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grouphug.gif 10.gif hey guys Nokia and Microsoft announce mobile partnership grouphug.gif 10.gif

Nokia and Microsoft are both facing tough market conditions. On the one hand Nokia has seen its market share drop considerably in the face of strong competition from iPhone and Android in the mobile sector. On the other hand Microsoft has launched Windows Phone 7 but has yet to make a dent in the market and seemingly has no clear tablet strategy. So, both companies have decided the best thing to do is join forces for a new mobile strategy.

Announced early this morning ahead of a planned Strategy and Financial Briefing in London, Microsoft and Nokia have formed a new partnership to “create a new global mobile ecosystem”. Each will focus on what they know best, which in this case is software for Microsoft and hardware for Nokia.

Ultimately this means that going forward Nokia will use Windows Phone as its primary OS on new handsets. In return Microsoft will allow its use on handsets for all categories, not just smartphones, therefore opening up new markets in the West as well as in developing countries around the world.

Away from the OS, Bing, adCenter and Nokia Maps look to be core crossover products. Bing will become the search engine of choice across Nokia handsets, adCenter will be used for mobile advertising, and Nokia Maps will become a key part of Microsoft’s mapping service. Nokia also gets the advantage of Microsoft development tool support for its mobile platform and access to Microsoft Marketplace for its content.

As for Nokia’s existing platforms, there is change there too. Symbian will become a franchise platform with 150 million more Symbian handset sales expected over the coming years by Nokia. MeeGo becomes an open-source platform primarily for “long-term market exploration”, but Nokia will ship a MeeGo product in 2011.

One side effect of this partnership is Nokia’s leadership team is being revamped and the company will take on a new structure. This structure will be split into Smart Devices, Mobile Phones, Markets, and Services and Developers going forward.

Speaking of the new partnership Steve Ballmer said: byebye.gif

I am excited about this partnership with Nokia. Ecosystems thrive when fueled by speed, innovation and scale.The partnership announced today provides incredible scale, vast expertise in hardware and software innovation and a proven ability to execute.

watch this video for more info

Nokia will use Windows Phone as its primary OS
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