans in every endeavor. It is how we think. Apple definitely respond to competition on a large scale once a new product is made public. It is part of the improvement process.
I should point out that part of what Apple does so remarkably well is the collaboration process, which is the flip side of competition. They gather the best of idea and implementation people, have them collaborate and innovate together to create beautiful, insanely-great products. It’s not just magic kids!
Regarding the Nokia news: I find the whole thing stinks like a corpse with rats running in from every direction to eat their fill. This entire scenario bodes poorly for Nokia. It is a turning point from which I seriously doubt they will return.
Seriously, what does Nokia have to offer that a dozen other companies have already offered? Join market share of Symbian phones with a POS phone OS from a has-been software developer and what are they expecting? Massive Windows Phone 7 market share? I don’t think so.
In the short term Nokia gets to float on money, but then again, corpses tend to float… for awhile.
Great job Stephen Elop. Like Monkey Boy, like Son of Monkey Boy.
Rumor has it, MS wanted access to Nokia engineers to provide the expertise to solve their inability to develop copy and paste.
“…we can’t just belittle Microsoft all the time.” —iLouca
Why not?
Whatever happens to Nokiahoo 2 years from now, one thing is for sure – the employee ranks will shrink, more Finns will be out of work, but the top shareholders and interim top execs will make out like bandits.
One thing is certain- the marketing for the Windows phone is truly bizarre: unlike other phones, you won’t become addicted to it and still have a life. That seems to suggest- it’s not good enough to get addicted to!
The suposed billions is for mobile vista 7 licenses since Nokia can’t afford to stump for them all up front. And Microsoft doesn’t have a billion left in cash to spare. Just more monopoly money transfers to make it look like the worlds most broke company still has cashflow.
I’m so glad Nokia did the deal with Microsoft rather than Google. Google, Android, and their boosters have become even more insufferable than those on the Windows side. Had Nokia gone with Android, I would have been ready to take the gas pipe…
“Breeze,
Someone was sold down the river.”
Yes, Nokia’s customers.
this is hilarious !, they are PAYING people to use their software, amazing !!, OK microsoft, i will use windows 7 on my phone for 4000 dollars per month, i’m cheap !
So Microsoft is paying Nokia to allow Nokia to license Microsoft’s software. That seems “backwards,” but then again, this is (we’ll make actual profit somewhere “down the road”) Microsoft.
I’ll bet Microsoft’s other Windows Phone 7 “partners” are ticked off.
How hilarious though that he had to pull out the “but but we got billions” card just to get people off his back. Where’s your dignity man!
I did quite catch that….. Did you say M$ bought a northern European mobile phone company?
Is it ignorance that this title gets the product name wrong? It’s not Windows Phone ’07 (as in 2007), if its trying to funny, it missed the mark.
MDN has been using that “joke” for a while now… 🙂 I think it is rather appropriate, since the current release is Microsoft’s response to iPhone “2007.” They even copied no “multi-tasking,” no Copy/Paste, and GSM only (no CDMA version).