Nokia to buy Symbian

June 25th, 2008, 21:11 Posted By: wraggster

Nokia (NOK1V.HE: Quote, Profile, Research) will pay $410 million (209 million pounds) for the remaining shares in UK-based Symbian and make its software royalty-free to boost phone sales and respond to new rivals such as Google (GOOG.O: Quote, Profile, Research).

Symbian's software is used in two-thirds of smartphones -- handsets with computer-like capabilities -- and 6 percent of all cellphones, but new platforms such as Google's Android and Apple's (AAPL.O: Quote, Profile, Research) iPhone could challenge its dominance.

"The move's a shrewd response to growing threats from other providers of mobile phone software," said Geoff Blaber of UK-based research firm CCS Insight, citing the open-source LiMo Foundation as well as Google and Apple.

Currently, Symbian's closest rival is Microsoft's (MSFT.O: Quote, Profile, Research) Windows Mobile operating system, which has just 13 percent of the market despite the U.S. software maker's efforts to gain market share.

Microsoft charges $8 to $15 per phone, according to research firm Strategy Analytics, while Symbian charges on average $4.10.

"This puts a lot of pressure on Microsoft right at a time when they are trying to really push into the consumer space," said Gartner analyst Carolina Milanesi.

"Lower price points are what operators and the market need to push smartphone adoption and dropping royalty is going to help that. For operators this offers a good alternative to Android," she said.

Nokia, which makes 40 percent of all phones sold globally, will pay 264 million euros ($410 million) for the 52 percent of British-based Symbian it does not already own, it said.

http://uk.reuters.com/article/busine...30144220080624

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