Current Weather
The Spy FM

For Microsoft, Nokia’s Phones Are ‘Key To Everything’

Filed by KOSU News in Business.
September 3, 2013

Here’s why Microsoft says its $7.2 billion deal to buy Nokia’s smartphone business as well as that company’s patents and services makes sense.

“It all starts with the phone,” writes PCWorld, in a piece that analyzes why “the phone is key to everything.”

According to the magazine:

“In its ‘strategic rationale’ explaining the deal, slide 15 of Microsoft’s presentation makes the case that the foundation for Windows PCs begins with Windows Phone. … ‘Windows: 300M+ devices a year,’ the slide notes. ‘Success in phone is important to success in tablets. Success in tablets will help PCs.’ “

ZDNet adds that:

“Microsoft had little choice. Nokia controlled Windows Phone distribution and the companies were so integrated they might as well be one unit. With Nokia, Microsoft can now put Windows Phone on low-end devices to gain share.”

Among the obvious questions is will this deal work? Time’s Technologizer blog offers this answer:

“I’m not predicting disaster. It would be fun if it led to a golden age of Windows smartphones, and good for consumers. But I can’t think of any past examples of anything similar happening and turning out well. (Let’s not even bring up HP’s acquisition of Palm. Oops! Just did.) …

“Then again, this deal doesn’t necessarily need to change everything to be worth a try. Microsoft has plenty of cash, and the cash it’s paying Nokia consists of overseas profits which it wouldn’t otherwise bring home to the U.S. for tax reasons. Windows Phone is currently a struggling number three in the smartphone platform wars; if it ends up a healthy, competitive number three, Microsoft might be happy it spent the money.

“In other words: If the deal ends up looking even modestly successful, it’ll have beaten the historic odds.”

[Copyright 2013 NPR]

Leave a Reply

2PM to 3PM PRI's The World

PRI's The World

Get a fresh perspective of people, events and trends that shape our world. Host Lisa Mullins covers a wide range of topics, including science, business, technology, sports, art and music.

Listen Live Now!

3PM to 6PM All Things Considered

All Things Considered

For two hours every weekday, All Things Considered hosts Robert Siegel, Michele Norris and Melissa Block present the program's trademark mix of news, interviews, commentaries, reviews, and offbeat features.

View the program guide!

6PM to 7PM Marketplace

Marketplace

Hosted by Kai Ryssdal, award-winning Marketplace is public radio's daily magazine of business and economics.

View the program guide!

Upcoming Events in your area (Submit your event today!)

Streaming audio and podcasts

Stream KOSU on your smartphone

Phone Streaming

SmartPhone listening options on this page are intended for many iPhones, Blackberries, etc. with low-cost software applications available to listen to our full-time web streams, both News on KOSU-1 and Classical on KOSU-2.

Learn more about our complete range of streaming services

We're perfecting the patient experience - Stillwater Medical Center