Nokia in Sync, Gets Jiggy

If you have any doubt that the pocket devices of the future will combine the features of phones, cameras, PDAs, and media players, you need look no further than some of Nokia's (NYSE: NOK  ) latest cross-industry deals to see the writing on the wall.

Last week, the firm signed an agreement to support Macromedia's (Nasdaq: MACR  ) Flash content on its series 60 smartphones. Eye-strained Web users who recognize that most of those multimedia banner ads are made with Flash may wonder whether this is something we really want to see on our phones, but keep in mind that Flash can provide less annoying, more lucrative content as well, from slide shows to mini-games.

A more interesting development is today's agreement with Microsoft (Nasdaq: MSFT  ) that will provide wireless access to Exchange Server email, calendars, and other business info. No big deal? Remember, this pair is fighting an operating system war for the handheld OS of the future. The biggest potential loser is palmOne (Nasdaq: PLMO  ) . As Tim Beyers mentioned in his recent article on the woes at palmOne, Nokia already has a huge advantage in market share for smartphones, shipping more than three times the number of units shipped by the No. 2's Treo line.

Today, Nokia met Mr. Softy out on the dance floor, getting jiggy with Redmond's media unit and little content-provider Loudeye (Nasdaq: LOUD  ) to roll out its previously announced mobile music download platform for network operators. The idea is that cell providers will be able to sell songs and ringtones, downloaded to either the phone or PC, and allow synchronization between the two via Microsoft Media Player.

The pact puts the trio on a collision course with Apple (Nasdaq: AAPL  ) and Motorola (NYSE: MOT  ) , who have a phone-and-tunes deal of their own. It's far too early to tell how this will all shake out, but investors in all these companies need to keep an eye on the trends. There's major money to be made for the team that can get things right.

For related Foolishness:

• PalmOne may be down, but is it out?
• Is palmOne getting smart?
• Is Nokia getting jiggy? Or is it iTunes all the way?

Seth Jayson would love to replace all his gadgets with a single, sweet device, but it's not here yet. At the time of publication, he held call options on Nokia, but had no position in any other firm mentioned. View his stock holdings and Fool profile here. Fool rules are here.