Over the past month, Nokia has initiated talks with Microsoft to expand their cooperation. More specifically, the discussion is not around technology exchange, nor about more Microsoft apps on Nokia phones, but it's about a new line of Nokia devices running Windows Phone 7. The devices would be sold under the Nokia brand, via Nokia distribution channels, and would have some of the typical features found on current Nokia phones, according to Eldar Murtazin, who has a weekly opinion editorial over at Mobile-Review.
The talks were initiated by the new Nokia management. Almost three months ago, Nokia hired Stephen Elop as its president and CEO. Before that, Elop worked for Microsoft from January 2008 to September 2010 as the head of the software giant's Business Division.
If these talks bear fruit, it could be a big deal for both companies. Microsoft would have a huge partner pushing Windows Phone: although it is losing market share, Nokia is still the biggest maker of smartphones in the world. Windows Phone could in turn help Nokia rebuild its image in the mobile market. While the hardware side of Nokia phones has been very solid, the software side has been floundering. With Symbian possibly on the way out, Nokia was expected to bet everything on its new Meego operating system. Now it looks like Nokia doesn't want to put all its eggs in one basket, which seems like a good idea to us.