Recently Nokia and Microsoft tied up to be a third force in the smartphones arena, after Apple and Google. Nokia has a lot of hardware, but hasn't been able to get the design issues right. They still have phenomenal experience though.
Microsoft actually isn't in such a bad position. They've got cash cows in Office and Windows, and while there is deep competition from both cheap (linux, google web apps) and expensive (apple designer ware) lines, it seems to survive. Then there is Xbox and the successful Kinect.
But a problem with the Nokia-Microsoft endeavor has is that the app "ecosystem" for Windows Mobile is really bad compared to Apple and Google. So it looks like they've come up with ways to get their massive, talented workforce to share some of their development time:
http://www.nytimes.com/2011/02/27/business/27novel.html?ref=technology
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