The smartphone segment battle is set to become more fierce henceforth as Microsoft and Nokia announced an alliance to jointly work towards offering smartphones incorporating Microsoft products and services. The move is widely perceived as an attempt to gain competitive advantage over RIM whose BlackBerry products are a formidable proposition in the smartphone sector.

The joint statement itself mentions that “we will start working immediately.” "These solutions will be available for a broad range of Nokia smartphones, starting with the Nokia E series. The two companies will also market these solutions to businesses, carriers and individuals," added the statement.

Business Division President of Microsoft, Mr Stephen Elop, and the Executive Vice-President for Devices of Nokia, Mr Kai Oistamo, announced the agreement in New York.

Microsoft Office Mobile and Microsoft business communications, collaboration and device management software will come incorporated in Nokia’s Symbian devices.

For Microsoft, some analysts believe, the decision to align with Nokia was a trade-off between promoting its own Windows Mobile OS or its services. Ultimately the company seems to have settled for the latter.