Microsoft and Nokia announce tie-up deal

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Mobile phone company signs with Microsoft

Nokia has announced a "broad strategic partnership" with Microsoft which will see the Finnish firm use Windows Mobile 7 as its primary smartphone platform.

Nokia devices will now be incorporating Windows Mobile 7 as their primary platform, with the company working with Microsoft to develop common ground in the battle to keep up with both Apple's iPhone and the countless devices using the Google Android operating system.

It added that its experience in hardware design, mapping and imaging will assist in establishing Windows Mobile 7 as the leader in mobile internet, while Microsoft search engine Bing will be integrated into its products.

However, Nokia has confirmed that it will continue to make phones which use its Symbian platform, as well as Linux-based open source system MeeGo.

Nokia CEO Stephen Elop said: "Today, we are accelerating that change through a new path, aimed at regaining our smartphone leadership."

Burning Issue

The company made news this week after Elop issued a staff memo comparing its fortunes to a man on a burning oil platform "surrounded by flames". The new deal has been described by Elop as a "significant change" and "inevitable in our journey forward".

In his address, Elop pointed to the problems presented to the company, including the success Apple has had with its iPhone in the high-end mobile market, Google's Android taking the mid-range market. He added that MediaTek - a Chinese manufacturer - have been producing phones at a fast pace which has seen them take market share from Nokia in emerging markets.