ST-Ericsson Chipsets For Windows Phones From Nokia

The future for Qualcomm seems to be tough as ST-Ericsson has tied up with Nokia to provide chipsets for future phones from Nokia based on Windows platform. This tie up has helped Nokia to enable the availability of Windows phone at a much cheaper price and to new regions around the world. Till now the Windows phone platform has been dominated by Qualcomm's chipsets with Microsoft limiting the use of the Windows platform in mobile devices to only higher end phones which uses Qualcomm's Snapdragon processor.

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Last week Nokia had launched two new smartphones, #-Link-Snipped-# and Lumia 710, both based on Windows platform with Qualcomm chipsets hinting analysts that Nokia would be having Qualcomm as its premium supplier of chipsets for its smartphones but the new tie up with ST-Ericsson has raised questions Nokia's move in this regard. The news of the deal of ST-Ericsson with Nokia has raised the shares of the parent companies by 3 to 4 percent. ST-Ericsson has been cutting costs since its formation in 2009 but this move is expected to bring about some quarterly profit with the new products compensating the declining sales of older chipsets. And for general information ST-Ericsson is a joint venture of STMicroelectronics and Ericsson

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