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Nokia's exclusive apps put into question Microsoft's Windows Phone philosophy

Posted: , by Michael H.

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Nokia's exclusive apps put into question Microsoft's Windows Phone philosophy
Nokia is certainly not the first manufacturer to announce a set of exclusive apps on a platform, and it most definitely won't be the last one, but it could very well be the most damaging example we've seen yet. Most manufacturers will say that exclusive apps are a way to differentiate devices in the market, and we all know that Windows Phone manufacturers are looking for as many ways to differentiate as possible. As yet, Microsoft is not allowing any type of skinning or UI differentiation, so built-in apps are the only option right now. 

Samsung's Windows Phone devices have a proprietary photo editor, as well as other apps. HTC's Windows Phone devices have the HTC Hub (weather, news stocks), HTC Watch (video streaming), and probably the best of all is the Attentive Phone app, which allows nice options like muting when the phone is flipped, quieting the ringer when the phone is moved, or making the ringer louder if it's in a bag or pocket. These are all small additions that make the user's experience with the phone a bit better or offers a nice service, but Nokia is going beyond that to a troubling degree. 

Exclusives

Nokia has the Nokia Maps and Nokia Drive apps, which are proprietary, although the benefits of those will be passed back to the rest of the Windows Phone ecosystem with the hybrid Nokia/Bing Maps that are coming as part of the Microsoft/Nokia partnership. But, today's announcement of exclusive third party apps for Nokia phones is dangerous, and could be worrying for other manufacturers. 

This isn't simply a matter of differentiation, this is a push to make Nokia the de facto choice for anyone even remotely interested in a Windows Phone handset. Nokia already has a better version of the ESPN app running on its Lumia handsets than other WP manufacturers do, but today's announcement adds more exclusive content and ESPN apps for Nokia for the next year, including Olympics news. Nokia announced exclusive content from two of the biggest mobile game developers around: Rovio and EA. And, Nokia is also getting an exclusive from Groupon. 

Nokia is getting all of these apps on between 6 and 12 month exclusives at a time when every Windows Phone manufacturer needs as much help as possible. The Windows Phone platform already has the reputation as an OS without many apps. This isn't exactly true given that there are now over 80,000 apps in the Windows Phone Marketplace, but there is a noticeable lack of official apps and big name developers. Google has a search app on WP7, but nothing for Gmail, YouTube, Talk, Docs, or any other products (although Google+ is rumored to be coming). There is no official Read It Later app or a variety of other services. There are options available for just about anything you'd want, but the quality can be suspect at times, and you'll have to be okay with giving your login credentials to unofficial sources. 

We have seen app exclusives with Android, most notably with Skype being exclusive to Verizon for a time, but Android was established at that point and Android was on a sharp upswing, so a timed exclusive app was annoying, but an acceptable way for carriers and manufacturers to differentiate. This is especially true with Google's policy of letting Android be the Wild West. Microsoft on the other hand has tried to keep the Windows Phone ecosystem cohesive and unified and bring up the platform as a whole, whereas Google let the various Android camps fight it out until everyone was better and Android was a success. 

Microsoft's philosophy problem

Google promoted differentiation; so, when that's what we got, it was understandable and relatively acceptable because aside from a few notable exceptions, like Skype, apps were available on all devices. Microsoft has been fighting against differentiation because it doesn't want to see manufacturers succeeding and bringing along Windows Phone, as was the case with Android. Microsoft has always played it as though it wants Windows Phone to succeed and bring along the hardware partners. At least, that seemed to be the case until Nokia came along, because if the platform is the focus, this is no time to have exclusive software, especially software on the level of ESPN, EA and Angry Birds content. Those are big names, those should be standard across handsets. 

It is perfectly possible that Microsoft is allowing Nokia to become the top dog of Windows Phone simply to rationalize the partnership costs, but also to bring a focal point to the platform. For a time, Motorola's DROID line was the focal point of the Android platform, at least until Samsung started to take over with its Galaxy line. Since the Windows Phone ecosystem hasn't had a standout manufacturer, Microsoft brought in Nokia to be that standout. The question is just how far Microsoft is willing to let this go. 

It could be that Microsoft is letting Nokia take the lead in order to build consumer awareness ahead of the big Windows Phone 8 launch this fall. But, it is starting to look like Microsoft is willing to sacrifice all of the other manufacturers in that process. If Nokia continues to get exclusives, not to mention a huge marketing budget (which could very well be subsidized by Microsoft), there may not be any other hardware partners left for the WP8 launch. Additionally, existing Windows Phone users may be turned off to the platform if they see nice apps on the Nokia devices that aren't available to them.

The question is one of Microsoft's basic philosophy. The platform hasn't seen a lot of traction with the all-for-one philosophy, but at the same time it's unclear if Windows Phone can succeed with just Nokia making handsets. It seems likely given Nokia's history, and Microsoft's deep pockets. But, having other manufacturers disappear, and increased exclusives for Nokia could also lead to users being alienated as well. Word of mouth and customer recommendations are just as important as any big marketing campaign, as Microsoft must have learned from Apple by now, so Microsoft would be effectively throwing away the current user base in favor of whatever Nokia can create.  

Conclusion

It's no secret that Windows Phone is in a tough spot and it needs a boost. It has been slowly gaining traction in the market, but it has been moving far too slowly for the manufacturers and carriers involved. It has gotten to the point to where carriers have flat out said that they won't agree to deliver the Windows Phone 8 update unless there is a pretty sharp uptick in consumer interest. And, on top of that Nokia is having financial troubles and may need an extra bailout from Microsoft on top of the $1 billion a year it is already receiving as part of the Windows Phone agreement. 

So, we've already got a platform that has unhappy manufacturers, unhappy carriers, and a user base that is growing, but growing very slowly. Then on top of that we have the platform's creator paying more than $1 billion every year to support one hardware partner. Everyone has jumped on Google for purchasing Motorola under the assumption that Google would cause the destruction of the Android ecosystem by favoring Motorola over other manufacturers even though there has yet to be any evidence those fears are founded. Yet, no one seems to care that Microsoft has given ample evidence that it is perfectly willing to have Nokia be the sole supplier of Windows Phone handsets. 

The success of Windows Phone as a platform is not a guarantee right now, and if Microsoft pushes too hard for Nokia to be the lead manufacturer it could cause big problems. Sure, it may end up in an Android situation where manufacturers compete to make the best devices, and the entire ecosystem is lifted up as a result. However, there is also a distinct possibility that other hardware partners will simply abandon the platform in the hands of Nokia and Microsoft. Nokia is a capable manufacturer, but even just the PR fallout from more and more manufacturers leaving the platform could be too much for even Nokia and Microsoft to overcome. 

So, moving forward is Microsoft still aiming for an all-for-one ethos in Windows Phone, or has it become simply Nokia-for-all?

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50 Comments

1. Coolaaron88 posted on 2 days ago, 20:40 12 4

You make it sound like all of the apps that are exclusive to Nokia Lumia devices are like that forever. They are timed exclusives meaning they will be available to everyone at some point. I feel like this article is over-sensationalizing this entire exclusive app issue.

5. MichaelHeller posted on 2 days ago, 21:09 6 7

Given the market situation of Windows Phone a one year exclusive is a much bigger deal than a timed-exclusive on an established system like Android. WP is in a very tenuous situation where no one is happy.

28. azafirster posted on yesterday, 02:09 1 1

Yeah I agree, try having a peek at their customer feedback website at main WP site, the number of complaints are increasing, the categories of problem are swelling, no updates as yet. The number of complaints there shows a grim customer experience. They don't just have these exclusive-with-nokia apps going on, try do a research on regionalizing marketplace. Apple and android don't do this, not to my knowledge. Singapore and malaysia has different marketplace alltogether, but geographically we are neighbours, and yet WP (in my case nokia) gives different marketplace.

8. AndroidShiz posted on 2 days ago, 21:29 4 8

When you have a phone that sucks lizard balls in SALES already, having exclusives for 6 to 12 months is stupid. Then again Microsoft kinda forces the other manufactures to make Windows phones in exchange for not making the questionable patent fees they have to pay for parts of Android even higher. If not for being forced, I doubt any of these manufactures, except the Microsoft Manchurian candidate led Nokia, would even make them, any more than they would produce a Blackberry or Palm. Android and iPhone represent perpetual prosperity, while Windows Phone is much like a failed economy that the government keeps pouring money into even though the masses will never choose it in impressive numbers. In others words it ain't making any "REAL" money anytime soon. I'm not dissing it, it just truthfully is not the choice of most people. I tried it full heartedly, and went right back to my GSM Galaxy Sexus. Not getting another phone until the next REAL Android from Google launches again.

This comment has been moderated, because it doesn`t meet the discussion rules. Show

14. paulyyd posted on 2 days ago, 22:41 2

suck lizard balls braaah!

2. Whodaboss posted on 2 days ago, 20:45 8 2

I have no problems with phone makers having their exclusive rights for certian or with any developers for any software design. None whatsoever. Each phone maker should at least attempt to make their device distinctive and pleasing to the public. Don't blame Nokia. Thank goodness for Nokia at least they are putting in the effort instead of this wait and see attitude. If WP fails it sure won't be because of Nokia. This is why I will purchase a Lumia 900 once it or if it hits TMo.

3. steelicon posted on 2 days ago, 20:50 4 1

http://img811.imageshack.us/img811/876/ctrlcvberry.jpg

This is what happens when you abandon something wonderful. Someone takes it away and then you realize you've thrown away the family jewels.

26. tigerforce7 posted on yesterday, 01:39 2 1

Aye. I never had the chance to use Harmattan but it looked pretty sweet. Hopefully Nokia can carry on some of its ideas in their Windows Phones.

4. ron1niro posted on 2 days ago, 20:54 8 5

Why phonearena? Again, painting a picture that is not exactly right. First of all, nokia maps, nokia drive and nokia transit belong to nokia and therefore, they can choose whether to share them or not. Second, the exclusive apps are only going to be so for a certain amount of time, next, Nokia is investing a lot into windows phone, the moment you hear windows phone, you think of Lumia, other manufacturers are not investing much of their time or resources on windows phone, so nokia deserves this. If samsung or htc want, they can also strike deals with other developers. This could also be good for the platform since other manufacturers may also start thinking of doing something special to keep up with Nokia. Who's playing catch up now huh?

6. MichaelHeller posted on 2 days ago, 21:11 7 2

The issue isn't Nokia Maps or Nokia Drive, because as is said in the article, those are being distributed to the rest of the ecosystem as part of the partnership deal.

It would be great if other manufacturers try to compete with Nokia, but given that the success of WP isn't yet assured, it may end up that the manufacturers just abandon the platform instead, which could be more trouble for Microsoft.

7. joeymk posted on 2 days ago, 21:20 3 2

They have it under control. Don't you worry. And google ha, google is crying for buying Motorola.

9. Glim12808 posted on 2 days ago, 22:01 6 2

It's too early to tell whether the alarmist stance of Michael H. is correct or not. But I have a gut feeling that had MS left the marketing and the spreading of the WP platform in the hands of Samsung, HTC, LG, et al, marketshare of WP would still be stagnating in the doldrums of 0.5% area. These OEMs are just too invested in Android to find the time, expend effort, spend money in promoting WP. And I don't blame them. They are all in the business of making money and it is in Android where they are making the most money.

On the other hand, It was only when Nokia entered the picture that marketshare of WP begun to pick-up. And it's not surprising why Nokia is so invested in WP. They need the billions that only MS can make available to them! Google too has those billions. But why would Google put those billions out for Nokia when it has already the big boys, Samsung, HTC, Motorola, LG, et al, in its corner?

Whether it's good for business or not, only time will tell. I think things will become clearer when WP8 comes around. But in any case, I can't blame MS for pandering to Nokia because MS needs Nokia, just as much as Nokia needs MS! As the cliche goes, it's a marriage made in heaven. LOL!

13. MichaelHeller posted on 2 days ago, 22:32 7

As I've said before, Android has spoiled manufacturers. It used to be that they could only differentiate in hardware and proprietary apps, but then Android gave the option to differentiate the UI. Once that happened manufacturers could market devices and show off all their features. But with WP, marketing would be showing off Microsoft's UI and manufacturers now feel like that's paying to advertise Microsoft not the proprietary features.

10. Penny posted on 2 days ago, 22:21 3 2

I'm not 100% sure about this, but I was under the impression that each manufacturer can make apps exclusively for itself. So Nokia can make apps only for Nokias, and HTC can make apps exclusively for HTC (like the HTC Hub that I have).

If what I am thinking is the case, then it's not an exclusivity as much as it is something to differentiate, which all manufacturers can do. Microsoft releasing a Bing/Drive Hybrid later down the road does not seem egregious to me either. Think about it this way: due to their partnership, Nokia is continuing to develop in its own areas of specialization (mapping, camera) and is going to implement it in its own windows phones as a point of differentiation. However, because the partnership is in place, they will also share these developments with Microsoft to share platform-wide. In order to get these advancements, Microsoft offers Nokia greater access to Windows Phone's source code and development process.

Bottom line is that Microsoft definitely is favoring Nokia over other hardware manufacturers, but they are getting something worthwhile in return: more rapid development of advanced features and more dedicated marketing for the entire platform. Not saying this isn't favoritism, but it works in favor of Microsoft, and thus their platform, and thus the other manufacturers as well.

12. MichaelHeller posted on 2 days ago, 22:27 4

The difference is between making proprietary apps and buying exclusivity of third party apps that everyone wants.

48. remixfa posted on yesterday, 14:28 1

If nokia is getting a rovio exclusive, I'd call foul on that. There is no reason for it.
However, the other apps, other than Nokia Drive, I dont see a problem with.

I know we've had our conversations about the devices, and just like i mentioned with you, i say to every customer... if you want a WP7 device, right now u need a Nokia so you can get the GPS/Maps integration.
Thats great for nokia, but bad for the ecosystem because that a huge and important part of any smartphone now. Having part of the ecosystem with such an important service, and the other half without makes a dangerously strong tilt towards the half that does. The HTC Radar all but stopped selling the moment the Lumia 710 came out, and the GPS was by far the biggest reason.

Will other manufacturers leave Windows Phone? Who's actually making WP7 devices right now? Its pretty much just Nokia, Samsung and HTC. I doubt any of the 3 of them will leave the arena unless its just too heavily tilted towards Nokia to the point they cant profit. Nokia obviously isnt leaving. HTC has a long and successful history with MS so I dont think they would drop it unless they had to. Samsung likes having a wide portfolio and also has a long history with MS, so the same applies to them. However, it will definitely keep other partners from entering the fray unless things change.

Those 3 manufacturers all have their points of power. Nokia has GPS integrations and cameras, HTC loves integrating and simplifying common tasks, and Samsung is the hardware king that is a solid jack of all trades and master of none.

11. tward291 posted on 2 days ago, 22:25 1 1

This is a great thing at the day if Nokia is the only one making windows phones so b it there the best anyway. Microsoft should just let Nokia make windows phone no one else puts time in except maybe htc. Then once t takes offthe others would try to hop on but it be to late Nokia would dominate te market. When you think windows you think Nokia anyway. And Ms should never allow poems to change the skin they need to compete on apps and specs

15. paulyyd posted on 2 days ago, 22:43 6

lol you suck at writing articles

16. jimjam posted on 2 days ago, 22:54 6 3

If you want those apps that bad just buy a Nokia wp7 ... Problem solved.

32. raunak posted on yesterday, 04:28 1

that's the point here, that if everyone is forced to buy Lumias then other manufacturers MIGHT get frustrated and abandon WP.

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