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Here is Why Microsoft’s Buying Nokia

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Here is Why Microsoft’s Buying Nokia

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Microsoft and Nokia have been strategic partners for the manufacture of Windows Phone devices for  a couple of years. Microsoft helped the company bail out of its financial woes when Nokia took 1 Billion USD to exclusively manufacture Windows Phone devices and drop plans to make devices on Android, Symbian and Meego. Microsoft’s acquisition of Nokia comes in after the successful transition of Motorola into Google, for the company may be a proud owner of a high tech manufacturing brand. Such an acquisition will enable Microsoft to manufacture devices as per their own set norms and create benchmarks for other partners. Along with the hardware and services Microsoft will also become the owner of a wide array of patents and licenses that Nokia owns, one of which earns US $ 1 for every iPhone sold.

nokia

Microsoft puts it out there, the company claims that buying a manufacturer like Nokia will enable Microsoft to deliver a

 “first-rate Microsoft phone experience for users”.

 

Microsoft has been trying to be a hardware manufacturer in the past few years, as it attempted with the “bust” Windows RT and 8 based Surface Tablets, the Acquisition of Nokia could lead to new Hardware under the Microsoft name in the mobility segment. What the future of the once world leader in Mobile telephone will be post the acquisition is unknown, but we hope that this does not pan out similar to the HP – Palm acquisition, which ended the life of a very innovative company.

Microsoft could easily be blamed for this acquisition as well, 3 years ago Nokia was valued at well over US $ 25 Billion, Microsoft’s so called “Strategic Partnership” basically ended the marketshare that Nokia had enjoyed in the good old days of Symbian and S40. Analysts claim, if Nokia had stuck to new operating systems like Meego and  relatively young Android ( at the time), the company would have prospered and would have been close to the likes of Samsung and Apple in number of movements. 

Today Nokia heavily depends on its feature-phone sales for its revenues, and in a global world where the 100$ smartphone is overtaking the 100$ feature phone, Nokia may have realized the limited lifecycle it had left. 

Microsoft is no stranger to takeovers, and with many a past companies under its sleeve, Nokia would be more of a trophy, just so the execs at Redmond can say “Hey, We manufacture our own phones! Just like Apple and Google.”

Microsoft really has an opportunity, with the vast array of designers and young minds at Nokia, years of experience and a complete team of experts in mobility, maybe the top brass at Microsoft will be more open to world changing ideas, than they were back at Nokia. Heck in 2006 a fully capacitive touchscreen phone was rejected within the Finland HQ at Nokia stating that the world was not ready for a full touch phone. In 2007 June, the iPhone was launched, Nokia couldn’t have been more wrong.

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About The Author
Bharat Nagpal
Founder and Chief Editor of iGyaan. Bharat likes to keep on top of technology ! Follow Him on Google Plus : Google+
10 comments
Sam
Sam

With this its the end of all speculations that nokia will accept android.

vinod kumar
vinod kumar

Microsoft acquired only "Nokia’s Mobile phone devices and services Industry" not the whole thing...igyaan! Nokia still has Networking industry....! so Try to review an article when you publish igyyan and Refer some websites like The verge and Engadget before publishing...!

sumit jangle
sumit jangle

if nokia was not making profit it should have accepted android... coz believe me nokia + android would be the deadliest combination... no i phone no samsung galaxy stuff could break it...

Keshav
Keshav

Didn't Nokia not have an agreement with Google? Which is why Microsoft took the opportunity and collaborate with Nokia?

Case
Case

Microsoft is awesome, first it killed Nokia markets by making sure it launches windows phones only and then when Nokia is almost dead, it buys Nokia..

S K
S K

Fancy title but NO substance in the article

vikky
vikky

Strategic move from microsoft but hardware has never been good for microsoft(zune, surface and others) except for xbox. whatever it is but its end of an era once great leader in mobile industry has fallen, good bye nokia. whatever microsoft does with it, it still never be nokia...