Microsoft Acquires Nokia
In a £4.6bn deal, Microsoft has bought Nokia’s mobile phone business in a bid to break Apple and Google’s dominance over the smartphone business. Entering this area late with the Windows Phone in 2010, Microsoft has a lot to prove to come close to the current giants.
Speaking with the BBC, Microsoft chief executive, Steve Ballmer, said that the deal was “a big, bold step forward”. Recently announcing his retirement, Ballmer looks set to be replaced by Nokia’s current chief executive, Stephen Elop, or so the bookies think.
Before the launch of Apple’s iPhone in 2007, Nokia was the leader in mobile technology. Since this date, it has struggled to compete and has finally come to the decision that it does not have the resources to properly promote the Lumia smartphone.
Having spent the last two and a half years in partnership with each other – with Nokia helping to create and advance the Windows Phone – hopefully this new deal will be a smooth transition for the Finnish company.
When the news broke, the Telegraph reported that Nokia’s chairman, Risto Siilasmaa, said the move to leave the mobile phone business it had dominated for so many years was an “emotional” decision. However, in terms of strategy and financial sense it seems to be a sound move for the company.
Could this be the start of Microsoft’s climb to the smartphone throne? Only time will tell how this deal plays out, and whether securing the expertise and brand power of Nokia will pay off in the smartphone wars.