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Microsoft is about to become a bigger player in the smartphone market, possibly pushing its Surface tablets in a new direction with the purchase of Nokia’s device and services division.

The smartphone wars are heating up, and while Android and iOS are obviously the main players, Microsoft is still in there competing.

Right now, Nokia produces more Windows based devices than anyone else, and quite a few of them are really good. Microsoft knows this, which is probably why the big M had bought aspects of Nokia, including phones – like the Lumia smartphones – and other devices that may or may not be in development.

“It’s a bold step into the future – a win-win for employees, shareholders and consumers of both companies. Bringing these great teams together will accelerate Microsoft’s share and profits in phones, and strengthen the overall opportunities for both Microsoft and our partners across our entire family of devices and services,” said Microsoft’s CEO, Steve Ballmer.

“We are excited and honoured to be bringing Nokia’s incredible people, technologies and assets into our Microsoft family. Given our long partnership with Nokia and the many key Nokia leaders that are joining Microsoft, we anticipate a smooth transition and great execution.”

More information about the acquisition and partnership is expected this week, but it brings to mind the question of what Microsoft has in store for Nokia, and since it already has a Surface line of products, will we see Surface smartphones like it has been rumoured?

We guess time will tell.