Several months ago, market leader Symbian and Microsoft both announced plans to create cheaper smartphones using single core rather than more expensive dual-core architectures. Today, the software giant unveiled a partnership to allow Windows Mobile to work with Qualcomm chipsets – the Mobile Station Modem (MSM) series - with a similar goal in mind. Unlike Microsoft's earlier Texas Instruments announcement, MSMs are of a dual core design, integrating an ARM11 applications processor and a ARM9 modem processor.

The companies said the partnership would enable manufacturers to develop more affordable Microsoft-based handsets, while shortening development times and speeding time to market because they’ve fully integrated and tested Windows Mobile with the MSM chipsets, and removed some custom development work that would otherwise have bee required on the part of smartphone vendors.

Qualcomm invented CDMA technology, is the dominant CDMA chip supplier and licensees the technology used in W-CDMA 3G handsets (UMTS/HSDPA). The deal gives Microsoft an in with this influential company when courting major handset vendors. "Microsoft needs access (in wireless) and Qualcomm provides access," owner of Denver hedge fund Independence Capital Partners Jim Hillary said to Reuters

The MSM chipsets support EV-DO (also a CDMA technology) and UMTS cellular broadband technology, hardware-accelerated multimedia, multi-megapixel cameras, 3-D graphics and Assisted-GPS engines.

"Our customers will be able to more quickly design cost-effective and innovative devices that harness the power of our Convergence Platform dual-processor solutions," said Qualcomm CDMA Technologies president Dr. Sanjay K. Jha.

This agreement should also provide end-users with extended battery life, while bringing "a familiar software experience to the next generation of smaller, lighter phones with more appealing form factors," according to Dr. Jha.

Cheaper smartphones are holy grails to carriers looking to increase average revenue per user. Handsets with advanced operating systems have proven higher earners because they encourage subscribers to use content and data services- watch TV, snap pictures, send messages, stream music, etc.-more so than traditional feature phones.

Microsoft senior VP of mobile & embedded device communications business Pieter Knook said in statement, "We know that mobile operators are eager to attract and retain subscribers with an affordable portfolio of Windows Mobile-powered devices. More and more of their customers want capabilities such as mobile e-mail and Office productivity programs in a familiar and easy-to-use software experience."

"QUALCOMM's innovative hardware platform coupled with our versatile software experience does just that. It helps device-makers and mobile operators sell a broader range of mobile devices that generate increased revenue," he asserted.

Qualcomm expects to start offering Windows Mobile support by the second half of the year, with Microsoft-based handsets leveraging its MSM chipsets due to actually ship sometime in 2007.

In-Stat reported in January that 31.5 million smartphones sold last year, up from 18 million the year before. By 2009, it says that number will increase to 115 million. 825 million mobile phones shipped in 2005, according to IDC. And many analysts predict 2009 will be the year we see one billion handsets ship.