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Technology Stocks : Nokia (NOK) -- Ignore unavailable to you. Want to Upgrade?


To: sylvester80 who wrote (34279)8/23/2013 11:00:51 AM
From: Eric L1 Recommendation

Recommended By
zax

  Respond to of 34857
 
If : Then -- In re the NokiaSoft Agreement ...

Syl,

<< [Zax:] Show me somewhere, anywhere that is states there is an end date of Dec 31, 2016 on Nokia-Microsoft exclusivity contract. You have simply made this date up. Even the article just posted says such an exclusivity deal through such a date is a pixie dust fantasy.] ... [The NokisSoft agreement] is exclusive to only make loser MSFT phones and soon tablets. ... Now you STFU: unwiredview.com >>

The strategic smartphone alliance between Microsoft and Nokia was announced jointly by Elop and Ballmer in February 2011. The agreement was at that time governed by a terms sheet and was subject to the consummation of a formal agreement. That agreement was finalized in late April 2011.

IF the agreement term was five years (and that would be a logical term), the agreement would expire by May 2016 if not extended or renegotiated. Assuming that the partners have successfully established a viable 3rd ecosystem before that date the likelihood is that the partners would renegotiate and extend the agreement and might do so well before the 11th hour.

The source you reference and link above, Syl, is Stasys Bielinis (Staska), the founder and editor of Unwired View who in turn is relying on a 2nd hand statement in an article by Petri Sajari which was published in Finnis hin mid-June after the Huaei rumor by Helsingin Sanomat. Petri's statement relies on a previously published Helsingin Sanomat statement of (purported) fact or conjecture. The single paragraph in a longer article that mentions the agreement is below and it's followed by a translation to English ...
[Original Text] "Helsingin Sanomien tietojen mukaan Nokian ja Microsoftin helmikuussa 2011 solmima yhteistyösopimus on viisivuotinen. Yhtiöt on siis kahlittu toisiinsa vuoteen 2016 saakka. Sopimus voidaan toki purkaa, mutta se maksaa."

[A Translation] "According to Helsingin Sanomat, Nokia and Microsoft's agreement is a five-year cooperation agreement announced in February 2011. [The] Companies, therefore, are chained to each other until 2016. An agreement can be, of course, be dismantled, but that costs money."
As for exclusivity, Staska, in the article you referenced stated ...

"Is there some exclusivity clause there, that would prevent Nokia to adopt some other, third party smartphone OS, if it continues to promote Windows Phone too, and meets its minimum royalty requirements? It is possible, but I really doubt that such clause exists. The decision to go Windows Phone exclusive was purely Nokia’s ... But adding the clause that forbids Nokia to even try some other, third party OS? That would be going too far, and may have some serious issues with European competition/anti-trust authorities."

Nokia is in fact currently bringing only one high end and mid-tier HLOS smartphone to market ...

... BUT they are also evolving their Java based low end full touch Asha 'smartphones' and have already established the Asha platform evolved from their Series 40 RTOS, fully supported by an Asha SDK and other development tools, and in the process building an alternative developer ecosystem supported by their Nokia store to satisfy the 2nd pillar of the strategy Elop announced on February 11, 2011 (connecting the next billion).

There is of course a 3rd pillar to Nokia's strategy -- i.e. Future Disruptions -- and with MeeGo and QT now out of consideration HTML5 will likely play a role as the Asha smartphone platform, the Windows Phone platform, and other alternatives all continue to evolve. The newly established internet.org founded by Nokia along with Ericsson, Facebook, MediaTek, Opera, Qualcomm, and Samsung could potentially lend direction and foster new partnerships and disruptions ...



Regardless ... the likelihood that Nokia will supplement their Windows Phone offering with Android is slim to none. They will remain highly focused internally, intent on establishing a 3rd viable ecosystem and reaching what Elop terms the "next milestone" which they likely can do by 2014 end. Should they achieve that milestone by then or shortly after, it will be onwards and upwards from there -- for Stephen Elop and Terry Myerson.

- Eric -