Nokia, Microsoft join against Google, Apple

Nokia, Microsoft join against Google, AppleNokia and Microsoft have teamed up to take on Google and Apple in the fast-growing smartphone market as Nokia, the Finnish cellphone maker, makes an attempt for regaining its leading position in the sector.

Nokia revealed that it would use Windows Phone as the software platform for its smartphones as part of new chief executive Stephen Elop’s overhaul of the world’s biggest cellphone maker.


Investors were not convinced by Elop’s eagerly anticipated strategy announcement and shares in Nokia tumbled more than 11 percent as the market reacted to Nokia’ saying that 2011 and 2012 would be “transition years” as it built up the partnership.

Friday’s deal marks a major breakthrough for Microsoft after years of struggling to establish itself in wireless. Its Windows Phone had a mere 2 percent market share in the last quarter.

Microsoft’s Windows Phone platform is widely recognised by industry experts as a leading edge technology but has not yet gained success among consumers.

“This is a partnership born out of both parties’ fear of marginalisation at the hands of Apple and Google but there is no silver bullet,” said analyst Geoff Blaber from CCS Insight.

Elop said ahead of an investor day in London, “Nokia and Microsoft will combine our strengths to deliver an ecosystem with unrivalled global reach and scale. It’s now a three-horse race.”

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