After Microsoft, it's Nokia's turn to scare the Android masses over the Google-Motorola deal
Nokia's CEO Stephen Elop, speaking at a seminar in Helsinki, tried to make the other Android manufacturers worried in his turn. "If I happened to be someone who was an Android manufacturer or an operator, or anyone with a stake in that environment, I would be picking up my phone and calling certain executives at Google and say 'I see signs of danger ahead'", said Mr Elop.
The only thing left to add was that Windows Phone can welcome them all in its warm hugging embrace, wipe their tears, and feed them some Mango. Nokia's CEO avoided that temptation, but didn't miss the opportunity to pat himself on the back:
"The very first reaction I had was very clearly the importance of the third ecosystem and the importance of the partnership that we announced on February 11, it is more clear than ever before", he said, referring to the premature Nokia Windows Phone announcement, which made the company report a loss last quarter from its handset division.
It is still too early to tell how Google will treat Motorola, but the scouts are already circling the rest of the Android makers to try and lure them more into the Windows Phone realm. If some of it happens, we might really have three smartphone platforms in a viable competition, despite that Android seems poised to remain the leader by a large margin, unless Google decides to do something silly, which is highly doubtful.
1. PeterIfromsweden (Posts: 1230; Member since: 03 Aug 2011)
Haha, mr. elop is so funny.
But he is partly right, the manufacturers should switch from Android to other OSes now, like MeeGo WebOS (and of course bada for Samsung). But They should not switch to WP7 as MS probably will do the same thing as Google has done.
3. snowgator (Posts: 3504; Member since: 19 Jan 2011)
Dude, Google hasn't done ANYTHING yet. They haven't completed the purchase, they haven't shown any preference to Moto, they haven't shown an unwillingness to work with other manufacturers, they haven't done a single solitary thing to even HINT Motorola will be anything but a source of patents to help secure the Android OS users from litigation. Sure, owning Motorola will change the landscape some. It may make the OS Google owns better in that they do not have to worry about violations as much.
I am very much a W7 fan, and even I can see this is just P.R. from a company that wants to show stability by stirring the pot and making the landscape look more unstable than it is. Why not wait until we see how Google uses the Motorola purchase before we worry about bailing on them.
5. PeterIfromsweden (Posts: 1230; Member since: 03 Aug 2011)
Google wont spend 12,5 billion $$$ to buy Moto and only use their patents.
Everyone knows that Google will start making their own hardware. It's a no brainer.
7. protozeloz (Posts: 5393; Member since: 16 Sep 2010)
1 I agree that Elliott its spilling BS here. You don't "partner with other" to get an even field. That just showed how much of an Hippocratic person he turn out to be.... if he was on another company that company would be already broke.....
2 well 12 big ones but when you check it compared with other bids done by Google you see something interesting that makes some things less likelyhttp://androidandme.com/2011/0
11. snowgator (Posts: 3504; Member since: 19 Jan 2011)
No, really, it is not. As between 1.0 and 1.5 Billion dollars in add streams into Google's pockets every year directly from Android, which is PROFIT after the development and support they put into pour into it, there is NO WAY Google stops or even slows down their support for Samsung, LG, HTC, Kyrocera, or any of the other of dozens of sources that produce that revenue stream. What would be the advantage???
They can leave Motorola completely alone, and they would recoup the 12.5 Bill purchase price with a few years. Motorola is not loosing money in their mobility division, it is just not turning enough profit for them to recoup losses from operating expenses over the life of the division. In return, Google gets a blanket of stability for the rest of Androids producing life they do not have now. THAT is the no brainer.
17. protozeloz (Posts: 5393; Member since: 16 Sep 2010)
Motorola could end up meaning money for google in other ways that do not involve trying to outdo manufacturers here is an example
31. remixfa (Posts: 14255; Member since: 19 Dec 2008)
peter, that is EXACTLY what google did. if you look at the other article that was just posted about the patents for sale, google payed the exact amount of the average price per patent to buy motorola. As even the article states
"google bought a patent library and got a cell manufacturer for free".
everyone knows not a darn thing. Google said they were gonna keep it fair, and unlike other companies (cough cough apple) they are relatively good at sticking to their word. If they have a more direct influence in motorola handset building or not doesn't change the fact that they've sworn it will have zero impact on any other facet of Android other than a huge defense shield.
23. corporateJP (Posts: 2431; Member since: 28 Nov 2009)
Boy, that Bada Kool-Aid has you drunk, kid.
2. Mehha (Posts: 26; Member since: 25 May 2011)
Wow, man i liked the challenging tone of Mr.Elop :)
4. snowgator (Posts: 3504; Member since: 19 Jan 2011)
You can criticize his plans, but one thing is for sure: He does not lack confidence. He is going all in on Windows, and if he is going to fail, it will be fighting all the way down. No going out with a whimper.
6. PeterIfromsweden (Posts: 1230; Member since: 03 Aug 2011)
I very much do believe Elop will go down as the worst Ceo Nokia has had in history. Nokia's stock gone down more than 50 % in 4 months since elop announced WP7 was the way to go.
And Elop has been killing Symbian sales, and it seems that he does not want to sell much of the N9 either...
I just bought the Nokia X7 yesterday to check it out (no, i have not forsaken bada, i'm just trying out the X7) and i think that it is the best Symbian phone so far. _Had Elop not killed symbian the X7 would have been selling som smör i solsken (that's swedish and means selling like butter in sunshine. And has the meaning that it is selling really, really good).
10. HTCiscool (Posts: 449; Member since: 16 Jul 2011)
Sorry Peter but the reason the X7 isn't selling is that it uses outdated parts and software. Where I live you can get the Sony Ericsson Xperia Play and Neo for the same price as the X7 and I'd rather take one of those instead :( Sorry but hell, I'd rather take the LG Optimus Black over the X7 (Both cost the same) which is made of plastic.
12. snowgator (Posts: 3504; Member since: 19 Jan 2011)
If W7 doesn't sell extremely well, you are right, Peter. Elop will be out and Nokia will be a has been.If W7 runs like a leopard to good sales and Nokia's profits improve without having to spend billions on the software ecosystem, than your wrong. We will know in about 12 - 18 months.
24. Eingild (Posts: 203; Member since: 19 Apr 2011)
Leopards don't run. They sprint. Just sayin'.
29. snowgator (Posts: 3504; Member since: 19 Jan 2011)
Okay, my bad. Back to Animal Channel 101 for me!! :-D
8. pong (unregistered)
Even there is MeeGo or WebOS or Bada, Unfortunately I think manufacturers will now look into Windows due to those stupid patents. Google may be buying those Motorola patents to protect their ecosystem but looks like it back fired somehow. Manufacturers need a troll to fend of another troll
9. MattKind (unregistered)
If Google decides to use android for there sole products ( i think in near future they will have there own smartphones ) , they leave HTC and Samsung behind . If this happens Windows phone 7 will gain a lot more .
This is HD-DVD vs Blu ray all over again
13. Mehha (Posts: 26; Member since: 25 May 2011)
People here are giving their premature conclusions with lots of IFs & BUTs.
I, on the other hand feel that there's definetly a third Eco system emerging in the near future 'cause people are starting to feel the need of it, Android's boom has just started to calm down a bit.
So i strongly beleive that WP will mark its point and really will stand against not android but iOS.
32. remixfa (Posts: 14255; Member since: 19 Dec 2008)
calmed down? they add 550k subscribers+ a day.. every month the number goes up. the only ecosystem that is cooling is iOS which is barely maintaining marketshare when its not losing it.
14. Roberto Lim (unregistered)
Mr. Elop should just release a WP7 phone NOW. With partners like Nokia (taking their sweet time), it is no wonder MS is looking at other manufacturers.
15. digicon (Posts: 121; Member since: 11 Aug 2011)
Who would stay on Android's bandwagon when they just bought one of your handset competitors ? It seems the manufacturers split OS's on their phones(Android and WP7), as well as making their own OS, just incase something like this were to happen. Motorola's name will certainly change to Google(or Android). If not, they will have to sway other manufacturers to stay. Otherwise you're going to have another BlackBerry phone, BlackBerry OS; Apple phone, iOS; and now Google phone, Android OS . What about that !
21. dandirk (Posts: 187; Member since: 04 Aug 2011)
Because there is little Google actually benefits from doing so.
Google knows just as MS knew back in the 90's market share is king. Especially so since Google makes money off Ads.
There is no way hardware sales would re-coupe lost ad sales by closing their OS ecosystem like Apple.
Sure you could make an argument that Google just "used" their partners to get the market share and will close up the ecosystem when done.
It could happen but really would that be any worse then paying for MS licensing an an ALREADY closed system.
Me I would take that chance, I would rather risk loosing, then just admit defeat.
16. TKFox007 (Posts: 303; Member since: 02 Nov 2010)
So says the guy who's running Nokia into the ground...
20. QUAD-CORE (unregistered)
Exactly what I was thinking. Nokia was about to go out of business! They just had to force one of their CEOs (Olli-Pekka Kallasvuo) to step down because they were doing such a s**tty job. They had to partner with Microsoft as a last effort! And they don't even have Windows Phone out yet!
They have been making cell phones for decades and have not been able to innovate to the degree of Microsoft, Google or Apple. What does that say about them?
18. JayRaj (Posts: 54; Member since: 31 Oct 2010)
Guess there's a difference between a buyout and a strategic partnership. So we can't compare Google-Moto deal with Nokia-MS partnership. What WP7 will get from Nokia, will be available to all manufacturers (but we are about to see what Moto will get from the buyout). The scene will be same when Microsoft goes for hardware manufacturing or buys some manufacturer. Until then its a different story. . .
22. dandirk (Posts: 187; Member since: 04 Aug 2011)
Competitors are just trying to put doubt into the market. Steal the lime light, slow down Google etc.
25. shaider (unregistered)
Elop is talking like he represents Microsoft and not Nokia.
26. taco50 (banned) (Posts: 5506; Member since: 08 Oct 2009)
I think this could be a big turn in the mobile phone industry. Samsung, LG and HTC arent' going to want all their eggs in one basket now because of the threat of Motorola getting preferential treatment with android. We'll see more investment in Windows 7 and I actually do think Samsung will push bada more while other manufacturers may look into making their own OS as well. This will make the cell industry marketshare a lot more balanced and competitive which makes the consumer the winner.
Right now iOS and android have about 68% market share in the US.
30. snowgator (Posts: 3504; Member since: 19 Jan 2011)
With the exception of Apple, I can't see the advantage of trying to keep software and hardware under one roof. The mobile industry is changing so fast that Android saved so many companies tons of cash in the development of the software. It is the direction the winds are blowing: Google, Microsoft provide the OS, the manufacturers provide the hardware. I really think Blackberry will have to make this kind of decision soon. They cannot keep up doing both. Nokia was the largest device maker in the world, and they couldn't do it. Bada is fine for Samsung to develop as a side OS. But it is Android that drives their profits. HP will either open WeBOS to manufacturers, or simply use it for PC's, laptops, and Tablets.
As I said earlier, I realize Apple is the exception right now. But, Google will not turn away from the huge cash from supplying Android to who wants it.
33. remixfa (Posts: 14255; Member since: 19 Dec 2008)
google only loses money if they try to push motorola phones. Google makes money off of advertisement, not software. Can it make some side money on hardware now too? absolutely. But the biggest player in the android game right now is samsung followed by HTC with moto a distant 3rd. Only a retard like Elop would push hard on a 3rd place guy and piss off the 2 guys that contribute the most to the ecosystem.
This is nothing but propaganda and scare tactics. Nothing is changing. The last thing Google is going to do is piss off the guys that make 3/4ths of their phones. Motorola is a shield and nothing more.
35. PeterIfromsweden (Posts: 1230; Member since: 03 Aug 2011)
Agree with you taco, for once ; )
27. J. Scott (unregistered)
The great thing about Android - Its open source.
The biggest problem with Android - Its open source.
I can see Google's partnership with Motorola as a way of creating and pushing a basic hardware standard for the OS for other manufactures to follow so as to help eliminate its fragmentation problem.
28. darth8ball (Posts: 520; Member since: 02 Aug 2011)
This sounds like MS trying to gather makers for it's Mango. Google has now or will show any preference to Moto for their OS. Everyone is invited to the party and this is just a way to protect the OS and it's friends from Adolph Jobs and the slew of legal lackeys.
34. Sail (unregistered)
Phonearena seems to want to turn this to competition bashing, but it's not that simple. Elop has a point.
Consider that you were an Android manufacturer and you were told about the Google & Motorola deal. Personally I would immediately check my backup plan. Maybe Google will play nice, but there is now a permanent risk hanging over your head. Google now has a a clear reason to favor someone else. This risk can be realized immediately, after a year, after 5 years etc. and as the result your smartphone business can suddenly come to a screeching halt.
Android manufacturers can't officially start arguing with Google, but behind the scenes they are certainly considering the options.