Nokia takes on Google with Symbian buy
Posted
Jun 24 2008, 09:41 AM
by
Kim Peterson
Nokia is buying Symbian, a company that makes operating systems for mobile phones. Nokia already uses Symbian software in its smartphones, so the move isn't a huge surprise. But in an unexpected twist, Nokia is going to make Symbian open and royalty-free for software developers. In doing so the company is clearly going after Google for the future of mobile phone systems.
Nokia was already paying Symbian some $250 million a year to use Symbian's software in phones, analysts say. So buying Symbian outright for $410 million is smart business. Nokia shares were up slightly in morning trading to $24.48, and Google shares are down just slightly to $543.36.
Nokia will rule the cell phone software market now, since Symbian has about a 60-65% market share. Microsoft's Windows has 15%, Research in Motion has 10% and the Apple iPhone has 7%, according to TechCrunch. RIM shares are down more than 1% this morning to $141.09, and Apple shares are up nearly 1% to $174.62.
Opening up Symbian's code means software makers will have an easier time writing programs for the system. Handset makers should be able to tweak Symbian to their liking. It's all very open, very collaborative and very kumbaya, and it's the same approach Google is taking with its free Android phone operating system. Android is still in development, and is suffering some delays right now with its too-many-cooks approach, which could give Nokia an advantage.
The goal here is to make the operating system as attractive as possible for software developers. The more interesting and cool applications you have, the better. Look at what Apple's doing with its "App Store," and you quickly get a sense that applications are the new battleground in the smartphone market.
A side note here: the move is the final nail in the coffin for any Microsoft hopes of getting its Windows Mobile operating system on Nokia phones. Now that Apple's iPhone and Research in Motion are getting stronger, where is Microsoft's place in the smartphone business? Microsoft shares are down 1% today to $27.68.
Here's what others are saying about Nokia's news today:
Search Engine Land: "The idea here is to open up the platform in order to accelerate innovation. In some sense this can be seen as response to the efforts of the iPhone and Google's Android platform to open up or shake up the mobile ecosystem. Now, however, you have multiple, competing platforms that developers must consider."
Mathew Ingram: "Despite Google’s geek cred and the iPhone’s cool factor and the BlackBerry’s popularity in the corporate market, Symbian is still by far the biggest mobile player. It would be unwise to count the company out as a competitive threat — not because it’s going to create something as cool as the iPhone or as useful as the BlackBerry, but because having something like 200 million handsets out there running your operating system is a powerful force, and it is going to draw developers in just because of its sheer mass and size."
Electronista: "The strategy puts 235 current phones under the same banner and shores up Symbian against perceived threats."
Related reading:
Google's cell phone plans delayed
iPhooey! Time to buy RIM, analysts say
Apple's big iPhone news
Disclosures: I don't own shares of any companies mentioned in this post. And while Microsoft owns this blog, Microsoft does not control, censor or otherwise have any editorial influence over what I write.
