Microsoft acquiring Nokia - Explained

Why Nokia??

The announcement of Microsoft acquiring Nokia may cause some eyebrow raising from the public - a company known for its software is entering the consumer device market. So why does Microsoft decide to buy Nokia at nearly 7 billion US dollars. The answer is simple: they have no choice but to do so. But why is it so? The answer comes down to Windows Phone OS for smartphone. Ever since the release of iPhone, technology has shifted its trend from PC to mobile phone and tablets. The top two contenders in mobile OS is iOS and Android with ## % market share respectively. Windows phone is the number 3 mobile platform and is playing catch up lagging far behind competitors. If it had not been for Nokia dissing its Symbian OS for Windows phone, Microsoft's Windows Phone would never hail the number 3 position in smartphone. In fact, Nokia dominates the Windows phone sale, capturing almost ##% of market share of windows phone sale.

The fear of Nokia jumping ship

Nokia is the undisputed king in the smartphone business in the world of windows phone, no doubt about it. As Nokia is relishing growth, what if Nokia has a plan B and partners with Android? This scenario would be a total catastrophe for windows phone, because without Nokia, Microsoft has to rely on HTC, Samsung and Huawei. But the prospect looks bleak, as Samsung almost spend nothing to market its Windows Ativ phone line. HTC and Huawei is not a strong OEM to compete with likes of iPhone, Samsung Galaxy or LG phone. Nokia is the only company that Microsoft can rely on to turn around its mobile platform. In other words, Nokia is the hope that gives them another shot to steal the market share of the big and keep Microsoft relevant in the coming year.

Nokia's people and infrastructure

- Supply chain

- Manufacturing facility

- Nokia brand value

- Nokia patents