Ronnie05's Blog

Will Microsoft buy Nokia out?

Posted in Uncategorized by Manas Ganguly on September 16, 2011

It is certainly a most tempting thought! Imaginations tend to get fired up in context of the Google-Moto acquisition even while,currently, Microsoft is most keen and focussed on WP mango launch and its success. If and when they are able to establish the WP consumer acceptance, there could be a scenario of taking over Nokia.I would endeavour to answer this Question on two levels

The Benefits of Microsoft acquiring Nokia
Mobility majors (Apple & Google) have in-house hardware competencies. In case of Google it was acquired through Motorola. The idea of having in-house hardware competencies was to have end to end capabilities in terms of service provision to consumers. Apple leads the way here with a seamless hardware and service coupling for creating an unparalleled user experience. It also gives them a global reach into consumer markets through were well tiered distribution channels. Also remember, Microsoft is not averse to forays into devices as in the case of Zune,XBox and Kinect. If WP acquires critical mass, Microsoft has a case for acquiring Nokia and staking out devices.

Why Microsoft wouldnt acquire Nokia
It is one thing to do end to end and quite another thing doing it well. More and more organizations are focussing on their competencies and getting out of the low margin hardware businesses. The example here is HP or even IBM for that matter. Microsoft could continue focusssing on creating software, services and unique consumer experiences (Kinect anyone?).Microsoft has enough and more discrete elements in terms of software services which if it is able to integrate will be revenue stream into future.

My guess on the future of the Microsoft-Nokia tie up is that if WP matches upto the scale that Microsoft envisions it to, we might see Microsoft acquiring Nokia.

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