Things are not looking so good for the Finnish giant, Nokia. The company has been forced to ditch the operating system it was creating to compete with mid-level Android smartphone, in order to conserve cash. The OS, which was goes by the name Meltemi, is a Linux-based OS that was aimed at tackling Android at the mid-level smartphone scene. We are not certain if Nokia will revive this failed effort if and when the company gets back on its feet, but for now, it is a dead duck.

Scrapping Meltemi could be a huge problem for Nokia since phones priced at $100 to $200 are hot sellers in developing countries such as India and China. It seems Nokia's Windows Phone push could fill the gap with Windows Phone 7.5 at the mid level, with Windows Phone 8 taking care of the high-end level of the spectrum.

Some might say, why Nokia would even bother to waste time on Meltemi when the company has the successful Series 40 platform? Well, Series 40 lacks the features and applications that could have been offered by Meltemi. There is not a single Series 40 application that can compete with a similar app on a mid level Android device, and this is why Series 40 is not good enough.

"The important factor for Nokia is driving Windows Phones prices low enough to bridge the gap with the feature phones Asha range -- that should happen in 2013," Pete Cunningham, a Canalys analyst, told Reuters.

We have to agree with Cunningham on this one. Nokia's best bet at the moment is to not only focus on Windows Phone for the high end, but also for the mid level. Just as the company did away with Symbian, it must do the same with Series 40, and we expect this to happen rather sooner than later.

Maintaining a software platform cost millions of dollars, the very millions Nokia would like to save in order to keep itself from falling into bankruptcy. The company has been on a series of heavy quarterly losses ever since it bega its honeymoon with Microsoft. Hopefully with Windows Phone 8, the company can take itself out of the rut and back into the big times where profits flourished and where everyone wants to own a Nokia handset device.