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March 2, 2011

How The Smartphone Market will change Post Nokia Microsoft Deal

The Microsoft- Nokia (Mokia) alliance is almost certain to fly, mobile experts believe, with a better choice for consumers and brands alike, while making life difficult for business favourite BlackBerry. Nokia remains the world’s largest handset manufacturer, but its market share has been slipping for some time. Microsoft’s Windows Phone remains a bit-player in the smartphone market.

But this is likely to change as Nokia’s chief executive Stephen Elop signed a historic deal with Microsoft last week, the two companies making a strategic alliance to compete more effectively with their respective rivals – for Nokia the other handset manufacturers and for Microsoft Google’s Android platform. For both — Apple.

Elop, a former Microsoft executive, made waves in the week leading up to the announcement with an extraordinary memo that leaked to the press, in which he said Nokia, the world’s largest handset manufacturer, was at a crossroads. He compared the company to a man standing on a burning oil rig who faced a stark choice — stay and be burned, or jump into the freezing water.

Elop said that the man should jump. Nokia should also make a leap, and leave behind its own failing platform, Symbian, and forge a new alliance. 

Update as on 27th February,2012 :You May also want to read Nokia Becomes the Biggest Windows Vendor   with 2.7million unites shipped in Q4,2012.  
According to Microsoft Press Release

Nokia would adopt Windows Phone as its principal smartphone strategy, innovating on top of the platform in areas such as imaging, where Nokia is a market leader.

Nokia would help drive the future of Windows Phone. Nokia would contribute its expertise on hardware design, language support, and help bring Windows Phone to a larger range of price points, market segments and geographies.

Nokia and Microsoft would closely collaborate on joint marketing initiatives and a shared development roadmap to align on the future evolution of mobile products.

Bing would power Nokia’s search services across Nokia devices and services, giving customers access to Bing’s next generation search capabilities. Microsoft adCenter would provide search advertising services on Nokia’s line of devices and services.

Nokia Maps would be a core part of Microsoft’s mapping services. For example, Maps would be integrated with Microsoft’s Bing search engine and adCenter advertising platform to form a unique local search and advertising experience

Nokia’s extensive operator billing agreements would make it easier for consumers to purchase Nokia Windows Phone services in countries where credit-card use is low.

The Nokia Microsoft  Ecosystem Challenge (source: brightsideofnews )

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