Nokia Announces Long Term Deal With Microsoft Amidst Market Share Fall

Nokia’s global mobile phone share below 30 percent as the company signed the Windows Phone 7 deal with Microsoft.

The Finnish mobile phone maker formally signed a long term agreement with Microsoft to jointly develop Smartphones and feature phones based on the software giant’s Windows Phone 7 mobile operating system.

The company is not expected to release the first Windows Phone 7 device until next year and will have to stay afloat with its line-up of Symbian based devices.

Nokia posted a better-than-expected first quarter results, which informed that the company’s first quarter revenues had increased by nine percent to €10.39 billion. The company also posted only a 14 percent fall in its operating profit for the quarter, which was at €344 million, Analysts had expected the operating profit to fall by almost 40 percent.

Nokia’s market share also took a hit as it struggled to maintain leadership over a flood of iPhones and Android devices. The company’s global mobile phone market was at 29 percent in the first quarter ended March 31st.

“Following a solid first quarter, we expect a more challenging second quarter. However, we are encouraged by our roadmap of mobile phones and Symbian Smartphones, which we will ship through the balance of the year,” Nokia CEO Stephen Elop said in a statement.

“We are fully focused on delivering the needed accountability, speed and results to positively drive our future financial performance,” he added.