Microsoft acquires Nokia, now it’s time for Windows Phone 1.0
This morning, Microsoft made the (shock?) announcement the company has acquired Nokia for the rather meagre sum of $7.2 Billion. You don’t have to be a top analyst to realise this has been on the cards for a long time; but the deal could mean Windows Phone can really get off the ground.
We can quite confidently say Nokia is the sole manufacturer keeping Microsoft’s mobile OS from ending up like the Titanic; sunken, but unforgotten. Redmond had to save their biggest asset.
Currently Microsoft receives less than $10 per Nokia Windows Phone sold. This may go somewhat to explaining the slow Windows Phone development many criticise the platform for – it was simply not financially viable. Now it hopes to make more than $40, we’re talking 4x as much per unit.
Increased profits, equals increased spending and investment opportunities. More money can be pumped into marketing and development – both internal and enticing external.
What will be most interesting is to see what happens to the iconic Nokia brand; whether Microsoft will choose to continue using the branding which is well-established (but now could be related to a failing company) or we may be seeing a Microsoft Lumia 1030. Doesn’t quite sound right?
Perhaps we’ll see a new brand emerge, Mokia? Ok, even less likely, but only time will tell - it’s all just guesswork at the moment. I’m still personally convinced we’ll see a flagship Microsoft Surface Phone soon, and maybe Nokia will be the ones behind it after all. Maybe even the next Surface RT?
All we do know is the Lumia and Asha brands now belong to Microsoft; as part of acquiring many of Nokia’s vast portfolio of patents for €1.65 Billion. This includes the rights to HERE maps.
We’re also made aware Microsoft is planning on tripling Windows Phone market share by 2018.
This news goes one step further; you may have heard Microsoft CEO Steve Ballmer is soon to be stepping down? Well, Nokia CEO Stephen Elop is confirmed to be in the running for the position. Few doubt Stephen’s charisma and approachability; it could be a great move for public relations.
In the announcement post to consumers, Steve & Stephen writes: "Nokia and Microsoft have always dreamed big – we dreamed of putting a computer on every desk, and a mobile phone in every pocket, and we’ve come a long way toward realizing those dreams."
So, why did we go with the headline “it’s time for Windows Phone 1.0”? Up until now we could see Microsoft’s attempts as beta tests. It wasn’t Windows Phone 7, it was 0.7. It wasn’t Windows Phone 8, it was 0.8. Now – we’ll skip 0.9 - with increased profitability, it could be time for Windows Phone 1.0
What are your thoughts about Microsoft’s acquisition of Nokia and future plans?
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