5 Reasons behind the Microsoft-Nokia Deal
- Apple has shown that to give the best phone experience, it is necessary to bring hardware and software together. Google bought Motorola and Samsung is adding a lot of customization to Android. In the next few years, we will see a fierce competition among vertically integrated players. In that game, Microsoft needs a hardware player.
- Microsoft badly needs a new CEO and Nokia’s Elop (who has already worked for Microsoft) could fit the bill.
- Nokia’s patent portfolio is reasonably strong and will help Microsoft Entertainment & Devices org significantly.
- Microsoft has billions of cash sitting around and is desperate for a strategy that would give it an edge in the phone & tablets business. Nokia might provide the starting point.
- Nokia is the biggest customer for Windows Phone operating systems. Nokia has been shaky for a long time and Microsoft wants to keep its platform float.
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