Mobile Merger: Microsoft to Buy Nokia

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Microsoft has always focused more on software than hardware, which has sent them lagging behind mobile giants like Samsung and Apple. Now, the game is about to change. Microsoft has announced that they are going to purchase the device and services division of Nokia for $7.2 billion, which will give them a stronger foothold in the mobile device industry. Microsoft has an already licensed operating system for Windows Phones and seek to expand their penetration of the mobile market in acquiring Nokia. During the second quarter, Windows Phone only made up for 3.7% of the mobile operating system market.


The advantage to having complete control over both hardware and software is that Microsoft will have its own Nokia devices, which allows for seamless integration between the two. Before, Windows Phone struggled with supporting HTC and Samsung devices; now, Microsoft won’t have to worry about that. The disadvantage is that Microsoft will isolate its other partners and push them away from the Windows Phone platform. This news follows the news of the retiring of Steve Ballmer, Microsoft’s chief executive.


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