The controversy over the future of Nokia is over. Microsoft today announced the purchase of Nokia's Hardware and Business Services division for 3.79 billion euros - $ 5 billion - as well as the patents owned by the company for 1.65 billion euros - $ 2.17 billion - bringing the total to 5.44 billion euros, and the acquisition is expected to take place in the first quarter. From next year after Nokia's shareholder approval. With this we can say, "Microsoft Welcome to the field."
Why Microsoft bought Nokia
Microsoft is seeking to support its presence in the world of mobile devices because it is the future, as sales of personal computers and laptops are constantly declining with the large spread of smart phones and tablets, and since Microsoft launched, sales of Windows iPhone devices increased from 4 million devices in the second quarter of 2012 to 7.4 million in the quarter. The second of 2013. Despite this rise, Microsoft's market share increased from 2.6% to 3.3%, outperforming Blackberry and becoming the third best-selling system. These figures, although not strong, but Nokia devices represent nearly 80% of Windows Phone sales. And recently, demands began for Nokia to issue devices running "Android" and that if it happened, this is the end of the Windows Phone, it was necessary for Microsoft to protect its system and buy the system.
Microsoft is in the playing field for the first time
The three giants, Apple, Microsoft and Google struggle together in all fields. The three have cloud services, mail, office, and even an operating system for computers and smart phones, and Apple has a division for the production of phones, which is the "iPhone" and Google has bought "Motorola" in order to have the phones sector and provided Moto X recently. Microsoft remains the only company to offer the operating system for phones and is at the mercy of the companies producing and distributing them. But this has become a thing of the past and Microsoft will now manufacture the operating system as well as the device itself. As we see in the iPhone, BlackBerry and Moto X. This is not easy, of course, as Google announced the purchase of Motorola in January 2011, but it produced the first common phone in August 2013, after two and a half years. So what will the company Bankia offer?
The future of the two companies
Now, as we mentioned, Microsoft is the controller from start to end in its system and phones. In order to be successful, it must take several steps, the most important of which are:
- The production of several categories and sizes of Windows Phone devices and a variety of prices. We see Android devices at a price less than $ 100, so Microsoft can rely on Nokia to target this category.
- It is necessary to provide more than one tablet of a variety of price and size as well, as Microsoft provides Surface, the price starts from $ 800 and, in some modifications, exceeds $ 1000, a number that is difficult for most users to pay.
- Nokia has a strong presence in developing markets and is very popular for several reasons. Microsoft can exploit this to spread its devices.
- Developing Nokia's research laboratories by taking advantage of Microsoft's huge material liquidity, as Nokia used to close factories and laboratories to save costs, but Microsoft is considered the second richest company in the technology world, so there are no financial problems after today.
Conclusion:
The deterioration of Nokia's performance led to a risk to the Windows Phone, so Microsoft had to protect its system by purchasing the largest company that sells its devices, and now it will work to manufacture Nokia devices designed by Microsoft, but this matter will take some time and we do not expect joint devices to appear before the end of 2014 or the beginning 2015.
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