Deal Is Easy Part for Microsoft and Nokia
Microsoft Corp has signed a deal of acquiring Nokia Corp. at 7 billion dollars as it believes that it cannot bolster a mobile future by being the software giant in the market only. It is planning to achieve the dominant smartphone position which Apple and Google Inc. has achieved. Microsoft software in the mobile world ranks number 3 in the market with Google and Apple dominating 90 % of the market share.
Microsoft should create exotic mobile devices and coordinate the mutual function of its 100,000 employees with Nokia’s 32,000 employees worldwide. It should extensively invest in developing the latest apps and easy user mobile interface for the consumer demand industry. The CEO Mr.Balmer talks about Microsoft strong financial growth of 70 billion US dollars and with Nokia’s acquisitions it will carry 77 billion dollars in its cash stockpile. In his conference call Mr.Balmer aspires that the company should invest in hardware also rather than letting other companies design the hardware by itself being the software provider only.
Historically research mobile industry predicators and mobile critics have claimed that Microsoft is a place where mobile technology goes to death. Mr Balmer calls the Nokia deal a bold move based on its lowly defined position in the present market . The Nokia deal gathered some interest among the app developers and offering varied services in its windows smartphone. Microsoft faces low results after its surface tab was launched last year and it created a $ 900 million charge last quarter for its unsold surface inventory. Most of the other mobile smartphones providers have started thinking Microsoft as a mobile maker after the Tuesdays deal of signing Nokia deal. This is Microsoft’s second largest acquisition after Skype last year. Taking over Nokia was a fraction of the business revenue it generates annually.
Many investors have not welcomed the decision and believe it’s a big challenge for Microsoft to combat major competitors in the smartphone industry. Microsoft will be approaching companies to find their next CEO who will be having a major challenge in enacting the business growth and policies which will take a rise in the company shares and revenue in the mobile sector industry.