Nokia partnering with Qualcomm

Nokia and Qualcomm have announced they will work together on 3G smartphone products, initially for North America. The partners aim at the remaining growth segment of the handset market. It has also been revealed that the products will not be out for sale until the middle of next year. 

Nokia’s share of the smartphone market has started falling from once being well above 50%, as RIM, Apple and even HTC Corp. continue to improve their products. 

The collaboration will be achieved using Nokia’s Series 60 software running on the Symbian operating system. Two of Qualcomm’s MSM-trademarked chipsets will be integrated into Nokia’s S60 platform. 

Ittai Kidron, analyst at Oppenheimer, commented on the partnership saying, “The announcement is a strong, long-term positive for Qualcomm and puts it on a share gain path in 3G for the foreseeable future. That said, we note that the U.S. focus — where Nokia is poorly positioned — and timing of shipments — should yield only small volumes nearer term for Qualcomm.”