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Microsoft’s strategic thinking in its acquisition of Nokia Devices & Services

0. phoneArena 03 Sep 2013, 01:24 posted on

Microsoft published a 30 page PowerPoint presentation outlining the details of the deal which, assuming...

This is a discussion for a news. To read the whole news, click here

posted on 03 Sep 2013, 01:32 2

1. Commentator (Posts: 3709; Member since: 16 Aug 2011)


15% market-share by 2017. That seems almost too conservative. Granted, they obviously know what they're doing... But they're apparently content to stay in third for quite a while.

posted on 03 Sep 2013, 01:40 4

3. a_merryman (Posts: 749; Member since: 14 Dec 2011)


Considering the potential growth the smartphone market still has in the developing world and even parts of the developed world...a 15% marketshare can still = huge profits. According to them $45 billion. I think windows phone ending up as a strong third contender is inevitable and is a good thing for the market. It will be hard to pass Android's market-share due to the nature of android, but it might be possible for them to capture more of the global market than Apple (unless the 5C does as well as Apple is hoping it will in the developing markets).

posted on 03 Sep 2013, 01:46 1

5. Commentator (Posts: 3709; Member since: 16 Aug 2011)


Without a doubt, and they're definitely acknowledging Android's (Samsung in particular) ability to cater to developing nations with entry-level devices, but that's also where Nokia has traditionally thrived. I'm not going to argue their results because obviously they came to that conclusion through thousands of hours of research and analysis, but it certainly says a lot about their views on the market landscape going forward.

As for the 5C, I really doubt Apple is aiming for developing markets, especially at the prices it's rumored for. Developing markets has never really been part of their game plan, they're a premium manufacturer. The 5C looks more like a colorful, fun, slightly "less-premium" device aimed at first-time users and the like. The way Apple works though, there's no way the average consumer in a developing nation would be able to afford a 5C.

posted on 03 Sep 2013, 14:32

51. a_merryman (Posts: 749; Member since: 14 Dec 2011)


I dont think Apple would be aiming for the average consumer in those countries. I think they are trying to aim for the new upper middle classes over in those countries who now have enough disposable income for a mid-range smartphone but maybe not for the flagships yet. While also trying to keep their margins.

And yes, it looks like Microsoft and Nokia are finally turning their ships around. Though to be fair, Microsoft still rakes in money hand over fist.

posted on 03 Sep 2013, 01:35 16

2. lallolu (Posts: 492; Member since: 18 Sep 2012)


This is why Nokia could not make an android phone even though they knew it would be good for business. As many people foresaw, this was Elop's plan from the beginning.

posted on 03 Sep 2013, 09:13 1

47. akki20892 (Posts: 3901; Member since: 04 Feb 2013)


Absolutely true said dude agree...... we will see Nokia Android, bring it on Nokia show them who you are.

posted on 03 Sep 2013, 01:44 7

4. kaliil10 (Posts: 145; Member since: 16 May 2012)


i knew that Stephen Elop will bring Nokia to Microsoft lol. anyways i love Nokia wherever its.

posted on 03 Sep 2013, 01:50 4

6. alterecho (Posts: 1098; Member since: 23 Feb 2012)


Man this is really hard to swallow. Will the actual design team remain unchanged? Are they going to replace the Nokia branding?? I really, really hate MS now. I bought a Lumia 820 recently for Nokia's hardware and brand. My favourite company.

posted on 03 Sep 2013, 02:01 8

10. Commentator (Posts: 3709; Member since: 16 Aug 2011)


Don't worry, they're keeping the Nokia branding and designs. Why else would MS have bought them?

posted on 03 Sep 2013, 03:15 7

19. alterecho (Posts: 1098; Member since: 23 Feb 2012)


The problem is, Microsoft has a knack of ruining things. They ruined Windows and XBOX brands. And its incompetence is seen in the way they handled WP7 and their laziness is shown in their pace of rolling out some simple features for WP. Microsoft is a company living in the shadow (money) of its former self.

With Nokia being bought, i feel betrayed.

posted on 03 Sep 2013, 06:26 4

35. cdgoin (Posts: 539; Member since: 28 Jul 2010)


Ruined Xbox..? They made Xbox, and came in and took the gaming world from Nintendo and Sega and beat them up with it. Only true competition is Sony and to a small extent Google. And WIndows is only the top operating system in the world, by a factor of 90 to 1.. ?

posted on 03 Sep 2013, 07:38

43. alterecho (Posts: 1098; Member since: 23 Feb 2012)


As i said, its living under the shadow of its former self.
Also, it wasn't MS that took the gaming world from Sega and Nintendo. It was Sony. The 360, XP and
windows 7 were the ONLY good producs from MS.

posted on 03 Sep 2013, 12:28

49. zennacko (Posts: 237; Member since: 16 Jun 2013)


Not Microsoft, Steve Ballmer did. Now that he won't be the CEO from 2015 on, things will be better, I think (I hope Gates come back, but if he doesn't, I hope he puts someone better in charge, a person with the same mindset as Steve Wozniak maybe?)

posted on 03 Sep 2013, 05:00

28. tedkord (Posts: 12249; Member since: 17 Jun 2009)


Let's hope that the minds that brought us the Kin1 and Kin2 are put in charge!

posted on 03 Sep 2013, 12:29

50. zennacko (Posts: 237; Member since: 16 Jun 2013)


A Zune HD-like phone would rock the market, especially when it's done with nokia's expertise in mobile

posted on 03 Sep 2013, 01:50 6

7. kaira (Posts: 26; Member since: 12 May 2013)


Watch out, NOKIA will rule again (or get the 2nd spot) since the won't be (any) two-centres of power... Give them TWO years from now... Microsoft will be fully behind Nokia everystep of the way from now on... Watch the space!

posted on 03 Sep 2013, 01:51 2

8. veer.d (Posts: 88; Member since: 12 Jul 2013)


why nokia accepting this.They can even succeed with Android

posted on 03 Sep 2013, 01:56 5

9. Timmehor (Posts: 599; Member since: 09 Mar 2013)


Nokia are doing this for their own Financial good, you won't see Nokia struggling any more with Money under Microsoft, this is one of the pro's of the buy out. But one of the negative will be if Microsoft go overboard and we lose the Nokia touch, the touch we all love, and WANT TO KEEP!

posted on 03 Sep 2013, 02:03 5

11. Shatter (Posts: 2036; Member since: 29 May 2013)


After seeing what they did with the xbox one and windows 8 Nokia is done for.

posted on 03 Sep 2013, 02:06 3

12. Commentator (Posts: 3709; Member since: 16 Aug 2011)


Yeah, that's obviously the reasonable way to look at it...

posted on 03 Sep 2013, 02:39 4

13. microsoftnokiawin (Posts: 1178; Member since: 30 Mar 2012)


Microsoft's gaining way more out of this then they payed eugh next step sailfish for me

posted on 03 Sep 2013, 03:00 3

17. AhmadAlsayegh (Posts: 293; Member since: 18 Jul 2011)


I have placed an email notification for when Jolla is back on stock so I can order mine...

posted on 03 Sep 2013, 03:15 2

18. Timmehor (Posts: 599; Member since: 09 Mar 2013)


Mhmmmm, this was planned and Nokia did a bad job at preventing this acquisition.

posted on 03 Sep 2013, 03:26

20. volcano (Posts: 348; Member since: 25 Jan 2013)


your next phone should also be lumia since they joined together as one team for design developing creating apps

posted on 03 Sep 2013, 04:29 4

27. AhmadAlsayegh (Posts: 293; Member since: 18 Jul 2011)


dude, most people love Nokia because it is Nokia, not for Microsoft, and I for one, love both products as two different companies not one

posted on 03 Sep 2013, 06:21

33. Timmehor (Posts: 599; Member since: 09 Mar 2013)


I love Nokia for Microsoft! Well, kinda, I liked the great Nokia touch it put on Windows Phone! I am thinking about Jolla, but that is years to come, when their Sailfish OS is older and better.

posted on 03 Sep 2013, 06:28 1

37. cdgoin (Posts: 539; Member since: 28 Jul 2010)


Look at the Surface.. its so well built its amazing. I don't think there is anything to worry about with MS trying to cheapen the product. I do believe they will replace series 40 with WP on lower end phones. But thats a good thing.

posted on 03 Sep 2013, 02:46 6

14. AhmadAlsayegh (Posts: 293; Member since: 18 Jul 2011)


This acquisition based on massive market research and studies, I can't say i know more than Microsoft or Nokia, probably both did their homework...but this news utterly broke my heart...what happened to Nokia who started as a lumber mill, then a rubber and cable company...when they founded the electronics department, they were running in loss for 15 years! and yet, they managed to come out of it...seriously, I thought Nokia could do way better than thinking of this fast cash, Elop just buried 150 years of history, I bit Finnish people won't be happy with this decision

posted on 03 Sep 2013, 03:26

21. alterecho (Posts: 1098; Member since: 23 Feb 2012)


I share your pain.

posted on 03 Sep 2013, 09:11 1

46. Pdubb (Posts: 248; Member since: 08 Aug 2011)


Wait did you read the article? Nokia only sold a portion. There will still be a Nokia. Also MS can only use the Nokia brand for feature phones for 10 years. That would mean after that Nokia could use it or license it or whatever they wanted.

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