Nokia-Microsoft Alliance: Joining Forces in the Smartphone Wars
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"We are standing on a burning platform."
-Neeraj R. S. Kanwar, Vice Chairman and Managing Director, Apollo Tyres, in 2009.
"There were certain things we needed.... There were certain things Microsoft required. We have found them in each other and we have built something here that together is going to be very successful."
-Stephen Elop, in February 2011.
But it started to face heavy competition from other players like Apple Inc.1(Apple) and Google Inc.2 (Google) which entered the high-end smartphone market after 2007. The new mobile OSs of these companies like Android3 and iOS4 captured a large share of the high-end smartphone market. Nokia started to quickly lose market share. With much of the hardware remaining the same, the OS used in the mobile phones and the number of applications available for a mobile OS were the most important factors which differentiated one smartphone manufacturer from the other. To ensure that there was more of a focus on software, Nokia's board replaced its CEO Olli-Pekka Kallasvuo with Stephen Elop (Elop) in the year 2010. Elop had been the president of Microsoft's business division before being appointed as Nokia's CEO. Soon after taking over as CEO, he wrote a memo to Nokia's employees underlining the need for drastic changes in the company.
1] Apple Inc., headquartered in Cupertino, California, USA, is a maker of a number of consumer electronics devices like personal computers, portable music players, mobile phones, etc.
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