Nokia (NYSE:NOK) Deal Will Accelerate Windows Phone 7 Growth Says Ballmer

Microsoft (NASDAQ:MSFT) CEO Steve Ballmer said the deal with Nokia (NYSE:NOK) do use Windows Phone 7 will accelerate the growth of the mobile platform, adding that the company is working on upgrading WP& quickly.

Some of the improvements will include better Web graphics, improved multitasking, integration with Twitter.

He sees the handsets supplied from Nokia will be "absolutely phenomenal."

Commenting on the partnership, Ballmer said at the Mobile World Congress fair in Barcelona, "We're off to a strong start. We know we have a lot of work to do. We have a lot of energy, optimism and a sense of tremendous opportunity.

"We're sure Nokia's going to deliver absolutely phenomenal Windows phones."

As far as now, Ballmer said Microsoft expected to offer new entries in the lower-end market this year, and in 2012, a "significant volume of Nokia Windows phones" will be launched.

Although playing catchup with major rivals Apple (NASDAQ:AAPL) and Google (NASDAQ:GOOG) in smartphones, the risky partnership does have a lot of upside potential over time.

Nokia closed Monday at $8.84, dropping $0.52, or 5.56 percent. Microsoft closed at $27.23, down $0.02, or 0.07 percent.