BARCELONA, Spain – Last night, Nokia Corp. CEO Stephen Elop took the stage at Mobile World Congress to discuss Nokia’s partnership with Microsoft Corp. and what it means for the future of both companies in the smart phone space.
Elop, who was appointed as CEO and president at Nokia in 2010, has been talking about making major changes to revive the company. Nokia and Microsoft hope to create a third player in the current Apple Inc. and Google Inc. dominated ecosystem.
“Clearly we were assessing three different paths forward for the company. There was taking advantage of Meego and Symbian on our own but with the help of others, which made us consider our second or third options. The second option was Android and placing bets on that ecosystem. The third option was entering a partnership with Microsoft and building an ecosystem around that,” said Elop.
Nokia hopes to create a symbiotic relationship with Microsoft that will help fuel the success of Windows Phone and help solidify Nokia’s position as a leader in the smart phone space.
“The decision to go with a Windows phone takes a different dynamic. By doing that we have created an environment where Windows phone is a
challenger … it’s now a three horse race,” said Elop.
Since the announcement, some analysts have questioned whether or not Nokia really understands the significance of the partnership with Microsoft. Elop stated, “We absolutely do, and in the weeks and months ahead that will become clear.”
Elop explained that the partnership with Microsoft is an OEM deal stating, “We pay Microsoft for the use of their software. We pay them money for that and of course the balance to that transaction is that we are able to reduce our operating expenses. We are paying them but we are developing software ourselves.”
Elop also explained that Nokia is indeed adding to the partnership by not only providing hardware but new service capabilities like Ovi maps, the Ovi Store, and new advertising opportunities in the mobile space.
He added, “We are contributing the swing factor. We are creating a challenger in Windows phone products, bringing substantial market share in that direction, world over.”
Elop insisted the partnership announcement does not mean the end of Symbian, “There are plans for Symbian still ahead. There are easily a quarter of a billion Symbian devices either existing or in the future that run Qute, and that is a huge opportunity for developers.”
The partnership has not gone over too well with the folks at Nokia, particularly those who have worked on Symbian, which was made clear in
Friday’s walk out of Nokia’s facilities in Oulu and Tampere.
When RCR Wireless News asked Elop what the partnership would really mean for the employees at Nokia, he confirmed that there will be cut downs but that overall, “It’s an emotional journey.”
As far as the future goes, Elop stated, “Something else has changed: the absolute accountability of Nokia as we go forward. We’re on a clear mission and clear supporters of the strategy going forward. We are all accountable for the successful delivery of the results associated with that strategy.”
Time will only tell if the partnership between Nokia and Windows Phone can truly establish both as key players in the smart phone market.
