Industry wonders why Nokia partnered with MicrosoftA smartphone relationship between Nokia and Microsoft was revealed February 11. Nokia will ditch its effective, however declining Symbian OS for Microsoft's Windows Phone 7. Analysts questioned Nokia's move, and investors agreed as Nokia stock decreased 14 percent on the news. This could help both Nokia and Microsoft never need a personal loan to grow. Article source - Nokia-Microsoft smartphone alliance doubted by insiders, markets by MoneyBlogNewz.

The alliance between Nokia and Microsoft
Everybody was confused by the Nokia-Microsoft connections on smartphones. Individuals could not determine how Microsoft seemed to get Nokia into the deal. The Windows Phone 7 will be replacing the Symbian OS by Nokia even though the phone got a 36.6 market share in the fourth quarter of 2010. The list that has Android at 25.5 % industry share and iOS that has 16.7 % sector share doesn’t even show Windows Phone 7 since it has so few users. Nokia said Windows Phone 7 will now be its "principle smartphone strategy.". Microsoft and Nokia will team up to develop and industry smartphones. For a default search engine, Microsoft Bing can be used. Nokia phones will all use this. Maps for Nokia will start to be used by Microsoft. This will be for all services.

Nokia loses while Microsoft benefits
It has been suggested by analysts that the relationship is something Nokia won’t gain from but Microsoft will. One of the largest distributers in the world for mobile devices will now be something Microsoft has access to. But Nokia gets Windows Phone 7, a cellular operating system that, compared to Android and Apple, was virtually dead on arrival. The Nokia/Windows Phone 7 arrangement was all a conspiracy, some suggest. This is because Stephan Elop became CEO of Nokia in September after leaving Microsoft. The smartphone relationship is characterized as subversion that gives Microsoft big-time smartphone development capability without the hassle of really trying to purchase Nokia.

Investors say it is bad news
Nokia stock went down 14 % due to the Microsoft-Nokia smartphone announcement. July 16 was the last time a huge drop happened in Nokia stock like this. The smartphone market has been given away to Google and Apple as the Nokia deal happened for free, analysts suggest. It will be a while before the Nokia Windows Phone 7 headsets come out. It is expected to be in 2012. Symbian will die on the vine while Android and Apple's iOS continue to advance. Microsoft is accustomed to slapping operating systems on 3rd party hardware. The OS for Nokia has been original. It has never borrowed before. Replacing iOS with webOS on the iPhone is something Nokia sees as a challenge with Apple probably. It could be bad for business.

Information from

Business Week

businessweek.com/news/2011-02-11/nokia-tumbles-on-concern-that-microsoft-deal-may-kill-company.html

Wired

wired.com/gadgetlab/2011/02/microsoft-and-nokia-team-up-to-build-windows-phones/

PC World

pcworld.com/businesscenter/article/219431/nokiamicrosoft_alliance_is_a_win_for_apple.html

PC Magazine

pcmag.com/article2/0,2817,2380144,00.asp