Nokia Joins Forces With Microsoft to Challenge Apple, Google; Shares Slump

Nokia Oyj, the world’s largest maker of mobile phones, said it’s forming a software corporation with Microsoft Corp, betting that together the two companies can challenge Google Inc. and Apple Inc.

Nokia fell as much as 12 percent, the biggest fall in a almost 10 months, after its plan to make Microsoft’s Windows its primary software was seen as a sign of the extent of its troubles taking on Apple’s iOS and Google’s Android platforms.

“It’s a clear admission that Nokia’s own platform strategy has faltered,” told Ben Wood, a London-based analyst with CCS Insight. “Microsoft is the big winner in this deal, but there are no silver bullets for either company given strength of iPhone and Android.”