Thread: Nokia - Microsoft partnership (merged threads)
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Wiener is offline Wiener
2011-02-20 , 18:12
Posts: 74 | Thanked: 22 times | Joined on Dec 2009
#1574
Originally Posted by ysss View Post
At MWC, Elop was asked this very question.

Whether the billions of dollar 'transfer of value' from MS to Nokia is a 'net benefit' or is that a lump sum that will still be reduced by other factors. Elop said that 'the net benefit will be in the billions'.

He also mentioned that the move to WP was made because it will reduce Nokia's opex.
Hmm ... first of all the Deal will reduce Nokia's sales of Symbian phones and make more difficult future sales of MeeGo phones or devices. The claims of Elop are very vague, based only on some speculations and it seems very-best-case assumptions. Net benefit is billions, but unfortunately negative due to loss of market and customers in the coming year.

Other issue is, Nokia cannot reduce opex so quick. Ever tried to release employees in Europe? Have fun, Elop. This will cost next billions. Nokia will pay social plan and MS licenses much more than MS is able to pay in addition to the lost market.
 

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