Nokia and Microsoft Team Up in Smartphone Battle

Making official what has been widely expected for days, Nokia and Microsoft have announced that the two companies are teaming up in the smartphone market, with Nokia embracing Windows Phone as its "primary smartphone strategy" while contributing its own expertise to further development of the platform.

While the specific details of the deal are being worked out, here's a quick summary of what we are working towards:

- Nokia will adopt Windows Phone as its primary smartphone strategy, innovating on top of the platform in areas such as imaging, where Nokia is a market leader.

- Nokia will help drive and define the future of Windows Phone. Nokia will contribute its expertise on hardware design, language support, and help bring Windows Phone to a larger range of price points, market segments and geographies.

- Nokia and Microsoft will closely collaborate on development, joint marketing initiatives and a shared development roadmap to align on the future evolution of mobile products.

Nokia has long been the world's smartphone market share leader with its Symbian platform, but the company's dominant lead has been quickly evaporating as iOS and Android have rapidly grown. From the other perspective, Microsoft's new Windows Phone 7 platform has been fairly well regarded by reviewers, but has yet to catch on as a latecomer to the increasingly crowded smartphone space.

A purported memo from Nokia CEO Stephen Elop published earlier this week outlined the challenges faced by Nokia in a smartphone market that has shifted from a battle of devices to a battle of "ecosystems", a theme echoed in the public statements made today in support of the partnership with Microsoft.