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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

How the right mobile phone technology can turn anyone into a spy

Mark Bridge writes:

A few weeks ago I received a phone call out of the blue. It went something like this:
“I think my partner's cheating on me. How can I get into the GPS on his phone to find out where he is?”

I'm no secret agent. Nevertheless, it got me thinking.

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To SIM or not to SIM; that is the question

Mark Bridge writes:

The last couple of weeks have seen the ‘embedded SIM’ making headlines.

The term ‘embedded SIM’ has previously been used to describe non-phone equipment with a SIM card pre-installed in a built-in 3G modem. Technically the modem was embedded, not the SIM – but it looks as though genuinely embedded SIMs could be just around the corner.

Author: The Fonecast
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How we could use mobile technology to destroy personal privacy

Mark Bridge writes:

Head to any major city, look around and you’ll see tourists recording their visit. Some have digital cameras, some have phones and some are shooting video.

It’s the same kind of scene when you go to a concert. The performer on stage will be looking at a sea of blue faces, all illuminated by their smartphones. This, I reckon, could be the beginning of the end of privacy.

Author: The Fonecast
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What's the value of mHealth?

James Rosewell writes:

Any healthcare solution involving some component of mobile technology seems to come under the banner mHealth. A solution that captures information about diabetes sufferers' blood sugar levels via prompted text messages and relays this information to a physician would be considered mHealth. Providing feedback to the diabetes patient about a change in dosage following review by the physician makes the solution even better. Linking devices that automatically monitor blood sugar levels and dispense insulin involving a remote computer and physician to monitor the real-time situation moves the solution on a level still. All these examples show how mobile technology can be used to improve quality of life.

Author: The Fonecast
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How to mess up a customer relationship with SMS marketing

Mark Bridge writes:

Do you want to know how to foul up your customer relationships?  How to use mobile marketing to reduce customer loyalty?  Then gather around, dearly beloved, for I have a case study you're sure to appreciate.

Author: The Fonecast
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