Nokia and Microsoft form partnership
Stephen Elop was at Microsoft before taking over Nokia in September 2010
Nokia has announced plans to form a "broad strategic partnership" with Microsoft.
The deal would see Nokia use the Windows phone operating system for its smartphones, the company said.
Microsoft's Bing will power Nokia's search services, while Nokia Maps would be a core part of Microsoft's mapping services.
Earlier this week Nokia chief executive Stephen Elop sent a memo to staff warning that the company was in crisis.
The new strategy means Nokia's existing smartphone operating systems will be gradually sidelined.
Symbian, which runs on most of the company's current devices will become a "franchise platform", although the company expects to sell approximately 150 million more Symbian devices in future.
The announcement is widely seen as a response to the growing pressure from other smartphone platforms, including Google's Android and Apple's iPhone.
"This is a clear admission that Nokia's own-platform strategy has faltered," said Ben Wood, an analyst with research firm CCS: Insight.
"Microsoft is the big winner in this deal, but there are no silver bullets for either company given the strength of iPhone and Android," he added.
Nokia's upcoming Meego operating system also appears to have been sidelined, to some extent.
According to the company statement: "MeeGo will place increased emphasis on longer-term market exploration of next-generation devices."
The new platform was expected to form the core of Nokia's future smartphone and tablet strategy.
The company says it still plans to ship one Meego device by the end of 2011.
Nokia's share of the smartphone market fell from 38% to 28% in 2010, according to monitoring firm IDC.
Analysis
Rory Cellan-Jones
Technology correspondent, BBC News
So Stephen Elop has pushed Nokia off that now infamous burning platform he described to staff some days ago and into the unknown.
His chosen lifebelt is Windows Phone 7, a new smartphone operating system that has won critical praise but, so far at least, only a tiny share of the market.
So Nokia is moving from an ailing system Symbian - which still has a large chunk of the market - to a fledgeling which has yet to prove itself, made by a firm with a poor track record in mobile.
Why then, did Mr Elop not opt to go with Google's Android, the operating system with momentum behind it? Perhaps he feels more comfortable with the culture of Microsoft, where he worked until joining Nokia.
The cruel verdict from some is that two turkeys don't make an eagle - but you can't fault Mr Elop for his audacity. This is a huge moment which could shape the future of an industry.
Credit: BBC (www.bbc.co.uk)
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