Tuesday, September 3, 2013

Microsoft buys Nokia for 7.2 Billion

Greetings from MobileGenerated News MoGN!

Today’s top tech story is Microsoft’s purchase of Nokia, a company that was once the world’s leader in mobile phones, and more recently, continued to lose ground to Apple and Samsung in the Smartphone universe.

There are reasons that this is probably a good idea for both parties.  First of all, Microsoft has been struggling making their Windows Phones competitive for nearly two years.   The manufacturer that builds 90% of Windows Phones on the Windows 8 mobile operating system?  You guessed it ─ Nokia.
Another major reason may be that Microsoft is looking for their next CEOStephen Elop has been rumored as a strong candidate.  Who is Stephen Elop you ask? He is currently the head of Nokia and Elop used to be head of the highly profitable business unit of Microsoft!


So the high price tag may be worth it.  Microsoft stands to gain control over the dominant player in the Windows Phone world, their lucrative patents and may get a new Chief Executive Officer.  As a bonus it insures that Microsoft stays relevant in this new mobile age.  Although this is a huge sum of money, the resources of Microsoft will certainly continue to make the Windows Phone more user friendly so it can compete with Apple’s iPhone and Google’s Android operating system devices.  Microsoft certainly has a lot of catching up to do given that Windows Phone has only 3% of the US market and 6% of the world market dominated by their two giant competitor operating systems. 

What do you think?  I look forward to your comments and questions.  
–Jeff Wald, Executive Director, Mobile Generated News, Los Angeles.

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