Microsoft Nokia Partnership to Compete Google Android and Apple

iTechWhiz (Feb 18, 2011) - Nokia teams up with Microsoft to take on Google and Apple in the fast growing smartphone market. Nokia has sacrificed its own well popular smartphone software for Microsoft supercharged mobile operating system, a move that has created uproar inside its employee and stakeholders.

Embattled mobile phone firm Nokia has signed up to a "broad strategic partnership" with Microsoft in an effort to rebuild its fortunes.

Stephen Elop, Nokia's recently appointed chief executive, said Nokia will use Windows Mobile 7 as its primary smartphone platform. Elop has also shaken up the senior management team, having warned staff this week that the company was standing on a "burning platform".

Speaking in London this morning, Elop said the partnership meant the mobile market was now a "three horse race", with Nokia-Microsoft competing strongly with Apple, and Google's Android platform.

Steve Ballmer, Microsoft's chief executive said:

The alliance would dramatically accelerate the take-up of handsets running Windows Mobile. But the initial reaction to the deal was muted, with Nokia shares falling by 10% in early trading in Helsinki.

Under the plan, Nokia said it would use its expertise in hardware design, imaging and mapping to improve the Windows Mobile platform. The two companies will work together on marketing, and develop a common roadmap. Bing, Microsoft's search service, will be integrated into Nokia devices.

Once an undisputed leader of the mobile industry, Nokia is now struggling to keep up with Android and the iPhone, as well as RIM's BlackBerry.

Analysts were uncertain whether the Nokia-Microsoft alliance was simply a tethering of two ships sinking in the mobile market or whether it promised "a killer smartphone product mix" to set competitors on their heels. Independent analyst Jeff Kagan asked rhetorically when asked this question:

"Will they end up like Motorola and struggle for a decade, or will they end up like Apple and figure out how to make lightning strike twice?"