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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

Look to the future now: mobile industry predictions for 2012

Mark Bridge writes:

As 2011 draws to a close, many of us start looking towards 2012 and wondering what’ll be happening in the mobile phone industry. Here at The Fonecast we’ve invited a handful of industry experts and business leaders to offer us their thoughts about the coming year.

Today’s podcast contains analysis and insight from Hans Eriksson, Steve Litchfield, Dr Windsor Holden, Dr Mark Smith and Jack Wraith MBE.

Author: The Fonecast
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ABI Research predicts what's NOT going to happen in the mobile industry next year

Mark Bridge writes:

This time of year sees many pundits from within the mobile industry doing their best to predict events that’ll grab headlines in the next 12 months. In fact, we’ll be offering our own predictions in a couple of special podcasts lined up in the next few days.

Author: The Fonecast
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Last week at The Fonecast: 12th December 2011

Mark Bridge writes:

With less than a fortnight until Christmas, it’s probably time to order the turkey and start thinking about gifts. What could be a better present than being given your very own mobile operating system?

That’s what’s happening over at HP, which is making its webOS software available to the open source community. The big question now is whether developers will respond with “lovely, just what I wanted” or a slightly embarrassed “oh, I’ve already got one of those.”

Author: The Fonecast
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Burnside Telecom explains the benefits of mobile telecare

Mark Bridge writes:

This week’s podcast feature from TheFonecast.com takes a look at mobile telecare: using mobile telecommunications to help elderly people and those with special needs.

UK-based Burnside Telecom has recently announced a couple of telecare products that take advantage of the company’s expertise in producing ‘fixed cellular’ devices, so I’ve been talking to managing director Colin Aitken about these new products.

Author: The Fonecast
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How mobile messaging delivers more Christmas cheer than a card

Mark Bridge writes:

By now you already know the basics. More and more people have smartphones - and they’re becoming an essential companion. They’re taking over from digital cameras, they’re taking over from portable gaming consoles, they’re taking over from music players… and now they’re taking over from Christmas cards. Yes, Christmas cards.

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Recent Podcasts

Reviewing our 2015 mobile industry predictions... and looking forward to 2016

Podcast - 15th January 2016

Iain Graham, James Rosewell and Mark Bridge return to review their mobile industry predictions from last year. Which mergers, partnerships and developments did they forecast correctly... and which didn’t work out as planned?

Later in the programme, the team anticipates some of the topics that will be hitting the headlines during 2016.

Author: The Fonecast
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Podcast from Mobile World Congress 2015

Podcast - 6th March 2015

Mark Bridge learns about the mobile technology trends at Mobile World Congress 2015 by chatting to James Rosewell of 51Degrees, Dr Kevin Curran from the IEEE and Chris Millington of Doro.

They talk about wearable devices, wireless charging, mobile operating systems and much more... including some of their favourite products from the exhibition.

Author: The Fonecast
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Looking back at February: from security scares to multiple MVNOs

Podcast - 27th February 2015

We're taking a look back at the biggest mobile industry news stories from February 2015, including allegations that the UK's security service tried to breach SIM card security by hacking into one of the world's biggest SIM producers.

We also talk about the planned BT and EE merger, the creation of two new UK virtual networks, some acquisitions in the mobile payment arena and a new Ubuntu smartphone.

Author: The Fonecast
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Interview with Chris Millington of Doro about mobile retailing, wearables and technology for older consumers

Podcast - 24th February 2015

In today's programme Mark Bridge talks to Chris Millington, who's Managing Director for Doro UK and Ireland.

They discuss the state of mobile retailing in the UK, the future of wearable devices and - as you might expect - smartphones for seniors.

Author: The Fonecast
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A month of mobile: O2 counts on 3, Microsoft counts to 10 and Apple counts its profits

Podcast - 30th January 2015

We're back with a month of mobile industry news, including takeover talks and takeover rumours. O2 and Three are said to be discussing a merger... but is there any truth in the suggestions that BlackBerry could be up for grabs?

We also discuss Apple's record-breaking quarterly figures, the highlights of CES and the launch of Microsoft Windows 10, as well as saying farewell to the current version of Google Glass.

Author: The Fonecast
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