On stage at the Mobile World Congress conference in Barcelona yesterday, Nokia CEO Stephen Elop (pictured right) announced that the companya4��a4�s first priority now, after partnering with Microsoft to use Windows Phone 7 on its devices, is to beat Android.

The company also hinted that wea4��a4�ll see its Windows Phone 7 devices this year, and it confirmed the concept designs that were floating around the web a few days ago.

Elop, who hails from Microsoft, discussed the nature of Nokiaa4��a4�s relationship with the software company. He said Nokia was considering becoming yet another Android phone manufacturer but that the prospect of being a premiere WP7 partner was more enticing. &''A decision to go with Windows Phone creates a very different dynamic. Windows Phone is a challenger. It becomes a three-horse race,a4��� he said. The companya4��a4�s decision may have also been swayed by European cellular carriers, who feared the worst if Nokia adopted Android.

Elop said Nokia will be paying Microsoft royalties to use Windows Phone 7 but that it will also save money by reducing its operating expense since it will no longer need to develop an entire OS on its own. Nokia will also contribute services to Windows Phone 7 that other manufacturers will be able to take advantage of, and he went on to say, a4��AWe&'re contributing the fact that we&'re making Windows Phone a challenger.&''

Microsoft will also add a4��Asubstantial monetary valuea4��� to Nokia because of its contributions to WP7, which Elop specifically said is measured in the billions, not millions. That could mean that Microsoft effectively outbid Google to convince Nokia to use its software. Elop also mentioned that Nokia will see a new source of revenue through advertising.

Together with Nokiaa4��a4�s Jo Harlow, Elop also confronted some tough questions about Nokiaa4��a4�s new partnership. When asked about the widely reported employee walkout on Friday, Harlow seemed understanding of the emotional journey for Nokia engineers, especially with word that Elop plans to make thousands of job cuts. But optimistically, she points out that the deal is also exciting the US market, which hasna4��a4�t had much reason to care about Nokia products for the last few years.

When asked if he was indeed the seventh largest Microsoft shareholder (a rumor sparked by his appearance on a shareholder chart with around $3 million worth of stock), Elop said those claims were not true. a4��AThat would be a substantial amount of money that I dona4��a4�t have,a4��� he said. Elop pointed out that he was legally prohibited from selling his shares when he first joined Nokia, but once that was lifted he began selling. Once talks began with Microsoft about partnering with Nokia, he was forced to stop selling once again.

One brave audience member shouted out, a4��AAre you a Trojan Horsea4��� &8212' a reference to the fact that Microsoft was reportedly trying to buy Nokia last year, but with Elop in charge, he can now run the company to Microsofta4��a4�s benefit. Elop pointed out that the entire management team at Nokia was involved in the decision to move to Windows Phone 7 and that the final decision wasna4��a4�t made until last Thursday night.

Via Engadget

Calling all developers: We want to write up your app for VentureBeata4��a4�s Mobile App Spotlight! If you have an innovative mobile app that hasna4��a4�t been featured on VentureBeat yet, submit it for consideration right away. The Mobile App Spotlight is sponsored by The Intel AppUp developer program.

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Tags: Android, mobile world congress, MWC 2011, smartphones, Windows Phone 7

Companies: Google, Microsoft, nokia

People: Jo Harlow, Stephen Elop

Tags: Android, mobile world congress, MWC 2011, smartphones, Windows Phone 7

Companies: Google, Microsoft, nokia

People: Jo Harlow, Stephen Elop

Devindra Hardawar is VentureBeat's lead mobile writer and East Coast correspondent. He studied philosophy at Amherst College, worked in IT support for several years, and has been writing about technology since 2004. He now lives in Brooklyn, New York. You can reach him at devindra@venturebeat.com (all story pitches should also be sent to tips@venturebeat.com), and on Twitter at @Devindra.

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