When Microsoft executive Stephen Elop joined Nokia as CEO in September, speculation quickly arose that the move could eventually signal a stronger bond between the Redmond software giant and the Finnish mobile phone titan. Now, reports surfacing this morning indicate that the two companies are in talks to create new devices based on the Windows Phone 7 mobile operating system.

Nokia and its Symbian operating system have been losing market share to the iPhone and Google's Android in recent months. (Symbian accounted for 36 percent of the worldwide smartphone market in November, down from 44 percent for the same month last year). Windows Phone 7 has received positive reviews since its release about a month ago, but press reports indicate it may not be selling quite as strongly as Microsoft hoped.

The news is being met with mixed reaction this morning. GigaOm's Ryan Kim writes that it appears to be a desperate hook-up:

"It’s crazy to think that the world leader in smartphones still doesn’t have a credible answer yet to the iPhone, more than three years after the iPhone’s launch. My advice for Nokia would generally be to develop something in-house so it doesn’t become a commodity smartphone player and isn’t dependent on a third-party for its software."

Gizmodo notes that the timing of a Microsoft-Nokia partnership is a little odd given Nokia's commitment to the MeeGo open source mobile operating system. But they also give the concept a "tentative thumb's up."

According to the initial report, written by Russian blogger Eldar Murtazin, the new devices would carry the Nokia brand and be sold through the company's retail partners.

[Via Unwired's story: "Holy crap! Nokia is in talks with Microsoft about Windows Phone devices!?"]