Almost overnight, Steve Ballmer became the white knight Nokia needed. But there was more to the deal. One unusual aspect to the arrangement: Instead of Nokia waving goodbye to its division, CEO Elop moved over as well , returning full circle to his former employer as the new chief of Microsoft Devices. During that same time frame, Apple enjoyed explosive growth of its iPhone OS, whose introduction roiled an industry caught off-guard by its arrival.
Nokia was slow to react to the newfound competition. The battle of devices has now become a war of ecosystems, where ecosystems include not only the hardware and software of the device, but developers, applications, ecommerce, advertising, search, social applications, location-based services, unified communications, and many other things.
Nokia launched its first two handsets — the Lumia and Lumia — in late October , nearly a year after adopting the platform. Microsoft, too, had forced its fans to wait 8 months February to October between announcing Windows Phone 7 and the release of the first wave of compatible devices.
Both gaps would prove to be problematic, especially for Microsoft, due to the fact that Windows Phone apps would not be compatible with the Windows Mobile handsets that it had been promoting up to that point. Perhaps the shift from a handset way of thinking to a broader ecosystem model was a larger undertaking than both companies anticipated. So, might things have turned out differently for Nokia if it had picked another route? Windows Phone was far from its only option, of course.
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