“The reshuffle underscores how quickly Google, which offers its software to phone makers for free, has raced to the top of the smartphone market ahead of Apple Inc's (AAPL.O) rapid ascension. Google and Apple have revolutionized the smartphone market, sending Nokia scrambling,” said a market analyst.

A report by the research company Canalys has revealed that in the fourth quarter, nearly 32.9 million Android-based phones have been sold, while only 31 million Symbian-equipped phones were sold, by phone manufacturers.

The X7 would have been the first phone, to be launched exclusively with an American carrier.

Cancellation bound to hit Nokia hard
The unexpected cancellation is bound to leave Nokia much behind its competitors, in tapping the huge potential of the American market.

Apple, BlackBerry and smartphones using Google’s Android OS, are already way ahead of Nokia in American market.

If Microsoft wants to boost its profit margin in smartphone market then they should acquire or team up with Nokia.

Declining market share
In software and hardware market, the two companies have made their mark, but sadly for both of these formidable players, Google, Apple and Samsung are eating their hard earned market share very fast.

Windows Phone's market share is around 2 percent now. If Microsoft wants to regain its market leadership back, they need Nokia’s expertise.

Acquiring Nokia a better choice