Today, Nokia (News - Alert) Corporation revealed that the company has won a contract to have its digital maps integrated with software from Oracle Corp. The deal will be helpful and profitable for the smartphone maker, which has been struggling in its handset business as of late, as it will add much needed outside revenue sources.
In 2008, Nokia made a deal to boost its location business by acquiring Navteq Corp., a digital mapmaker business based in Chicago, for $8.1 billion. Now that the company has ties with Oracle Corp. as well, things are looking up for Nokia whose smartphone revenue fell by 34 percent last quarter.
Nokia’s maps unit makes up less than four percent of the total revenue of Nokia’s Finland-based division Espoo, but the overall sales at Nokia’s map division increased four percent last quarter, so there’s no wonder the company feels this division should be a focus for lifting profits.
As a part of the new deal, the company will allow Oracle customers to access maps for nearly 200 countries. It will also reportedly trying to use the negative attention Apple’s iPhone (News - Alert) 5 has received in regard to its iOS 6 mapping software to gain positive attention for its own product and potentially win back customers from Apple.
Apple Chief Executive Officer Tim Cook officially apologized last month for the faulty iPhone mapping software released with iOS 6 and iPhone 5, as it was found to be largely inaccurate and misleading.
Unfortunately for Nokia, iPhones aren’t the only hot competitor in the market—the company also has to win back those using devices which employ Google’s Android (News - Alert) software.
Nokia’s CEO Stephen Elop set up an alliance with Microsoft last year to produce smartphones with Microsoft’s Windows Phone (News - Alert) software and supply services, which include mapping data. Elop said this move was a part of his greater turnaround plan, so this new deal with Oracle seems to be another step in the same direction.
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Edited by Jamie Epstein