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Tuesday, May 24, 2011

Two reasons Microsoft will buy Nokia

James Rosewell writes:

Microsoft have been talking about Mango, the upcoming upgrade to Windows Phone 7 incorporating their battery-friendly flavour of multi-tasking and 499 other new features. They’ve also welcomed Fujitsu, Acer and ZTE to the Windows Phone fold. However there was no significant news from Nokia and Microsoft. No timeframe for handsets, nothing in fact. Both companies are being tight lipped about the partnership at the moment.

So what could the future have in store for these two companies?  Microsoft have apparently already paid Nokia $1 billion to persuade them to use Windows Phone 7 instead of Symbian. Presumably Google didn’t put as much on the table for Android. The fruits of this investment are unlikely to appear until 2012 when we’ll see many new Nokia Windows Phone 7 handsets, Windows 8 and quite probably a hybrid version for tablets and touch screens all sporting the Nokia logo.

But this arrangement seems only half thought through. What about Microsoft Xbox and Nokia’s massive dominance in developing countries, particularly India?

Nokia is the number one brand of all brands in India. For many people, their first experience of a telephone and the internet was associated with Nokia. One billion people live in India and there is an emerging middle class with disposable income used to using Microsoft Windows. A lax approach to copyright law has certainly helped Microsoft establish mindshare.

Sony, with the Xperia Play, has shown a mobile smartphone for gaming can be built and is perfectly usable. It makes a lot of sense for Microsoft to release an Xbox mobile phone targeting developing countries. Who better to do it with than Nokia?  The back catalogue of games will drive profit if they’re not overpriced. They’ll almost certainly have an Xbox mobile phone for the US and European markets out this year anyway.

Nokia have failed to gain market share in North America. Microsoft were born there and have big brand presence. Focusing on Windows Phone branding with Nokia second could be a very smart way to increase market share. Maybe even lose the Nokia brand altogether.

How much could such a deal cost?  Let’s say Microsoft pay a premium for Nokia and a figure of $35bn is needed. We already know Microsoft have this sort of money because they tabled this much for Yahoo! a year or so back. Given Apple’s success with a combined hardware and software offering, there’s even a precedent to persuade investors. Not buying Yahoo! could be the best thing that Microsoft ever did.

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Opinion Articles

A Sure Signal from Vodafone

Mark Bridge writes:

Today I've been using my mobile phone at home. For many people that’s not an unusual thing to do – but it is for me because, around here, coverage indoors isn’t particularly good. Downstairs it’s previously been non-existent. But this morning everything changed.

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Physician uses cell phones to bring health care to the poor

Natalia Ardanza of voanews.com writes:

In Africa there is another use for mobile phones. Public Health workers in Kenya are now using mobile phones to gather health information from patients in remote areas and upload it to the internet for instant analysis at distant centers. And it is all happening thanks to Dr Joel Selanikio.

Author: The Fonecast
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Making dumb touchscreen phones was a smart move

Mark Bridge writes:

I remember a report from last year that said ‘non-smart’ touchscreen handsets – generally those without a popular operating system – would be bad news for mobile operators.

Conventional touchscreen smartphones tended to result in higher-than-average ARPU thanks to their early-adopting tech-loving users, their web-friendly browsers, their email programs, their app-friendly operating systems and their fast 3G connectivity. However, dumber touchscreen devices – those with a manufacturer’s own proprietary OS and perhaps a clumsier browser – could generate 23% less ARPU than smarter phones. So, if touchscreen dumbphones weren’t good for networks… and weren’t really good for consumers either… manufacturers wouldn’t really bother with them. Right?

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"Hello Nexus One" I say...

James Rosewell writes:

Mark’s been encouraging me to write an opinion piece on the Nexus One for the last few days and I’m finally putting fingers to keyboard to share my experiences. It’s taken so long because this phone has so many features. On a positive note I could go into details about the gorgeous screen, the Android Marketplace that will out-sell Apple’s over the next 18 months, the built-in satellite navigation service and the speedy processor that makes everything run smoothly in real time. Or on a less positive note, the touch screen keyboard that sucks (think carefully about this if you’re a heavy texter or emailer, it’s even worse than the original iPhone), the lack of ActiveSync for Calendars and Tasks, no support for WMA music files or the clunky zoom functions on the web browser.

However I’m going to focus on voice dictation. Nexus One is the first phone I’ve used with this feature.

Author: The Fonecast
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The Amazon Kindle prepares to fight the Apple iPhone and Tablet

Mark Bridge writes:

Here’s a curious thing. Firstly, Amazon creates the Kindle. It starts selling the Kindle in the USA with a mobile deal that lets users download electronic books and newspapers wherever they are. Then it starts selling the Kindle to us in the UK, although – hang on a moment – it’s not talking about a UK mobile deal. Instead it still seems to be ‘roaming’ from the AT&T network. Next comes the larger-screen Kindle DX – also roaming away when it reaches our shores. And now Amazon is talking about third-party downloadable applications for the Kindle. Yes, a mobile device with downloadable apps. Hold that thought; I’ll be returning to it.

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