Nokia has admitted that hitching its smartphone wagon up to the “largely unproven” Windows Phone 7 is a major risk.
The company dished out its annual report to the US SEC recently, and Microsoft's name came up more than a few times in the full 29 pages that were devoted to outlining upcoming risks facing the Finnish company.
Nokia was only doing its duty in forecasting all possible outcomes from its partnership with Microsoft to put Windows Phone 7 onto Nokia devices, but the details of the report nonetheless make for refreshing reading after the unwaveringly rosy outlook painted by Steve Ballmer and Stephen Elop in their public pronouncements so far.
“The Windows Phone platform is a very recent, largely unproven addition to the market focused solely on high-end smartphones with currently very low adoption and consumer awareness relative to the Android and Apple platforms,” Nokia's report reads.
“The proposed Microsoft partnership may not succeed in developing it into a sufficiently broad competitive smartphone platform.”
Of course, supporters of the partnership will argue that those realities are exactly why the deal makes sense from Microsoft's perspective in the first place, as Nokia will provide that wider spectrum for the platform.
But from Nokia's side, the report raised the fear that the timing of the move could scupper what little momentum Symbian still has – the “burning platform” described by Elop days before the WinPho teamup was confirmed.
With the Windows Phone arrangement still getting up to speed, that could leave the company with no platform at all to stand on.
“Our mobile operator and distributor customers and consumers may no longer see our Symbian smartphones as attractive investments during the transition to Windows Phone,” the report reads.
“This would result in a loss of market share, which could be substantial during the transition, and which we may not be able to regain when quantities of Nokia Windows Phone smartphones are commercially available.”
Via PC Pro