Sep 23, 2013

Microsoft to buy Nokia's mobile phone unit

Nokia lately has been struggling to make its place in the mobile phone’s market. The world’s leading mobile phones for 14 years Nokia has sold 1 billion of handsets since 1982. The same Nokia now has to compete with the new smartphones. Nokia with all its ups and downs- sometimes being the top most mobile phone and sometimes struggling with its existence is now bought by computer corporation ‘Microsoft’.

Nokia is wrestling with the mobile companies like Apple, Samsung and Google so the US firm is giving £4.6 billion for Nokia’s cell phone production division. The Finish company cell phone like Lumia series is already installed with Windows system. The firm was exceeded by both Apple’s iPhone (Apple own system) and Samsung (Android software). By 2013’s second three months the number of Windows installed phones sold were only 7 million. If comparison is made then the number of iPhone sold was 32 million and 187 million of Android.

The unique ringtone of Nokia during its days, a piece called Gran Vals from 1902 composition became the more desirable tone. The tone also became famous as the signature tone for the 1st mobile phone generation.

Microsoft rises with its Windows OS for personal computer and is now entering to the footsteps of Apple i.e. combining software and gadgets. Microsoft has developed operating systems for smart phones and its new product Surface tablet ready to compete with iPad. The chief executive of Microsoft Steve Ballmer termed the purchase of Nokia as “signature event”. He further elaborates that is a strong move to the future. It is a win-win for them (Microsoft and their consumers).

Microsoft currently has 99,000 employees and with the purchase of Nokia the team is going to extent by 32,000 more Nokia employees.

The purchasing procedure is followed by £3.2 billion Nokia’s mobile phone manufacturing business, £1.4 billion for a 10 year licence to cover the use of Nokia’s patents with the additional option of unlimited extension.

All this means that Microsoft has now platform to deliver and bring their mobile strategy. However for business users it is a time of an opportunity with the Nokia’s smartphone offering.
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