Microsoft-Nokia -- analysts respond

Microsoft-Nokia -- analysts respond

Michael Carroll  |   September 04, 2013
telecomasia.net
A rundown of analysts’ responses to Microsoft’s $7.2 billion acquisition of Nokia’s devices division.
 
Tony Cripps, principal device analyst – Ovum
 
While enabling Microsoft to face industry rivals such as Apple, Google and Samsung on more equal terms, [the deal] also represents an indicator for the future of the consumer tech industry more generally and a symbolic end to the mobile phone industry we've known until today.
 
Nevertheless there is still much to resolve if the acquisition is really to have meaningful impact. While Microsoft and Nokia have jointly been increasing the money flow through the Windows Phone marketing faucet of late it will take mega bucks to take on Apple and Android head-cheerleader Samsung for marketing volume and volume shipments. We need to see that kind of commitment coming before we can really count Microsoft in the same league as its two main competitors.
 
There is also a sense that, while Microsoft has many of the key elements for consumer tech market success in place, too many of those elements feel not quite at parity with their rivals.
 
That said Microsoft has some areas of definite advantage over its rivals across this vast battleground, especially in gaming (via Xbox), in consumer-business crossover services such as VoIP (Skype) and in the ease of integration of Windows Phone with its own Office 365.
 
Ovum needs to see sustained progress in Windows Phone shipments over the next three or four years – 15% market share is a good target to aim for – to be convinced that Microsoft can establish itself as a real consumer tech market maker rather than a follower.
 
The heat may be off for Nokia’s shareholders but for Microsoft’s investors the fire is only just being stoked.
 

 

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