Switzerland’s ST-Ericsson has inked a deal to supply chipsets for future Nokia phones that use the Microsoft Windows operating system. Shares of ST-Ericsson’s two parent companies, Ericsson and STMicroelectronics, traded higher on the news, as did Nokia.
Finland-based Nokia is the world’s largest cellphone maker, but currently ranks third in global smartphone sales. The Windows operating system currently has less than 3% of the smartphone market, but Microsoft is counting on Nokia to increase Windows’ market share. Last week Nokia introduced its first Windows smartphones, the Lumia 800 and the Lumia 710. HTC, Samsung and Dell also make Windows phones.
So far all Windows phones have been powered by Qualcomm’s Snapdragon chipsets, but today’s announcement is a clear sign that Qualcomm’s monopoly on Windows smartphones is ending. Wall Street seemed unconcerned, sending Qualcomm’s stock higher today despite the news. Qualcomm is still poised to profit from sales of its Snapdragon chipsets for use in the Lumia phones, and from sales of the baseband processor used in the wildly popular iPhone 4S.
RCR Wireless News recently caught up with Qualcomm EVP Roberto Padovani, who served as the company’s chief technology officer from 2001 until this year. Padovani was the keynote speaker at the Texas Wireless Summit, where he and many others were excited about the increasing amount of power and functionality that Qualcomm is now able to pack onto a single chip.
As it works to expand the market for its chipsets, ST-Ericsson will continue to look beyond its parent companies for buyers. Last week, L.M. Ericsson said it will exit the handset manufacturing business, selling its 50% stake in Sony Ericsson to Sony for $1.46 billion.
