Finnish manufacturers sets up high targets at WMC.
The controversial CEO of Nokia Stephen Elop took center stage at the World Mobile Congress 2011 yesterday and said that their “first priority is beating Android.”
Earlier last week, Nokia and Microsoft had undergone a partnership in which Nokia announced it would start selling handsets with Windows Phone 7 slapped on it. The company also said that their old and much dated Symbian OS will be slowly phased out, much to the furor of the 1000 employees at Nokia who worked on the OS, choosing to exercise their ‘flexitime’ work schedule benefit to walk out in protest. Following the news, Nokia’s shares dropped a whopping 14%, the largest drop since July 16.
Elop clarified why Nokia choose Windows Phone 7 over Android, saying “”We obviously made the decision to go Windows Phone. We made the decision for a whole variety of reasons, but to understand it more, you need to understand how Microsoft viewed this opportunity to make sure there were more than two ecosystems.” Which then led him to say “A decision to go with Windows Phone creates a very different dynamic [as opposed to Android]. Windows Phone is a challenger. It becomes a three-horse race.”
“The question is, what’s the contribution from Microsoft. They are contributing services like Bing and Xbox. They also — this is a very important thing to recognize in the balance of the transaction — they are contributing a dependency. They are placing a very significant bet on Nokia for the delivery of the location-based services. But there’s another element that comes out of this: we are also receiving a new source of revenue through advertising.”