Holy crap! Nokia is in talks with Microsoft about Windows Phone devices?!
Holy crap! — I don't believe I'm writing this, especially after publicly ridiculing even idea of such a thing for a year now. But given the source of the info... Here it goes- in his weekly op-ed Mobile …
Context & Ripple Effects
The possibility of Nokia building Windows handsets had already been raised in September in earlier coverage of a potential Nokia Windows-phone move. The December report keeps the claim at the talks stage: neither company has confirmed an agreement.
For Microsoft, a Nokia relationship would put Windows Phone in discussion with one of the handset makers most closely identified with mobile devices; for Nokia, it would signal willingness to consider an operating-system alternative. The report is unconfirmed.
First-order effects
- Nokia and Microsoft face immediate scrutiny over whether reported talks produce a Windows Phone device plan, while the companies retain no confirmed obligation to launch anything.
- A credible Nokia option would give Microsoft a prospective handset partner for Windows Phone and give Nokia a potential additional software route.
Second-order effects
- Other handset makers using Windows Phone would have to assess whether a Nokia tie-up changes Microsoft’s partner priorities and the platform’s device competition.
- Nokia’s existing mobile-software strategy would face greater pressure to show why it should remain the company’s sole route if Windows Phone negotiations advance.
Third-order effects
- If a major handset maker adopts a rival mobile operating system, competition in smartphones shifts further toward alliances between hardware vendors and platform owners rather than device brands alone.
- The report points to a broader contest for mobile-platform partners, in which operating-system suppliers need recognizable hardware makers to turn software ecosystems into consumer products.
The trend: Mobile competition is increasingly being organized around hardware-platform partnerships, with handset makers weighing whether proprietary software can match externally supplied ecosystems.