Microsoft and LG Collaborate to Battle Competition

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by Franz Bicar

The mobile phone market is heating up and the competition is getting intense. Because of this, Microsoft and LG on Monday, announced their plans of working closely together, collaborating on research and development, marketing, applications and services for converged mobile devices. This announcement came from Seoul, Korea, LG’s base, during a trip there by Steve Ballmer, Microsoft’s CEO.

Given the competition in the Apple iPhone and Google-powered HTC G1, which is generating more excitement as of the moment, LG is loosing a considerable share in the mobile phone market. Microsoft too has been affected by the new competitors. It has been working recently to try to position Windows Mobile, traditionally regarded as solely a business tool, as also useful for more personal applications.

Both companies have slipped in rankings recently. A recent Gartner study showed that worldwide, Microsoft in the second quarter this year slipped into the third place among providers of smartphone operating systems, behind number one Symbian and number two ranked Research In Motion.

The collaboration is not a first for the companies. LG has already been making phones that run Windows Mobile. But the agreement could signal a stepped up effort by both companies to try to beat the competition.

In a statement, the companies said they expected that their agreement would create momentum and innovation in the industry.