Microsoft and Nokia, why they win, do they lose

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Hours after his release the news began to run like wildfire. Hundreds of media around the world, specialized or not, echoed one of the biggest events of this 2013 in technology: Microsoft buying Nokia and its CEO Stephen Elop back part of the U.S. company, where he worked for two years in the business division.



It was not until the first quarter comes to buying becomes effective. For this, the Redmond company has paid the amount of 5,440 million euros, one third to clinch the Finnish patents and the rest to buy its devices and services division, which for two and a half makes phones Lumia with Microsoft’s operating system.

” It is a bold step into the future and something very positive for employees, shareholders and customers of both companies. Joining these teams accelerate profits and market share of our business and strengthen our chances and those of our partners, ” wrote Steve Ballmer , who just days ago announced his retirement as president of Microsoft.

Microsoft not only acquire the division of Nokia mobile phone, also will stay with some 32,000 employees of the Finnish company, including about 4,700 who work in the Nordic country and 18,300 whose job is to manufacture, assemble and package the devices throughout the enterprise the world.

What’s in Microsoft with the purchase, which loses?

Microsoft and Nokia, why they win, do they lose

Far from thinking if you have done right or wrong, the fact is that the company has won some important things with this purchase. One of them is the Finnish patents. A 10 000 registered patents that Nokia has become the property directly from Microsoft. On the other hand, could create opportunities for Microsoft in emerging markets like India, where many people still do not change their basic phones for smartphones.

Microsoft could market the Lumia brand with great force in these markets so that Nokia phones can compete better against rivals Samsung and other manufacturers. Another thing that wins Microsoft’s Stephen Elop, who for many could be the new CEO when Ballmer leaves office.

Among the assets acquired by Microsoft is now the ability to further develop Lumia phones , which recalls in its announcement the company, have won several awards since its release and which had sold seven million units in the second quarter of 2013. But also acquires other models manufactured by the Finnish company, which sold about 53 million phones in the second quarter of this year and offers its services to hundreds of millions of customers worldwide.

Today Microsoft earns less than $ 10 per phone for Nokia sold. Thanks to the agreement, the software giant will now get about $ 40 per terminal. Added to this is thanks to unification achieved Microsoft says save $ 600 million in the next year.

And so far, the only thing lost is 5,440 million euros , which in the future may have been the best investment for the company.

Mentioned that in a nod to the nationality of many of its new employees, Microsoft built in Finland revealed that a new data center that will service customers throughout Europe. A project for now invest about $ 250 million: about 200 million euros at current exchange rates.

Other big losers

Microsoft and Nokia, why they win, do they lose

The truth is that with this purchase other industry greats also lose. The acquisition can be stated as a domino effect, of course, makes ends an era and begin a new one with a new direction. One of the giants who stand to lose a lot with this purchase, but in the long term, it is Samsung . With manufacturing and system, Windows Phone, Microsoft becomes a more powerful player Samsung, you know it has to rely on Google for their handsets have a gap in the market. Maybe one of South Korea’s strategies is give priority to Tizen , their own OS, that is something that time will tell.

Otherwise, and if the move goes well for Microsoft , Apple may also lose a lot. On the other hand, and not from the point of view of business, if not continent, Europe is the most will lose. Nokia was a European symbol. The phones were launched first in the old continent, leaving a little outside theAmerican expansion . Now, with Microsoft as the owner of the mobile division, see c omo sweeps for your home and, again, we’ll stay in the background.

Since then, the nostalgic sorely missed the highlights of Nokia , those days of 3310, or the N80, maybe not so much the Lumia, because, in a way, Nokia and Microsoft was a little. The only thing that comforts is think about what you plan to Microsoft, which scenario will be that we will go from now envisioning and if may make history thanks to Nokia.

He have started blogging on Technology and computer at his college time in 2005 and worked with many reputed organization in India. He wrote many guest post for Technology magazine and newspapers worldwide. His writing and passion about Technology make him different from other writers in the global market. He love to write the review and thoughts on any new Technology and invention in current happenings.

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