NOKIA MICROSOFT PARTNERSHIP TO PRODUCE NEW SMART PHONES

Nokia goes to bed

with Microsoft

Rupert Neate, London
February 13, 2011

NOKIA, the world’s largest mobile phone maker, has given up on creating its own smartphone software to challenge Apple and Google.

The Finnish mobile giant has instead adopted Microsoft’s Windows Phone as the basis for its next generation of phones in one of the biggest shake-ups in Nokia’s 145-year history.

Stephen Elop, Nokia’s new chief executive, said the companies had formed a ”broad strategic alliance” to take on Apple’s iPhone and Google’s Android operating system. Until now, Nokia’s phones have run on its own software platforms.

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The announcement of the deal in London came after Mr Elop warned that Nokia risked being consumed by ”burning flames” unless it embraced ”radical change”.

Nokia, which dominated the mobile phone industry in the ’90s and early 2000s, has failed to keep pace with Apple and Google in the smartphone market.

Mr Elop, who joined Nokia from Microsoft last year, said the partnership meant the mobile market was now a ”three-horse race”.

It will be about a year before the new phones hit the market. Other changes loom, with Mr Elop saying there would be a ”substantial reduction” to Nokia’s 60,000 employee headcount

Sourced & published by Henry Sapiecha

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