Newsletters
News & Information for Technology Purchasers NewsFactor Sites:       NewsFactor.com     Enterprise Security Today     CRM Daily     Business Report     Sci-Tech Today  
   
This ad will display for the next 20 seconds. Click for more information, or
Home Enterprise I.T. Cloud Computing Applications Hardware More Topics...
APC Free White Paper
Optimize your network investment &
Enter to win a Samsung Galaxy Note

www.apc.com
Microsoft/Windows
24/7/365 Network Uptime!
Average Rating:
Rate this article:  
Was Nokia
Was Nokia's Android Phone Behind Microsoft Buyout?

By Barry Levine
September 16, 2013 10:05AM

    Bookmark and Share
Losing Nokia would have been a dagger to the heart of Microsoft's plans to gain a firm footing in the mobile phone space. Microsoft recognized that if it didn't buy Nokia's business, it probably wouldn't have many Windows Phone devices on the market if Nokia moved to Google's Android operating system, according to one analyst.
 



Did Microsoft buy Nokia to keep that phone maker from moving to the Android platform? That is the question being raised again following confirmation that the Finnish company had developed an Android-based Lumia handset.

According to a story in the New York Times on Friday, an internal Nokia team had such a phone operational well before the two companies began negotiating the acquisition, which resulted in the $7.2 billion deal that was announced earlier this month. The Times cites two people "briefed on the effort" who chose to remain anonymous because the project had been confidential. The sources also told the newspaper that Microsoft executives were aware of Nokia's Android project.

It's not surprising that Nokia had an Android development project in the works, Current Analysis analyst Avi Greengart told NewsFactor. At the time, he pointed out, "Nokia was considering its options, since it knew that Symbian was dying." He added that it had invested in its own operating system, MeeGo, and wondered "whether it should further invest in that effort," or move to an established operating system.

Just Another Android Vendor

Greengart noted that when the latter choice was made, the question then became whether to adopt Android or Windows Phone, and Nokia "conducted a little bake-off." He added that if Nokia had gone with the open-source Android, "they would have competed with Samsung, and they would have been just another Android vendor." But, by going with Windows Phone, he said, "they thought they could catalyze the ecosystem."

Microsoft's recent purchase, Greengart said, came two years later, when the key question was not whether "Nokia should move away from Windows Phone phones, but if it should get out of the phone business entirely" because it was losing so much money.

A data point in support of that argument is the recent loan of nearly $2 billion from Microsoft to Nokia in the form of bonds. That loan was made even though the acquisition deal has not yet been finalized, and indicates that Nokia is very much in need of cash.

Option to Exit

Both Nokia and Microsoft have declined to comment on the Times' story. Nokia adopted Windows Phone as its phone platform in 2011, but had retained an option to get out of that commitment by the end of next year. If it had done so, the obvious choice -- if it remained in phones -- would have been to move to Google's Android operating system.

But, one way or the other, losing Nokia's design, manufacturing and distribution ecosystem would have been a dagger to the heart of Microsoft's plans to gain a firm footing in the mobile phone space, given that Nokia sells over 80 percent of all Windows Phone handsets.

Greengart said Microsoft "recognized that if it didn't buy Nokia's business, it probably would not have many Windows Phone devices on the market."
 

Tell Us What You Think
Comment:

Name:



Neustar, Inc. (NYSE: NSR) is a trusted, neutral provider of real-time information and analysis to the Internet, telecommunications, information services, financial services, retail, media and advertising sectors. Neustar applies its advanced, secure technologies in location, identification, and evaluation to help its customers promote and protect their businesses. More information is available at www.neustar.biz.


 Microsoft/Windows
1.   Microsoft Buys InMage Recovery Tech
2.   'Reinvent Productivity,' Nadella Urges
3.   Microsoft Revamps Office 365 Plans
4.   Windows 7 Ends Mainstream Support
5.   Another IE-Focused Patch Tuesday


advertisement
Review: Microsoft's Surface Pro 3
Is it a tablet and laptop replacement?
Average Rating:
Windows 7 Ends Mainstream Support
But extended support still available.
Average Rating:
Another IE-Focused Patch Tuesday
One critical for Internet Explorer.
Average Rating:
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
Report: Chinese Hackers Hit U.S. Personnel Networks
Hackers from China broke into the computer networks of the U.S. Office of Personnel Management earlier this year with the intention of accessing the files of tens of thousands of federal employees.
 
Charges: Russian Stole Data from U.S. Restaurants, Zoo
A Russian man arrested on bank fraud and other charges hacked into computers at restaurants in Washington, hundreds of other retail businesses, and even the Phoenix Zoo, authorities say.
 
Another Month, Another IE-Focused Patch Tuesday
Microsoft rolled out 59 vulnerabilities for Internet Explorer in June. But the IE-patching party is not over yet. Redmond published six new security bulletins on Tuesday; two, critical; three, important.
 

Navigation
NewsFactor Network
Home/Top News | Enterprise I.T. | Cloud Computing | Applications | Hardware | Mobile Tech | Big Data | Communications
World Wide Web | Network Security | Data Storage | Small Business | Microsoft/Windows | Apple/Mac | Linux/Open Source | Personal Tech
Press Releases
NewsFactor Network Enterprise I.T. Sites
NewsFactor Technology News | Enterprise Security Today | CRM Daily

NewsFactor Business and Innovation Sites
Sci-Tech Today | NewsFactor Business Report

NewsFactor Services
FreeNewsFeed | Free Newsletters | XML/RSS Feed

About NewsFactor Network | How To Contact Us | Article Reprints | Careers @ NewsFactor | Services for PR Pros | Top Tech Wire | How To Advertise

Privacy Policy | Terms of Service
© Copyright 2000-2014 NewsFactor Network. All rights reserved. Article rating technology by Blogowogo. Member of Accuserve Ad Network.