Thursday, September 5, 2013

Microsoft buys Nokia's mobile business by 5,440 million euros



The U.S. software giant is the first company that was the world in the sale of these devices to compete in an increasingly integrated industry and expects to triple the market share of Windows Phone in 2018


In order to enhance the operating system Windows Phone and try to break the duopoly Android-iOS , the U.S. software giant Microsoft has anuncado Tuesday buying patents and business phones from the Finnish Nokia . For the operation, which will not close until the first quarter of the year, it will pay 5,440 million euros (7,200 million).Now; Nokia will focus on networking and services business.
The company, based in Seattle, will pay 3,790 million euros for the mobile manufacturing unit increasingly behind its competitors, and 1,650 million euros for the patent portfolio of Nokia, announced both in a statement . Although the agreement is focused on phone business in practice will total absorption Finnish company, one that the world's first company selling these devices, and that currently shooting in bag with a rise of 41 %.
There was a time in which everything about phone was Nokia.Fourteen years as a global leader says it all. Then came the touch phones. was there, as if by magic, the concept of mobile, practical and simple , changed. A dead king, king post. In April 2012, Samsung, the South Korean giant, became the main supplier of devices.

Alliance

Since early 2011, and until 2015 - Microsoft and Nokia have shared a covenant in which all devices from the Finnish incorporate the operating system Windows Phone, a decision criticized even by Nokia shareholders who have seen losing ground in each increasingly competitive phone market. But their market share has not only lost ground.
And so yes, anyone think that this move will make Microsoft put its platform on Nokia , as it has confirmed that other manufacturers offer. Both Samsung and HTC and Huawei have been interested in distributed models with this system. The task now will be to allow Nokia hardware innovations shine through Windows platform.From this it off economic forecasts ambitious: to triple the market share of Windows Phone in 2018. That is, from the current 4% to reach 15% in just five years.

Shortsightedness

Nokia has held for 14 years as a leader in the telephony market, largely due to sales of low-end phones, but the late evolution towards tactile world and a lack of vision about new trends has led to stop wasting 63% of market share available to the end of 2007 .
The news coincides with the recent announcement of the departure ofSteve Ballmer as CEO of Microsoft and the detailed statement thatthe CEO of Nokia, S tephen Elop, has abandoned his post, thereby execute this Thus the total takeover Nokia. Both multinationals expect the transaction to be completed in the first quarter of 2014 after approval by state regulators and shareholders.
With this operation, which will involve a new era for Nokia, the giant Microsoft, which has also seen Apple, Google or Facebook gaining on him, eat the absorption of a company that is an essential part of the economy of Finland and one of the pioneers in making mobile telephony accessible. The agreement includes the transfer of 32,000 employees on the payroll of the U.S. multinational, from management, engineering, manufacturing, assembly and distribution worldwide.

" It's an ambitious step for the future , a situation that benefits both employees, shareholders and consumers. The two teams together will accelerate the market share of Microsoft and its benefits on mobile ", said Steve Ballmer, CEO of Microsoft. "For Nokia this is an important step to reinvent and strengthen our financial position and start our next chapter," the joint statement said Risto Siilasmaa , which now has become interim CEO of Nokia.

A step like Google

Because of not knowing how to get on the fast and powerful train of 'smart phones' and tablets in due time, Nokia has been forced to lay off 20,000 employees and eliminate some of the premiums of its employees in recent years. Even had to close a major plant in Finland, their home.

And his loss of interest worldwide has continued to fall at an impressive rate, but has kept in emerging markets where it is still a great host. In fact, in the second quarter of this year saw a drop in mobile phone sales of 27% and cumulative losses in the last nine quarters of 5,000 million Euros.

This move also marks Microsoft's commitment and ambition towards the mobile market and its intention to be something truly great. 

Could make Windows Phone a threat to the dominant operating systems today who knows. After meeting the positive data provided by consultancy Kantar who said that Windows Phone has accelerated its pace in the five major European markets and has even surpassed BlackBerry.
The step taken by Microsoft is similar to that given Google (creator of the Android operating system) at the time of buying the phone maker Motorola in 2011, in a technology sector increasingly integrated and in which portable devices, operating systems, applications and other services are increasingly concentrated to compete. The business has changed and will keep changing. Which other company will follow suit and step aside? Will Microsoft reap success with your operating system?
After selling its Devices and Services division, Nokia put all your attention on the other businesses, ie continue to innovate in areas such as networking and advanced technologies as well as developing its own mapping software and navigation, known as Nokia Here.

Ballmer: "It's a big step into the future’

Microsoft CEO Steve Ballmer has said that the purchase of the division of Nokia devices and services "is a big step forward" and a step in the transformation of the company began last July. In addition, since the U.S. Company expect a transition "soft". "We are excited about the proposal to bring the best efforts in the field of mobile devices Microsoft and Nokia together," he says. It also states that this acquisition "smart" is a "good deal" for both companies.

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