Some of Microsoft's latest acquisitions include Skype as well as the inclusion of a Windows Phone platform on nearly all advanced Nokia phones. This last acquisition amounted to approximately $ 1 billion. There have also been reports that Microsoft is similarly attempting to complete a deal to buy out the mobile business of Nokia for a whopping $30 billion.Some have regarded it as chitchat because of the colossal amount.
There is without doubt that acquiring Nokia offers many perils. The mobile phone market is extremely cut throat, and venturing into the game development industry could estrange Windows Mobile associates Samsung and HTC. That may mean the way forward for Microsoft mobile relying on the agreement. Entrenched by a culture that is slow to bring about modifications, which is below Microsoft standards, buying out Nokia can suppress Microsoft as the demands of the mobile market persist to intensify. One can recall that Microsoft has been through this in the past when it obtained Danger for $500 million. The deal saw the failure of Microsoft Kin phones.
The sales of Windows phones still seem to be slow, and although it might seem to be an enormous risk for Redmond, there are still several good reasons to think that the deal may be positive for Microsoft.
1. It makes it possible for the creation of a Skype phone. Skype exceeded 145 million users in a month lately while more than 5 million iPhone users had downloaded Mobile Skype. To relieve traffic, providers who once ignored calling via Wi-Fi have now started to uphold this technology.
2. Nokia continues creating brilliant hardware. Although Nokia is still creating excellent gadgets, it has fallen short in creating mobile services and software in the past years that can contend with the increased demands and the emergence of more competitive mobile phone businesses. Acquiring Nokia will allow Microsoft to be at an advantage as it combines the first-rate gadgets of Nokia with its own notable new operating system.
3. Ovi is a huge distribution channel for mobile content and services and under the existing agreement, Ovi services will be incorporated into the Windows 7 Phone. However, Nokia has plans of using the window to provide applications for all their smartphones. By acquiring Nokia, Microsoft will be able to manage Ovi Stores and get unconditional stewardship of the company.
Nonetheless, the past years have observed that Microsoft had no luck in the mobile phone industry and the deal with Nokia can finally put an end to its hope of being one of the key players in this industry. On the other hand, the takeover could pave the way for Microsoft to possess a healthy competition with Apple and Google in the superphone business. As steward of the software and hardware, Microsoft thinks that the deal will equip them in the rapidly increasing market for smartphones.
A great example is Apple. The company has a vertically integrated solution, where the controls of their products, hardware, and software and ecosystem application of its IOS are in their hands. Apple may not have the biggest market share by OS, however it made Apple a lucrative phone maker. With Windows 7 and Nokia, Microsoft will be able to do a similar thing. As one of the world's largest producers of mobile phones, Nokia can still create units that are extremely good-looking like the N8. It may not be a cheap deal; nevertheless, the buyout gives Microsoft an opportunity to go all around the globe for their marketing and advertising.
When taking into account the recent acquisition of Skype, applications and content ecosystem of Microsoft and the manufacturing chops of Nokia, Microsoft could offer a powerful array of smartphones that could get the awareness of both the upscale and downscale markets.
Furthermore, Microsoft will be able to manage its own future in the smartphone arena. Its capability to produce first-class products will determine its future.
Some of Microsoft's latest acquisitions include Skype and the inclusion of Windows Phone platform on nearly all advanced Nokia phones. This last purchase amounted to approximately $ 1 billion. There were also reports that Microsoft is similarly trying to make a deal to buy out the mobile business of Nokia for a whopping $30 billion. Some have regarded it as chitchat because of the huge amount of money.
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