One More Partnership in Smartphone ArenaOne More Partnership in Smartphone Arena

High end cell phones are attracting a lot of attention from business users and suppliers. Because the market is so small and its potential so large, a bevy of vendors have been trying to wedge their way into this space. Two leading players teamed up in an attempt to strengthen their market positions.Lost in the recent hubbub about new vendors such as Apple and Google is Microsofts position in the smartphone space. The Behemoth, which is used to dominating just about every market that it enters, has been shunted to the sidelines. In an attempt to energize itself, the company signed a reselling agreement with Asian cell phone powerhouse LG Electronics. The two will work together on research and development, marketing, applications, and services for mobile devices.

Trailing Symbian and Research In Motion, Microsoft has been trying  without its usual resounding success -- to improve its cell phone OS market position while fending off challenges from fledgling entrants like Apple and Google. The LG agreement could bear fruit for Microsoft. The vendor has fared best when high end products transitioned into commodities, and smart phones could be poised for such as shift. Pricing for these products could drop so they break out of their top executive niche. LG has had success at the low end of the cell phone market but needs to move up the chain and help to break down the current dividing lines between smartphones and basic systems. The twosome now has to deliver low cost, highly functional smartphones. If that occurs, Microsoft may move into customary market position: center stage.