Nokia’s partnership with Microsoft was not a trial-and-error experiment. It was more like a way of avoiding a “duopoly” with Apple on one side and Nokia/Google on the other, according to Stephen Elop, Nokia’s CEO.
Elop concedes that after his announcement of shifting eco-systems, Nokia’s smartphones were paired with both Windows Phone 7 and Google’s Android. But, “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 says that the new deal with Microsoft is a straight-forward one, where Nokia will be paying Microsoft a certain fee for using their software. However, he also feels that there will be a certain “value addition” with Nokia being able to use Microsoft’s search and advertising systems. He added that the the new partnership can generate revenue, “in the billions not the millions.”
Nokia’s CEO did not speak much about their MeeGo Operating System with Intel apart from the fact that their first MeeGo smartphone is due later this year.
The smartphone OS battleground looks to be molded in an interesting way with Windows Phone 7 jumping in. While iOS and Android seemed to be the only giants earlier, Windows Phone is still in a development stage but looks solid to go a long way.