Nokia starts to make room for Windows Phone 7
By
Nigel Brooks
April 27, 2011 -
Spetnik Technology News
Nokia is reorganizing its business to prepare for the switch to the Windows Phone platform.
The wheels are in motion for Nokia’s migration to Windows Phone-based smartphones, with the Finnish mobile phone company beginning the deconstruction of the business supporting its Symbian mobile operating system today.
In all, Nokia announced it is cutting 7,000 jobs as it moves away from Symbian and toward Microsoft’s Windows Phone platform, a move that is months in the making since the two companies announced a partnership that will make each more competitive in the smartphone market. The process of relocating 12 percent of its mobile phone labor force will move 3,000 employees to IT services firm Accenture, but will also layoff another 4,000.
According to a Reuters report, the partnership not only makes each company more competitive, it will also cut Nokia’s research and development costs by an estimated 18 percent by 2013.
On an industry level, analysts believe the move is a sign that the two companies are anxious to get the ball rolling on WP7-based Nokia smartphone production.
“This is about keeping focus within Nokia on Windows Phone. It helps to get rid of any doubts on where this company is going," Gartner analyst Carolina Milanesi told Reuters.
Experts in the industry expect substantial growth for each company in the long term. Market research firm Gartner expects Microsoft to consume 19.5 percent share of the smartphone platform market by 2015, while Symbian will disappear, falling to 0.1 percent during the same period.
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In all, Nokia announced it is cutting 7,000 jobs as it moves away from Symbian and toward Microsoft’s Windows Phone platform, a move that is months in the making since the two companies announced a partnership that will make each more competitive in the smartphone market. The process of relocating 12 percent of its mobile phone labor force will move 3,000 employees to IT services firm Accenture, but will also layoff another 4,000.
According to a Reuters report, the partnership not only makes each company more competitive, it will also cut Nokia’s research and development costs by an estimated 18 percent by 2013.
On an industry level, analysts believe the move is a sign that the two companies are anxious to get the ball rolling on WP7-based Nokia smartphone production.
“This is about keeping focus within Nokia on Windows Phone. It helps to get rid of any doubts on where this company is going," Gartner analyst Carolina Milanesi told Reuters.
Experts in the industry expect substantial growth for each company in the long term. Market research firm Gartner expects Microsoft to consume 19.5 percent share of the smartphone platform market by 2015, while Symbian will disappear, falling to 0.1 percent during the same period.
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