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Financial considerations aside, the Microsoft-Nokia statement said the companies have made "significant progress on the development of the first Nokia products incorporating Windows Phone." The two are "collaborating on a portfolio of new Nokia devices," they said, and Nokia has started porting "key applications and services" to the Windows Phone platform.
The two companies' goal is to begin volume device shipments in 2012, the statement said.
Thursday's statement also spelled out more details of the two companies' roles under the agreement. Nokia, for example, will provide mapping, navigation and other location-based services; contribute its expertise on hardware design and language support; and develop imaging technology that runs on Windows Phone.
Microsoft will provide Bing search services across the Nokia device portfolio, as well as expertise in advertising, gaming, social media and other services.
Nokia will open a Nokia-branded application store that leverages the Windows Marketplace infrastructure where third-party developers can publish and distribute applications based on Windows Phone, as well the company's Symbian and Series 40 devices.
Nokia is also contributing its expertise in operator billing "to ensure participants in the Windows Phone ecosystem can take advantage of Nokia's billing agreements with 112 operators in 36 markets," the statement said.