Nokia is at a very delicate crossroads, as it tries to mitigate the negative effects of the transition from Symbian to Windows Phone as its main smartphone OS. 

The Anna update is part of Nokia's efforts to keep Symbian competitive while the smartphone portfolio transitions to Windows Phone. In that respect, Anna is long overdue, as Symbian suffered from the competitive pressure and intensive updating rhythm adopted by Google's Android and Apple's iOS. While the update is unlikely to match both competitors' offerings, it should at least breathe new life in the existing hardware line-up and the upcoming Symbian handsets due for release in the next 12 months.

Nokia had previously confirmed its intention to release in some form the fruit of its MeeGo efforts. The N9 is however a very odd addition, since it features an OS that has been all but demoted by Nokia and could lead to confusion with regard to its overall strategy: Nokia has repeatedly pledged its commitment to Windows Phone since February 2011, only to upstage it with a flagship device running an OS openly judged not ready for broad release a mere few weeks ago. 

It is hard to imagine Microsoft unaware of the release of the N9. Bing is indeed the default search engine in the new device. We therefore need to understand why would Nokia release such a handset now.

• From a marketing angle, the N9 brings Nokia back under the spotlight as an innovator thanks to a new OS and sleek hardware. It also sustains interest in the products on the eve of an iPhone refresh and a new generation of Android devices before the holidays. This positioning is not only valuable externally, but also internally with a pressured workforce.
• From a strategic perspective, Nokia shows it has a plan B should the Microsoft partnership fail to bear fruit, and therefore alleviates some long term concerns voiced by shareholders and observers alike.
• Finally, and perhaps more importantly, the N9 aims at sustaining developer interest, especially in the Qt framework. Qt has always been advertised as a seamless development environment between Symbian and MeeGo. Therefore, renewing interest in Qt development could very well benefit Symbian the most, thanks to its wide installed base (Nokia claims 100m Nokia Qt compatible devices in use worldwide).

In the current smartphone market, and despite its appealing characteristics, it is unlikely a smartphone such as the N9 could sell in high volumes with such a shadow cast on the future of its underlying platform. It will however serve the multi-leveled purpose outlined above. 

Should the N9 become a runaway hit, Nokia could face a crucial dilemma between its wide-reaching and lucrative commitment to Windows Phone and a platform Nokia could call its own.

There is still an opportunity for other MeeGo-based solutions, e.g. in tablets or in-car systems. LG recently expressed interest in MeeGo as a basis for handheld devices. Whether the window of opportunity for a new OS will remain open for long remains however to be seen.

Nokia issued a profit warning on its second quarter 2011 financials and will report its results on July 21. IHS Screen Digest expects Nokia to ship 73m smartphones in 2011, down 31 per cent from 106m in 2010.