Nokia + Microsoft vs. Google vs. Apple

Yesterday, Nokia, the world’s leading mobile phone supplier, announced plans to form a broad strategic partnership with Microsoft to create a new global mobile ecosystem. And the Windows Phone will become the principal smartphone strategy of Nokia.

nokia microsoft alliance

Though Nokia is still the largest mobile phone supplier, the rapid development of iPhone and Android smartphone has made Nokia face unprecedented challenge. Nokia’s profit plunged 21 percent in the fourth quarter of 2010, trimming two percentage points off its global market lead. And its market share in smart phones fell from nearly 40 percent in the fourth quarter of 2009 to just over 30 percent a year later.

Just a few years ago, Nokia beat Microsoft with the Symbian platform. Now they become alliance against the common enemy: Google and Apple.

The two companies will cooperate tightly under an agreement the companies just describe so far as proposed, not final. Under the deal, Windows Phone 7 would become Nokia’s “principal” operating system, and Nokia would help Microsoft develop it and ensure a broad range of phones using it are available globally.

Nokia will use many Microsoft online services, many of which trail Google rivals, such as Bing for search and maps and AdCenter for advertisements.

It will be an interesting thing to purchase a Nokia Windows mobile phone.