Nokia is expected to show the fruit of its partnership with Windows later this week by showcasing three new smartphones running on the Windows 7 OS.

The first Nokia Windows Phone will be launched at the Nokia World Event on October 26 and 27 to be held in London. According to Andy Lees, president of Microsoft's Windows Phone division, Nokia will announce more than one device giving credence to rumors that there will be more than one Nokia Windows Phone revealed at the event. Lees also said at the AllThingsDigital Asia D conference that the new smartphones will "have differentiating hardware and software".

Reports have surfaced about the three Nokia Windows based smartphones. One of the three phones called the SeaRay is rumored to have an 8 Megapixel camera, a 3.7 inch screen and will have SkyDrive integration and Internet Explorer 9. Another phone called the Ace will come with a slide screen . Finally the Mango powered Sabre will have a 3.5 inch screen and physical navigation buttons.

The Nokia and Microsoft partnership is supposed to create a formidable third smartphone player against industry leaders Google and Apple. Nokia in particular has a lot riding on the success of its partnership with Microsoft. The struggling Finnish company has dropped its own Symbian OS in favor of Windows Phone. Since the partnership was finalized in February, Nokia had to step back as its engineers worked on transferring Windows software to its hardware. In the meantime, Apple, Samsung and other Android phones stepped up to take over the lead in the smartphone market.

The delay had been detrimental to the largest mobile phone manufacturer. Operators cut their stocks of Nokia's Symbian devices, hurting Nokia's biggest earner. And to top it off, Nokia's share of the global smartphone market fell to 15.5 percent in September. The company reported a 68 million euro loss in the third quarter. If it wants to reclaim the leadership position, Nokia must succeed at the top and middle ends of the smartphone market where the biggest revenues and profits lie.

Success for Microsoft and Nokia will also bode well for consumers. Mobile network operators can demand lower prices from Apple and Android phones if Nokia and Microsoft phones sell well.