Nokia's Android Phones Will Hurt Google, Not Microsoft | TechTree.com

Nokia's Android Phones Will Hurt Google, Not Microsoft

Nokia's Android strategy is more than what meets the eye.

 
Nokia's Android Phones Will Hurt Google, Not Microsoft

When the Finnish handset maker announced three handsets based on Nokia X software built on Android OS, many people saw it as a setback for Microsoft. Is Nokia trying to destroy the reputation of Microsoft's mobile platform before the 7.2 Billion dollar deal closes? The answer is a big "No". In fact, the Finns have taken Microsoft in confidence — otherwise you wouldn't have had Microsoft's fined tuned apps on Nokia X. Sure. Embracing Android just when the WP8 handsets have stared gaining momentum looks like a stupid move. However, if you look at the things closely, you'll realize that it's actually an incredibly bold (and somewhat risky) move from Stephen Elop, Nokia's CEO (soon to be the Head of Microsoft's Devices Business) to beat Google at its own game. No matter how weird it sounds, Android-powered Nokia handsets will be profitable to Nokia\Microsoft. Here's how:

Push WP Interface
The biggest strength of Microsoft’s platform is that it’s a completely fresh approach on smartphone interface. At the same time, it has also been the platform’s biggest issue. The tile based modern interface is unlike anything you see on the likes of Android and iOS. Because of this, users find the Windows Phone quite confusing. Well, a day or two is enough for anyone to get along with WP interface, but making the customer confident about that is the challenge Microsoft is facing now.

The solution: give customers Android devices with Windows Phone interface. That’s exactly what Nokia is doing. The company has replaced Android’s usual grid of icons, colourful app tiles. Even re-arranging these tiles is exactly like how it’s done on Windows Phone. The idea here that if a user gets used to the tile based interface, the person will eventually think about upgrading to Windows Phone platform that offers more responsive and dynamic tiles.

Slump Google's Revenue
Android being an open source software, is free for handset manufacturers. However, the search giant charges OEMs to licence its services including Play Store, Gmail, Maps, and Google Drive. Most manufacturers don't have software expertise and infrastructure to create and alternative for Google's offerings. So these companies end up paying certain amount of money to Google. On the other hand, Nokia is backed by Microsoft, who has an answer to every Google product. Since Nokia is going to be a subsidiary of Microsoft, it won't have to pay a dime. Moreover, in-app purchases will be powered by Nokia's own app repository. In short, Nokia X won't generate cash for Google.
The combination of Nokia and Android will definitely bite a big chunk of the smatphone market. Even if they grab 10-15 percent marketshare at the cost of conventional Android OEMs, it will result in millions of Android devices that don't generate revenue for Google.

Promote Microsoft Services
Lack of Google services on Nokia X is an opportunity for Microsoft to deliver its services to millions of new users. Bing traffic is already seeing an increase with the rising popularity of Windows Phone platform. With dirt-cheap Android phones from Nokia, the user base will at least double in no time. People who have bothered with OneDrive cloud service, will actually give it go and pit it against Google’s offering. Similarly, Outlook and Skype will give the Gmail and Hangouts a run for its money.

Microsoft seems to have realised that once you have the users, revenue follows. So the idea here is to make people get used to MS services, which will make the WP switch easier. The need of the hour for the company is making its services popular rather than hoping to make money out of Windows Phone licencing fees.

More Revenue For Nokia
After off-loading its Devices & Services business to Microsoft for around 7.2 Billion dollars, Nokia still retains HERE maps and NSN businesses. The Finnish company has to find avenues to bring in cash after selling its devices business. Windows Phone devices are powered by Nokia’s HERE maps. As they say more the merrier, Nokia can generate more revenue by introducing its offline sat nav expertise to wider audience. Since Google’s Play Music service doesn’t work in India yet, Nokia’s Mix Radio can be an instant hit among Android users.

 


Tags : Mobile Phones, Android, Nokia

 
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