Nokia sees Microsoft deal closing this week
Nokia said on Monday it expects the sale of its phone business to Microsoft to become completed on April 25, because it had obtained all of the necessary regulatory approvals.
The closing of the 5.4 billion euro ($7.5 billion) offer, that was decided in September, have been delayed because of pending approvals, but earlier this month the businesses gained an important nod from Chinese regulators. ($1 = 0.7228 Euros)
Five Questions Concerning The Nokia Microsoft Mobile Deal
After ten long weeks, Microsoft has finally concluded its four 5 billion pound offer to get the cell phone company of Finnish giant Nokia.
The deal sees Microsoft take ownership of the Lumia smartphone manufacturer, combined with the firm’s lower-end Asha function the interesting Android and also phone-line -based Nokia X devices. It’s also learned 25,000 new workers.
That is perhaps a much larger danger for that organization, although Microsoft is spending significantly less than it when it bought Skype a couple of years ago.
Because it appears to play catch-up to Google and Apple within the smartphone market, finding this package right, and creating the most of what it’s purchased from Nokia is likely to be crucial for Microsoft’s new boss Satya Nadella.
Within the coming months and weeks Microsoft will have to answer some difficult questions to determine if this offer is a success or not:
1. Did it handle producing 250 million devices per year?
Nokia may not be considered a key player within the smartphone market, however it continues to be the world’s second-biggest cell phone maker – delivery over 250 million devices in 2013.
Microsoft currently generates equipment such as Area pills and the Xbox units, Kinect devices but nothing with this level, and it’ll have to ensure that the transition occurs smoothly if it really wants to preserve what’s a profitable business.
2. What’s in a name?
Microsoft. Nokia. Lumia. Asha. Nokia X. Windows Phone. Android. Microsoft Portable.
These are only a few of the titles involved with this offer and it’ll have to make certain to not confuse prospective customers with plenty of titles when Microsoft really wants to truly make its mark within the smartphone world.
The Nokia title, which still has a large amount of fat, might disappear entirely, but whatever Microsoft decides to complete, it requires to obtain its marketing perfect.
3. Software: Windows Phone, Android or Line 40?
Microsoft is a software company at heart however it has to date did not create a significant effect on cellular. Itis Windows Phone application has made slow but steady improvement, however it currently needs to cope with two more systems.
Series 40 is Nokia’s own application which operates on its Asha devices while a forked version of Android works on the new Nokia Z smartphones.
Microsoft must improve the amount of systems it’s to aid which is probable Line 40 might be cut free.
4. How will you combine two technology leaders?
Using the deal closing, Satya Nadella has 25,000 new workers to cope with.
Some of those will not be visiting Microsoft’s Redmond campus, it’ll need a large amount of thought and tact to be able to combine both groups.
Doing this properly can help obtain the most from the Nokia deal, but failing to create the previous Nokia personnel completely to the fold might create pressure.
5. Could it be worth the chance?
This is actually the million dollar question. Microsoft continues to be attempting to break to the smartphone market to get a period of time now, even though Windows Phone is increasing, sales continue to be dwarved by the kind of Samsung and Apple.
This may be Microsoft’s last throw of the dice to obtain mobile right with Nokia’s rich history of hardware development, coupled with application knowledge and Microsoft’s assets, this may be a match made in technology heaven.