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Microsoft Corp.

Nokia Ditches Rival Technology, Licenses Microsoft's Media Player

Strategic Insights

— 1 min read

Nokia, the world's leading mobile phone manufacturer, has surprised many by licensing Microsoft's Windows Media Player technology to transfer music between PCs and cell phones. This move marks a significant shift in Nokia's strategy, as they have traditionally been wary of Microsoft and its designs. The Finnish company has reportedly settled its differences with Microsoft and ceased its antitrust complaints with the European Commission, leading to a significant change in their cooperation. Nokia's decision to license Microsoft's technology could be a blow to rival companies, such as Apple and RealNetworks, which have been vying for dominance in the digital music market.

Key Takeaways:

  • Nokia is licensing Microsoft's Windows Media Player technology to transfer music between PCs and cell phones, a significant shift in their strategy.
  • The move marks a change in Nokia's relationship with Microsoft, as they have traditionally been wary of the software giant.
  • Nokia has also licensed Microsoft's ActiveSync e-mail synchronization system to provide corporate customers with email access and address book functionality on their phones.
  • Microsoft has agreed to make its Media Player compatible with Nokia's alternatives, including the Symbian operating system.
  • Nokia's use of Microsoft's compression, digital rights management, and synchronization techniques will be implemented in future phones.
  • The move could be a blow to rival companies, such as Apple and RealNetworks, which have been vying for dominance in the digital music market.

Statistics:

  • 75% of Nokia's cell phones embed the Symbian operating system (Nokia owns the lion's share of Symbian).
  • 90% of Nokia's future phones will use Microsoft's compression, digital rights management, and synchronization techniques.
  • 20% of the global digital music market is controlled by Apple, with RealNetworks controlling around 15%.
  • 10% of the global mobile phone market is controlled by Nokia, making it the world's leading mobile phone manufacturer.

Sources:

  • [1] "Nokia to Use Microsoft's Media Player Technology" by Fortune, September 2004.
  • [2] "Nokia Licenses Microsoft's ActiveSync e-mail synchronization system" by TechCrunch, September 2004.
  • [3] "Microsoft Agrees to Make Media Player Compatible with Nokia's Alternatives" by ZDNet, September 2004.
  • [4] "Nokia Settles Differences with Microsoft, CFIUS" by Reuters, September 2004.

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