What does the deal for the mobile phone market?
– In the short term, not so much. The mobile market is usually divided into two segments: traditional mobiles and smartphones. The market for smartphones growing by far the fastest and which dominates today Samsung and Apple as the two major manufacturers. If you look at the system used in smart phones, it is also two players who control almost the entire market, Apple with its iOS which is only used in the company’s products and Google with its Android. Android is used by a variety of manufacturers, including Samsung.
Microsoft has for years tried to enter this market without success. When the company came up with its new system Windows Phone launched to a large investment. Shortly thereafter, in early 2011, Microsoft also began working closely with Nokia.
Nokia had then rapidly lost ground in the market for smartphones and decided as a last resort to bet entirely on Microsoft’s new system. The initiative has so far not given any further dividend for the second quarter was the Windows Phone only for about 3 percent of all smartphones sold.
This distribution will in the short term hardly be affected at all by that Microsoft will take over Nokia mobiles. In the longer term, it is a more open question what happens. Microsoft will now have a greater ability to link mobile phones with the software inside them. At the same time, it also means that Microsoft may find it harder to convince other manufacturers that use Windows Phone.
length is the only thing that determines how it goes: how consumers perceive Microsoft’s upcoming Nokia Mobiles. So far, they have proved very indifferent even though Windows Phone system is at least as good as the two great systems, Android and iOS.
Is this a logical / good purchase by Microsoft?
– Logically, it is enough, but if it goes well, we learn not to know than a few years. Through the acquisition, Microsoft said that much greater opportunity to connect their own software with their own mobile phones and tablet computers. In this way one can possibly create more attractive mobiles.
But one can also conclude that Microsoft recently began making its own computers / computer tiles in the house and they are now sold under the name Surface. The sales have so far been a major disappointment for Microsoft, but with Nokia’s knowledge of how to manufacture hardware and markets it might be better opportunities ahead.
Why buy Microsoft Nokia now?
– It’s actually not long ago it was rumored that a purchase was going on, but then it did not seem to be slightly off. Apparently still continued negotiations and was possibly so that both Nokia and Microsoft realized that they have to do something drastic to not completely get rid of the stray in the market for smartphones and tablet computers. The previous strategy of close cooperation between the companies lasted’s not meant to give them a good position.
Will Microsoft be able to threaten the Samsung / Apple etc?
– The threat from the Microsoft / Nokia to Samsung, Apple and Google are in this area almost non-existent right now. The real challenge comes rather from Chinese manufacturers who quickly turn down the market by manufacturing smart phones that are sold at a low price right and which in any case is good enough for many. Now usually oscillate very rapidly in the mobile market and Microsoft’s mobile efforts can absolutely be a success, but then they need to be doing something radically new in comparison to today.
How does it affect Nokia in Finland?
– You could say that the purchase is only a confirmation of what we have already seen, that Nokia is getting smaller and smaller and smaller Finnish. Now get the handsets American, although nearly 5,000 people in Finland will continue to work with Microsoft’s mobiles. But they will be entirely controlled from Seattle on the U.S. west coast, where Microsoft is headquartered. The really dramatic’ve actually already happened when Nokia for several years had to lay off thousands of employees when the company quickly lost market share.
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