Sep 2013
05

Microsoft and Nokia Send a Weak Signal

it seems the main reason for the deal is that, without more financial firepower, Nokia could never hope to compete. And with their strategic partnership deal set to expire in 2014, and Nokia struggling to justify continued investment in handsets, Microsoft was facing a dilemma. Were Nokia to dial back its mobile ambitions, Microsoft would lose the toehold it has in the smartphone market: More than 80% of Windows smartphones sold are designed by Nokia. This deal both complicates and further dilutes Microsoft’s highly profitable, software-based business model. The added twist is that, despite this, Microsoft’s weak position in mobile meant it had little choice but to do it anyway.
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