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.
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