Nokia joins forces with Microsoft to face a dual threat

Nokia and Microsoft announced this morning their long term partnership to combat the aggressive expansion of Google and Apple.

At a Financial Briefing event in London, Nokia CEO Stephen Elop and Microsoft CEO Steve Ballmer outlined a new strategy that would see the world’s biggest phone manufacturer joining forces with the software giant to remain competitive in the mobile industry.

Nokia President and CEO Stephen Elop explained the move by saying that “The entire smartphone market is growing rapidly” and the alliance with Microsoft would help Nokia “disrupt the current trajectory in the battle of ecosystems”.

Among the internal changes, Nokia also revealed it’s plans to “adopt” Microsoft developed Windows Phone operating system as it’s “primary smartphone platform”. This would allow Nokia to focus on the hardware aspect of phones where the Finnish company has proven to be more successful.

The new strategy also means that Microsoft exclusive software services like Bing, Xbox Live and Office will make their way to future Nokia phones. Additions like these would help Nokia attract entirely new groups of consumers.

Microsoft is to benefit from the global hardware distribution of Nokia, with Steve Ballmer saying that the partnership will “dramatically accelerate” the development of Windows Phone “ecosystem”.

The partnership is said to have been directly caused by the dipping shares of Nokia, boosted by fears that Google and Apple will soon dominate the mobile market.

However, doubts still remain whether the changes introduced by this partnership will be quick enough to hinder the rolling worldwide success of the said competitors.

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