Microsoft did Right to Buy Nokia but that Won't Solve Windows Phone's Biggest Problem

Microsoft did Right to Buy Nokia but that Won’t Solve Windows Phone’s Biggest Problem


The news of Microsoft’s acquisition of Nokia comes rather as a shock despite our being familiar with the tight bonding between the two companies over the years. Also the fact that there were hints for the takeover in the past, still it came as a emotional shock for many.

The initial reaction to the news from most people would’ve arguably been of fist-punching or swearing at Microsoft for being “evil” as usual – especially when Stephen Elop has played as a Trojan Horse role by getting into Nokia and now after the deal is given back a VP role at Microsoft —  But when you ponder more over it, the whole deal starts to make more sense.

You see, the development of an operating system between two companies isn’t as great as that by one single company, like Apple. Because of this trait of the transaction, Windows Phone seemingly has a good future ahead.

The deal is undoubtedly one of the better ones that Microsoft has carried out in quite some time and miles better than the (arguably the useless) deal Skype was.

But the news, despite being pleasing brings some worrying factors with it too.

Firstly, Symbian, which is almost completely a Nokia-only OS right now. This transaction might mean the end of the Asha, S30 and S40 models in the future. Microsoft will most-possibly only develop its own OS and not those of its partner company. I don’t really expect Nokia to do that either but you never know.

Secondly, Windows Phone might end up becoming a one-party-affair in the future. Microsoft’s other OEMs have been critical of the company’s fondness for Nokia and its acquisition of the giant won’t be improving that notion one bit. Right now, you can count the number of companies making Windows Phones on your fingers and the future won’t be particularly bright if Microsoft isn’t particularly willing in changing that. In short, Microsoft-Nokia might be the new Apple. One. Party. Affair.

Thirdly, Windows Phone’s biggest Achilles Heels has been Microsoft’s reluctance to develop and update it. Had it been doing exactly that, this situation wouldn’t have arisen in the first place and both companies would’ve prospered without one of them having to spend 7 billion dollars. Will Microsoft’s laziness and Nokia’s briskness continue in the future too and will the latter outpace the former?

These are the burning questions which need to be answered, and we will undoubtedly get the answers to them in the coming few years. And we hope that the end product will be better and more finished than the present-day Windows Phone.

Microsoft may even give Nokia the reins to the Surface and future Windows RT & 8 tablets. With one company being an expert in software and the other in hardware, we really expect this deal to bear some fantastic results.

At the end of the day its not the powerful hardware or ultra HD displays, or the looks that is going to sweeten the balance sheets of Microsoft, instead innovation is what both the companies require to bring into their devices and the OS.

    • Eventually Google will fail and Apple will buy it. Eventually Apple will fair and Zardari will buy them all.

    • Funny, Seems like you don’t know anything about tech industry.

      Microsoft posses a revenue over $77-80 Billion whilst Google only earns half of it.

        • He is only slightly wrong. When comparing profit, he’s 100% right.

          In 2012 financial year, Microsoft had revenue of $77.85 Billion. Yes, that means they are earning over $200 MILLION EVERY DAY on average. After removing operational expenses, taxes, etc. their profit was $21.86 Billion.

          For comparison, 2012:

          Google revenue $50.18B, profit $10.74B.
          Facebook revenue $5.09B, profit $53M
          Apple revenue $156.51B, profit $41.73B.

          Just go to Google finance, type in the name of the company, and click on “financials” on the left side of the page. Then, click on “Annual”.

          So, Google’s profit is about half of Microsoft’s, last year.

            • Almost all of Google’s and Facebook’s revenue comes from software, not hardware: mostly from services they provide, not from software they sell. I very much doubt also that Microsoft makes a lot of money from selling wireless Natural keyboards and mouses.

              Seems like your sack needs defragging.

              • For Microsoft, there are a lot of things to sell. There is Xbox, Windows and Office. So, they can make slightly more.

              • ‘I very much doubt also that Microsoft makes a lot of money from selling wireless Natural keyboards and mouses.’ what year is it? 1940? they dont only sell keyboard and mouse what about the other products like xbox/Microsoft surface?

                • Surface is a failure. As of July this year, Microsoft has already lost (no profit) $900 MILLION on Windows RT tablets. I don’t know about Windows 8 tablets but they cut prices for that too which implies it’s not exactly making money for them.

                  As for Xbox, the idea is that Microsoft sells the consoles at a loss and makes up money from lisensing for game development. In fact, I am not sure they are even making profit there. Google for a report that is titled “Microsoft’s Xbox division has lost nearly $3 billion in 10 years” And on Microsoft’s own financials website, for 2012, they made this revenue (in Millions of dollars):

                  Windows & Windows Live Division $18,373
                  Server and Tools $18,686
                  Online Services Division $2,867
                  Microsoft Business Division $23,991
                  Entertainment and Devices Division $9,593

                  Profit for entertainment and devices division was just $364 million. So yes, final answer: Microsoft makes money from software, not from tablets or tables or consoles.

                  Remember, hard facts are always better than supposing things. Always search for facts.

  • I think we had it coming , Now MS has better controll over the Hardware along with the OS so we can expect BIG things , Developers who were reluctant in app development for MS now may get a sense of security and try to develop more apps because they know MS is on the back of this whole thing so again better control … so hoping for the best .. but it is sad to see a company Like Nokia taken over such like that … [atleats the devices unit which we are concerned of any way … ]

    • I guess Microsoft did that earlier and failed. The first Xbox was lukewarm. Zune failed, Kin failed, and Surface failed. Hence, hoping for the best is like dreaming for utopia in this sad case of Microsoft’s trying to capitalize on Mobile OS market.

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