Nokia goes Windows: Elop as a trojan virus?
February 13th, 2011Nokia has chosen to dump their Symbian operating system and to switch to Microsoft’s Mobile 7 system. The Fins are so upset the snow must be melting there. There is a whole army of developers for Symbian out there and a large number of people in Finland is working on software for Symbian mobiles. I can image it is bad week for the Fins. Many must be worried about their own job and what is to become of their national icon Nokia.

‘Our first priority is beating Android’
That’s what Elop said today in Barcelona, after denying he was a ‘trojan horse’. Let’s have a look at this from a ‘vision’ and ‘strategy’ perspective. A choice like choosing Windows Mobile is obviously a part of the strategy. Elop indicated earlier that it is not anymore the phone software that matters, it is about the ecosystem around the phone. Both Apple and Google have a strong eco-system around their phones. Everything is connected and the mobile phone is simply one of the points of contact you’ll have with their eco-systems. Nokia has their own small eco-system called Ovi which never really caught on much. Nonetheless it has quite a lot of solid elements, in particular the map service and the some more phone related services such as address book syncing. But perhaps that is also why their eco system is weak. The strength from Apple’s eco-system comes from its music/video content and app store. Nokia’s music store failed miserably and meanwhile has shut down.
Microsoft’s eco-system is actually not that great. Their email service and messaging is heavily used but their other services are not that strong. So why is Nokia dumping their own weak eco-system to switch to another weak one? Does not make too much sense. One could argue that two weak ones could make one strong one of course. But is that really a good strategy or just wishful thinking?
What I really lack is some vision here. If Nokia dumps their own software development and fully builds on Windows Mobile they are becoming what HTC is to Android (and Windows Mobile): simply a hardware manufacturer. Apple has shown that if you want to differentiate yourself and take large margins you have have to control primarily the software and then make kick-ass hardware. Nokia has clearly also lost its vision on product designs as well. Where is was leading the phone design trend for years, it is now trailing the pack.
It seems to me that there is only one winner in this story: Microsoft. They haven’t been able to make a dent in a pack of butter with Windows Mobile 7. Sure it looks interesting and fresh but so far the consumer seems more interested in iPhones and Android phones. For Microsoft this is a super step forward and will help them boost their market share.
Differentiation with Windows Mobile?
Elop said they saw more possibilities to differentiate themselves with Windows Mobile. I am not sure if I understand this. Sure you are different with Windows Mobile: hardly anybody has it! But seriously, there must be some fine print in the deal with Microsoft we don’t know about. Perhaps their Elop sees opportunities by influencing how the Windows Mobile evolves and the apps it contains. But unless those are Nokia-only it wouldn’t differentiate them at all…
Well, we’ll see what happens! I am probably just missing the point of these strategic choices…;-)


