Skip to main content

Nokia deal to cost Microsoft ‘billions of dollars’

microsoft-nokia-deal
Image used with permission by copyright holder

Since the now-confirmed deal between Nokia and Microsoft came to light earlier this month, everyone has been pouring over whether or not the move was a good one. But according to Nokia CEO Stephen Elop, Microsoft apparently thought it was such a good deal that they agreed to pay “billions of dollars” to have it go their way, ComputerWorld reports.

Speaking Sunday evening at the 2011 Mobile World Congress in Barcelona, Spain, Elop used the occasion to further justify the Nokia-Microsoft deal, which includes Nokia — the world’s largest handset maker — abandoning its highly-popular Symbian operating system for Microsoft’s still-struggling Windows Phone 7 OS. (See the first Nokia-WP7 concept design here.)

The other option for Nokia would presumably have been to adopt Google’s Android OS, which made gains of 888 percent in 2010, to become the second most-used OS in the world, after Symbian. But by adopting Android, Nokia would have been giving the Google OS too much weight, said Elop, essentially creating a “duopoly” between Android and Apple in the global mobile market. And with Microsoft willing to fork out “billions of dollars” to make the Nokia-Windows Phone 7 partnership a success, going with Microsoft was a no-brainer.

“We are paying them for the software,” Elop said of Microsoft. “But we won’t have to develop the software. And there will be some very apparent operating savings from doing this.”

Elop added that the deal with Microsoft gives Nokia access to the Bing search engine and to the Xbox platform. It will also provide Nokia with the opportunity to break into the mobile advertising market, an opportunity not yet possible for the Finland-based company.

In addition to discussing the benefits of Nokia partnering with Microsoft, Elop, who left Microsoft to take the helm at Nokia, fended off accusations that he was a “Trojan horse” for Microsoft, and enabled the technology giant to essential take control of Nokia.

“The obvious answer is no,” Elop said. “We made sure that the entire management team was involved in the process, and of course the board of directors of Nokia are the only ones that can make this significant of a decision about Nokia. They made that final decision on Thursday night.”

So there you have it, folks. Elop is not a secret agent for Microsoft. Good to have that cleared up.

Editors' Recommendations

Andrew Couts
Former Digital Trends Contributor
Features Editor for Digital Trends, Andrew Couts covers a wide swath of consumer technology topics, with particular focus on…
Google Pixel 5 vs. iPhone 11: Should you buy Android’s best or iOS’s finest?
Google Pixel 5 Front

The Google Pixel 5 is very much a Google flagship smartphone. Lacking some of the bells and whistles of more expensive phones by Samsung or Apple, it nonetheless gets the fundamentals spot-on. Its camera is unsurprisingly excellent, and it comes with very slick software, a sharp touchscreen, 5G support, and also a much bigger battery (compared to the Pixel 4). It's also priced at a reasonable $700, making it a direct competitor to last year's iPhone 11, which also begins at $699.

However, which phone is better: The Pixel 5 or iPhone 11? We pit the two devices against each other in a head-to-head, looking at how they compare in a number of categories. This should tell you all you need to know about the two smartphones.
Specs

Read more
Microsoft’s new Office app hints at the Surface Duo’s potential
new microsoft office app productivity surface duo splashvideothumbnail

This holiday season, Microsoft will release a dual-screen smartphone known as the Surface Duo. As a dual-screen device, you can stack your favorite apps side by side, span apps across the screen for a better view of your work, and generally do more while on the go.

That demands software and hardware work hand-in-hand, however, so the new Office app for iOS and Android is paving the way forward. It'll make your phone a bit more useful for work -- in Office apps, at least.
One hub for all things Office
You can already use the dedicated Word, Excel, and PowerPoint apps on your phone. With the new Office app, however, Microsoft is creating a one-stop hub for all things related to work. Word, Excel, and PowerPoint are all part of the Office app. Yet it's lightweight, coming in at less than 100MB.

Read more
A surprise phone just beat the Galaxy S24 Ultra in a big way
Digital render of a silver Realme GT Neo 6 SE held in bionic hand.

The global Android phone market is expansive beyond comprehension, and brands continually jockey to establish supremacy. Today, it's Realme's turn to lead one such race as it has unveiled the brightest smartphone display that has ever been launched to the general public.

Realme, a spinoff of the Chinese phone brand Oppo (which also birthed OnePlus), announced the GT Neo 6 SE earlier today in China. The phone boasts an impressive juxtaposition of internal hardware, but one that instantly stands tall is the new display. The Realme GT Neo 6 SE features a 6.78-inch OLED display with a spectacular 6,000 nits of brightness -- brighter than the displays on any other phone or consumer device with a screen built into it.

Read more