Will Microsoft Mobile Be The New Threat To Google Android And Apple?

Must Read

3 Most Common Mistakes Social Media Marketers Are Committing In 2016

In their quest for greater sales and increased ROI, the self-appointed “digital marketing guru” has lost touch with what...

The Best Selling Smartphones Of 2016: Apple iPhone 6s Tops The Chart

Good news for Apple, as a recent report by IHS Markit found that the Apple iPhone 6S was the...

A Big Blow To Amazon and Flipkart: CCI Investigation To Continue

Flipkart and Amazon continue to find themselves in hot water as their plea against the investigation that is being...

Microsoft Corporation. (NASDAQ:MSFT) will close the acquisition of Nokia Corporation (ADR) (NYSE:NOK) devices and services division on April 25, 2014, as confirmed in a blog post by a company representative on Friday. In an e-mail to registered suppliers Nokia has stated that Microsoft will reportedly rename Nokia corporation/Nokia Oyj to Microsoft Mobile Oy. If Microsoft decides to go ahead with the re-branding, the iconic brand name of Nokia Mobile could disappear by the end of 2014. Stephen Elop, the former CEO of Nokia before the acquisition, will continue to head the mobile division under the Microsoft banner. The other non-mobile businesses such as Nokia solutions and Networks telecom group, HERE Maps and  the Advanced technology division will continue to be managed by Nokia. In September 2013, Microsoft acquired Nokia handsets and services for US$7.2 billion, but the deal closure was delayed due to various international hurdles.

Microsoft Is Now A Key Player In The OEM Segment

Nokia will always be remembered as the company which pioneered the era of handsets and feature phones. After 2007, the company began to flounder steadily, due to the dominance of Android and Apple Inc. (NASDAQ:AAPL) in the smartphone segment. In 2012, it began selling smartphones under the Lumia brand, initially powered by Windows 7 Phone OS. In 2013, sales of Nokia devices accounted for 85% of all Windows Phone market share. Throughout 2013, it sold 30 million handsets globally, an increase from the 13.3 million handsets sold in 2012. During fiscal Q4 2013, 8.2 million Lumia devices were sold, an 86% increase from the same period last year, despite a drop from 8.8 million sales from Q3 2013.

The completion of the deal, effectively gives Microsoft an entry into the OEM segment, currently dominated by Samsung Electronics Co.Ltd. (KRX:005930) and Apple. Last year, an estimated 1 billion smartphones were shipped worldwide, and the number of smartphone users will increase to 1.75 billion by the end of 2014.  A majority of this growth will be from emerging markets such as India and China. Despite the phenomenal market share of Samsung and other local brands, the share of Nokia Lumia in the Indian smartphone markets stood at 5% for Q3 2013. Nokia remains a particularly trusted brand in India and Brazil, for its range of handsets and Asha feature phones.


Smartphone market India 2013

In 2013, Nokia had the biggest chunk of the handset market with a 18.9% market share. Sales of smartphone devices outsold those of feature phones worldwide for the first time in 2013 and it remains to be seen if Microsoft will continue to sell feature phones in India. The introduction of the Nokia-X range of phones was largely seen as an attempt by Microsoft to tap the low-end smartphone market, by allowing Nokia to use a forked version of Android .

By transforming the Nokia brand, Microsoft is bound to face difficulty in convincing traditional Nokia fans to switch to Microsoft Mobile. Despite these issues, having a trusted mobile brand as its hardware partner will allow Microsoft to oversee the speedy and flawless implementation of Windows Phone OS. This effectively gives the Redmont giant, the opportunity to promote all its key services and features on its very own devices.

Microsoft Will Compete With Apple and Google Directly

The merger is a win-win for both companies, as the global smartphone market now matures into a three-way horse-race. The Microsoft-Nokia combo will pose a threat to the growth of Google Inc. (NASDAQ:GOOGL) Android OS and Apple iOS in coming years. According to  Kantar world panel report for the three months ending February 2014, Europe is steadily shifting to Windows phone even as the market share of  iOS shrinks in 7 out of 10 key smartphone markets. In 2013,according to IDC, the share of  Windows OS was still just 3.3% worldwide, compared to Android’s 78.6% market share.

Top 5 operating systems 2013

It is estimated that in 2015, one out of every two devices shipped, will be an Android powered device. This increased saturation in the Android device market is likely to force OEMS to consider the Windows Phone OS for their device. Microsoft has already unveiled a free version of Windows OS to hardware vendors for devices with a screen size of less than 9 inches. The firm can still charge license fees on other devices such as PCs and tablets, but the move enables it to compete head-to- head with Android OS. In 2014, several hardware vendors, such as HTC Corp (TPE:2498) and Samsung have reportedly announced plans to develop Windows powered phones.

Another factor going for Windows OS is the price of its devices. Apple’s flagship devices retail for no less than $500, despite the average selling price of a smartphone falling to US$337 last year. By selling the Lumia range of  phones under $300, Microsoft has set its sights on capturing the mid and entry levels smartphone market in several emerging countries, while selling premium products in emerged markets. Windows phone platform was initially seen lacking in a number of features that were regarded as requirements by most consumers. The upgraded Windows Phone 8.1 OS has  improved functionality, personal voice assistant technology and improved core services, allowing Microsoft to project it as a feature-complete OS.


Nokia Will Still Exist As A Company

The loss of the mobile and service division is not the end for Nokia . It’s HERE Maps project is devising plans to produce semi and fully automated software for controlled car driving. There are also rumors that the Here division will drive future hardware products from Nokia. A smart watch is reportedly slated for release in Q3 2014.

Nokia-Logo (2)

With the deal set to close finally, Microsoft is now fully ready to enter the competitive smartphone market, despite lacking large market share, developer acceptance and ubiquity across manufacturers. The tech giant has found a steady place in the mobile market, and its urgent need will be to capitalize on its pricey acquisition, by selling to enterprises, networks and consumers alike.


  1. Steffo11 I Hope you will die and fail. Apple AND GOOGLE will fail next year, mark my words. motherfucker bitch


Please enter your comment!
Please enter your name here

Latest News

Elon Musk, CEO of Apple: Had Tim Cook Agreed To Acquire Tesla In 2016

Depending on who you speak to, Elon Musk and Tim Cook has their own version of the history that...

In-Depth: Dprime

Will ‘TikTok By Microsoft’ Be A Winner?

For the last two years, TikTok has been in the public eye for all sorts of reasons. First, it was the exploded and unparalleled...

Facebook Subscription Model: Looking Beyond Ad Dollars?

Seldom do job listings create a stir this gripping. However, when the job listing in question is a stealth post from Twitter, with a...

Will The Online Food Delivery Market in India End Up Becoming A Two-Horse Race?

It's pretty much evident that the food delivery space in India is all set to get riled up soon enough as one of the...

More Articles Like This