The 2010 results of the Finnish cell phone company Nokia show that low cost mobile phones were a major contributor to its sales. It enjoys a comfortable position in the sales of lower end smartphones costing a little over 100 Euros. A major chunk of the profit came from the devices and services unit or from handset sales. With a change in the head of the company Nokia is expected to change all this and make a major play to claw its way back to the top in the smartphone category.

Nokia has recently reiterated support for MeeGo, a Linux based operating system for tablets and smartphones in partnership with Intel. Nokia might head for either Android or Microsoft Windows Phone 7. Analysts say that now that Nokia has a new CEO, they should partner with Microsoft. Microsoft needs support from leading Original Equipment Manufacturers (OEMs) to stand up against Android, and Nokia needs a new strategy to fuel its smartphone market. A combination of Microsoft’s marketing expertise and software expertise with the Windows 7 OS and with Nokia’s brand image and global sales market, could create an impact in the smartphone market. Also Nokia would get a chance to regain its lost market in North America. Microsoft could see Windows Phone 7 come at par with Android and iOS and give them a run for their money. At the moment the open source nature of Android is troubling Microsoft, which might make it just be ready to clinch a partnership with Nokia.

Nokia’s new CEO Stephen Elop is a Microsoft veteran apparently at good terms with the company. This would seem to be a better step than look for third party software. According to an analyst, Microsoft could create a differentiated tablet strategy with stronger enterprise support and Nokia could clearly benefit with a tablet and smartphone combined strategy that is offered by competitors.