Wednesday, September 4, 2013

Why Microsoft Buys Nokia?



We all heard the news that Microsoft has bought Nokia for $7 Billion.This deal looks like the Google acquisition of Motorolla.

The question is Why Microsoft have to made deal like this with Nokia??

Nokia was struggling due to the competition with Android and iOS devices.It was either going to change to produce Android devices or get bankrupt.The latter was the more possible case. Microsoft had no choice but to buy Nokia.It was like either double down or quit.Microsoft choose to double down as it always does.

Some other reasons why Microsoft bought Nokia are:
Nokia was the dominant in Windows phone devices.
With this deal Microsoft came in end-to-end device market.

Lets see whether combining of these two weak companies (at present in phone market) can create a new strong competitor.

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