Just days after announcing its alliance with Microsoft, Nokia says it will be pushing down the price of smartphones.
The Finnish company is dropping its Symbian operating system and adopting the new Windows Phone 7 OS.
Nokia Chief Executive, Stephen Elop, says the talks between the two tech giants have centred on "reaching a very low price point" for devices, which are expected to be released in Q4 this year.
It's thought this means Microsoft will ease the strict hardware requirements it imposes before it will licence WP7 for a smartphone model.
It's also seen as a warning to Apple and Android that Nokia intends to fight hard to get a foothold back in the market.
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