Microsoft, Google, Nokia, Samsung ... In a note to employees, the "Microsoft-Nokia" deal was "a bold step into the future", but given the cozy relationship between the two companies ... it certainly looks more like a leap of faith. Microsoft, the former Wall Street favorite, is making plans to aggressively expand its presence in the growing mobility market. How ? Through its proposed acquisition of the cell phone business Nokia Corporation. The deal that sees Microsoft buying the mobile unit, including the "Lumia" line running on a "Windows" platform, makes perfect sense for a company that is falling behind in the mobile race, and it does come with some benefits for both companies. (But this deal is not going to have enough impact to reverse the eroding fortunes of either !) For Nokia, the deal makes sense as the company probably realized it was going to be a tough upward battle against Apple, Samsung, and a host of other Chinese smartphone makers. Essentially, Nokia made a conscious decision to exit before it was lights out. Microsoft, unlike Nokia, has the financial clout to drive the Lumia Windows phone, but whether it can fare better is still debatable. The reality is that unless Microsoft comes out with a better smartphone than its rivals, it will likely be more of the same as it tries to expand its current three-percent market share. One of the biggest mistakes Microsoft and Nokia both made was to underestimate how Apple would disrupt the mobile phone market. That mistake was compounded when Google Inc. launched its free "Android" operating system in 2008. Besides, the days of great growth in the high end of this market are gone. (Daniel/Kevin)
Posted on: Sat, 07 Sep 2013 09:27:13 +0000
Trending Topics
Recently Viewed Topics
© 2015