Microsoft has made an audacious move, which see them plunging in to buy the handset business of Finland's Nokia, which indicates an intention to compete with Google and Apple head-on as a devices and services business. Shares in Microsoft have slid down as much as 6 percent the past week, spiraling more than $15 billion off the market value of the company.
Microsoft CEO Steve Ballmer stated that by obtaining a strong foothold in smartphone and tablet devices is crucial for the future of the company. Microsoft has not fared too well in the mobile phone division. Last year, the company had begun selling their own Surface Tablets in an attempt to undercut Apple's iPad. The version of Surface running on a revamped version of Microsoft's Windows operating system did not fare well either which led to the company absorbing a $900 million charge in its last quarter to account for the downfall.
For Nokia, this means that the decades-long heritage as one of the world's leading mobile phone makers, which had been a source of huge pride in Finland is over.
Finnish based Nokia and Microsoft have been trying to make more inroads in the smartphone market as part of a partnership formed in 2011. This alliance has seen Nokia's Lumia smartphone devices running on Microsoft's Windows software, but those devices have not reached the mark as compared to the iPhone devices or the wide range of Android powered devices which are lead by Samsung’s smartphone devices and tablets.
This deal could also imply that BlackBerry's best chance of being acquired by Microsoft, is no longer an option. The Canadian handset maker has seen its revenues and handset sales decline, and this led to forming a committee to seek alternative solutions, including a sale.
The deal see’s Microsoft getting its hands on hundreds of top notch phone and device design experts. Nokia’s smartphones may not have seen a lot of sales, but they still possess one of the most cutting edge technologies in the market.
Microsoft CEO Steve Ballmer stated that by obtaining a strong foothold in smartphone and tablet devices is crucial for the future of the company. Microsoft has not fared too well in the mobile phone division. Last year, the company had begun selling their own Surface Tablets in an attempt to undercut Apple's iPad. The version of Surface running on a revamped version of Microsoft's Windows operating system did not fare well either which led to the company absorbing a $900 million charge in its last quarter to account for the downfall.
For Nokia, this means that the decades-long heritage as one of the world's leading mobile phone makers, which had been a source of huge pride in Finland is over.
Finnish based Nokia and Microsoft have been trying to make more inroads in the smartphone market as part of a partnership formed in 2011. This alliance has seen Nokia's Lumia smartphone devices running on Microsoft's Windows software, but those devices have not reached the mark as compared to the iPhone devices or the wide range of Android powered devices which are lead by Samsung’s smartphone devices and tablets.
This deal could also imply that BlackBerry's best chance of being acquired by Microsoft, is no longer an option. The Canadian handset maker has seen its revenues and handset sales decline, and this led to forming a committee to seek alternative solutions, including a sale.
The deal see’s Microsoft getting its hands on hundreds of top notch phone and device design experts. Nokia’s smartphones may not have seen a lot of sales, but they still possess one of the most cutting edge technologies in the market.