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Microsoft Nokia alliance

Get your saltshakers ready kids. Word on the streets is that Nokia, the world’s biggest mobile corp. is set to do a deal with the devil, sorry, Microsoft, that it will announce this time next week.

Nokia boss Stephen Elop, who previously headed Microsoft’s business division before taking the helm at Espoo, is due to make the groundbreaking announcement at a press call in London on the 11th.

Carolina Milanesi, a Gartner analyst, said: “I don’t know if this is just wishful thinking, but it could definitely be the big announcement we are expecting.”

Wishful thinking or not, it was enough to cause Nokia shares to rise 1.5 per cent at the close of trading in Helsinki yesterday – an impressive bump of four per cent since news of the development first surfaced on Monday.

Nokia has been hinting for a while that it is considering “multiple ecosystem patterns”, which tech watchers interpreted, with good reason, as a potential, if limited, adoption of Android.

However, it seems the Finnish giant isn’t too keen on handing over the keys to smartphone supremacy to Google just yet and would rather chance it with Microsoft’s still-new Windows Phone 7 platform where it has a greater opportunity to dominate the lion's share of smartphone sales.

And from Microsoft's perspective at least, having major players like HTC, Samsung and LG already on board with WP7, and now catching the biggest fish in the pond of them all, right in brink of what seemed like an inevitable partnership with Google could seriously knock the wind out of Android’s sails.

Of course, it’s still possible that Nokia could yet adopt Android at a later date and the alliance with Microsoft is still just a rumour. Watch this space like a hawk for more information next Friday.

Source: New York Times via Venture Beat

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