Despite LG's success in the feature phone market, one place it hasn't dipped its toe is the smartphone or business market. That may be about to change. LG has signed a new mobile technology deal with Microsoft.Many of LG's competitors already offer the full range of mobile phones from low-end, entry-level cheap-o handset to the ultra-mobile, productivity-enhancing smartphone. LG doesn't have a smartphone to call its own, and it is likely that LG is losing sales to competitors who do.

LG needs a smart platform. Sony Ericsson, Samsung, Motorola, HTC, Pantech, Glofiish, and others already have Windows Mobile. RIM has its BlackBerry OS, Nokia has Symbian S60, Apple has iPhone OS, and -- right now, anyway -- HTC also has Android. These are all able platforms that deliver a lot of functionality to handsets. Functionality that heretofore LG's devices are lacking.

In a move that could alter the smartphone landscape, Microsoft and LG announced a new "strategic collaboration in mobile technology."

According to a statement prepared by LG, "The agreement ensures continued strategic collaboration in R&D, marketing, applications, and services in the field of converged mobile devices."

Reading between the lines, I think it is safe to assume that this means LG is finally going to tackle the smartphone market with a Windows Mobile device. Neither LG nor Microsoft confirmed this, but there's really not much else to speculate about.