Linked by David Adams on Sun 14th Jul 2013 17:49 UTC
PDAs, Cellphones, Wireless A perennial question that revolves around Nokia is: why didn't it choose to go with Android to replace Symbian when it decided to kill that as its smartphone operating system in late 2010?
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Member since:

Do you not understand this? Nokia receive $250 MILLION DOLLARS A QUARTER

So basically it went like this:
Microsoft: Sure, we'll save your sorry ass from extinction but in return you'll have to ditch all this Maemo crap and don't even think about Android. You're a Windows Phone maker, period. Deal?
Nokia: Sure thing!

Very little to do with business analysis of Android scenarios or Lumia design or whatever.

Reply Parent Score: 8

Nelson Member since:

Yes, basically. And the fact that they were cash strapped and couldn't get the same out of Google. Thats my reading of the situation.

Reply Parent Score: 2

pos3 Member since:

So elop says they were afraid of samsung dominance and you are saying Nokia were strapped for cash. Where are you sources?
if Nokia were short on cash why are they still trying to sell low end mobiles. Should not they full into high value Lumia mobiles.

Reply Parent Score: 1

tylerdurden Member since:

The previous poster is grossly misrepresenting the Nokia-Microsoft WP contract.

Microsoft is not known for being a charitable institution in the least. So no, they are not "giving" Nokia any money. They are simply playing accounting tricks, so that it looks like Nokia is having an initial positive cash flow during the first couple of years of WP adoption.

But the contract is structured in such a way that in the end, Nokia's net payments to Microsoft end up being at least half a billion Euros more than whatever cash goes from Microsoft to Nokia. And that is even if WP phones fail to sell, if Nokia's business picks up they have to pump more cash over the baseline licensing deal.

Reply Parent Score: 4

bnolsen Member since:

This strategy seems suspiciously similar to all the deals MS cooked up in the 90s with the PC manufacturers. The market was dramatically different back then of course.

Reply Parent Score: 2