Both Motorola [NYSE: MOT] and Microsoft [Nasdaq: MSFT] will laud each other ad infinitum concerning their cooperation in integrating Microsoft'sSmartphone 2002 platform into the handset Motorola launched Monday, the GSM/GPRS MPx200. However, each company also undoubtedly recognizes how important this launch is to its own fortunes. And there can be no doubt that it's no coincidence that Motorola's launch of a Microsoft-enabled product followed its exit from Microsoft's nemesis in the smartphone operating system space-Symbian.

The MPx200 launch shows that, for Motorola, there is smartphone life after Symbian. Motorola wasn't precluded from using other OS products by being a partner in Symbian, the joint venture with Ericsson [Nasdaq: ERICY], Matsushita [NYSE: MC], Nokia [NYSE: NOK], Psion [OTC: PSIOF] and Siemens [NYSE: SI]. However, it wasn't likely to lift the curtain on a smartphone equipped with a Microsoft OS until it jettisoned its Symbian stake. And for that matter, Bill Gates et al weren't likely to attach their Smartphone 2002 brand to a phone made by a Symbian member. For Microsoft, the MPx200 marks the debut of its Smartphone software in a major handset vendor's product. As well, the product gives fuel to Microsoft's business development agreement with AT&T Wireless Services [NYSE: AWE], which plans to begin distributing the MPx200 by the end of the year. The software giant and AT&T Wireless last year committed to joint efforts to convince mobile device vendors to use Microsoft software and to selling mobile data access and location-based services in the carrier's subscriber base.