Nokia and Microsoft recently announced that Nokia, the world's biggest maker of mobile phone, will ditch its in-house Symbian phone operating system in favour of producing phones that use Microsoft's Windows Phone operating system (although not the current version, but an upcoming version that will be released later in the year).
Commentators have long thought that Nokia needed to change directions in the increasingly competitive smartphone market, after recent sales results revealed Google's Android and Apple's iOS making strong headway in to the market once completely dominated by Nokia's Symbian. In fact, Android phones outsold Symbian phones for the first time in the last quarter of 2010.
However, many are asking the obvious question - why didn't Nokia go with Android? Google has since stated that it would have loved to work with Nokia. Or why there needed to be any alliance at all, when Nokia's experience and market share means they can still develop their own phone OS?
But there are very good reason in Nokia's decision to favour Microsoft.
First of all, it will be fairly clear that the world most popular phone operating system will be Android, given current trends. Nokia going with Android may mean the once dominant phone company may get lost in the crowd of Android manufacturers, a list which is growing larger everyday. And having started so late, it is already behind companies such as HTC, Motorola or Samsung when it comes to getting the best out of Google's phone OS.
But by going with Windows Phone OS, the underdog at the moment, Nokia can use its might to carve out its own market space and be on more even footing with the other Windows Phone manufacturers, most of which also produce Android phones. And with Nokia clearly Microsoft's biggest customer, the Redmond based software company will be much more flexible to adhere to Nokia's input (and demands) on all aspects of design.
It's a great move for Microsoft as well, as it gives them instant market share as opposed to having to compete with both Android and iOS for customers.
The only problem is that the first Nokia Windows Phone won't be out until 2012 at the latest, and this gives other both Google and other Windows Phone manufacturers to cement their market share. Nokia will still be producing Symbian and MeeGo devices until their first Windows Phone comes out.
And don't pay too much attention to the "Nokia Plan B" stories, about the revolt of a group of nine shareholders - it probably was just a hoax, or at least a very half-hearted revolt.
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