Nokia & Microsoft sign deal ahead of schedule – Time is of the essence?

3

April 22, 2011 by openbytes

I’ve spoken previously about the Nokia/Microsoft deal and I believe its been covered once or twice on the TechBytes show too.

Hot of the Microsoft press (albeit its news center) Microsoft is announcing that it has signed the deal with Nokia which was reported in February, earlier than expected.

Nokia (NYSE: NOK) and Microsoft (NASDAQ: MSFT) today announced the signing of a definitive agreement on a partnership that will result in a new global mobile ecosystem, utilizing the very complementary assets of both companies. 

Source: http://www.microsoft.com/presspass/press/2011/apr11/04-21msftnokia.mspx

Amongst the bold claims and patting each other on the back, here’s one part of the release which I found interesting:

Microsoft will receive a running royalty from Nokia for the Windows Phone platform, starting when the first Nokia products incorporating Windows Phone ship. The royalty payments are competitive and reflect the large volumes that Nokia expects to ship…..

Source: http://www.microsoft.com/presspass/press/2011/apr11/04-21msftnokia.mspx

“….large volumes Nokia expects to ship”? and where’s that expectation from? What evidence is there to suggest WP7 is going to be at best anything other than a very small piece of an Apple/Android pie?  Maybe I missed the queues outside stores when WP7 launched? Maybe I’ve missed the lacking features installed and maybe I imagined the reports of data gobbling and upgrade crashes on the net? – All the while Android phones and Apple are getting out products by the bucketload.  I must have missed some major WP7 successes for Nokia/Microsoft expecting to ship large volumes. ;)

Or maybe Microsoft has a different definition of the word “large”?  I suppose if you use Kin sales as a measuring stick then “large” is not very many at all.

Then of course when you get to the end of the article I see the section on “Forward looking statements” which suggests to me the justification for the “large volumes” comment and appears in my view, as a disclaimer to everything said before it.  You decide though, its all on the links provided.

To me, this early signing shows that its crunch time.  Microsoft in my view has realized its now or never and it’s got to be quick.  Do I think this will make any difference to the acceptance of WP7? - No.   Do I think the WP7 will be Ballmers final stand? - Yes.  Do I think that everything concerning the WP7 is too little too late? – Yes.  

Sorry if my opinion upsets any MVP’s or Microsoft advocates, but as we saw in a previous post, it appears even some of the long time faithful are feeling a little downhearted. 

Time will tell.

Goblin

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3 thoughts on “Nokia & Microsoft sign deal ahead of schedule – Time is of the essence?

  1. Wayne Borean aka The Mad Hatter says:

    Possibly it was rushed through because Microsoft’s 10Q has to be filed next week. According to the numbers I’ve been pulling from other reports, it isn’t going to look good. There’s probably going to be a drop in Windows Client sales and in Microsoft Business Division sales. Not a large one, but with Apple recording huge profits, any drop won’t look good.

    FYI, my coverage of this will be moving to SemiAccurate.

    Wayne

  2. openbytes says:

    Hi Wayne. You have a point.

    Of course whatever the figures you can bet it will be “Good news” as far as Microsoft and its “advocates” are concerned.

    Microsoft in my view could find a way to spin anything.

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Tim Wilson

Tim Wilson

Writer/Novelist of many facets both in the world of technology and fantasy/sci-fi. Co-host of the TechBytes audiocast and writer for both OpenBytes and Goblin's Domain. Supporter of free and open source software.

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