>>>>http://mashable.com/2011/05/16/dissecting-microsoft-nokia/
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>>>I don't think Microsoft would ever buy Nokia. Microsoft is a software company, not a hardware company. And this would alienate Microsoft's hardware partners. Yesterday the CEO of Nokia said this rumor was bogus, and it was also disclosed online that this story was solely based on something a blogger posted in Russia. Microsoft will have challenges with many hardware partners by giving Nokia special agreements to be able to modify Windows Phone firmware exclusive.
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>>That's interesting. Just a Russian blogger writes something and everyone read him... :)
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>>Yes, Microsoft works with many partners for WP7 but they work with Nokia a bit more closer. Nokia just care about WP7, not android. Other phone vendors work both android and WP7. Maybe, -if WP7 would be successfull- with Nokia, next stage would be buy Nokia?
>
>Apparently that Russian blogger had some previous rumor correct earlier this year, so the media jumped on his latest rumor prediction. The media today is open to report anything without much verification, because they care more about ratings and web hits than they do accurate stories and integrity. The owners of media sources are owned by corporations focused on profit at a higher priority than correct or objective news reporting.
>
>Nokia has stated they reserve their open options to use Android at any point, so there is no business contracts that prevent Nokia from creating Android or non-WinPhones at anytime in the future. I don't think Microsoft would ever buy Nokia, it's a hardware company and Microsoft is a software company, and the only way Microsoft can succeed in the phone and mobile world is to have many hardware partners, not just Nokia.

Microsoft is a high-volume hardware company - keyboards, mice, webcams, Xbox etc. but they're not an ultra-high volume hardware company like Nokia. I believe Nokia's unit volume is of the order of 500M/year, I don't think anything MS makes exceeds 1/10 of that.