Microsoft has joined hands with Chinese company Amoi Electronics as the US software giant tries to penetrate the communications and consumer electronics markets in China alongside its traditional stronghold in computer operating systems.

The two firms signed an agreement in Beijing to form a strategic alliance.

Under the agreement, Amoi, based in Xiamen, will pre-install Microsoft Windows XP in all of its notebooks, the first Chinese computer maker to do so. Others install the software on a selective basis.

Amoi will also use Microsoft Windows CE and Pocket PC operating systems for smart phones on three of their mobile phones, and support Microsoft's WMV and WMA formats, two formats for audio and video files that are aiming to become the industry's de facto standard.

In the consumer electronics area, Amoi will make some LCD TV sets based on Microsoft's embedded WinCE operating systems.

"Amoi is one of the few partners of Microsoft in China, and it is strong in computing, communications and consumer electronics (3C), so this partnership is of high value to us," said Martin Wu, chief marketing officer of Microsoft China.

Microsoft has formed partnerships with almost all major computer makers in China in using its Windows operating systems, but in the mobile communications and household appliances areas, it only has a few partners.

In the handheld device business, including smart phones and the personal digital assistant (PDA), it mainly works with firms like Motorola, HP, Dell, and the domestic phone maker Dopod.

In the home entertainment business, it has joined hands with the Chinese TV giant Changhong and the online game big name Shanda Interactive Entertainment.

But its influences in communications and consumer electronics are quite weak and it needs a company strong in all three business lines. Amoi is an ideal partner with a strong market presence and brand image in high-end markets.

Source: China Daily