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Nokia Corp.(NOK: Quote), which had agreed to sell its mobile phone business to Microsoft Corp. (MSFT: Quote), plans to unveil this month a smartphone powered by a version of Google Inc.'s (GOOG: Quote) Android mobile software, the Wall Street Journal reported citing people familiar with the matter.
The report noted that Nokia engineers had been developing the Android phone before Microsoft struck the 5.4 billion euros deal last September to acquire Nokia's handset business and license the Finnish company's patents. It hasn't been clear before now whether Nokia would move ahead with the Android phone, expected to be introduced at the Mobile World Congress industry trade show starting February 24.
At least for now, Microsoft appears willing to outsource part of its phone lineup to Android to boost volumes and support its handset manufacturing operation. Higher sales would help cover the high cost of competing in a smartphone industry dominated by Google, Apple Inc.(AAPL: Quote) and Samsung Electronics Co.(SSNNF.PK,SSNLF.PK), the Journal reported quoting the people.
The Nokia phones will differ from most other Android smartphones, and won't access some Google-developed features or Android apps from the Google Play storefront, the report said.
Instead, the phone will come installed with digital services created by Nokia and Microsoft, including mapping service Here and streaming music service MixRadio, as well as a Nokia application store.
The strategy echoes the approach of Amazon.com Inc. (AMZN: Quote) which has used a modified version of Android for Kindle tablets that don't accept Android apps.
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by RTT Staff Writer
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