Nokia Is Said to Be Near Partnership With Microsoft
Feb. 10 (Bloomberg) — Nokia Oyj is close to announcing a software partnership with Microsoft Corp., a bet that together the two companies can better challenge Google Inc. and Apple Inc., according to a person with knowledge of the discussions.
Context & Ripple Effects
Nokia and Microsoft had already outlined a mobile Office collaboration in 2009, making the reported software partnership an expansion of an existing commercial connection rather than a wholly new pairing. A week of alliance speculation that lifted Nokia shares had put the companies' mobile strategies under scrutiny before Bloomberg's report.
The partnership remains unconfirmed: Bloomberg attributes it to a person familiar with the discussions, while Nokia declined to comment on separate reports concerning its first MeeGo handset. The significance is the prospect of Nokia and Microsoft combining their positions to contend more directly with Apple and Google.
First-order effects
- If announced, the partnership would tie Nokia's handset strategy more closely to Microsoft software, giving both companies a joint response to Apple and Google in mobile devices.
- The report raises the stakes for Nokia's own software direction while leaving the reported MeeGo handset cancellation unconfirmed.
Second-order effects
- Apple and Google would face a more coordinated Nokia-Microsoft challenge, rather than separate competition from a handset maker and a software company.
- Nokia's device partners and developers would need clarity on which software platform the company intends to prioritize if the reported alliance becomes formal.
Third-order effects
- If handset makers and software providers increasingly pair their products and platforms, mobile competition shifts toward integrated ecosystems rather than standalone devices or operating systems.
- The reported talks point to platform access becoming a strategic asset for hardware vendors seeking scale against incumbent mobile ecosystems.
The trend: Mobile competition is consolidating around handset-and-software alliances built to challenge Apple and Google's ecosystem advantages.