Andy Sjostrom
02-11-2004, 09:41 AM
<div class='os_post_top_link'><a href='http://www.netimperative.com/cmn/viewdoc.jsp?cat=all&docid=BEP1_News_0000062161' target='_blank'>http://www.netimperative.com/cmn/viewdoc.jsp?cat=all&docid=BEP1_News_0000062161</a><br /><br /></div>Symbian Software Limited is the software licensing company that develops and licenses Symbian OS. The company is owned by Nokia (32.2%), Psion (31.1%), Ericsson (17.5%), Panasonic (7.9%), Samsung (5%), Siemens (4.8%) and Sony Ericsson (1.5%). Mobile phones that run on Symbian OS include Sony Ericsson P800 and P900 Smartphones and Nokia 9200 Communicator range as well as the 7700, 7650, 6600, 6620, 3650/3600, 3660/3620. The Symbian OS is the fiercest and most challenging competitor to Microsoft in the mobile device market. Two days ago Symbian announced that Psion and Nokia have initiated a process that will lead to Nokia buying Psion's shares in the company Symbian Software Limitied. If this process completes it will lead to the following division of shares:<br /><br />Nokia - 63.3% <br />Ericsson - 17.5% <br />Panasonic - 7.9% <br />Samsung - 5% <br />Siemens - 4.8% <br />Sony Ericsson - 1.5% <br />(Psion - 0%)<br /><br />"Under the agreement, Nokia will pay Psion an initial £93.5m in cash on completion of the deal, followed by two payments in March 2005 and March 2006. These payments are variable depending on the number of Symbian OS devices sold over the next two years, with Nokia agreeing to pay 84 pence per device. Psion said that it estimates the deal will be worth a total of £135.7m."<br /><br />This is an historic deal in the history of both Psion and Symbian. Psion's history goes back to 1981 when they developed a flight simulator for the <a href="http://www.old-computers.com/museum/computer.asp?st=1&c=223">Sinclair ZX Spectrum</a>. They moved from flight simulator development to the development of the Organiser, a "pocket computer" launched in 1984. Thirteen years and a number of models later Psion completed what probably is their most critical product to date, the <a href="http://www.series5mx.com/">Series 5</a>. The Series 5 was a sales success and it marked the birth of the EPOC operating system. EPOC was not intended just for Series 5. Psion had plans to license it to other device manufacturers. Nokia had just released its first 9000 Communicator and moving forward the two companies found each other. The result was, in early 1998, a joint venture company based on investments from Psion, Nokia, and Ericsson. Motorola and Matsu****a (Panasonic and Technics) joined a year later. You can read more about the <a href="http://www.wirelessdevnet.com/training/EPOC/EPOCOverview.html">history of Symbian here</a>.<br /><br />If the deal completes, what will it mean? My thoughts are as follows:<br /><br /><b>1. Psion leaves Symbian from an owner perspective.</b> Psion management said, just a couple months ago, that the future of Symbian is tightly linked together to the future of Psion. This is no longer true. Psion will not take any active part in moving the Symbian platform forward. Instead, they will become licensees and intensify work on their <a href="http://www.psionteklogix.com/">Teklogix product line</a>. Their baby, EPOC, has left home.<br /><br /><b>2. Nokia steps up and becomes an even more clear driver and leader of the Symbian joint venture.</b> In just a few months, two companies have left (Motorola and Psion). Both companies shares are picked up by Nokia, the biggest device manufacturer in the world. In other words: Symbian = Nokia. Personally, I believe Nokia will be able to innovate and develop the platform much faster themselves than having to bring all ideas to a big round table of competitors. Nokia's situation becomes more and more like Microsoft's in that they effectively can create their own vision and innovate without too much politics.<br /><br /><b>3. Other Symbian share holders will become less faithful.</b> Why put themselves in the knees of their worst competitors? Motorola makes devices that runs either Symbian, Linux or Windows CE. This is a strategy that will become more common in the next 2-3 years. Don't be too surprised to see Microsoft Windows Mobile powered Sony Ericsson phones within two years.<br /><br />What do you think?