Nokia and Microsoft Unveil Strategic Partnership to Take on Smartphone Market

Nokia, the world's biggest maker of mobile phones, is teaming up with Microsoft on its Windows 7 phone platform, a move that will challenge the dominance of Apple and Google in the smartphone market. The two companies announced a strategic partnership on February 11, 2011, aimed at creating a third ecosystem in the mobile industry.

Key Takeaways:

• Nokia has struggled to hold on to its market share in the face of competition from Google and Apple.
• The partnership with Microsoft will allow Nokia to differentiate itself and create a new dynamic in the mobile ecosystem.
• Microsoft's Windows Phone operating system will be available on Nokia's handsets, creating a new competitor to Apple's iOS and Google's Android.
• The partnership is expected to drive innovation and bring together the best services assets on the planet to build a new ecosystem.
• Nokia will contribute its hard work and ingenuity to the partnership, while Microsoft will contribute its services assets.
• The two companies are optimistic about the partnership and believe it will create a significant opportunity to drive innovation and improve market share.

Statistics:

• Nokia controls around one-third of the handsets in the market.
• Microsoft has a 5% market share in the mobile operating system market.
• The partnership aims to create a third ecosystem in the mobile industry.
• Nokia has an 8 billion dollar research budget.
• The partnership is expected to impact employment at Nokia, with significant inefficiencies in how the company uses contractors and distributes development.

Sources:

• Bloomberg TV, February 11, 2011
• Bloomberg News, February 11, 2011
• Nokia and Microsoft press release, February 11, 2011