Nokia CEO Speaks Up For Microsoft Alliance

Finnish mobile phone maker Nokia is trying to reassure investors that the smartphone deal with Microsoft is in the benefit of the company.

The company shocked the world by announcing that the company will partner with Microsoft to launch smartphones using the Windows Phone 7 operating system. Nokia is desperate to regain some of its lost smartphone market share.

The popularity of Apple and Google Android powered devices has eroded the Finnish giant's smartphone share.

Microsoft is equally relying on Nokia's hardware expertise to launch mobile phones and smartphones based on Windows Phone 7 to compete against Android and iOS.

Nokia CEO Stephen Elop told investors that the deal was more favorable for Nokia as Microsoft was transferring “substantial monetary value” to the company, amounting to 'billions' of dollars.

Elop also said that Microsoft would be handling the development of the operating system, reducing Nokia's development costs.

“For all of the unique elements Nokia is contributing, including the swing factor, including the decision to make Windows Phone a challenger, Microsoft is contributing to Nokia substantial monetary value,” Elop said.