Device operating systems

OS Watch: Nokia to Drive Up Windows 8 Prices

After reporting another rough quarter on Thursday, Nokia Corp. (NYSE: NOK) is looking toward its partner Microsoft Corp. (Nasdaq: MSFT) and its upcoming Windows 8 OS to help right its ship. CEO Stephen Elop told investors it would get in right at the outset of Windows 8 and work to drive volumes in places like China, but also to take prices higher. (See Euronews: Nokia Loses $1.9B in Q2.)

"The catalyst becomes the next wave of Lumia devices and the next wave after that where you will see a consistent pattern of us pushing up in price point and gross margin driven through differentiation, which we can achieve more readily now with this cycle of Windows Phone than we could with the previous cycle," Elop said on the company's earnings call.

In other mobile OS news:

  • Microsoft declines in Windows 8 wait: Microsoft also reported its second-quarter earnings yesterday, including a net loss of $492 million. The company's Windows and Windows Live divisions declined 13 percent in the quarter to $4.1 billion. Like Nokia, it's waiting for Windows 8 to beef sales back up. Microsoft CEO Steve Ballmer said the company was fast approaching "the most exciting launch season in Microsoft history."

  • HTC gives carriers Jelly Beans: High Tech Computer Corp. (HTC) (Taiwan: 2498) is committing to bringing Google (Nasdaq: GOOG)'s latest Jelly Bean OS to as many as handsets as it can. The Korean handset maker confirmed Friday that Telstra Corp. Ltd. (ASX: TLS; NZK: TLS)'s One X and One S, AT&T Inc. (NYSE: T)'s One X and T-Mobile US Inc. and Rogers Communications Inc. (Toronto: RCI)'s One S will all get the update at some point.

  • RIM beefs up its developer toolkit: BlackBerry denied reports from last week that it was bleeding developers, and now the BlackBerry maker is doing more to convince them to stay. The company updated its developer toolkit, which includes an API that lets BB10 apps interact with each other and a push API that lets developers send notifications and content between BB10 devices. (See RIM Updates BB10 Toolkit, OS Watch: RIM Loses Developer Support and How Many BlackBerry 10s Must RIM Sell? )

  • Apple wins ad attention: Apple Inc. (Nasdaq: AAPL)'s OS is still the most lucrative when it comes to mobile advertising. The iPhone and iPad accounted for 46.53 percent of mobile publishers' and developers' traffic during the second quarter, bringing in 61.41 percent of their overall revenue, a new report from Opera Software ASA indicates. Apple's ad platform serves more than 35 billion mobile ad impressions per month to over 9,000 publishers and developers worldwide. Android trailed the Cupertino company with 24.43 percent of traffic and 26.56 percent of revenue.

    — Sarah Reedy, Senior Reporter, Light Reading Mobile

  • krishanguru143 12/5/2012 | 5:27:15 PM
    re: OS Watch: Nokia to Drive Up Windows 8 Prices


    Based upon what evidence?  So far the market has shown that in order to move a WP handset, you have to give it away or give something away with it.  Sales are low and haven’t moved all that much since the start of WP7.  WM outsells it, MeeGo and Bada have outsold it.  Symbian continues to outsell it.  What hasn’t outsold it?  WP8 is not going to be this magical platform especially since all current customers are excluded from the club.  How many will think WP for their next phone when a handset they buy today can’t run it?



    The only thing the Elop effect has driven up is the stock price of their competitors as they are now elling even more handsets.



    krishanguru143 12/5/2012 | 5:27:11 PM
    re: OS Watch: Nokia to Drive Up Windows 8 Prices

    Will users accept Metro though?  Microsoft is forcing it upon everyone and yet many have said no to it already.

    Microsoft view that what you use on the desktop is what you will use on a tablet and a phone; this is just not true.  They tried a similar approach to WM and how did that fare for them?  Look at Apple, they are not using the same OS on their tablet/phones as compared to their desktops.  How many iPhone or iPad users use Windows?

    I have yet to hear of anyone anticipating the release of Windows 8; it seems people are more dreading it.  Microsoft is even going to sell the upgrades for cheap just to get it to sell.  Not a good sign of a successful product that you need to heavily discount it to sell; just ask Nokia.

    sarahthomas1011 12/5/2012 | 5:27:11 PM
    re: OS Watch: Nokia to Drive Up Windows 8 Prices

    It will be challenging to introduce higher ASPs when they already set the bar low, but Windows 8 will be a new beast. They'll be selling tablets too, which should help.

    myhui 12/5/2012 | 5:27:09 PM
    re: OS Watch: Nokia to Drive Up Windows 8 Prices

    People liked smart phones and tablets because their OS's are completely new and much easier to use. It gave them an emotional relief, since they're no longer looking at their desktop computer and reminded of all the struggles they went through while looking at that screen.

    Now I see that many Windows 8 screens look like Window 7 screens, especially when installing drivers and new software. Do people want their smart phone's screens to remnid them of their desktop? I doubt it.

    Soupafly 12/5/2012 | 5:27:07 PM
    re: OS Watch: Nokia to Drive Up Windows 8 Prices

    I get your point Ian.

    My thoughts would be that its too early to make any meaningful calls.

    Redmond is a 800lb gorilla with allot of $$$ to throw at any marketplace, especially 1 they determine to be important! Mobile is strategically important & would be No.1 or 2 on my list alongside desktop convergence & UC - if I was on Ballmer's strategy team. Its that critical!

    Hell this is a company that spends $5-6b per year on R&D! That's a collosal amount by anyone's standards.

    So yes, they have allot of work to do but it a bit early to write them & Nokia off.

    Apple doesn't get "cloud" networking yet, google does. There is room for MS/Nokia to hit that hard & with massive impact.



    krishanguru143 12/5/2012 | 5:27:06 PM
    re: OS Watch: Nokia to Drive Up Windows 8 Prices

    The history that MS has on the mobile side is full of failure after failure.  WM turned out to be a failure (but currently beats WP on sales), Kin was a complete failure and then comes WP7 and it has been a failure.  MS cannot buy their way in nor use their desktop to push WP adoption rates.  MS is going to have to convince and outdo the competition which they have a very long history of NOT doing.


    As for the cloud.  Ask former Danger users how that worked for them.  All lost massive amounts of data at the hand of MS.  What happened to Danger after that, they produced the Kin.  What happened to the Kin workers, they were moved to WP.  See a pattern of failure here?  Same people = same results.

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