Nokia Planning for Windows Phone 7 devices?

Nokia has started talks with Microsoft to expand their cooperation. The talks were initiated by the new Nokia management. And they are talking not about the technology exchange, or more Microsoft apps on Nokia phones. They are talking about the creation of new line of Windows Phone devices, which could be sold under Nokia brand, via Nokia distribution channels and have some typical Nokia features.

The Finnish company could use a boost in the States where Microsoft holds a more recognizable presence, while Microsoft could use a boost in sales of their WP7 devices. After all Nokia are known to produce pretty good phones that are only lagging behind because of their outdated Symbian operating system. Though with previous statements about how Nokia will never use Android on their phones, it doesn’t make sense for Nokia to turn to WP7 either.

After all, they already have their own operating systems – Symbian and MeeGo which they have chosen to focus on. But seeing how an ex-Microsoft is now the head of Nokia- anything could happen. What do you think? Would a Nokia/Microsoft merger help the two companies rise up against their competitors?