Microsoft and Nokia

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Technofreak

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Topic # 89498 3-Sep-2011 14:21

Interesting article here.

http://cio.co.nz/cio.nsf/news/693FEC6981494C39CC2578F80006106F

The writer seems to me to take an objective look at the question of, Should Microsoft do what Google has done with Motorola and buy Nokia?

There is an interesting coverage of the pro and cons with the conclusion that not buying and sticking with the status quo makes the most sense. In other words to continue with the current arrangement leveraging off each others strengths.

I tend to agree plus I can think of other reasons as well. The main one being that I think there are major "cultural" differences between the two companies due to where they are domiciled and their different heritages. I don't see it as a good mix for either company to be owned by the other.

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billgates

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Reply # 516186 3-Sep-2011 16:48

I don't think it will be a wise decision now to buy Nokia from Microsoft's part. Let's wait and see how much negative impact Motorola's acquisition has on Google after the deal is approved by the regulators. No doubt that every handset Motorola will sell is a loss for Android OEM's. Nokia is going to deliver and I am so sure because it's do or die for them. Their main priority is only WP7 but for existing WP7 OEM's, it's Android. No doubt that Nokia will also most likely jump on the Windows 8 bandwagon with few tablet and slate's offering as well. Besides, Microsoft likes to work with partners and will make more money selling licenses to various OEM's than do their own thing.

What I would like to see Microsoft do is get one of the OEM's to create a WP7 handset made to MS own specification much like Google makes the Nexus.

Do whatever you want to do man.

Technofreak

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Reply # 516191 3-Sep-2011 17:16

billgates: What I would like to see Microsoft do is get one of the OEM's to create a WP7 handset made to MS own specification much like Google makes the Nexus.

One might think that Nokia would be the most likely choice for this considering their current CEO's background.

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oxnsox

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Reply # 516197 3-Sep-2011 17:37

The largest smartphone markets in the world right now maybe in America & Europe but the growth is in Asia (particularly China & India) which will be followed in time by African nations. Nokia is a known brand in these markets.

On a similar note the Korean handset manufacturers know this as well and I doubt they really have the same concerns over OS platforms. Their business models seem based upon gaining market share and building Brand loyalty by being able to offer multiple OS platforms from a single source. They're good at meeting and pushing demand in short product life cycles.

In some markets, and NZ is probably a good example, there are key Telcos (VF here) who have more purchasing clout than the others. They're able to leverage that into product and Brand exclusivity. However where a manufacturer has a broad handset range and broad OS base it is a lot harder for a single Telco to be able to make the necessary commitments and the advantage goes back to the manufacturer. Just on that basis I feel that WP7 won't be ignored by other manufacturers.

Microsoft doesn't need to to own a mobile hardware channel, they don't understand it. They have to commit to support the channels that are already there by allowing manufacturer input to dictate some OS functionality based upon what users want in the hardware. Perhaps the best way to do that is to seed the market with really low cost units which will push demand for an improved applications market.

The mobile app. market space is where Microsoft need to be into the future, and they should be able to scale off their current platforms to get there in all sorts of places. It's an easier ask for them now with current handset processor and graphics performance than it has ever been. And then there's the cloud.....

Microsoft don't need the burden of the handset user and lifecycle chain, they need to understand the mobile app space and delivery solutions.