(Photo Source: GSMArena; Windows-based Nokia phone is still a concept only)
Windows-based Nokia phones will be on sale in 2012, although CEO Steven Elop aims to produce a Windows phone by the end of this year. Elop commented on the reason not to cooperate with Google, he said it would be hard to differentiate themselves from the huge amount of Android Smartphones available on the market.
With their new partnership, marketing power and revenue, Nokia and Microsoft together hope to gain a substantial share in the Smartphone market. Nokia, the world’s top cell phone maker by units, last month announced a strategy overhaul, replacing its own software platforms with Microsoft’s Windows Phone operating system. The announcement hurted its stock shares. Nokia’s board does not like the idea of a restructuring period taking over 18 months or two years. It is also a long period that many investors do not have the patience for.
On the other hand, Apple and Android got in the Smartphone sector first and established leadership and reputation that Nokia and Microsoft can hardly challenge. When Google’s Android was launched, Nokia’s Symbian OS had a near 50% of the Smartphone market. In the last quarter of 2010, Android reached 32.9% while Nokia declined to less than 31%. In turns of shipments, Android-powered Smartphones have sold 33.3 million units, and Symbian-powered units, 31 million units.
Finally, the Smartphone market is much faster moving than that of the desktop/laptop market. Obsolescence can be measured in months and by relegate Nokia to a mere OEM of Windows Phone operating system. Nokia may have hindered its ability to react to a rapidly changing market. Considering the long overhaul, by the time Windows Phone operating system establishes itself on Nokia phones, Apple and Android will have built a complete app ecosystem.