Microsoft, Nokia join forces to create iPhone killer

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The world’s biggest mobile phone manufacturer Nokia Inc. on Friday has teamed up with Microsoft Corp. to create a new generation of Smartphones, specifically designed to beat Apple’s iPhone and to help turn around its dwindling sales.

In an effort to turn around the dwindling sale of its phones, the world’s biggest mobile phone manufacturer Nokia Inc. has teamed up with Microsoft Corp. to create a new generation of Smartphones, specifically designed to beat Apple’s iPhone.

Stephen Elop, the new chief executive of Nokia, said that the company has signed a deal with the software giant to create new lines of Smartphones, which will run on the latest Windows Mobile OS.

Elop said that the deal with Microsoft would provide better competition in the fast-growing Smartphone market, which is currently being dominated by Apple Inc. and Google Inc.

“Now, it will be a three-horse race,” said Elop, who was recently drafted from Microsoft in September to help Nokia retain its glory days.

However, the sudden decision of Nokia to adopt Microsoft’s Windows Mobile OS to its phones has strike fear to many investors, resulting to a decline in company shares on Friday.

Many analysts said that the deal would significantly benefit Microsoft, which has been struggling to establish itself in the mobile phone industry in past years.

Under the terms of the deal, Microsoft will be the exclusive software maker to be used in more than 30 million Smartphones sold by Nokia every qarter.

“It’s fantastic, it’s truly fantastic to have the largest phone manufacturer in the world,” said Andy Lees, the head of Microsoft’s Mobile business.

The deal would also give Google a run for its money as Nokia plans to user Microsoft’s Bing search engine to all its mobile phones.

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