Monday, February 21, 2011

MICROSOFT TO PAY BILLIONS FOR NOKIA DEAL

NOKIA corp. will get billions of money from MICRSOFT corp. to ditch it's current smart phone software in favor of windows 7, nokia CEO stephen elop said sunday, in a defence of the deal.
Nokia the world's largest maker of phones, and microsoft made it's alliance on friday. Both investors and employees reacted with dismay : Nokia stock dived 14 percent and finnish employees used flex time to go home early.

On Sunday ahead of the start of the mobile phone congress cell phone trade shown shown in Barcelona, Elop told press, analysts and industry players that apart from benefits of the alliance that were laid out on friday. Microsoft is paying billions of dollars to nokia to switch to windows 7 phone.
"This is something i don't think was completely explained", Elop said.

Elop a former Microsoft executive, said Finland-based nokia had been courted by google inc.,as well which sought to convince it to use andriod as well for smart phones. Microsoft payments are recognition that nokia had" substantial value to contribute, Elop said.

Nokia's world wide market was just over 30 percent in the last year's fourth quarter, down from 40 percent a year earlier. Those phones Symbian package which wasn't designed to be used with touch screens.

Money and in-kind contribution will flow both the ways in the deal, Elop reiterated. Nokia will be contributing it's OVI facilities and will be playing microsoft royalities for it's software as other manufactures do. It will save money by not continuing development of it's own software. The net benefit is still in billions he said.


ANALYSTS BELIVE THET GOOGLE PAYS MANUFACTURERS TO USE ANDROID ,BUT NO FIGURE HAVE COME TO LIGHT.


Adding nokia's market share to that of existing android phones would have left the world with two real players in phone's software, Elop said. He didn't mentioned iphone, but it's other dominant force in smart phones. A duolopy would have been big ramification for everyone, he said.

Microsoft has made software for smart phones more than a decade. Window 7 is an attempt to make a clean break with the past and create an OS to deal with big iphone-style touch screen.   

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