Nokia And Microsoft Join Forces In An Attempt To Take On Apple And Google

Online, February 11, 2011 (Newswire.com) - Over the past year, Nokia has slipped significantly against the successes of Apple and Android. Many would say that the company clung to Symbian far too long and their smart phone market presence has been severely damaged as a result. Google's Android, and Apple's iPhone have gobbled up the smartphone market, and Nokia and Microsoft both want back their share.

Microsoft and Nokia have both seen major declines in what used to be market dominance for both companies. In 2007 when apple shipped its first iPhone, Nokia commanded 50.8% on the smartphone market compared to only 27% today. Microsoft's mobile platform was all but replaced by Android, and their Windows Phone 7 OS is an attempt at revitalizing their reputation and market presence. The new Microsoft OS has been slow getting off the ground but offers a plethora of advantages for both smartphone manufactures and consumers. Microsoft announced that they shipped more than 2 million licenses for their new Windows Phone 7 OS in its first quarter on the market, but the new partnership with Nokia promises to significantly increase their market presence.

Kevin Allen of Devonshire & Douglas Capital Partners isn't sure that the partnership will work out for the best. "Though it is a good strategic move for both companies, and more so for Microsoft than Nokia, the partnership reeks of desperation from both sides. Both companies have taken a beating from Android and Apple, but it seems to me that Nokia would be better off shipping Android than Windows Phone 7."

Allen may be right, but there is something to be said for Nokia's business appeal, and Windows Phone 7 may be better for a corporate market than Android or iPhone. If this is the case, then this merger may be targeting more of RIM's market share than either Android's or Apple's.