Nokia, Microsoft in pact to rival Apple, Google
Technology titans Nokia and Microsoft are combining forces to make smart phones that might challenge rivals like Apple and Google and revive their own fortunes in a market they have struggled to keep up with.
Nokia Corp., the world's largest maker of mobile phones, said Friday it plans to use Microsoft Corp.'s Windows Phone software as the main platform for its smart phones in an effort to pull market share away from Apple's iPhone and Android, Google's software for phones and tablets. The move marks a major strategy shift for Nokia, which has previously equipped devices with its own software.
Analysts said the deal was a bigger win for Microsoft than Nokia, whose CEO Stephen Elop in a leaked memo this week compared his company to a burning oil platform with "more than one explosion ... fueling a blazing fire around us. " Nokia said the partnership would "deliver an ecosystem with unrivaled global reach and scale."
However, it warned that the new strategy would also bring "significant uncertainties," and said it expects profit margins to be hit by strong competition from rivals. Nokia's share price plunged 9 percent to euro7.43 ($10.11) in afternoon trading in Helsinki.
*Current Affairs with Strategic Alliance. 02.13.2011
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