During an interview with Forbes, STMicorelectronics chief executive Carlo Bozotti revealed that some of the Nokia WP7 smartphones will use ST-Ericsson chips. Borlotti stated that ST-Ericsson remained an important supplier for Nokia with 'very close relations' with the company.
The new reports suggest that the Finnish phone maker Nokia may not stick with Qualcomm processors for its WP7 devices. It may prefer ST-Ericsson"s dual-core U8500 processors over the widely used Qualcomm processors.
ST-Ericsson"s dual-core U8500 processors will give more power to Nokia WP7 smartphones, which are scheduled to launch in the first quarter of 2012. These chips make the phones faster and quicker, enabling users to run complex applications and 3D games.
The success of the Nokia WP7 smartphones are crucial for both Nokia and Microsoft. Even though Nokia still manages to be the world's largest mobile phone manufacturer, its shares started to dip in recent years. According to a latest report published by technology research firm Gartner, Nokia's share in mobile phone market dropped from 30.6 percent in 2010 first quarter to 25 per cent in 2011 Q1.
Similarly, Microsoft is also facing loss to its rivals, Google and Apple. Kicking Nokia smartphones and WP7 OS aside, smartphones running on Android OS emerged as a major players in the mobile market. So, it's a 'Do or Die' game for both Nokia and Microsoft.