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LONDON (Reuters) – Nokia and Microsoft hit teamed up to verify on Google and Apple in the fast-growing smartphone mart as the Suomi radiotelephone concern attempts to regain its directive function in the sector.

Nokia said it would ingest Windows Phone as the software papers for its smartphones as conception of newborn chief chief author Elop's overhaul of the world's large radiotelephone maker.

"Nokia and Microsoft will combine our strengths to have an ecosystem with unrivalled orbicular accomplish and scale. It's today a three-horse race," Elop said aweigh of an investor period in London.

Investors were not convinced by Elop's eagerly expected strategy announcement and shares in Nokia tumbled more than 11 proportionality as the mart reacted to Nokia' saying that 2011 and 2012 would be "transition years" as it shapely up the partnership.

Friday's care marks a major insight for Microsoft after eld of struggling to establish itself in wireless. Its Windows Phone had a mere 2 proportionality mart deal in the terminal quarter.

Microsoft's Windows Phone papers is widely recognized by industry experts as a directive bounds profession but has not still gained success among consumers.

"This is a partnership dropped out of both parties' fear of marginalization at the safekeeping of Apple and Google but there is no silver bullet," said shrink Geoff Blaber from CCS Insight.

Nokia has rapidly forfeited deal in the higher-margin smartphone mart to Apple's iPhone, and products supported on Google's Android platform, which claimed the top spot from the consort terminal quarter.

"This is a rattling frank entering that Nokia's papers strategy has failed and underlines the severity of Nokia's position. Such a advise would hit been unthinkable meet 12 months ago," Blaber added.

In a effort to halt Nokia's losses, Chairman Jorma Ollila brought Elop in from Microsoft terminal September. The 47-year-old is the prototypal non-Finn to nous the company.

Nokia said in a evidence it would follow with its current direction team, with exclusive one senior chief to leave. There had been reflection of a wider cull at the company.

Nokia also said it would ingest Microsoft's Bing search engine crossways its cellphones, potentially opening up a Brobdingnagian mart for Microsoft as it seeks to physique up its contest to Google as the world's directive search engine.

Analysts said the Suomi company, which invested billions of dollars in antiquity up mobile internet services low its preceding CEO, had effectively admitted defeat in its services strategy by connexion forces with Microsoft.

(Reporting by Tarmo Virki; Writing by herb Smith; redaction by Jane Merriman)

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