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Re: Microsoft killed Nokia..
I know a lot of people wanted an Android device developed by Nokia, and I know a lot of Nokia fan's are unsure of this venture. Although, oddly enough, I think this is a difficult, and potentially deadly move by Microsoft, I think Nokia wouldn't be in a better position if they choose Android. I will try to explain what I mean, and lay down some ground work for what I believe.
First off, let's talk about what could have happened if Nokia choose to work with Google, instead of Microsoft. Obviously, Nokia went to Google and wanted a similar deal that Microsoft was offering. We will never know if Google actually offered anything -- in fact, that might be a major reason Nokia went with Microsoft instead of Google. Google didn't offer anything, or as much, that Microsoft offered. However, for argument's sake ... let's say they did. Let's say they matched the billions of dollars Microsoft said they would pay Nokia. What then? Would Nokia be able to defeat a rising Dragon from the East. A brand who is a killer in the cell phone market, and absolutely rules the Android market. At this time, sure, HTC was doing good. LG had a good share. But it was clear the Galaxy family of devices where doing well. Motorola did very well with their Droid family of products. But, once again, Samsung was working on building a brand with millions of fans.
Nokia was at a weakened state by the time they considered this deal in 2011. They were doing good, sure, but that was in the dumbphone market. In the smart phone market, not so much. They could develop an Android handset -- and possibly win the hearts of Americans -- problem is they would be fighting against so many brand names that people love and trust. Some people don't even know their Galaxy phone runs on Android. I had a convo with my manager around this time, and he didn't know his Droid had Android on it. And while most of the world Nokia is a brand that means reliability and top of the line features, in America they are about dumb phones. In fact I didn't think they were anything good. I didn't pay attention to them until a friend who was from Iraq told me Nokia makes better phones than BlackBerry's. I laughed at first, but after doing research .. I saw he was actually right. Nokia was a very popular choice around the world.
Nokia choose Microsoft because in that market, there weren't any large players. While everyone is fighting for a piece of the Android pie, and potentially wasting their money, Nokia will be fighting for the Windows Phone mind share. Their design philosophy was the perfect representation of the Windows Phone platform, anyway. This would allow them to stand out -- even though it's a small part of the market -- Nokia wanted to be the Samsung for WP, and the Lumia to be the Galaxy line for WP. They succeeded. When people see my yellow Lumia 920, they don't ask is that the Nokia? They say is that the new Windows Phone? Nokia's name is gone, sure, but people are interested in the Windows Phone. Which, in a lot of people's minds (in America), is Nokia. It's the same thing.
And that's what Nokia wanted. They wanted to fight for the American market. Microsoft wanted to fight for the European market. It was a match made in heaven. However, if they choose Android, who knows what would of happened. I don't think they had enough cash on hand to go head to head with Samsung. Even HTC -- once a huge player with both Windows Mobile and Android -- are not struggling to stay relevant ... even though they are making great handsets. People aren't choosing HTC. Or LG. Why would they choose Nokia? Sure, in other countries maybe they would have. Nokia had their mind share -- and still does. But Nokia new if they wanted to survive, they need to break into the American market. That's, at least, what they believed. One could argue that wasn't true. It doesn't matter, though, because that's how Nokia felt.
So they went all in. They helped pushed Windows Phone in a better position. They are getting close to making money instead of being in the whole, and now they have other ways to get revenue. They can continue developing new phones. They can have more money for advertisements now. Because now they are apart of Microsoft. However, there is one thing that causes me to worry.
With the Google and Motorola deal, Motorola stayed a different company. They don't get any special treatment. And Google works with their partners to make new devices, like the Nexus 4 with LG. Microsoft is clearly wanting to become a device and services company. Why should anyone try to break into a market, where they are going to be treated as second class citizens? Even if they wouldn't be, they think it. How do I know? Who has come out to PRAISE this deal? No one company. HTC, LG and Samsung are now going to have to compete with Microsoft on their play field not theirs. This is only a problem if you expect others to make Windows Phone devices. If you think you can make a good enough phone, or phones, then you can screw the others. You just have to make sure your devices are great.
Them buying Nokia kind of promises that. Nokia makes good phones.
What do you guys think?