Microsoft and Qualcomm have signed up to play together on the smartphone grounds. The two companies have struck a deal which will make Qualcomm’s mobile phone chips work with Windows Mobile. That means that manufacturers which use Qualcomm chips can now start making Windows Mobile devices.
The agreement is of particular importance to Microsoft. Qualcomm dominates the CDMA chip market, which is a large portion of the U.S. phone market, and is rapidly growing W-CDMA, the emerging chip in Europe. If Microsoft wants to grow and increase their hold of the mobile market, they need access to Qualcomm’s customers. Qualcomm also works with many of the manufacturers that Microsoft needs to build relationships with.
Qualcomm will start supporting Windows Mobile in the second half of this year. Shareholders for both companies reacted well to the news, with share prices bumping up nicely after the news was announced this morning.