Nokia, Microsoft Eye Device Hook-Up

Beset by device-launch delays and a widening innovation gap in the booming smartphone market, Nokia is reportedly considering strengthening its partnership with Microsoft and producing smartphones that run on Windows Phone 7. The talks between Microsoft and Nokia – now headed by former Microsoft executive Stephen Elop – were first reported by Russian blogger Eldar Mutarzin, writing on Mobile-Review.com.
Nokia, which remains the world’s No. 1 seller of mobile devices, has seen itself eclipsed in the all-important smartphone category, first by the iPhone and more recently by a range of devices based on Google’s mobile operating system Android. The Finnish manufacturer recently delayed the release of its new E7 device (reportedly because of software concerns), after experiencing similar setbacks with the N8 model.
Nokia and Microsoft already cooperate on smartphones running the mobile version of Microsoft Office, but the release of devices actually based on Windows Phone 7 would mark a dramatic change of course for the Finnish handset-maker. When rumors of such a hook-up first surfaced last fall, Nokia spokespersons were adamant in their denials, saying that Nokia remains committed to the Symbian 3 platform and to its forthcoming MeeGo system.
"This two way dialogue was initiated by new Nokia management," wrote Murtazin. "It's a desperate measure for both companies. This is their only solution to stop an all conquering Android."
Most analysts consider a Microsoft-Nokia alliance to be a desperate ploy by two companies left behind in the smartphone revolution. Nokia’s share price, however, had gained 3 percent in late-day trading today.