Nokia, considered to be the pioneer in smartphones and a global leader in the mobile phones market, started to face severe challenges to its dominance in the smartphone market in 2007. The problems came mainly in the form of competition from the new mobile operating systems that entered the market like iOS and Android. Nokia had started the smartphone business and had been the leader since the release of its smartphone OS Symbian in 1997. But the release of Apple's revolutionary mobile OS, iOS for mobile phones in 2007 led to a decline in the sales of Nokia... Shake up at Nokia
Nokia had another mobile OS called Maemo for its high-end smartphones. But in February 2010, it announced that Maemo would be merged with another mobile OS called Moblin to create a new mobile OS called MeeGo. Moblin was another mobile OS developed by Intel Corporation (Intel) to be used in smartphones. The MeeGo OS was still under development with the first phone running on it due to be released into the market only by the end of 2011. Nokia was running out of time as the rival mobile OSs like iOS and Android were growing stronger... The Alliance
In February 2011, Nokia announced an alliance with Microsoft. Under the agreement reached with Microsoft, Symbian would be replaced by Windows Phone as the primary OS in all the high-end smartphones made by Nokia. Nokia announced that it would also sideline its new MeeGo OS in favor of Windows Phone. It announced the partnership to stop the decline in its share of the global smartphone market. Commenting on the scope of the partnership with Microsoft, Elop said, "Nokia and Microsoft will combine our strengths to deliver an ecosystem with unrivalled global reach and scale. It's now a three-horse race"... Will it Work?
There were mixed reactions to the deal between Nokia and Microsoft. Google responded to the deal saying that there was no space for a third mobile platform to grow. Google also expressed doubts on the alliance...