Following Nokia's official announcement that it will be partnering with Microsoft, shares have tumbled, reaching session lows as of writing of down 14.50 percent on 700 percent average volume.
Nokia CEO Stephen Elop announced this morning that Nokia smartphones would now run the Windows Phone 7 operating system, a huge move for Microsoft which instantly gains a worldwide footprint, but a tough admission from Nokia that they have been slow on innovating in the burgeoning smartphone market.
In just 4 years, Nokia's smartphone share has fallen from 51 percent to 27 percent, losing all of its share to Android and Apple. Microsoft was once a leader in that market as well, but has seen its share fall to single digits.
Elop says the partnership will "jointly create market-leading mobile products and services designed to offer consumers, operators and developers unrivalled choice and opportunity."
In Windows Phone 7, the Nokia Ovi Store will be merged into the Marketplace and all Nokia smartphones will have Bing as the default search engine. Furthermore, WP7 will add Nokia's NAVTEQ maps.
Says one analyst of the deal:
After Elop's speech 1,000 Nokia employees allegedly walked out of company headquarters in protest of the move. Nokia says the number was a lot less and called the walkout "a mass exercise of vacation time."
In just 4 years, Nokia's smartphone share has fallen from 51 percent to 27 percent, losing all of its share to Android and Apple. Microsoft was once a leader in that market as well, but has seen its share fall to single digits.
Elop says the partnership will "jointly create market-leading mobile products and services designed to offer consumers, operators and developers unrivalled choice and opportunity."
In Windows Phone 7, the Nokia Ovi Store will be merged into the Marketplace and all Nokia smartphones will have Bing as the default search engine. Furthermore, WP7 will add Nokia's NAVTEQ maps.
Says one analyst of the deal:
It’s a clear admission that Nokia’s own platform strategy has faltered. Microsoft is the big winner in this deal, but there are no silver bullets for either company given strength of iPhone and Android.
After Elop's speech 1,000 Nokia employees allegedly walked out of company headquarters in protest of the move. Nokia says the number was a lot less and called the walkout "a mass exercise of vacation time."
