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Wednesday, 9 February 2011

Is Nokia adopting Windows Phone 7 solving the problem?

Nokia has got everyone talking this morning after a memo written by their CEO, Stephen Elop, made it's way to TechCrunch, Engadget and a whole host of other websites.  In his memo, Elop has written and spoken of a "burning platform" that Nokia is on and had been quite candid in admitting that the likes of Apple have taken away their share at the top end of the market. (This story here can give more background on the memo).

He also was quite frank in admitting that since Apple launched the first iPhone in 2007, Nokia hasn't really been able to fight back with a product that came anywhere close to toppling Apple of their pedestal.  The issue isn't only hardware as he mentioned but also the operating system as Symbian or possibly even MeeGo may not be the solution.

Elop also goes on to talk about how Android has emerged from nowhere in the last two years and has recently overtaken Apple's iOS operating system in terms of market share.  This has only increased speculation that Nokia may side with Microsoft on Windows Phone 7 or with Google for Android.  With Elop being an ex-Microsoft exec, the chances are he may find Windows Phone 7 a proposition that can still work better for him and Nokia.

However, is this enough to solve the problem that Nokia is in?  I don't think so personally.

Elop has clearly said its not about hardware and operating system, but also the entire ecosystem that exists.  Taking this further then, you wonder that if Nokia decides to work Microsoft on Windows Phone 7, what part of the ecosystem does  Nokia control or manage?  How would a Nokia phone operating on Windows Phone 7 be any different to a Samsung, LG, HTC or Dell device operating on Windows Phone 7?  

Nokia looks set to re-strategize and question their business fundamentals in 2011 and with Nokia holding such a strong sentimental position in most people's hearts, we certainly hope they find a way to bounce back.

Over to you Elop....

Posted By: Ashish Panjabi, Chief Operating Officer, Jacky's Electronics