Microsoft surprised very few people when it announced that it would snap all relevant mobile-related parts of and license patents from Nokia for about $7.17 billion (€5.44 billion). At this point in time, it is interesting to think about how this purchase will affect Google and the numerous manufacturers of Android handsets.
And when we talk about in terms of market share, Nokia absolutely dominates the Windows Phone. Nokia is the premier brand for Windows Phone. And interestingly, Nokia will cost Microsoft less than it paid to acquire video collaboration platform, Skype.
And yes now, with Microsoft’s acquisition of Nokia’s handset business, we have to think that these manufacturers are going to be done making Windows Phone hardware going forward, regardless of Microsoft claiming that it will continue to license the operating system.
And when we take Google’s point of view, the fight for the mobile marketplace is likely unchanged as well. In today’s scenario, Android activation numbers are steadily increasing, and in terms of worldwide market share consumers still heavily favor Google’s mobile OS. But yes, one fact remains that Google and Microsoft are clearly not the best of friends anyway, especially when it comes to making deals around mobile, and we can surely expect to see more of the same with now Microsoft coming at the helm of Nokia.
Moving forward, it is far more likely that different players in the Android space will keep close eye on Microsoft as it begins to integrate Nokia’s handset business into its global mobile strategy.
Microsoft and BlackBerry
BlackBerry and Nokia both companies have got a lot of similarities – both are regarded as innovators of their times, were in a similar position and struggling to adapt to a fast changing mobile phone world.
But Microsoft’s purchase of Nokia’s handset and services business, some analysts said on Monday, may now make it harder for BlackBerry to find its own savior and will only underscore the Canadian company’s fundamental problems.
Once upon a time, the dominant maker of smartphones, BlackBerry has spent the last couple of years striving with Microsoft’s Windows Phone operating system for third place in a market overwhelmingly dominated by Apple’s iPhones and phones using Google’s Android operating system.
With its exceptional financial muscle, Microsoft brings to Nokia and may also make life a little more difficult for BlackBerry to go private through a private equity buyout now.
When we talk about Blackberry, several financial analysts have declared the company’s handset business to be of no value to any potential buyer. But at the enterprise level, there is a different story, as there has been speculation that its wireless security systems, unique global data network and software used by small and large enterprise to manage employees’ mobile phones could become viable businesses on their own at a later stage of course.