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Microsoft paying Nokia to switch? Devices not till 2012, tablets and more...

We mentioned yesterday that Microsoft was spearheading a hardware engineering team for Windows Phone--to expedite development in new mobile hardware, almost like their own R&D department for phones. That addition gives Microsoft an interesting ability to better control the future and direction of hardware for their OEMs by basically getting their foot in the door on developing mobiles.

Flash forward a whole day and we have Nokia and Microsoft merging their smartphone strategies. As has been pointed out, this is not "Nokia is now an OEM for Windows Phone" but much deeper, more substantial. Nokia's services will run into Microsoft's, Microsoft's will mix with Nokia's and more importantly, Nokia will have a say in the direction of Windows Phone. From the joint open-letter: "Nokia will help drive and define the future of Windows Phone." Yowza.

In a New York Times article, is was pointed out that both Google and Microsoft were throwing money at Nokia to commit:

To get Nokia to switch, Google and Microsoft are offering hundreds of millions of dollars worth of engineering assistance and marketing support, according to a person who has done consulting for the company and was told of the talks.

What caught our eye was the whole engineering assistance, which sounds a lot like what the new Hardware Group of Microsoft's Mobile Communication Business (MCB) department is all about.  Reader Henripple pretty much caught this yesterday in comments, suggesting that this may be the groundwork to speed up that Nokia agreement and  get devices to market, faster.

On a related note, Ina Fried at All things D is live-blogging the event and when asked, Nokia CEO Elop said this about device availability: "We’ll be shipping in volume in 2012" so we have some time yet before we see a device, though we imagine by "holiday 2011" we'll definitely see some devics about to launch.

And on the much controversial issue of tablets:

“We are not announcing today a specific tablet strategy,” he reiterated, saying that Microsoft creates opportunities.

Elop noted that there are rumors of Windows Phone and Windows that could power tablets.

“We could do that,” he said. “We might do that.”

Also an opportunity for Nokia to step back into the game using its own software.

Certainly intriguing and we hope both companies come up with a solid strategy here.

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Reader comments

Microsoft paying Nokia to switch? Devices not till 2012, tablets and more...

5 Comments

Paying? Well, any deep partnership like this is give and take, but paying isn't quite it. Nokia is giving it's nav/maps and localisation + marketplace billing and hardware know-how to MS in exchange for a mobile OS and full support behind it with some deeper access compared to other OEMs.

I agree. This doesn't sound like "paying" so much as "supporting". This is a partnership, and not an OEM vendor like Samsung and HTC are.

Microsoft has always had this hardware department. At least as far back as 2004 when I was there for the MVP summit.