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Nokia and Android, A Possible Love Story?

by On July 2, 2013

Nokia According to market analysts, Nokia should take a closer look to Android OS, if they want to survive in an increasingly competitive smartphone market, i.e. Nokia and Android equals love. This idea is not new, there were bets made about Nokia’s success with Windows Phone OS (or, more, the lack of) starting with 2012 and people suggested Android as a plan B for the struggling tech giant. Still, Mr. Elop, Nokia’s CEO, went all-in with Microsoft, but things are not looking that peachy. Almost everyone I know, including myself, attribute Nokia’s decline from its former top-dog position to its excessive reliance on Microsoft OS. Nokia and Android look like a perfect pair, in my opinion. Nokia Unlike other smartphone manufacturers, Nokia switched its smartphone production for covering only one operating system, unlike, let’s say, Samsung, which manufactures Android, Microsoft and Tizen (their own OS) running devices. And they are doing good! There are now many voices suggesting that Nokia should start looking at producing Android smartphones. One of them is Pierre Ferragu, an analyst at Bernstein Research, and he made a blunt statement today about Nokia’s future, as he abruptly said about Nokia that they should, let me quote him on that : “take the pill before one cannot afford to do so anymore… its exposure to the disappearing feature phone market and the lack of traction of Windows phones could cost Nokia a lot of cash in the near term, in restructuring, marketing/distribution support, and operational losses, which means it could be too late to address the problem in a couple of years.” Even if Stephen Elop, Nokia’s CEO went all-in in their partnership with Microsoft and he Is The Winner Of European Communication Award 2013, for Nokia things are looking grim. They lost their position as the biggest smartphone manufacturer in the world for some time, they lost market share everywhere (including in Finland) and when it comes to smartphones sales figures, they are lagging behind companies like Huawei or ZTE. The Lumia line of smartphones shows signs of recovery, but Nokia is still relying on the feature phone sales in order to stay afloat. And those too are in decline, in terms of sales, for example in Western Europe Nokia’s sales are dropping 30% every year. Until now, Nokia showed no sign that it would consider producing Android running smartphones and it’s unclear what the costs would be for the company. It is possible that their agreement with Microsoft doesn’t permit an alternative OS, even if  Microsoft licensed Samsung, HTC or Huawei to manufacture WP smartphones, yet they are also building Android devices. It appears that Nokia and Microsoft have a different partnership, with an exclusivity clause, or something like that. To me, Nokia and Android seems like a feasible solution for a future recovery of the Finnish company. Source : Crave            

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