by Jennifer L. Thompson

Created on: February 13, 2011   Last Updated: February 15, 2011

Nokia, the overall worldwide leader in cell phones, has openly admitted that it has failed to keep up with Google and Apple in the smart phone sector. While it still carries a good share of the cell phone market, 31 percent in the last quarter of 2010, the major share that it carries offers limited profit potential with less advanced cell phones. This has left the company falling behind in the world of technology, and has left its share prices falling.

These things led to a shaking up of the company in 2010, even at its highest levels. Stephen Elop replaced Olli-Pekka Kallasvuo as chief executive. Other key executives were also replaced. Plans for a new release of the Nokia smart phone operating system, Symbian, were postponed. The company also teamed up with Intel to develop a new platform for its high end smart phones, called Meego.

Still, these things were apparently not enough. Nokia’s latest move, in early 2011, is to bring the expertise of Microsoft in to its phones. The company has announced that it will now primarily be using Windows phone software in its smart phones. This isn’t to say that Symbian or Meego will be left behind.

So what is the strategy behind this? Nokia hopes that this will rival Google and Apple in the North American market. This is the companies weakest area, with most of its sales in other parts of the globe. It also hopes to increase profits with more high end sales. This strategy is expected to be just as lucrative for Microsoft, if not more so.

Currently, Google's Android is still the number one operating system in the world for smart phones. Apple has the number two position in handset sales in North America. In partnering to make Windows the primary platform for Nokia, the global leader in cell phone hardware, Microsoft now has an opportunity to compete that it had not previously had the means to achieve.

Interestingly enough, Stephen Elop is a former Microsoft senior executive. Could this be a stroke of genius? On the other hand, could this be one more thing in the mix of Nokia’s technological failings? Concerns are still being expressed, with this considered to be somewhat of a risky venture.

Windows still has some failings of its own to contend with before it can compete with either Google or Apple, though the company intends to work hard at catching up. Available apps are one of Windows shortcomings. Nokia intends to focus its combined software developments in areas that are already strengths, such as Nokia’s imaging. Maps and search from Microsoft are also a focus.

In any case, no one is under the delusion that any of these things are going to be a quick fix to Nokia’s failure to keep up with Google and Apple to begin with. The general consensus is that with time, hard work, and maybe with a little more company shake-up, things will still turn around.

Sources:

Allen Tsai, Nokia looks for new CEO,  Mobiledia

Matti Huuhtanen; Associated Press, Nokia, Microsoft, in pact to rival Apple, Google, MSN Tech & Gadgets

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