N/APosted on - 03/13/2015
Hello! As we all know that Nokia now comes under Microsoft which means that they bought Nokia. My question is why exactly Microsoft bought Nokia? I mean Nokia was a very big mobile phone company, probably the biggest ever, then why would the owners be interested in selling it to another company? Why would Microsoft be interested in buying Nokia?
How did Microsoft bought Nokia?
The customer count is low for Nokia as compared to android mobiles like Samsung, Sony ,HTC and so on. Hence it was affecting the market selling of Nokia.
Also, Microsoft had a interest in buying Nokia for following reasons as
1. Microsoft need to keep its momentum in the market – Microsoft’s Windows Phone 8 posting its highest market share recently, but compared with android market share its tiny. However its a significant growth for them to be in a market competition.
2. Unifying hardware and software – This direct control means better integration of handsets with Windows Phone 8. Hence programmers don’t have to code their software to work on many different systems.
3. The Low End Theory – It’s a smart move for manufacturers is to produce low cost handsets.
4. The Halo effect – By building up Windows Phone though, Microsoft setting out a clearer path for the whole Windows ecosystem.
All of these factors put together I must say Microsoft’s acquisition of Nokia more than a ‘smart move’ – really, it was only move that made sense.