Google, Motorola Deal Worrisome, Nokia CEO Says

Nokia CEO Stephen Elop has warned that Google’s recent $12.5 billion acquisition of Motorola Mobility could be worrisome for other smartphone manufacturers like Samsung and HTC. Now under the wing of search engine behemoth Google, other smartphone manufacturers that use Google’s Android Operating System could take a backseat, with Motorola receiving precedence.

“If I happened to be someone who was an Android manufacturer or an operator, or anyone with a stake in that environment, I would be picking up my phone and calling certain executives at Google and say ‘I see signs of danger ahead,’” Stephen Elop told a Helsinki seminar, as reported by Reuters.

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Still, the new relationship will ultimately increase healthy competition in the mobile device marketplace. It also increases the competition between Nokia and Google, as Nokia has a partnership with Microsoft for its smartphone OS, Windows Phone 7. “As for Nokia, Elop appeared to suggest that Google's move reinforced the logic for Nokia’s agreement with Microsoft,” Reuters reported.

“The very first reaction I had was very clearly the importance of the third ecosystem and the importance of the partnership that we announced on February 11, it is more clear than ever before,” Elop said.

Shares in Nokia rose by 12 per cent earlier in the week to trade at $6.00 after Nokia said that the Google decision reaffirmed its partnership with Microsoft and Windows.   Nokia said the move could serve up a “massive catalyst” for the entire Windows Phone ecosystem. 

Elop noted that since Nokia’s signed a deal with Microsoft in February, there are now 25,000 to 30,000 applications delivered for the upcoming platform.