Microsoft partnership with Nokia struggles to attract apps

Microsoft’s $7.2 billion worth team up with Nokia Oyj handset business is failing to win over the software developers who are extremely important to its success.

Interviews among more than a dozen developers show that the odds remain stacked against Microsoft. Developers pointed out that while Nokia’s handset business gives Microsoft a ready pipeline of Windows Phone devices, it isnt enough to overcome a lack of users, or the cost and confusion related to the technical specifications of writing for the company’s phone and tablet devices.

When a developer chooses a platform it comes down to where he can make money. As of right now and that’s not with Microsoft, said one trusted experienced developer. He emphasized on the market share of handsets reflecting the attractiveness of the platform.

Microsoft, currently has more than 175,000 applications for Windows Phone, compared with more than 900,000 for Apple iOS and more than 1 million for Google Android. Even supporting around 5 times less apps than competitors, they typically come to its platform later than for rivals.

The lack of apps has caused significant losses to Microsoft’s smartphone market share. The company had 3.7% of the global smartphone market in the second quarter, compared with 79% for Android and 13% for Apple, according to IDC.

Microsoft executives said they are well aware of the shortcomings and said that adding Nokia will help. Joe Belfiore, vice president and manager for Windows Phone, said owning Nokia will speed creation of handsets with its software and result in a more cohesive marketing strategy. He said that the takeover will also let Microsoft utilize Nokia’s sales team to educate more people about Windows Phone, especially the staff at retail outlets where people buy their devices.

Microsoft also continues to research the cost of building apps for Windows Phone by paying for development and marketing. An example is Pandora Media Inc. music-streaming service, which debuted this year. Microsoft built the application and keeps the software updated. Facebook Inc. Windows Phone app, which came out in 2010, also was made by Microsoft.

Many developers are still betting on Microsoft to succeed in adding another viable outlet for their apps outside of Apple and Google.

“It would be great to have a third horse in the race,” said to Bloomberg, John Hayase, chief product officer for music service Slacker Inc. “If we see a third major mobile platform emerge, that would compel us to change organizationally how we do things.”

Facilitating the process for developers to create an app for Microsoft as cutting costs would be one way for the company to improve app experience.

The current consensus among 38 polled by CNN Money investment analysts is to hold stock in Microsoft Corp. This rating has held steady since September, when it was unchanged from a hold rating.