Yahoo-Nokia deal 'first step' in long-term strategy: Ovum

Eden Zoller, principal analyst, Ovum, said, “The alliance between Yahoo! and Nokia is a sensible, tactical move but ultimately no game changer for either party. The deal is helpful in bolstering their respective offerings in communications, mapping and navigation but this in itself is not enough to allow them to gain the ground they have lost to sharper rivals like Google and Apple. The most constructive way of viewing the alliance is a first step in a longer term strategy.”

“Under the deal, Nokia will provide Yahoo! with navigation and mapping capabilities, an area where Yahoo! has failed to make an impact but where Nokia has made good progress with Ovi Maps on the back of its 2007 acquisition of Navteq. Nokia will in turn make Yahoo! email and instant messaging default services on all Nokia handsets, including low end phones which dominate in emerging markets", She added.