Acquisition of Nokia by Microsoft – Beneficial to Both

Microsoft’s acquisition of Nokia has been rather expected since Stephen Elop joined Nokia. The purchase took three years in the making and now rumor has become reality with Microsoft fully taking over the multinational IT and communications company.

Selling your own product

Microsoft’s acquisition of Nokia is a deal that creates lots of wonderful opportunities for both companies. Microsoft is planning to license the Nokia trademark for 10 years and much is the expected outcome of this new fusion. The new set-up will be quite similar to that of Cupertino-based company Apple which creates, markets, and sells its own products in its own stores. Based on statistical data gathered by retailers in the past century, a company that makes and sells its own products ends up to gain more profits.

The takeover

On Monday, Stephen Elop stepped down as Nokia’s CEO. Meanwhile, Steve Ballmer, Microsoft’s CEO announced that he would be leaving his current post next year in order to make way for Elop who would replace him. As Elop steps down as Nokia’s CEO, he will be leading the Nokia business under Microsoft as its device chief.

This is not the first time that Microsoft took over a mobile phone company. Back in 2008, it acquired Danger and used the platform to launch the shortly lived Microsoft Kin phone. The project only lasted for nine months and then the whole thing was set aside. However, taking over Nokia is a totally different score since this mobile phone company was once at the very top of the industry. Nokia’s performance in terms of sales soared very high indeed in 2007 making it number one in the world.

Nokia’s reputation

Nokia retains the distinction of having a huge impact on how people relate to technology particularly in using their mobile phones to suit their daily needs. Before the touch screen revolution exploded, Nokia was the must-have phone brand. Its Xpress Music series dominated the market with its awesome sound capabilities and easy to use interface. Nokia also endeavored to bring under its roof the famous Carl Zeiss optics, thus making its phone camera better than others. Nevertheless, the company struggled to rise up to the occasion when Apple and Samsung started to launch touch screen phones with never before seen features.

Rebirth

With the leadership of Stephen Elop, Nokia is slowly making a comeback through its Lumia series. With over half a dozen new handsets, Nokia is hoping to increase its market share and be known once again in the smartphone arena. According to the latest research, more and more people are considering the new Nokia series to be very competitive not only in terms of features but also in competitive pricing.

Having been reborn under the illustrious leadership of Elop, Nokia already surpassed another mobile competitor, BlackBerry in terms of market share. In a statement given by a Nokia spokesperson, it was revealed that Nokia is now ahead of BlackBerry in over 34 markets. The company may still far from being number one once again what’s important is that it is headed in the right direction.

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