The latest data from comScore spells significant trouble for Microsoft in the smartphone market. Despite launching Windows Phone 7 (WP7) with great fanfare in November 2010, its U.S. market share in smartphones has in fact declined 1.7% from October 2010 through January 2011.
To regain its footing in the smartphone market, Microsoft announced a new partnership with Nokia last month. Microsoft is reportedly paying Nokia more than $1 billion to develop and promote smartphones based on WP7. Unfortunately for Microsoft, “their deal is preliminary and consumers may not see any [WP7-powered] Nokia phones in stores until 2012.”