Nokia has confirmed yesterday’s rumors and announced that it will adopt Microsoft’s Windows Phone 7 operating system for its line of smartphones.
Gone are the days when Nokia denounced the use of Android by companies other than Google. The Finnish company had insisted that diluting your own brand by using so popular an OS was a poor move for any company. However, Nokia is under new leadership now, and it seems the newly-crowned chief executive is eager to correct past mistakes.
At an event in London today, Stephen Elop and Steve Ballmer announced a partnership that aids both companies in their battles against Google and Apple. Though Nokia claims it will continue work on its own mobile operating system, MeeGo, and still plans to launch MeeGo devices before the end of the year, the company has said Windows Phone 7 will be its principal smartphone strategy going forward.
Nokia will do well to have a more recognizable smartphone OS on its devices, but this deal isn’t all for Nokia. For its part, Microsoft will benefit from access to Nokia’s experiences with hardware and Espoo is promising to bring Windows to “a larger range of price points, market segments and geographies.”
During the press conference, Elop admitted that he had spoken to Google about an Android partnership but ultimately felt that Nokia could not differentiate itself in the Android market. Nokia shares have tanked since the announcement was made, as analysts remain skeptical of the deal. Forbes reports that Nokia shares in Helsinki, Finland, fell by almost 12 percent this morning, while the company’s New York-listed shares have extended their decline in pre-market trading and are down more than 8 percent.