Why a Nokia tie-up with Microsoft could create credible rival for iPhone and Android
Why is Nokia irrelevant in the smart phone market. And what can be done to change this? A leaked Nokia memo this morning gave real insights into the issue. Serat Pediredla of hedgehog labs assess the fall-out.
Although Nokia is still a dominant force in the mobile market in general, very few people are excited at anything the company has to say.
Given this climate, I am not surprised that Nokia CEO Stephen Elop has published the now famous "burning platform" memo that is doing the rounds in the press this morning. I doubt anyone who follows the mobile market would be surprised at the observations that Elop makes in his memo but it is fascinating watching how honest he is about Nokia's shortcomings.
The most interesting bit to come out of this memo is Elop's hint at an upcoming announcement this Friday that promises to reveal the way forward for Nokia at the company's Capital Markets Day event. What is interesting and worth watching about this event is the wild speculation that Nokia might announce that they are going to adopt Windows Phone 7.
I know the mobile pundits will laugh at how futile and ridiculous this move would be. On the face of it, it seems like Nokia is giving up even without trying. Vic Gundotra, VP of Engineering for Google, tweeted "#feb11 "Two turkeys do not make an Eagle", alluding to the fact that a Nokia and Windows Phone 7 is both possible and doomed to failure.
However, I strongly believe that abandoning their "burning" platforms like Symbian and adopting Windows Phone 7 could be the smart move Nokia makes this decade.
Nokia has always been great at making good hardware. The Nokia 6310i is still the best business phone I have ever used and that is saying something considering I am a staunch iPhone user and Apple fanboy. Where Nokia has failed is in putting together a great software platform and integrating it into an ecosystem that worked seamlessly with the hardware for customers and developers alike.
Developing software for Nokia phones has always been a difficult path for developers that many took while Nokia held market dominance. However, Apple and Google have shown that there is a better way when it comes to smart phones. It would take a monumental effort on Nokia's part to make Symbian and/or MeeGo into real competitors to iOS and Android.
Why not just adopt Android then? Isn't it open, innovative and market leading? This would seem to be a safe choice given the liberal Android terms but the risks Nokia runs is that it will have no advantages against the hundred other manufacturers developing Android phones. Android just won't give Nokia the competitive difference in the market and I doubt Nokia wants to become "just another Android manufacturer".
Windows Phone 7, although very late to the market, is generally accepted as a great technical platforms. By not copying iOS and Android, Windows Phone 7 has provided a credible user experience alternative to people who want to use smart phones. It has even been pitched as the platform "for normal people who aren't addicted to their phones". Reviews across the board agree that the platform is sound and has lots of positives.
What Windows Phone 7 is lacking is a credible manufacturer who can put their efforts behind producing excellent hardware that complements the platform while pushing the devices as flagship products. If Microsoft can accommodate Nokia by relaxing it's licensing terms and strike an agreement, I think we can look forward to seeing a third credible alternative to the iPhone and Android-based devices. Nokia and Microsoft could well be onto something great here.
Can someone just tell that to Steve Ballmer and Stephen Elop?
Serat Pediredla is a founder of hedgehog lab