Ovum Analysts on Microsoft-Nokia partnership: Bold, absolutely right decision

Nokia’s shares have tumbled 7.25% on news of the Microsoft partnership, which will see Nokia sunsetting Symbian as a “franchise” operating system, and adopting Windows phone 7 as its primary smartphone OS.

Of course the shares had risen 27% since November, when these rumours first started, so the small correction may just be profiteering by speculators.

Certainly Ovum analysts are not shy in congratulating both Microsoft and Nokia on this “bold” move.

Tony Cripps, Principal Analyst, Ovum said:

"This is a bold decision by Nokia but absolutely the right one, both for itself and for Microsoft given the drastically changed landscape for smartphones in the past couple of years. There were few short term options available to the company to help it get back on terms with Apple and especially the Android masses, which in 2011 look set to overtake Nokia in terms of smartphone shipments, bringing with it the full wrath of the investor community."

Adam Leach, Principal Analyst, Ovum said:

"It’s ironic that the sole purpose of Symbian was to stop Microsoft from repeating their domination of the PC market in handsets. Nokia now has the opportunity to cast itself in the role that Intel has taken in the Windows PC market as a mutually beneficial, symbiotic marriage between equals rather than as simply a box shifter.

However, there remains a danger that Nokia could end up as merely a vehicle for Microsoft and services should it fail to differentiate from other Windows Phone 7 makers such as HTC, Samsung and LG."

Lastly Nick Dillon, Analyst, Ovum said:

"For Microsoft this is nothing less than a coup and the shot in the arm its new Windows Phone 7 platform needed, which despite winning acclaim for its innovative design and user experience has so far failed to set the market alight in terms of sales."

It is obvious this relationship is good for Microsoft, but do our readers think it is good for Nokia also? Let us know below.