Nokia Receiving Billions From Microsoft to Push Adoption of Windows Phone Platform

[Michael Essany]

The close relationship between Nokia and Microsoft is coming into focus yet again Monday on the heels of a new strategic partnership between the tech giants defined by Microsoft paying Nokia billions of dollars to help the Windows Phone maker better compete with the likes of Apple in the smartphone space.

Although the ethics of such practices - essentially getting paid to promote a platform - are being called into question, Nokia Chief Executive Stephen Elop defended the deal at Mobile World Congress in Barcelona, Spain. Following the announcement of the new alliance on Friday, Elop told the media that there's nothing wrong with Microsoft spending billions to push it's mobile phone platform. "This is something I don't think was completely explained," said Elop, the Nokia chief who only a few short months ago was president of Microsoft's Business division.

Elop said Finland-based Nokia had been courted by Google as well, which sought to persuade it to use its popular Android software for smartphones.

According to Elop, Microsoft's payments simply recognize that Nokia has "substantial value to contribute." In return for the payout, Nokia will continue to steadily abandon its established Symbian operating system for future smartphones. Instead, Nokia will concentrate on a slate of new devices running Microsoft's Windows Phone platform, which - at present - only represents a marginal fraction of the world's smartphone market.

At the Barcelona event, Elop was asked whether he's a "Trojan horse" — a Microsoft insider who's penetrated Nokia and steered it in a direction favorable to Microsoft. "The obvious answer is 'No,' " Elop said. "Thanks for asking."

According to the Associated Press report, analysts have long believed that Google similarly pays manufacturers to use Android, "but no figures have come to light."

Associated Press

[iPittsburgh]

Well no one saw that a former microsoft exec would choose wp7 to use on nokia phones. Although it is interesting to see microsoft seriously getting into the smartphone market.

[delusion950]

This is why bew Nokia phone looks similar to iPhone and the crappy part is it'll be a failure just like htc hd2 running windows os. it'll be lagging, slow and it wont get as much as attention. those that have seen the new nokia smartphone it looks nice but it'll be crappy for sure.

new*

[Snozberries]

i was wondering if you were sleeping in Mike. Glad you picked this up. Love the title! Makes some cents =]

[politicalslug]

Seems reasonable, but I have no problem with this. Nokia needed the cash infusion and any new direction is better than the stagnation they'd been suffering these past years.

[steve-z17]

Haha, I love that Microsoft needs to team up with Nokia to try and compete with the iPhone. Just goes to show that Apple has done a tremendous job for starting off in just computers. Hopefully the Microsoft/Nokia team can put out some good competition!

[Robsbrutal]

I'm excited to see what these two giants can produce. The new windows phone 7 os actually is very attractive and runs so much smoother than windows mobile ever did.

[z6joker9]

This is why bew Nokia phone looks similar to iPhone and the crappy part is it'll be a failure just like htc hd2 running windows os. it'll be lagging, slow and it wont get as much as attention. those that have seen the new nokia smartphone it looks nice but it'll be crappy for sure.

new*

Ummm, you know the HD2 uses WM6.5, not Windows Phone 7 right? (though unofficial ports exist)

WP7 is a beautiful OS and huge improvement. I have a Focus as well and would heavily consider making it my primary if it had more apps and a couple of needed features.

I am happy to see a big drive to keep competition alive. Nokia makes good phones but bad software, so pairing with MS is a good choice.

[JoeStorm]

Of course they are.

[marccarl21]

[QUOTE=delusion950;5819488]This is why bew Nokia phone looks similar to iPhone and the crappy part is it'll be a failure just like htc hd2 running windows os. it'll be lagging, slow and it wont get as much as attention. those that have seen the new nokia smartphone it looks nice but it'll be crappy for sure.

new*[/QUOTE/
I wouldn't be so sure about that....you can port wp7 over on the hd2 its actually very fast and simple to use....
Sent from my hd2 windows phone 7 /..lol

[jius]

Nokia are great phones and best out of any i have had, but software was their downfall so windows should really help and leave them no excuses. I loved my Palm pilots, but lack of direction got them way behind and phones uninspired. Lets hope Nokia does not go down the same route and keep their products good as ever!

[Happy Noodle Boy]

Yeah before the iPhone if I had to pick a phone it would have been a Nokia no question about that. They make awesome hardware and while I've yet to play with a W7 phone I only hear good things about the OS.

[shinygerbil]

I don't feel that there are really any ethics to call into question here. It's a business deal. MS need hardware support and Nokia need software support.

Let's just hope that people can look at the resulting products and judge them according to their merit. Things are certainly hotting up - and with Android continuing to achieve higher standards of polish, who knows what the future will hold?

[mosesh]

Besides competing with apple,(as are many products) what does this have to do with apple?

[exNavy]

I've never purchased a Nokia phone before and I sure as hell won't purchase one running any version of Windows on it.

[MetallicaFan1991]

Going with MS was FAIL, Android would have been the way to go if they want to survive, WP7 SUCKS!!! Its soo boring.
Windows Phone 7 sales were sucky and Nokia N8 sales were ok but WP7 is pure boring.

[Robsbrutal]

I think the wp7 is actually alot more intriguing than android. Android is widgets and an app folder. Wp7 is more than that and its pretty also!!

[Cer0]

I actually liked some of the Nokia phones. But I think to stay ahead this was a good move. They didn't seem to put much behind the development of Symbian as other mobile OS companies have.

[Robsbrutal]

Yeah i agree, it was smart on both companies part. I believe wp7 will be good in due time. Its not windows mobile anymore. Its a whole new look and os thats pretty sweet looking.

[ivanmack]

This forum is too much apple fun boys.. But anyway Nokia has been my first phone and ill change my iphone/android for a good nokia based windows 7 phone on the day of release.

Its a good quality phone that i used years ago. And these days that camera behind a good OS like WIN 7 we have a win win for Nokia/MS at least in my book!

I had Nokia 8310, 3310, 3660... Can you hear me now?