I see signs of danger ahead: Nokia CEO on Google-Motorola deal

Nokia CEO Stephen Elop has issued a friendly warning to Android based device operators. At a seminar in Helsinki, Elop commented on the Google-Motorola deal –“ If I happened to be someone who was an Android manufacturer or an operator, or anyone with a stake in that environment, I would be picking up my phone and calling certain executives at Google and say 'I see signs of danger ahead’.”

He added –“ Nokia's own partnership with Microsoft early this year bore strategic importance and the platform is growing with over 25 - 30,000 apps on it at present. Google's decision to merge with Motorola has only reinforced that decision."

Elop’s comments come in the wake of the Google-Motorola deal. Google has taken over Motorola for $12.5 Billion. This deal has given Google access to over 17,000 patents in Wi-Fi and mobility domain owned by Motorola.

This deal came as a shocker to the whole market as many major brands such as LG and HTC still use Google’s Android operating system. This open handset alliance is a major reason for Android’s popularity. Now that Google has itself stepped into the smartphone market, it poses a tough competition to these companies. Not only that, with the world’s leading operating system and manufacturing capability in its kitty, Google stands to become as powerful as Apple.

This conflict of interests regarding the Android OS can cause significant damage to all smartphone brands that use it. By taking this gamble, Google has alienated its partners in the tussle for market share.

On the other hand, Nokia and RIM are rumored to be up for takeovers.

Some of Nokia’s smartphones use Microsoft’s Windows Phone OS. According to speculations, this partnership could eventually give way to a takeover. Nokia has already taken up WP7 as its primary operating system and both companies are spending a fortune to come out with new and updated operating systems.

Nokia’s market share is depleting slowly. It has already been replaced by Apple as world’s top mobile handset manufacturer. According to market rumors, Microsoft might take over Nokia in 2012. Just this rumor has sent Nokia shares soaring by 17 percent.

Blackberry maker RIM has also been a subject of takeover talk. RIM’s failure to match up to the market’s expectations and its sagging market share has given way to these speculations. Its expected suitors include ZTE and Huawei.

Ever since the Google-Motorola deal, take over talk seems to have become the favorite topic among mobile manufacturers.

Market trends suggest that the mobile market is becoming more competitive everyday and players who cannot match up will either be rooted out or taken over by stronger players.