On the same day Microsoft acquired Nokia for $7.2 billion, Newkia was formed in Singapore. The sole goal for the Singapore-based company is acquiring employees from Nokia and their expertise, but focusing on only the Android platform.
The fate of Nokia most likely would have been much different if it had take the route of Android and that is why Newkia planned to absorb as much know-how from Nokia as possible.
Analysts said the Microsoft buyout of Nokia was just a reflection of the failure by Nokia CEO Stephen Elop when he chose to go with the Windows operating system two years ago after being named the CEO of Nokia.
Just three years ago, Nokia was the market leader by a wide margin in mobile phones, but today has a small share and a brand that is insignificant, said a leading analyst in the industry.
The purchase by Microsoft represented just 2% of the market cap of Nokia more than 10 years ago.
Newkia executives feel that Elop made a huge mistake by siding with Microsoft and not with Android. Most users of mobile devices do not like the Microsoft operating system since it does not have many apps and an ecosystem.
Therefore, Newkia is keen on taking away Nokia employees they know want to develop a phone that operates on the Android system. They believe Nokia has the best knowledge in the industry.
Newkia already has a team formed of former employees at Nokia and hopes to attract more.
The company will remain based in Singapore, but Newkia is planning for its research and development to be based in Finland and might even set up R&D in the U.S. in Silicon Valley.
The landscape of mobile devices is ever changing and Newkia believes it can soon become a leading force in the smartphone marketplace.