Nokia pick Windows Phone 7

Nokia have announced they had picked Windows 7. Stephen Elop, the CEO of Nokia, has placed a big bet  which will make or break the Nokia mobile phone business. If successful, a big if, Nokia have a decent and modern mobile phone operating system to pair with their hardware. How well WP7 Nokia phones are received by the consumers is yet to be determined and real products seem to be a long way away. Picking WP7 OS which is essentially fourth place in the smartphone market is questionable. Making the announcement without any details on when a WP7 phone is released does not give the market much confidence in Nokia's plan of execution.

It will take some magic to convince consumers to switch given many of them have voted for Apple iOS and Android based on their smartphone buying habits. It could well be a case that 1+1 = 0 for this smartphone partnership. Time will tell.

Nokia's next move

These days are filled with rumors that Nokia is going to adopt Windows Phone 7 or Android operating system for their phones. Here is what I think Nokia Mobile phone business unit should do. Focus on a few important products and send a strong message to the market that Nokia intends to take the challenges head on with some fundamental changes in directions and philosophies.

Operating System
Adopt both Windows Phone 7 and Android if you can get deals with both Microsoft and Google. Why choose now? You have the resource to make phones for both OS if you phase out Symbian and Meego. Samsung, LG and HTC have made phones for both OS and sure Nokia can do the same. You don't have to pick a OS winner now. Leave the market and consumers to decide what they want. Apple has beaten Nokia in its own game (controlling both phone hardware and OS). Now it's time to rethink and partner with a decent OS. Symbian is old and clunky and Meego is late in the game. Anyway, if you do have to choose one, pick Android.

Streamline Product Line
At the high end of the mobile phone market, phones are really customized via user experience, by the way of applications users choose to download to their phones to make them unique to their needs. There is no need to have many smartphone models each having slightly different hardware and cannibalizing sales among your own product line. I would suggest to keep 3 main models, one touch screen with full QWERTY keyboard (similar to E7), a large touchscreen only version (similar to N9) and one business focus with QWERTY (E-series).
Make some feature phones, i.e., basic phones for making phone calls and short messages. These phones are for the developing markets and for people who don't want or need a smartphone. With these feature phones, Nokia continues to operate in markets that it is still pretty good at. It also helps build brand loyalty and hope one day these feature phone users graduate to a Nokia smartphone.

Aggressively Market Free Ovi Maps Navigation
Nokia has made Ovi maps and navigation free for some phones. Now it's time to make them free for all smartphones and aggressively market this feature. The iPhone does not have free navigation built-in and to do so Apple will need to buy a company like Garmin or TomTom. To have free turn-by-turn voice navigation on the iPhone, users need to spend roughly $30-50 per region. Nokia has already spent the money to acquired Navteq and can offer free navigation for the world. To do the same on the iPhone today will cost the end users hundreds of dollars. Not that everyone needs navigation for the whole world but this is a feature you market. Free navigation comes with the phone, no need to spend extra on 3rd party apps.

The above are my views. Let's see what Nokia is going to announce tomorrow.