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Microsoft’s takeover of Nokia’s device and services came to the press this week and was met with two thumbs up by the US department of Justice and the European Union.
Microsoft, who has been regarded as inferior to competitors Apple and Samsung in the mobile market, is looking to reverse this perception by merging with Nokia’s line of smartphones. With the Windows Phone 8 operating system, increasing improvement and growth of their app store and Office 2013 software, the future for Microsoft-Nokia smartphones looks bright.
In fact, the recently released Nokia Lumia has sold over 8.8 million units so far, which is even better news for Microsoft. Nokia was once a front-runner in the mobile world, but until the Lumia (which runs the Microsoft software); their sales were down 27% when compared to last year.
The deal was anticipated to take place in the first three months of 2014, but the move was announced this week, much to the delight of Microsoft.
Microsoft Chief Executive, Steve Ballmer, described the deal as a big, bold step forward. He also said, “Microsoft is a company that was once only known for its software and PCs, but is progressively becoming a company focused on devices and services.”
It’s true; we all know Microsoft for its impressive software and tablets, but there is a lot of potential in the mobile market for a company the size of Microsoft (and Nokia) to compete with the likes of Samsung and Apple.
The deal, that may sound very prosperous for Microsoft, has come at a cost though. It is thought to be in the region of £4.6bn and will include around 32,000 employees transferring to Microsoft from Nokia. The takeover deal has also included a 10-year licensing arrangement with Nokia, so the Nokia brand can remain on current mobile phone products.
This is no doubt an exciting time for Microsoft and it could be an extremely exciting one for us as the consumer too.
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