The world's largest phone manufacturer, Nokia, has given up on creating its own smartphone software in order to challenge Apple and Google. The Finnish mobile giant has made bold move by teaming up with Microsoft's Windows Phone as part of a new venture and major shake-up in Nokia's 145-year history.
The deal aims to form a "broad strategic alliance" to challenge Apple's iPhone and Google's Android operating system. The announcement of the partnership has come only a day after Mr Elop (Nokia's Chief Executive) warned that Nokia risked being engulfed by "burning flames" unless it underwent "radical change" (Daily Telegraph, 2011).
Mr Elop's memo to staff was brutally frank and to the point. He described Nokia as a company in crisis and said how the firm is yet to even provide a product that matches the first i-Phone. "The first iPhone shipped in 2007, and we still don't have a product that is close to their experience". He added, "Android came on the scene just over two years ago, and this week they took our leadership position in smartphone volumes. Unbelievable."
However, the leaked statement has been deemed by analysts and bloggers as a clever piece of Public Relations (PR), which oozes honesty and realism. Elop has demonstrated to the media as well as shareholders that he means serious business, and that the mobile market is now a "three horse race" (Fierce Mobile Content, 2011).
I shall leave you with a short YouTube clip that gives a concise video summary of the news story.
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