The debates about Nokia and Microsoft partnership continue to go sharper, as predicted in our previous post, so we are going to keep you informed till the latest minute. It was revealed that Nokia-Microsoft partnership used to be a triangle, with Google in the mix.
Nokia first contemplated on inking a deal with Google before it announced its partnership with Nokia. Nokia CEO Stephen Elop was in talks with both Google and Microsoft when he finally decided to go with the latter, which was his former employee.
Microsoft agreed to pay billions of dollars to Nokia for marketing and developing Windows Phone 7 handsets. But the deal almost didn’t push through because Nokia executives thought that Microsoft is treating them like any other potential phone partner, while Nokia was looking for an exclusive software partner.
Then Microsoft CEO Ballmer was reminded that if Nokia inks a deal with Google, Microsoft will have no way to get its share in the smartphone market.
Because of that Microsoft went ahead and sent their proposal with Nokia, which the latter agreed with and they signed the contract before Nokia’s investor conference. It was during the conference when Elop announced the deal. But before the partnership was made public, Vic Gundotra, Google vice president, posted a Twitter message that said “two turkeys don’t make an eagle”. This jab surprised Nokia executives when the conversations between companies had to be confidential.
It looks like the Google executive’s prediction was right. After the announcement, both Nokia and Microsoft stocks went down. Nokia was down by more than 15 percent while Microsoft shares were down 2 percent. It looks like the investors didn’t see an eagle with the deal as well.
According to Nokia CEO Stephen Elop, the price of Microsoft Windows Phone 7 smartphones is going to drop rapidly. Elop has stated that point was one that Microsoft had to convince Nokia of before the Finnish mobile phone giant was willing to sign on as Microsoft's largest WP7 partner. Elop said that the final agreement between Microsoft and Nokia would likely be signed within a couple of months.
The first joint product is said to be released no earlier than October, so let’s hope that the two “turkeys” manage to make an eagle and excite us with the unique features that world expects them to provide!
Wednesday, February 23, 2011