May 31, 2010

Yahoo-Nokia marriage

A week or so ago Yahoo and Nokia announced that they had struck a global deal pursuant to which Yahoo will power email, search and chat on Nokia's mobile devices, while Nokia will provide mapping services for all Yahoo's navigation products.

A see this agreement more like a defensive move. Why? Simply put because both Yahoo and Nokia lost their momentum in their respective core markets long ago. Google has definitely beat Yahoo in the search/advertising battle, while Nokia is seeing how Blackberry, iPhone and Android keep eroding market share from it in smartphones every single year ( I still remember the days when I wanted nothing but a Nokia it clearly trails the other three OS).

Though both Yahoo and Nokia still serve millions of customers around the world, this seems to me like an emergency solution.

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