December 10th, Beijing Time -- According to foreign media reports, as the leading position of Symbian operating system is suffering from a serious impact brought by Google's Android operating system and because the new leader of Nokia has more open mind and the executives of Google keep advocating, people speculate that Nokia will adopt Android operating system. Facing with such rumors, Nokia said that adopting Android operating system was impossible and unwise.
Nokia's Leading Position May Not Be Preserved
The leading position of Nokia's Symbian operating system is suffering from a serious impact brought by Google's Android operating system and its position of the most widely used operating system in the world may not be preserved. Stephen Elop, the CEO newly appointed three months ago, is planning for new programs to ensure stopping the declining tendency of Nokia at the beginning of next year and consolidating its leading position. Someone suggests him abandoning mobile software but focusing on mobile phones.
Nokia is surprised by the rapid success of Apple's iPhone and its online application store. Although the shipping volume of Nokia's mobile phones is still eight times of that of iPhone, the profit of Apple's mobile phone business has surpassed Nokia for several quarters.
Following Apple, Google also launched its own open source Android operating system, which has become the standard for small mobile phone manufacturers. According to the current development trend, it will surpass Nokia's Symbian operating system in 2011 and become the largest mobile operating system in the world.
"The battle of mobile software has begun. Google and Apple will be the winners of this battle. Nokia either joins the camp of the winners or shrinks into a corner." Said Alexander Peterc, an analyst of Exane BNP Paribas, the securities department under the subsidiary of BNP Paribas.
It Is Impossible and Unwise to Adopt Android Operating System
Stephen Elop's experience as Microsoft executive makes people indulge in wild fantasies that Nokia smartphones will use Google or Microsoft software. At the Dive into Mobile conference held in San Francisco this week, Andy Rubin, vice president of Google's mobile platform, publicly expressed his hope that Nokia would adopt Android operating system. He was evasive when asked whether he had talks with Nokia executives but praised Nokia's new leaders for their very open minds. This adds fuel to the outside speculation that Nokia mobile phones would adopt Android operating system or other operating systems.
Nokia is indeed having a tough year. Although the Stoxx Europe 600 Technology index rose 13%, Nokia's stock price fell 15% against the market trend.
If Nokia adopts Android operating system, it is completely possible to avoid further fall of its stock price. It might even slightly raise its stock price and reduce its cost accordingly. Some analysts believed that Nokia should take advantage of the strong momentum of Android operating system to consolidate its market share of mobile phones instead of putting up a desperate fight in a shrinking corner.
As early as October, Elop himself said that Nokia would never use mobile phone software of other companies. Someone said that it was not only impossible but also unwise. "Once Nokia adopts Android operating system, shareholders will sell off their shares." Said John Strand, CEO of Danish telecommunications consultancy Strand Consult.
Mobile Phone Software Is Strategic Assets
"For a company that regards software as an important strategic asset, giving up its own operating system and turning to rely on Google's Android operating system so as to lose control over its own fate will not be considered as a wise move." Said Geoff Blaber, analyst of market research company CCS Insight.
"I don't think it is a solution, but a way to commit suicide." Said Alan B. Lancz, president of wealth management company Alan B. Lancz & Associates that holds Nokia shares, "Software is an important factor for them to succeed. That's why they appoint Elop."
In order to avoid becoming a single mobile phone manufacturer, Nokia is making extra efforts to develop MeeGo, a new open source smartphone operating system platform, to counter Apple's iPhone and Google's Android operating system. Earlier this year, Nokia has teamed up with Intel to jointly develop MeeGo operating system and plans to officially launch it in 2011.
As early as October, Elop considered Symbian in the context of Nokia's overall software strategy. He required using cross-platform development software Qt to develop all Nokia mobile phone software. This Qt software can support both Symbian and Meego operating systems. "The development environment provided by Qt software is more relaxing than Symbian development tools, the latter is too complicated." Said Jo Harlow, director of Nokia mobile phones department.
Analyst Adam Leach of market research company Ovum said that the key to success is to make external developers believe the convenience of Qt software. "They need to persuade those developers who are currently developing applications for Apple iOS and Google Android operating systems. These developers will only have interests in Nokia's operating system if they believe in the convenience of Qt software." Said Leach.