Nokia shares rise as Windows Phone 7 rumours spread

Nokia, amid rumours that the mobile giant is preparing to embrace Windows Phone 7 in its product line, saw a four percent rise in shares since Monday, The New York Times reports. Speculation has been rife for months, but as Nokia CEO Stephen Elop is said to be preparing to address investors at a speech in London next week, rumours are surfacing that Elop could be announcing a Microsoft partnership on Friday.

Speculation has been fuelled by an open letter from Berenberg Bank's Adnaan Ahmad, where the analyst urged the two companies to enter into an exclusive deal, citing the benefits of a manufacturer fully backing a single mobile OS ("Do you really think HTC, Samsung and LGE are pushing your products ahead of Google's?") as well as access to "a potential 20-25%" of global marketshare. An exclusive deal, however, would involve abandoning Symbian, having shipped on an estimated 385 million devices.

Such a deal could prove to be the boost that both companies need. Nokia last year reported a 40% drop in profits, and its success in the United States has left a lot to be desired. Microsoft also has some catching up to do, with Windows Phone 7 holding a mere 2% market share, as opposed to Android's estimated 32.5% market share.

Not everyone is convinced though. Renowned blogger Mary Jo Foley dismissed the rumours in a tweet earlier today, and analyst Carolina Milanesi of Gartner in London was less than convinced. Voicing concerns over the success of a potential partnership, Milanesi said "Windows Phone 7 has been disappointing and Microsoft is not sexy to the consumer from a mobile phone perspective."

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Won't happen. Meego for high end, Symbian for the rest. Nokia is cheaper in 3rd world country than iPhone or Android. And their feature phone is unkillable. So no, not dead yet.

Agree. I wonder why Nokia developed meego at the first place. Nokia embracing windows is a good idea. It is healthy for competition. I dont want to see ios and android dominating the market. But really Microsoft has to come with something striking to drag the interest of consumers. As is, Ios and Android are so complete, that going windows way is heavily due to personal taste. I would like to see some killer cam and hd video on a nokia running windows phone i think it would do the trick.

And then Apple comes with Iphone 5 and the rest will go alt+f4

People who think MeeGo will go anywhere are dellusional. Why would somebody use MeeGo when they can go to android. What does Meego really offer that is significantly different then android? Windows Phone 7 is version 1.0 product. Maybe by time Windows Phone gets to version 3.0 product it be good but until then android and ios will dominate.

We need only to look at Xbox to see what MS is capable of.
When xbox was released PS 1 and Ps2, N64, Dreamcast etc. were all firmly entrenched in the market.
Now look at xbox360, hate it or love it you can not deny its progress.

I think we will follow a similar route with these smartphones.
Microsoft is one of the biggest/richest company in the world and its not due to sheer luck.

"Microsoft's Phone operating system."
"Windows Office."
"Active Sync."

Either the New York Times reporter has dyslexia ... or Microsoft's branding isn't coming across.

When I saw my mates android for first time I was like hmm that's different cus I have iPhone but got bored of it after 10 minutes. Saw my mates WP7 at new years and was like WOW and was playing with it for ages I was going get one cus my contract finishes next month but seeing as I'm buying a house can't afford do that now so stuck with boring iPhone for a while

Well you only buy out a company when you can improve it (make it worth more than it is).
With Microsoft's current and past track record in the mobile industry, they could only run Nokia in to the ground.

This news has as much value as Eldars tweets! MeeGo is the proper way...
If something is coming from MS way to Nokia, it's Office.

I don't think that Nokia would or should stop development on Symbian or MeeGo if they decide to use another OS. Maybe they might just be using them to keep selling the high phones while they overhaul Symbian and MeeGo.

A WP7 Nokia would stand out more than an Android Nokia because of the share volume of Android handsets. Whereas, with WP7, it would be one more to the 10 or 11 handsets available. Add that to the fact that MS pays for the Marketing, they will protect Nokia from patent issues arising from the OS and the money that they make can help the development of the Symbian OS.

Remember, Nokia sells the most phones in the world, period. They have a distribution channel and they have brand loyality worldwide so this is not a matter of Nokia begging. They have bargaining power against MS.

Could Nokia do a Samsung ? Remember they use to use Symbian and now their using Android they have taken off and the Windows Omnia 7 is a good phone as well, I have one.

But I doubt Nokia will do it, they think they can revive Symbian or will they admit they made a mistake ?

Silly rumour is silly. Nokia won't drop Symbian & MeeGo. All people saying this will happen are those who doesn't have any clue about Nokia. MeeGo development is going full steam ahead. Any one can verify this. MeeGo themed Qt components were temporarily closed to outsiders earlier this week citing that they can't make certain UI elements public. So I certainly believe we will get to see Nokia's MeeGo UX soon, most probably in a few days at Barcelona.

Oh gawd I hope not. I'm looking forward to MeeGo phones... if they drop that for a closed-source platform I'll have lost all hope in them. They'd become just one of many manufacturers selling the same old phones,

In my opinion, the now dying symbian has been Nokias greatest weakness of late. Biting the bullet and shipping with WP7 could be a big boost for them, its not like they'd be losing out.

Nokia could once again be associated with quality.

If Nokia want to use a third-party OS, it must choose Windows Phone 7. Google could care less about Nokia because it has so many other manufacturers for Android. Microsoft, on the other hand, want a manufacturer that can devote much of its resources to Microsoft's OS. As a result, Nokia can maintain a much closer relationship with Microsoft than Google.

Nokia is probably looking at the desktop OS landscape and reviling at the inability of OEMs to distinguish themselves from each other. Nokia would just be yet another nameless OEM. I doubt that prospect appeals to them. Meego, or a custom Linux OS are far better choices.

day2die said,
If Nokia want to use a third-party OS, it must choose Windows Phone 7. Google could care less about Nokia because it has so many other manufacturers for Android. Microsoft, on the other hand, want a manufacturer that can devote much of its resources to Microsoft's OS. As a result, Nokia can maintain a much closer relationship with Microsoft than Google.

could not care less.

Flawed said,
Nokia is probably looking at the desktop OS landscape and reviling at the inability of OEMs to distinguish themselves from each other. Nokia would just be yet another nameless OEM. I doubt that prospect appeals to them. Meego, or a custom Linux OS are far better choices.

Linux? Better than Windows? You really are funny. Lolll.

PiersM said,

Linux? Better than Windows? You really are funny. Lolll.

In the mobile world yes, Linux based OSs in general devastate what Microsoft can produce.

thealexweb said,

In the mobile world yes, Linux based OSs in general devastate what Microsoft can produce.

In general what? Care to explain? Where did Linux based OSs devastate Microsoft products. I know you're gonna mention Android but 'in general' means there are more. And Android hasn't beaten WP7 yet because WP7 is 3 months old. We'll see in the following years who will reign supreme.

Couldn't it just be Microsoft bringing Microsoft Office to Nokia's OSs? They promised they were gonna do that a while ago. Also there's a Silverlight Beta for Symbian, could be a further roll out of that to.

thealexweb said,
Couldn't it just be Microsoft bringing Microsoft Office to Nokia's OSs? They promised they were gonna do that a while ago. Also there's a Silverlight Beta for Symbian, could be a further roll out of that to.

Developement for Office for Symbian probably stopped. Why develop for a dead OS?

thealexweb said,

I meant more for MeeGo really.

Yeah because that's really come on leaps and bounds in the last year Nokia shafted what was left of its power users by all but completely dumping off Maemo after only a few months of the handsets launch.