26 September 2008

Nokia Spreading Software Bets
After Symbian Buy?

Nokia is quietly extending its knowledge base in the free Linux operating system to give it extra options in the battle for mobile software supremacy with and Apple.

The world's leading handset manufacturer has publicly made a big bet on Symbian software, offering $410 million to buy out other shareholders in the consortium and committing to opening the software up for free use when the deal is approved.

Nokia says Symbian plays a central role in its software strategy, but analysts say the role of Linux in the company's Nokia phones is also set to increase, reflecting a mindset shift for a company that has long shunned using software from multiple vendors.

"It is unlikely Nokia would be prepared to open-source a strategically important platform if it did not have another one in development," said Ben Wood, research director at CCS Insight.

"We believe Nokia needs a more powerful mobile software platform to compete with the iPhone and similar products," Wood said, pointing to Linux as the likely candidate.

Symbian, which has already some 250 million users, is the leading smartphone operating system, controlling more than half of the market. But the competition has heated up over last year with new players looking for a slice of a market that gives access to billions of users.

"Linux will (serve) for the flagship phones, Symbian for mass-market," said eQ analyst Jari Honko.

Smaller handset vendors -- like Samsung Electronics -- have used several operating systems in their phones, while Nokia has kept its focus on Symbian.