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14 Feb 2011 10:53

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Tech: Why is everyone skeptical of Nokia’s Microsoft deal, anyway?

  • reason The company’s newest CEO, Stephen Elop, was an executive at Microsoft before becoming Nokia’s figurehead – and he just spearheaded the Microsoft deal.
  • evidence The new president of U.S.-focused Nokia, Inc. is Chris Weber, who spent 16 years at Microsoft. Gaining competitive advantage by trojan horse much? source
  • » Here comes the denial: While many are suspicious of Elop’s motives, he personally denies that’s what took place. “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.” For some reason, we’re guessing he had that response ready.

13 Feb 2011 11:50

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Tech: Three reasons why Microsoft’s Nokia deal really sucks for Nokia

  • one Their long-popular Symbian OS was created mostly as a reaction to Microsoft’s plans to enter the mobile market over a decade ago. This move tastes like crow.
  • two The profit margins on Nokia phones right now are roughly 30 percent. With a Windows-licensed phone, it’s much closer to 5-10 percent – a huge drop in revenues.
  • three This is the worst one by far – 20,000 Finnish Nokia employees will likely lose their jobs due to redundancy – a HUGE chunk of people by any stretch. source