Microsoft’s purchase of Nokia’s device and business services has got now serious and media coverage will increase over the next days as press and marketing departments are getting busy distributing press releases and publishing advertising space as seen today on the New York Times’ website.
It is now clear (more than ever) that Microsoft is under enormous pressure to reinvent itself in the mobile market arena and conquer what it achieved with personal computers few decades back. The deal is rumored to have reached $7.2 billion for Nokia’s phones and be a platform to introduce windows technology in the smartphone market which has been dominated by Apple, Samsung and Google.
Currently, the 3 biggest selling phones by operating system are (by market share): Google’s Android 451.6 million (66.4%), Apple’s iPhone 130.1 million (19.1%) and with this new deal Microsoft Windows Phone 16.9 million (2.5%).
While the sale of Nokia to Microsoft for $7.1 billion will help standardize the two companies’ software and hardware for smartphones, it could also give Microsoft an edge in recruiting customers who still buy the more basic feature phones from companies like Nokia.
For years, feature phone owners have been trading up, from Nokia’s phones to Android and iPhone smartphones. Now Microsoft could have better leverage to try to persuade those customers to stay within the Nokia family and buy a Windows phone rather than a competitor.
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