Nokia in talks with Microsoft about phones, report says

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Struggling Finnish phone company Nokia may be putting the finishing touches on a deal with Microsoft that would put the Windows Phone 7 operating system on its handsets, according to reports Thursday.

Bloomberg, citing anonymous sources, said that Stephen Elop, Nokia’s new chief executive, has met with Microsoft Chief Executive Steve Ballmer about a marriage of convenience.


Both companies have been left in the dust as competitors such as Google Inc. and Apple Inc. gobble up the smartphone market.

Elop, who recently arrived at Nokia fresh from a stint heading up Microsoft’s business software division, is clearly looking to shake things up at the company that Apple co-founder Steve Wozniak derided as having an “image problem.”

This week, Elop sent an internal memo to employees, describing Nokia as stranded on a “burning platform,” according to Engadget. The company currently uses an operating system called Symbian and is also working on another platform with Intel Corp. called MeeGo.

Seems like Elop has until Friday to strike a deal -– that’s when he’s revealing Nokia’s new strategy to investors.


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-- Tiffany Hsu [follow]