While they probably can't churn out the hardware for less, I doubt they'll be paying WP7 license fees. Taking that in to account they might be able to beat the Asian manufacturers on price while maintaining the high quality feel that their handsets have. That can only be good for the Windows Phone brand image.
Maybe, maybe not. It all depends if Meego would have succeeded in winning market share or not. The decision over whether or not to run with it was a gamble. If they released it then they'd have to give it time to grow. If it then failed it could potentially have sunk the company, it would have cost them a lot to keep Meego in the market place, keep development going and keep Ovi services online. The route they've chosen certainly has a lower pay off, but a significantly lower risk to go with that.
There's no reason why they can't. The Microsoft deal isn't exclusive, they don't have sole use of Nokia. Right now though I guess they've got enough to handle. They need to get their Meego handset out the door, dissolve Symbian, start work on their contributions to Windows Phone and get some Windows Phone handsets to market.
Why didn't they decide to just be another OEM instead? I'm not sure we'll ever get the exact reasons, but I'm sure Nokia are being paid/compensated for their work on and commitment to Windows Phone 7 for however long it lasts. The focus needs to be on returning to growth and profitability, protecting future market share etc. The Microsoft deal must have made the most sense in this context.
It's not all about Meego. It's about the entire Nokia ecosystem. They've fallen too far behind across the board and don't really have the funds to try catching up (they've got the funds to catch up, but only if the attempt is successful). You can't have a successful smartphone OS without the ecosystem to back it up. Apple have iTunes and MobileMe, Google have... Google, Microsoft have Windows Live and Zune. If you don't have these things you wind up like Palm, you fail to make a real market for yourself and slowly go broke. Nobody quite knows if HP can salvage them yet, but they've certainly got the funds (unlike Nokia) to try.
The problem was Meego was costing a lot of money and going practically no were.
Lots of internal software projects go tits up just because the wrong people are running them, I'd hazard a guess this was happening at Nokia whilst I've not seen any Meego figures, the amount they spent on R&D recently, they've delivered nothing new with it.
So I think the idea of buying one in makes sense.
But as to why they didn't pick Andriod I don't know, Android currently lacks a decent music platform and streaming service. There are too many components which just don't provide a good end to end experience that the iPhone had almost from day 1 (not the streaming bit!). I'm amazed Nokia didn't just go in claiming to be the multimedia platform, maps and music type thing.
Also Nokia have the pockets to really develop their own layer on Android because lets be honest the default UI isn't going to win a customer over.
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