Microsoft and Nokia cosy up on smartphones

Two vendors issue a war cry to competitors as they work on a new global mobile ecosystem based on Windows Phone

Nokia and Microsoft have thrown down the gauntlet to rivals after revealing their intention to form a broad strategic partnership in the smartphone space.

The two firms are proposing to build a new global mobile ecosystem that will challenge the likes of Apple and Google, which are stealing market share from the Finnish giant.

The partnership news comes hot on the heels of Nokia's chief executive and president Stephen Elop claiming the company was "years behind its rivals", particularly in the high-end mobile space.

Under the strategy Nokia would adopt the Windows Phone as its principal smartphone strategy and add additional functions in areas such as imaging.

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

Both vendors would collaborate closely on joint marketing initiatives and a shared development road map, and additionally Bing would power Nokia’s search services across its devices. Nokia Maps would also form a core part of Microsoft’s mapping services, with Maps being integrated with Microsoft’s Bing search engine and adCenter advertising platform.

The deal would also see the two firms sharing billing agreements based on Nokia’s system, and Microsoft’s development tools being used to create applications to run on Nokia Windows phones.

In a statement, Elop said: “Today, developers, operators and consumers want compelling mobile products, which include not only the device, but the software, services, applications and customer support that make a great experience.

"Nokia and Microsoft will combine our strengths to deliver an ecosystem with unrivalled global reach and scale. It's now a three-horse race."

Steve Ballmer, chief executive of Microsoft, said: “I am excited about this partnership with Nokia. Ecosystems thrive when fuelled by speed, innovation and scale. The partnership announced today provides incredible scale, vast expertise in hardware and software innovation and a proven ability to execute.”