Will Nokia build Windows phones?

(Update: Nokia disagrees with our report. However, we have two additional sources which agree with it).

According to a trusted source, Nokia is now likely to use Windows Phone 7 as an additional platform for its phones. Also, Nokia’s board has given new ex-Microsoft CEO Stephen Elop the green light to change the company’s strategy if needed, a source familiar with these matters said. This new mandate includes decisions on OS strategy or alliances.

Prior rumours of either Nokia dropping Symbian or adopting the competing Android platform have been unfounded. It’s only now that such strategic options are becoming viable to a Nokia CEO.

Nokia embracing Windows Phone 7 would be a key win for Microsoft and would make it the third major platform behind Apple’s iOS and Google’s Android at a time when there’s a major OS landgrab going on. In recent months Microsoft has faced serious setbacks attracting device makers to the new platform, with only HTC, Samsung and LG unofficially confirmed as launch partners (update: Asus and Dell, too). Long-time ally HP has shifted its strategy to its own platform, and Sony-Ericsson has gone all Android for 2011 .Nokia is counting on Elop’s software expertise and willingness to shake up businesses as it tries to revive its fortunes in the mobile-phone market. Since the launch of Apple’s iPhone in June 2007, Nokia’s share price has fallen by almost two-thirds, decreasing the company value by around $65 billion. At last week’s Nokia World, Elop reiterated that, like his former Microsoft boss Steve Ballmer, his credo of choice is “developers, developers, developers” and he intends to instill this credo into Nokia.

Elop’s hiring is part of a new US focus for Nokia. Four months ago Nokia’s Board had hired a new Silicon Valley-based CTO in Rich Green, a former software boss at Sun. At last week’s Nokia trade show in London there were various rumours of a possible Nokia and Microsoft merger. According to our sources, Green is currently leading a due diligence effort to evaluate Nokia’s various software assets, but no actual merger talks have happened. The results of this diligence and the conclusions made by Elop will be key to Nokia’s future.

In the first interview in his new Nokia role, Elop told the Financial Times that innovation in the mobile industry had shifted to the US, where the group has struggled to compete. “That’s a shift from years before when the development of the mobile industry tended to start in Asia and move through Europe and then to North America. Now there’s fresh innovation in North America and it’s critically important for Nokia to be participating in that market.”

Nokia just announced a family of new-generation Symbian phones last week, including its new flagship device, the N8. Pre-orders for the N8 are the strongest the company has ever seen. Niklas Savander, EVP for marketing, predicted at the event that the company will ship more than 50 million new Symbian^3 phones.

Sources are  also telling us that at the CTIA trade show in two weeks Nokia and AT&T will announce that the US carrier will sell the N8 in the US.  This would be a major win for Nokia’s Symbian operating system and for Nokia, the world’s biggest mobile gadget maker, which, for various reasons, has failed to gain traction in the US in recent years. Nokia, amongst other hanset makers, has had a hard time attracting developers to build apps for its phones because Symbian has been a bit of a bear to use.

Amongst the key question Elop will have to evaluate is the role of Symbian going forward. Since 2008, key to Nokia’s strategy was to transform Symbian into a modern-day OS and make cross-platform development software Qt the main tool for its developers.

Three months ago Nokia launched its Nokia Qt software development kit (SDK) for Symbian. With the Qt mobile SDK, Nokia promises that developers will use 70% less code and develop apps in 50% of the time it would take them on native Symbian C++. According to Thiago Macieira, Nokia Senior Product Manager for Qt, there are 250,000 developers already using Qt. Now the company’s challenge is to convince developers to give the Nokia SDK a chance.

Leading mobile market analysis firm Visionmobile recently made an extensive study of the current state of “mobile developer economics”. Across most important categories, developing in native Symbian fared last in developer’s assessments. For example, it takes developers on average 15 months to master native Symbian C++.

With that 50%, Symbian’s attractiveness to developers goes from dead-last to middle of the pack.

At the Nokia Developer Summit 2010 last week I discussed Qt with various developers. Particularly there was a session led by Michael Samarin from development company Futurice who described the challenges with current Qt cross-platform development. Samarin’s response to Qt was overwhelmingly positive, as was the response of the developers in the room, and the challenges he described, overall, were trivial. Developer sentiment was that Nokia’s equivalent to Apple’s App Store, the Ovi app store, seems to be much improved and that operator billing is proving to have great effect on app monetization.

Developers will quickly find an installed base for Symbian apps developed with Qt. The new Symbian^3 phones, including Nokia’s new flagship N8 phone, will support Qt, and so will 20 of the current top-selling Symbian devices. While even Symbian fanboys are not ready to compare the N8 to the iPhone or the cutting edge Android phones, both the N8 and the E7 are solid devices. Still, much better Symbian phone reviews will likely not happen until a much needed Qt UI renewal in Symbian^4 phones takes place at some point in 2011. (In the Visionmobile study, around 50 out of 100 Symbian, BlackBerry and Windows Phone perplatform respondents were annoyed with the difficulty in creating great UIs.)

The question is, what will Nokia’s new CEO, Stephen Elop, do to accelerate Nokia’s turnaround. With Symbian embattered but improving, Nokia still rumoured to be launching a family of MeeGo devices in Q4 2010 and now Windows Phone 7 getting into the picture, all bets are on the table.

  • http://www.intomobile.com/2010/09/23/nokia-may-make-windows-phone-7-handsets/ Nokia eyes Windows Phone 7 for smartphones

    [...] to bigger problems down the road.Would you like to see a Nokia smartphone with Windows Phone 7?[Via VentureBeat] If you enjoyed this article, please consider sharing [...]

  • http://wmpoweruser.com/nokia-windows-phone-7-rumours-ring-louder-again/ Nokia Windows Phone 7 rumours ring louder again

    [...] Read more at Venturebeat here. [...]

  • http://www.facebook.com/people/Michael-Scordakis/1685247175 Michael Scordakis

    Actually Launch Partners for Windows Phone 7 include, Samsung, LG, HTC, Sony, Asus, Dell and now Nokia? Killer. You really should catch up on the tech news before you write an article. You gear up the N8 to run Windows Phone 7 OS and that would be a solid phone.

  • Fradget

    Dumb article is Dumb. This writer has no idea what he is talking about AT ALL!

  • http://twitter.com/matthausk Matthäus Krzykowski

    I'm not much of a gadget news guy, thanks for pointing this out,

  • http://midsofts.com/archives/nokia-may-make-windows-phone-7-handsets.html Nokia may make Windows Phone 7 handsets | MidSofts.COM

    [...] [Via VentureBeat] [...]

  • Crowd_Sorcerer

    It would be inconceivable that Nokia goes with Windows Phone 7.For Mr Elop to make such a decision would be disastrous for Nokia, and show that Elop is still wedded to his previous employer.The factors are converging to make Windows Phone 7 a flop. Backwards compatibility, which was technically feasible has gone. OEMs that originally signed up, like Sony Ericsson and Toshiba have abandoned it. The platform is unproven, and rushed to market, the result being it is feature incomplete (eg no C&P, no wireless tethering, vital APIs unfinished). It is not available on Verizon or Sprint in the US. It is not available in many major languages. Its online services (Zune Marketplace, Xbox Live) won't be available in most markets. The convergence of all these factors together makes Windows Phone 7 unviable.The other factor is that Windows Phone 7 is a closed platform. Microsoft has added DRM to lock the OS to the hardware and prevent jailbraking. You cannot arrive late to the game and introduce a platform more closed than anyone else's. iPhone got away with that because of its first-mover advantage. For the same reason, MeeGo stands more of a chance than Windows Phone 7, because of MeeGo's openness.MeeGo should be Nokia's number 1 aim. Plan-B can be Android. At least Android allows Nokia to present its own interface. Windows Phone 7 is absolutely the worst alternative, preventing differentation, and accelerating hardware commoditization (assuming it even lasts in the market).Nokia has been working on new versions of Symbian and MeeGo. The fruits of those years of labor are soon to be realized. It would be madness to change direction at this time and jump into bed with Microsoft, a company that has had zero successes in the portable devices market, and a litany of embarrassing failures such as PlaysForSure, Zune, Sidekick, Windows Mobile, Kin.

  • http://www.android23.info/will-nokia-build-windows-phones-venturebeat/ Will Nokia build Windows phones? – VentureBeat | Android

    [...] Continue reading here: Will Nokia build Windows phones? – VentureBeat [...]

  • http://www.ifanr.com/20894 诺基亚准备采用 Windows Phone 7 系统? | 爱范儿: 拇指资讯小众讨论

    [...] Venturebeat 消息,诺基亚很可能将采用 Windows Phone 7 [...]

  • matthaus

    @Crowd_Sorcerer From what I understood the decision was already taken before Stephen Elop became CEO. As someone who said down with Symbian's David Wood back in 2008 (http://venturebeat.com/2008/12/04/interview-with-symbians-david-wood-we-can-match-iphones-success/) I was impressed at the Nokia Developer Summit how far Nokia has come with its Symbian/Qt strategy. I have a lot of respect for the work which I have seen there.The question is whether that's enough to keep Android at bay in the traditional Nokia strongholds. 2011 will be an Android onslaught and the industry knows it.Android is accelerating the hardware price battles among device makers in a way that has been inconceivable way for most of the industry folks I speak to. Just ask some of the HTC folks about the margins of their Android phones. Many device makers have a second look at Microsoft and recognise that they may need MSFT to keep some balance. These days most tech blogs may be very pro-Android, but the industry is very much divided by the latest developments. MSFT has become way more attractive in recent months.(Before anyone accuses me of an Anti-Android attitude, please read some of my 2008 pieces on Android & embedded devices on this site)Nokia, of course, still has operational, logistics, distribution, production and hardware excellence. They have at least another 24 months to get things right.In the last couple of weeks a lot of Nokia-MSFT rumours have come up in SV. Some VCs are talking. TC has picked up a rumour last week. I am expecting more to get exposure in tech blogs in the next weeks. Interesting times.

  • http://pulse.yahoo.com/_OJALXLYD544CX7VPC2NHQTGP5Y Alex Kerr

    I won't rule out a Nokia-MS alliance purely on the basis of never ruling anything out, but I think it's VERY unlikely. It certainly would be a case of the suits winning over the technology arguments. WinPho 7 has been roundly slated as being basically crap, and with little chance. Symbian and MeeGo are vastly superior in every way – technology, store, installed base & sales (forecast rather than current for MeeGo), you name it.Also:> While even Symbian fanboys are not ready to compare the N8 to the iPhone or the cutting edge Android phonesThis is rubbish. No, actually it's lies. The AllAboutSymbian article you link to says nothing of the sort. AAS are not fanboys, they're also experienced iPhone and Android experts and just simply say what is correct, but unfashionable – Nokia and Symbian are just plain better. You're just parroting stuff you've heard elsewhere from iPhone/Android fanboys. The N8 in fact beats iPhone 4 and the best Androids hands down in most respects. If you spend a LOT more money you can a higher res screen on iPhone or some Androids, which is pretty meaningless, or on a couple of Androids a slightly faster GPU for some graphical operations. That's it. Otherwise the N8 is FAR in advance in power, features and price.> For example, it takes developers on average 15 months to master native Symbian C++. With that 50%, Symbian’s attractiveness to developers goes from dead-last to middle of the pack.Two leading blogs I read said they surveyed developers at Nokia World, and generally the response was that developing for Nokia is now a quicker, better, easier experience on Nokia vs iPhone/Android. The new Qt stuff really leads the competition. I have also seen various anecdotes over time that devs are making more money from Ovi Store versions of their products than iPhone or Android and this is to be expected given the greater reach and better store.Matthaus, you really need to update your knowledge and experience with Nokia/Symbian before you write articles like this, otherwise it's just exposing your general ignorance of the platform and the fact you're parroting prevailing anti-Nokia/Symbian attitudes.

  • http://nextparadigms.com Lucian Armasu

    Android is starting to beat iOS in marketshare for one reason alone – the “unofficial” alliance of manufacturers that use Android. If Android would've been used only by 1 or 2 companies, even big companies – it would've never had this kind of success.Now that Android filled this gap – an OS for all manufacturers, it's going to be even harder for the “next OS” to beat Android than it was for Android to beat iOS. And the ONLY way you can beat, or at least have a fighting chance against Android is to have another OS like Android, and by that I mean another OS that can be adopted by all the manufacturers, just as easily.Now, there are 2 big options here: WP7 and Meego. Meego is a much better contender to Android, because it's a better OS than WP7, more complete, and it can also work on a variety of devices, which is also a critical factor in making an OS popular, and that's what's also helping Android getting a huge popularity boost right now (coming to tablets, TV's, cars, etc).However, because Nokia wants to keep Meego for itself and is not working hard to convince others to use it, that means they will be pretty much the only ones using it. By the time Nokia releases 5 Meego smartphones, Android will already have beaten them in OS marketshare (Symbian+Meego).On the other hand, WP7 is a much more limited OS, and it only works on smartphones, which will prove to be a big disadvantage against Android, BUT it has a much better chance of succeeding than Meego, because Microsoft is going to promote it hard and convince manufacturers to use it. This is really all that matters at this point. It doesnt matter if you create a better OS anymore – what matters if who gets the most manufacturersto support it, and who creates the most buzz about their OS. This is why being a lonely company with a lonely OS is hardly going to be enough.WP7 seems to be supported by many manufacturers already, including HP which has WebOS, and if RIM joins them too then the circle will be complete. WP7 will be adopted by about as many manufacturers as Android, and will be a very powerful competitor to Android – though I doubt it will ever beat it, because Android has a lot more going for it than WP7 and Google is super fast to add new compelling features it. I think with Gingerbread version we'll all realize that Android is going to be at least 1 step ahead of competition from now on, including iOS.

  • http://twitter.com/jpalomaki Juha Palomäki

    Nokia says no:”Our platforms are Series 40, Symbian and MeeGo. That stance was reinforced strongly by our management during Nokia World, and we have no plans to use other operating systems.”http://www.bloomberg.com/news/2010-09-24/nokia-says-not-planning-to-add-more-software-platforms.html?cmpid=yhoo

  • matthaus

    > “While even Symbian fanboys are not ready to compare the N8 to the iPhone or the cutting edge Android phones” … You're just parroting stuff you've heard elsewhere from iPhone/Android fanboys. The N8 in fact beats iPhone 4 and the best Androids hands down in most respects.First of all, I greatly respect All About Symbian and as usual they probably have done the most thorough review of the N8 or the E7. These reviews are supportive, full of honest benevolence, yet mixed … For this article it's not relevant to compare these devices, in fact I do not voice any personal opinion on this topic. The N8 is a fine phone and it will have success in many markets, I would guess. On that personal note, I am considering to buy the E7 as a business phone for myself. Love that keyboard.> For example, it takes developers on average 15 months to master native Symbian C++. With that 50%, Symbian’s attractiveness to developers goes from dead-last to middle of the pack… Two leading blogs I read said they surveyed developers at Nokia World, and generally the response was that developing for Nokia is now a quicker, better, easier experience on Nokia vs iPhone/Android. The new Qt stuff really leads the competition. I have also seen various anecdotes over time that devs are making more money from Ovi Store versions of their products than iPhone or Android and this is to be expected given the greater reach and better store. Matthaus, you really need to update your knowledge and experience with Nokia/Symbian before you write articles like this, otherwise it's just exposing your general ignorance of the platform and the fact you're parroting prevailing anti-Nokia/Symbian attitudes.There's a lot in these statements which is just plain wrong:- Anti-Nokia/Symbian. Since 2008 I've spent countless hours repeatedly talking to various Symbian and Nokia folks. Also, this blog and our conferences gave Nokia/Symbian a lot of coverage. Amongst others, we launched Symbian Horizon at MobileBeat 2009, we had Tero speaking there. I attended last year's SEE in London. This year we had various cutting edge Nokia stuff at MobileBeat, again. In fact, at a conference last year a Symbian representative showed a presentation which cited VentureBeat as the lone “supportive”/”objective” SV blog towards Symbian. I have this presentation on my laptop, I can send it to you if you like.- general ignorance of the platform and the fact you're parrotingAt heart I am product manager. If I write something software related I talk to people who dealt with source code (eg http://venturebeat.com/2009/01/01/android-netbooks-on-their-way-likely-by-2010/). At this Nokia Developer Days I spent most of my time in the technical sessions and discussed these issues with folks on such a level. I specifically talked to folks about their experience with the Nokia Qt SDK for Symbian as I know how important it is for Symbian/Nokia. In this article I am using Visionmobile's report to illustrate the take aways I had from my developer conversations. By most accounts the progress of the Symbian/Qt combo is impressive as I say in the article, but only “average” by now. If it helps you in any way I hear in my conversations the “developer economics” of MeeGo is even “better” than on Android.

  • http://pulse.yahoo.com/_U2H7S4MG6PLQUVOA2CFNMZ2QUQ Ric Desan

    As the few astute commentors here that made reference to Meego. In the smart phone space it is the ONLY hope Nokia has to recapture some marketshare. However, the only way that will happen is for them to commit to it fully (which they havent realy done to date) while more clearly delineating between their mid market and high end products.

  • celineknips

    If Nokia would start its own platform then it will be a very bad move. Android already beat iPhone and Blackberry in terms of sales of smartphones in USA. Perhaps, they should try to think for a second about this reality.

  • Crowd_Sorcerer

    Quote from Matthaus: “MSFT has become way more attractive in recent months.”I don't see the evidence that Microsoft and its Windows Phone 7 are becoming more attractive. In fact, I see the opposite.In January 2010, Microsoft announced an array of OEMs which had signed up for Windows Phone 7. Some on that original list seem to have now abandoned it, including Toshiba, HP and Sony Ericsson.Windows Phone 7 does not have a natural ecosystem. Its well known that Microsoft has been paying software developers to port iPhone apps to Windows Phone 7. A TechCrunch article quoted Deutsche Bank as saying that Microsoft also paid OEMs to make Windows Phone 7 handsets, covering the OEM's engineering and R&D costs, including some OEMs who took the money but later abandoned Windows Phone 7. Paying OEMs' costs is an unprecedented move by Microsoft.3 OEMs at launch is a good start for Windows Phone 7. Of those, Samsung doesn't seem to be putting in 100% effort. Dell once said it will build a WP7 handset. If you read Dell's recent statements, it seems to be very non-committal, using words like “probably”.Microsoft's penchant for releasing silly nonsense products like the Kins, and its latest HP Windows 7 Tablet PC are further eroding Microsoft's public reputation in mobile. If OEMs want competition in mobile operating systems, they'd be better off backing MeeGo which (due to the GPL) does not make them 100% beholden to the OS vendor, like Windows Phone 7 does.I see much less traction for Windows Phone 7 in September 2010 than in January 2010. If anything, it is moving backwards. Nokia would be foolish to bet the farm on Microsoft's ability in the mobile market.

  • Crowd_Sorcerer

    Quote from Matthaus: “MSFT has become way more attractive in recent months.”I don't see the evidence that Microsoft and its Windows Phone 7 are becoming more attractive. In fact, I see the opposite.In January 2010, Microsoft announced an array of OEMs which had signed up for Windows Phone 7. Some on that original list seem to have now abandoned it, including Toshiba, HP and Sony Ericsson.Windows Phone 7 does not have a natural ecosystem. Its well known that Microsoft has been paying software developers to port iPhone apps to Windows Phone 7. A TechCrunch article quoted Deutsche Bank as saying that Microsoft also paid OEMs to make Windows Phone 7 handsets, covering the OEM's engineering and R&D costs, including some OEMs who took the money but later abandoned Windows Phone 7. Paying OEMs' costs is an unprecedented move by Microsoft.3 OEMs at launch is not a good start for Windows Phone 7. Of those, Samsung doesn't seem to be putting in 100% effort. Dell once said it will build a WP7 handset. If you read Dell's recent statements, it seems to be very non-committal, using words like “probably”.Microsoft's penchant for releasing silly nonsense products like the Kins, and its latest HP Windows 7 Tablet PC are further eroding Microsoft's public reputation in mobile. If OEMs want competition in mobile operating systems, they'd be better of backing MeeGo which (due to the GPL) does not make them 100% beholden to the OS vendor, like Windows Phone 7 does.I see much less traction for Windows Phone 7 in September 2010 than in January 2010. If anything, it is moving backwards. Nokia would be foolish to bet the farm on Microsoft's ability in the mobile market.

  • miahfost

    Matthaus you are out on a limb here. Someone has given you some bad information. Look closely at Nokia's history. Do you see *any* Microsoft software on their phones? I mean any at all. (Not stuff that can read Excel, but software produced in Redmond.)You don't because Nokia has always seen Microsoft as a sworn enemy. They would do to Nokia what they did to their other partners; use them and destroy them. Nokia has never trusted Microsoft and would never enter into a deal with them. Nokia has a billion customers. This is a company that knows how to sell phones. They have a harder time in the US, but that is made up for in the rest of the world. Why would they need Microsoft now?

  • yyyggg
  • http://compunoticias.com/2010/09/24/nokia-llega-a-un-acuerdo-con-microsoft-para-windows-phone-7/ Nokia llega a un acuerdo con Microsoft para Windows Phone 7 – Compunoticias – Noticias de informática y tecnología

    [...] Gizmodo | Venturebeat | [...]

  • http://winphonebrasil.com.br/2045/rumor-nokia-vai-lancar-aparelho-rodando-windows-phone-7-em-2011 Rumor: Nokia vai lançar aparelho rodando Windows Phone 7 em 2011 – Windows Phone Brasil

    [...] VentureBeat Tweet (function() { var po = document.createElement('script'); po.type = [...]

  • http://wpcom.paidcontent.org/2010/12/21/419-microsoft-with-nokia-maybe-not-as-far-fetched-as-it-sounds/ Microsoft With Nokia: Maybe Not As Far-Fetched As It Sounds? — paidContent

    [...] executive Stephen Elop (pictured) to be its new CEO — although past reports have been denied by the company. To add to the speculation, there has already been software collaboration, [...]

  • http://www.ipowall.com/dburl-9349/ 又一高管离职,Nokia 将转投 Windows Phone OS 或 Android? | IPOWall科技

    [...] 诺基亚Meego设备负责人Ari Jaaksi 于上周辞职,最近几个月已经有多位重量级高管从这家世界最大的手机制造商离职——前Symbian CTO Charles Davies以及Nokia的‘乔布斯’ Anssi Vanjoki。坊间留言称Nokia之所以雇佣前微软高管 Stephen Elop 做新的CEO,或许是想抛弃自己的操作系统转投 Windows Phone OS 的怀抱;或者说将Windows Phone OS 作为一个优于即将推出的Meego的选择——总之,已有多人表示推出Nokia牌的Windows Phone OS已成定局(消息来源)。 [...]

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