February 12, 2011- This Friday, Nokia stated the company was joining up with Microsoft in an attempt to compete with Apple and Google in the lucrative smartphone market.
Nokia wants to use the Windows Phone as the software for their smartphones as new Nokia CEO Stephen Elop plans the future for the largest cellphone maker in the world.
Elop and Microsoft CEO Steve Ballmer held a press conference on Friday to say how the two technological titans have joined forces to take on Apple and Google in this growth orientated multi-billion dollar industry.
A majority of people in the industry agree Microsoft’s allegiance is an efficient way for the 1990′s dominant software company to implement its operating system on over 30 million smartphones every three months without costing a fortune and causing internal strife, placing this premier player in a top spot in the highly competitive smartphone arena.
Unfortunately, after the announcement Microsoft’s shares dropped almost 1.6 percent as investors expressed concerns about how this relationship will work in the real world.
“It’s a great arrangement from Microsoft’s standpoint,” said Sid Parakh, an analyst with the brokerage McAdams Wright Ragen. “But it’s very hard to model these things out, given we don’t know what the financial terms are, we don’t know what the timelines are, and we don’t know what kind of monetization to expect.”