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Nokia says Google-Motorola deal may help Windows Phone

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This further reinforces our belief that opportunities for the growth of Nokia’s smartphone business will be greatest with Windows Phone. This could prove to be a massive catalyst for the Windows Phone ecosystem. Additionally, with our respective intellectual property portfolios, Nokia and Microsoft are working together to build and nurture an innovative ecosystem that benefits consumers, operators, developers and other device manufacturers.

Nokia provided us a with an official statement in regard to Google’s $12.5 billion bid to purchase Motorola Mobility(s mmi), suggesting the deal could be good for Microsoft’s(s msft) mobile platform. I agree and alluded to that potential earlier today saying, “Now that Google will in some sense be competing with its hardware partners, some of them could choose to invest more resources in Microsoft’s platform as a result. In that scenario, Microsoft wins by gathering more handset support without needing to buy a hardware maker.”

Google(s goog) has said it will run Motorola as a separate business, but that may not prevent current Android handset makers from fully trusting Google going forward. Instead of fully embracing Android then, where else can these companies turn but to Microsoft’s Windows Phone 7, which is the last major mobile platform available for licensing? Call me crazy, but for the first time since the Apple iPhone(s aapl) was introduced, I actually think Nokia is in a good position!

18 Responses to “Nokia says Google-Motorola deal may help Windows Phone”

  1. Basically Google has two choices with their acquisition, go all in and become something they’re not or keep the pieces that fit and sell off the rest or let the rest wither and die.

    Google was in full communication with its hardware partners before the deal was done. It’s a safe bet that everyone was on board with what Google told them.

    It’s also a safe bet that Google doesn’t want to be become another Apple: a hardware manufacture where software is only a feature. I’m absolutely sure that Google is happy with its current business model; making money on advertising and information. They’ve done pretty well with that.

    Running Motorola Mobility as a separate business would only make it easy to spin it off, minus certain IP assets of course or ignore it entirely and let it die. It also has the advantage of providing a smoke screen against DOJ scrutiny and temporary relief for current Motorola employees.

    Current Android device manufactures are happy with the deal, they’ve publicly said so, because they see no competition and a strengthen Android platform.

    If I was Nokia, I’d cool it less they wind up on Goggle’s shopping list. I’d also cool it with Apple. Steve has even a bigger wad of cash and doesn’t like to be pushed around. I doubt either would have much love for Nokia beyond their IP.

  2. Why should the big Android manufacturers turn to windows 7? Who is the biggest Android manufacturer? Samsung. And Samsung already has Bada which seems to sell many more units then windows 7. And Samsung and HTC are already producing Windows 7 handsets (but nobody wants them).

    My guess: Microsoft will make it by quality (and probably law suites), but not because every handset maker in the world is now eager to buy a license from Microsoft.

    And regarding Nokia: I still believe they would have made a better choice with Android, because it would fit much better to their wide range of devices. Much better then the ‘high end’ and high price Window 7 OS.

  3. I understand why Nokia might see this as a good thing for WP.

    Nokia can say from experience that an OS controlled by one manufacturer isn’t something that other manufacturers would like to use. This happened with Symbian when Nokia became the largest player there (already before Android, so the choice was either WinMo or proprietary stuff). Same with MeeGo where most players were intimidated by the fact that Nokia contributed so much into it, even though it is completely open platform.

    This was something that they worried about even when MS gave them a bit better chance to customize and alter WP making it look like they were at better position to say what happens to WP.

    Now, Google has Moto in even closer. Even if they keep it a separate entity.

    Google is known _not_ to pull code to Android from other developers, they do everything themselves and just publish it. Now it seems that Moto would have better chance to get a say with this.

    Ironically MeeGo starts to look like a good candidate considering all of this.
    1. It is open and they even pull stuff from outside so that if your company makes something that works it might become the defacto standard used in vanilla MeeGo.

    2. It doesn’t have a strong manufacturer that could call the shots alone. This is the ironic bit, Nokia had to leave MeeGo to make it more attractive ( of course having Nokia in could have meant more apps in faster pace, but it’s easy to use QT so there will be apps if someone just used the platform ). There is a huge HW company that wants to work with manufacturers (Intel) and that’s another good side.

    So I think that both WP and MeeGo will have quite a few manufacturers taking a new look into them.

    • Kenneth Cheung

      I highly doubt this improves Nokia’s position at all. It’s no surprise that HTC made the first Google Nexus, and Samsung made the second Nexus. Google did a great job of solidifying their relationships with these partners before they bought Motorola. Motorola handset was not the huge success for Motorola corporate as people think, and the purchase by Google was largely opportunistic to help them defend against legal foolery by MS and Apple.

  4. @Robin Lim
    Are your for real? Look at that sales numbers for HTC, Samsung and LG for Android phoness in the last 6 months, their growth line is almost vertical.
    This buy of MR by Google will bury Win Phone, Blackberry (in time) and any other smaller OS. This will be a 2 x horse race within a year or two OS wise. Google has full support of all Android makers, as they now have a big brother in the ring when Mr Jobs comes knocking because he wants to sue someone for breathing because that was invented by Cupertino.

  5. Johnny Tremaine

    Of course Nokia will say that, what else can they say?

    It’s not like WP7 device are flying off the shelves; why would, say, LG, Samsung et all, run to embrace Microsoft’s OS, considering they likewise have a sweetheart exclusive deal with Nokia, their pet manufacturer?

  6. Robin Lim

    “Instead of fully embracing Android then, where else can these company’s turn but to Microsoft’s Windows Mobile, which is the last major mobile platform available for licensing?”

    HTC, Samsung and LG have never fully embraced Android. They have always prudently hedged their bets.

    Android is still available for licensing, you just don’t have to pay for it.

    The MS-Nokia deal will actually cost WP7 manufacturers who will now have to pay for OVI Maps and other Nokia services which MS decides to integrate in the WP7 platform.

  7. I think Nokia meant this means their decision to go with MS was good, as they won’t be competing with Google’s subsidiary. I can understand that sentiment, but I think they’re wrong anyway. Google will use this deal to indemnify the Android mfrs, and then spin off Motorola in a couple years. If there are any patents of value that Mot has, Nokia will have to license them (or get them indirectly from MS, in exchange for MS granting a license for their patents to Android licensees).

    It would be a lot simpler and more efficient if Congress just abolished software patents.

  8. Nick Turner

    True this very second, but Google won’t/cant’ keep as subsidiary. It’ll get spun off to Icahn or sold to Huawei (someone looking for shiny brand).

  9. beenyweenies

    Yeah, um, this is quite a stretch., and that’s putting it nicely.

    Why would manufacturers embrace a platform that costs them more, hasn’t gained a lick of traction even WITH Microsoft dumping a cool billion into marketing, and ALSO has a potentially “preferred” hardware partner in Nokia?

    The worst case scenario for Android makers, if you can call it that, is if Google releases top quality phones under Motorola Mobile, but that would be a blessing for everyone involved. Consumer perception of Android goes up, hardware partners are encouraged to step up their game and everyone in the ecosystem wins except for third rate hardware makers.

    • Tom Lupton

      um i thnk you find with google being software thiefs and the fact it needs masses of development from the manufacturers actually makes android loads more expensive. Plus google leaves its partners to the sharks in the legal battles where as with MS they get full legal backup.