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Microsoft bought Nokia Devices because it had to

by Neil Mawston | 9月 03, 2013

The US$7 billion acquisition of Nokia’s devices business by Microsoft marks the culmination of a period of painful transition for the former handset market leader, presided over by CEO Stephen Elop. When he left Microsoft to become the first non-Finn to run Nokia many wondered if he would eventually move back the way he came and so it proved.

For Nokia this marks an exit from the handset market it had so struggled with since the dawn of the modern smartphone era, as Symbian, MeeGo and Windows Phone all struggled against the might of Android and the Apple iPhone. For Microsoft this has the look of a forced defensive move, brought about by the threat of its main handset partner either defecting to Android, being acquired by another company, or going bust.

But as is so often the way with mergers and acquisitions, the deal itself does nothing to solve the problems facing both companies. The future of NokiaSoft will still depend on Windows Phone becoming seen not just an alternative, but an upgrade over Android and iOS, and Microsoft will have to spend a lot more money on development and marketing for that to happen.

The full report - Microsoft Buys Nokia Devices in Bid to Stay Relevant in the Post-PC World - is available to subscribers of our Wireless Devices Strategies (WDS) service here:

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