Nokia is mad at Microsoft

Nokia is mad that Microsoft continues to drag its feet with upgrading Windows Phone

a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Nokia (NYSE: NOK) and Microsoft (NASDAQ: MSFT)  have grown so close in recent years that Microkia is now a commonly accepted portmanteau, much like Wintel was during the PC's heyday. Well, the Finnish smartphone maker may not be too pleased with its software partner. In fact, Nokia is downright mad that Microsoft continues to drag its feet with upgrading Windows Phone, which Nokia's smartphone business relies entirely on now.

Windows Phone has successfully overtaken BlackBerry as the distant No. 3 smartphone platform in the world. Kantar Worldpanel Comtech's latest estimates peg Windows Phone at 4% domestic market share, well above BlackBerry's 1.1%. However, Windows Phone isn't as financially important to Microsoft as its other products. The software giant makes more on Google Android-related royalty payments than Windows Phone licensing fees.

In an interview with International Business Times, it's difficult for Nokia exec Bryan Biniak to hide his frustration with Microsoft. Biniak tries not to sound too critical of Microsoft specifically, but it's not hard to read between the lines regarding Nokia's partnership with Microsoft: "Waiting until the end of your fiscal year when you need to close your targets, doesn't do us any good when I have phones to sell today."

Windows Phone 8 was unveiled more than a year ago, which included some important changes under the hood such as sharing many core technologies with Windows 8 for streamlined development. Microsoft has issued incremental updates since then, and Microsoft did not detail Windows Phone 8.1 at its Build developer conference in June.

Much like Windows 8.1, Windows Phone is expected to get a "Blue" update that will include a number of interface tweaks and the addition of a notification center, among other additions. However, Windows Phone 8.1 is reportedly delayed until 2014 so Microsoft can squash bugs.

For Nokia, whose investors are growing impatient, that's an awfully long time to wait for another major software upgrade. Nokia's Lumia lineup is gaining momentum, albeit at a slower pace than analysts expected, and an extended upgrade time frame will just further test their patience.

Biniak has been trying to get Microsoft to change its ways with its pace of mobile development, since apps and operating system are just as important as tech specs in today's market. As further evidence that today's market for computing devices favors integrated players, Biniak concludes, "As a company we don't want to rely on somebody else and sit and wait for them to get it right."

The Australian Financial Review says "good quality Australian shares that have a long history of paying dividends are a real alternative to a term deposit." Get "3 Stocks for the Great Dividend Boom" in our special FREE report. Click here now to find out the names, stock symbols, and full research for our three favourite income ideas, all completely free!

More reading

A version of this article, written by Evan Niu, originally appeared on fool.com.

More on ⏸️ Investing

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest
ETFs

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

Two people in suits arm wrestle on a black and white chess board.
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »

⏸️ Investing

Why Fox (NASDAQ:FOX) might hurt News Corp (ASX:NWS) shareholders

News Corporation (ASX: NWS) might be facing some existential threats from its American cousins over the riots on 6 January

Read more »