Would Nokia Use Microsoft Windows Phone in a Smarpthone? Why Not? Here's Why…

Is it news that Microsoft and Nokia have had talks regarding technology cooperation? Nokia has had agreements to use a variety of Microsoft technologies in their phones for years now. However, recent talks have generated unverified speculation that Nokia may use Windows 7 as the basis for some of their phones.

Nokia and Microsoft Looks Like a Desperate Hook Up (GigaOm)

Holy crap! Nokia is in talks with Microsoft about Windows Phone devices?! (Unwired View)

The speculation is understandable since:

1. Nokia has had serious marketshare and mindshare losses in the smartphone space.
2. Microsoft has an unverified (so far) but possible problem in gaining marketshare and mindshare after their Windows Phone 7 launch in October.
3. Former Microsoft executive Stephen Elop is now Nokia’s CEO.

If this speculation is true (Nokia plans to use Windows Phone 7 as a platform for some of their smartphones), it won’t be the first time Microsoft has made peace with a competitor. Palm and Microsoft surprised a lot of people when they announced Palm would use Windows Mobile as an alternative Treo platform back in 2006. Nokia is having problems with its smartphone strategy. Using Android OS might not differentiate them from other hardware manufacturers. But, Windows Phone might and in key countries where Nokia is the dominant phone vendor. My guess is that the current speculation has a 50-50 chance of happening.