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Nokia raises stakes with Windows Phone

Posted: 10 Feb 2012 ?? ?Print Version ?Bookmark and Share

Keywords:Windows Phone? mobile phone market?

Nokia Corp. isn't ready for Windows Phone to fail. The Finnish phone maker has placed all its bets on the Windows Phone strategy that it didn't prepare a contingency plan.

Victor Saejis, Nokia's European Manager, told Swedish financial daily Dagens Industri that the company doesn't have a backup plan if the Windows Phone doesn't perform well in the market. "Plan B is that Plan A is to succeed," Saejis noted.

With fierce competition from Android and iOS, Nokia is raising the stakes with Windows Phone and not hedging its bets.

Despite its strong reputation for sturdy hardware, Nokia has long struggled with a series of software flops, including the ill-fated MeeGo OS and the steady decline of Symbian. "It's like starting all over again," Saejis said.

The executive also admitted that succeeding to crack the U.S. market would be critical to the firm's global strategy. "We must succeed in the U.S. if we are to succeed in the world," he declared.

Nokia will reportedly release a new Windows Phone device at the show, pegged to be a high-end smartphone sporting an "unusual software feature," according to sources at a Nokia partner, as reported by Forbes.

Since CEO Stephen Elop took office in September 2010, the company has been in a cost-cutting binge. Last year, the company outsourced its Symbian unit to Accenture and laid off 4,000 while transferring 3,000 to Accenture. By September 2011, the company closed its plant in Cluj, Romania, leaving more than 2,000 people jobless. It also cut 1,300 jobs in its location and commerce business unit. In November, Nokia Siemens Networks announced it will cut 17,000 jobs to save about 1 billion euros a year.

The company has also just announced that it was shaving off 4,000 from its workforce and stopping its manufacturing operations in Europe and Mexico. Nokia is moving assembly operations to Asia instead.

- Sylvie Barak
??EE Times

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