On February 11, 2011, Nokia announced a new partnership is underway with Microsoft. The announcement states that Nokia and Microsoft will expand their reach by creating a new “global mobile ecosystem.” The first product to be released under the new joint venture is the Windows Phone which will be designed by Nokia. The union also includes Nokia Maps, Bing, Microsoft adCenter and new applications that will be created and later run on Nokia Windows Phones.
Nokia President and CEO Stephen Elop made a joint announcement with Microsoft CEO Steven A. Ballmer today in London. Stephen Elop stated, “Today, developers, operators and consumers want compelling mobile products, which include not only the device, but the software, services, applications and customer support that make a great experience.” Continuing he said, “Nokia and Microsoft will combine our strengths to deliver an ecosystem with unrivalled global reach and scale. It’s now a three-horse race.”
Steven Ballmer spoke and said that the new partnership was exciting. “Ecosystems thrive when fueled by speed, innovation and scale. The partnership announced today provides incredible scale, vast expertise in hardware and software innovation and a proven ability to execute,” he announced.
Though Nokia and Microsoft are obviously excited about the partnership the Internet along with investors aren’t as enthused. Analysts such as David McQueen with Informa Telecoms & Media and Bob Egan voiced their opinions stating that the deal may not be all that it is cracked up to be. David McQueen stated in an email, “This may not be the best move for Nokia and it is questionable how “open” Microsoft will be to work with. Even if Nokia fear Google’s dominance, an open platform like Android would allow much more possibilities to Nokia.” He also stated “Two losers don’t make a winner.”
Bob Egan voiced his concerns on Twitter and stated, “Execution has been Nokia’s shortfall yet now it seems they are taking on even more execution complexity. Was hoping for simpler more focused.”
The news sent investors in both Nokia and Microsoft pulling shares causing stocks in both company to fall.
