Microsoft and Nokia
So, by now everyone should be well aware that Microsoft is buying Nokia's phone division essentially. This is big, and it changes a lot of things. Most importantly, it changes my stance on what Operating Systems Nokia phones should support.
A while back I made the case that Nokia should, as it chose to do, stick with Windows Phone. The reasoning being very simple; Android is dominated by Samsung and littered with a vast array of competitors. No matter how much a few people may REALLY want a Lumia 1020 running Android instead of Windows Phone, there aren't likely enough such people out there to draw enough purchases to Android based Lumia phones to make it worthwhile. The problem is simple. Differentiation.
Amusingly, with Microsoft at the helm, it actually now makes sense. I don't believe Microsoft will do this, but Microsoft would earn back a ton of credibility if it released versions of Nokia Lumia phones with unlocked boot loaders running stock Android. For security purposes, it would probably not be wise to compromise the security of Windows Phone in the same fashion. Why does this move suddenly make sense? Well, Microsoft was already intrinsically linked with Nokia before, but only because Nokia was the biggest and best partner, and Microsoft only really made money off sales of licenses for the Windows Phone OS. So it made sense for both to aim for just that one product.
With virtually every other Android manufacturer paying patent fees to Microsoft due to infringed patents in Android, a Microsoft based Android phone could actually either be cheaper, or competitively priced with greater margins than other vendors can deliver. So, the first thing is the money. Android would be more profitable to Microsoft than to any other handset vendor.
Next is image. Even with Google's litigation behavior, it is still Microsoft which is typically viewed as monopolistic. Opening up their phones to another Operating System, especially one as popular as Android would likely improve their image. Heck, sell some models of the phone dual booting Android and you may intrigue an even broader audience without the need to unlock the boot loader.
And a final point is standardization. EVERY handset vendor, including Apple, loves proprietary hardware, firmware and drivers. Microsoft (though not so much lately) has embraced standards which empower consumers. If, in addition to supporting a new, more open operating system, used their upcoming control in Nokia to develop hardware and other standards for phones that might enable users to upgrade components instead of needing to upgrade entire phones you might just see a HUGE uptick in both Nokia and Windows Phone sales with a serious pressure on others to adopt like practices leading to a second renaissance in the cell phone industry with Microsoft at the forefront instead of bringing up the tail. And, whether Microsoft or any other handset vendor for that matter likes it or not, this step is bound to happen eventually, and those that aren't leading the charge will end up like BlackBerry.
Now, I personally have no urge to buy an Android based Lumia, and I don't believe Microsoft will take any of the paths I've suggested above. Just that I feel this deal between Microsoft and Nokia changes what see is the best possible business strategy.
But these are the sorts of bold moves someone would need to take to re-invent the mobile industry, and while right now each of Apple, Google (+ Motorola) and Microsoft actually have the capacity to do so. I don't actually believe any of these companies are willing to make those sorts of bold moves. Google owns the market in terms of size and Apple is fantastically profitable so why mess with what is working? And Microsoft is likely afraid to touch anything fearing to make their position any worse as they only control a comparatively small portion of the market.
The big players today are all making the same mistake. As with the PC era before, they think nothing will ever be big enough to change to course rapidly enough to affect them, and they are all too afraid to act and try to be that big thing which does shake up the industry. So, more than likely another under dog company will bring the change that redefines the genre and leaves todays giants in the dust.
A while back I made the case that Nokia should, as it chose to do, stick with Windows Phone. The reasoning being very simple; Android is dominated by Samsung and littered with a vast array of competitors. No matter how much a few people may REALLY want a Lumia 1020 running Android instead of Windows Phone, there aren't likely enough such people out there to draw enough purchases to Android based Lumia phones to make it worthwhile. The problem is simple. Differentiation.
Amusingly, with Microsoft at the helm, it actually now makes sense. I don't believe Microsoft will do this, but Microsoft would earn back a ton of credibility if it released versions of Nokia Lumia phones with unlocked boot loaders running stock Android. For security purposes, it would probably not be wise to compromise the security of Windows Phone in the same fashion. Why does this move suddenly make sense? Well, Microsoft was already intrinsically linked with Nokia before, but only because Nokia was the biggest and best partner, and Microsoft only really made money off sales of licenses for the Windows Phone OS. So it made sense for both to aim for just that one product.
With virtually every other Android manufacturer paying patent fees to Microsoft due to infringed patents in Android, a Microsoft based Android phone could actually either be cheaper, or competitively priced with greater margins than other vendors can deliver. So, the first thing is the money. Android would be more profitable to Microsoft than to any other handset vendor.
Next is image. Even with Google's litigation behavior, it is still Microsoft which is typically viewed as monopolistic. Opening up their phones to another Operating System, especially one as popular as Android would likely improve their image. Heck, sell some models of the phone dual booting Android and you may intrigue an even broader audience without the need to unlock the boot loader.
And a final point is standardization. EVERY handset vendor, including Apple, loves proprietary hardware, firmware and drivers. Microsoft (though not so much lately) has embraced standards which empower consumers. If, in addition to supporting a new, more open operating system, used their upcoming control in Nokia to develop hardware and other standards for phones that might enable users to upgrade components instead of needing to upgrade entire phones you might just see a HUGE uptick in both Nokia and Windows Phone sales with a serious pressure on others to adopt like practices leading to a second renaissance in the cell phone industry with Microsoft at the forefront instead of bringing up the tail. And, whether Microsoft or any other handset vendor for that matter likes it or not, this step is bound to happen eventually, and those that aren't leading the charge will end up like BlackBerry.
Now, I personally have no urge to buy an Android based Lumia, and I don't believe Microsoft will take any of the paths I've suggested above. Just that I feel this deal between Microsoft and Nokia changes what see is the best possible business strategy.
But these are the sorts of bold moves someone would need to take to re-invent the mobile industry, and while right now each of Apple, Google (+ Motorola) and Microsoft actually have the capacity to do so. I don't actually believe any of these companies are willing to make those sorts of bold moves. Google owns the market in terms of size and Apple is fantastically profitable so why mess with what is working? And Microsoft is likely afraid to touch anything fearing to make their position any worse as they only control a comparatively small portion of the market.
The big players today are all making the same mistake. As with the PC era before, they think nothing will ever be big enough to change to course rapidly enough to affect them, and they are all too afraid to act and try to be that big thing which does shake up the industry. So, more than likely another under dog company will bring the change that redefines the genre and leaves todays giants in the dust.
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