America's largest network carrier, Verizon Communications Inc.(NYSE:VZ
), has confirmed that it will partner Nokia Corporation (ADR)(NYSE:NOK) in selling its newly released Lumia phones running on Windows Phone 8 software.
Specific details of the partnership were not available, the Wall Street Journal said.
Nokia already has an alliance with AT&T and T-Mobile of the United States to sell its existing portfolio of Lumia phones. However it needs the support of the No.1 player in the market if it wants its new smartphones to be a winner.
Also the Finnish handset maker wants its partnership with Microsoft to be a success as it has junked its own Symbian software and is determined to rely on Microsoft's Windows operating system.
It’s a win-win situation for both parties involved. The European company is aiming to break into the U.S. smartphone market where Apple is undisputed leader and increase its share as much as it can.
Verizon, on the other hand, wants to be rid of the over-reliance on Google and Apple whose stranglehold on the telecoms market and on extracting subsidies from network operators has put pressure on their margins.
Nokia however has yet to reveal details about wen its newly released phones will actually be seen on store shelves while the pricing for the phones are still under wraps.
This has created an aura of uncertainty about the phones and resulted in the stock getting hammered on Wednesday, the day of the launch. However shares in the company rose 6.4 percent to 2.06 euros on Friday.