It looks as if work has begun on the first Nokia smartphones that will be based on Microsoft's Windows Phone software, at least according to an interview that took place with former Microsoft executive and Nokia's current CEO, Stephen Elop.
Elop spoke to Reuters today and said “We're right now, today, having people work on the first Windows Phone devices from Nokia.” The news doesn't really come as much of a surprise to many, especially as Nokia hopes to have Windows Phone based hardware out by early next year.
Currently the agreement between Microsoft and Nokia still has to be finalized, something that both companies expect to see happen within the next few months. Microsoft will pay Finnish phone company more than one billion US Dollars as part of the pair's new Windows Phone 7 partnership according to reports.
The deal, which is believed to run for five years, is expected to be beneficial for both parties, with Microsoft gaining a new partner with a track record for impressive hardware, and Nokia being able to reduce costs while still being in possession of a potentially strong software platform for its handsets. Elop was also quick to state that he sees no reason for Microsoft to buy out Nokia, something that has been speculated over the last month or so.
Nokia has struggled to keep up with companies such as Apple over the past few years, especially in the United States where they are not as well known as they are in Europe, while Microsoft has also seen its market share plummet in the smartphone market. Nokia will be hoping that the deal pays off in the end; especially with their share prices dropping by nearly 30 percent after the team up with Microsoft was announced.
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