So far this year, two of the leading mobile phone makers have struck deals with tech giants to adapt to the change from feature phones to smartphones.
Nokia announced a partnership with Microsoft in February and said that all future Nokia smartphones will be powered by Windows Phone. There were even rumours that Microsoft might acquire the Finnish company.
In a surprise move, Google bought Motorola this month.
Looking at a chart of mobile vendors’ operating margins from Asymco, there are two other mobile phone companies who are suffering under the onslaught of the iPhone: LG and Sony-Ericsson.
The options for these companies include diversification to more platforms, trying to strike a deeper relationship with either Microsoft or Google, or getting out of the phone business entirely.
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