Nokia pushing down costs on Windows Phone; Microsoft going beyond Qualcomm
The Nokia-Microsoft partnership is still dominating headlines this morning as more information keeps coming out. Evidently, during negotiations with Microsoft, one of the critical issues Nokia was focused on was reaching "a very low price point", according to Nokia CEO Stephen Elop, this position was agreed upon:
"We have become convinced that we can do that very quickly"
As we mentioned earlier, Nokia produces nearly 1 million phones a day due to their huge infrastructure and production lines. With Microsoft tapping into that, it seems easier for them to lower prices on phones to the carriers--something that smaller OEMs might not be able to match. Either way, consumers look to win.
One method of doing this is going beyond Qualcomm for their chipsets. Qualcomm was named by Microsoft as their primary chip provider for Windows Phone, but now we're getting news that Microsoft is looking beyond the company for other alternatives (NVIDIA , Texas Instruments, ST-Ericsson and Ericsson come to mind). That should be especially good for Nokia who have had a rocky relationship with Qualcomm, with the latter owning the CDMA market (even though both agreed to work together last year).
Looks like there will be lots of changes to the Windows Phone landscape come late 2011 as fallout form the Nokia partnership continues.