Apr 29, 2011

Microsoft Deal Could Help Nokia

Microsoft Deal Could Help Nokia. Nokia, the world’s largest producer of mobile phones, tumbled the most in almost 19 months on investor concern that a partnership with Microsoft Corp. will not be enough in its fight with Google and Apple. Nokia, led by Chief Executive Officer Stephen Elop, today unveiled plans to use Microsoft Windows software in his primary competition for Apple’s smartphone customers at IOS and Google Android platforms. Nokia’s shares fell 14 percent, the steepest slide since July 16, 2009.

first thought is to sell stock to Nokia, because Nokia has just himself away for free and Google and Apple are laughing all the way to a duopoly. The move is the biggest strategy shift by Nokia, since the one-time pulp company started making mobile phones in the year 1980. Elop, who was hired by Microsoft in September to the Espoo, Finland-based company to lead is difficult for Nokia to revive after its piece of the rapidly growing smartphone market plunged by 27.1 percent in the last quarter of 50.8 percent is shipped to Apple iPhone in June 2007, according to Gartner Inc. Nokia has lost more than 60 percent of its market value at the time.

Nokia’s shares fell 1.16 euro, closing at 7 euros in Helsinki. Microsoft fell 25 cents to $ US27.25 at 4 hours New York time in Nasdaq Stock Market trading. “When you are confronted with a fire, you need to move quickly, because it grows rapidly,” said Pierre Ferragu, an analyst at Sanford C. Bernstein in London. “This partnership will take time to implement and deliver phones. This is what Nokia can kill.” The cross-licensing deal announced she was only a term of five years, but Microsoft and Apple have renewed presumably, different eras remained . At the very least, while both companies have approved many battles were over IP, they have not fought each other in decades. Nokia may still maintain a belligerent stance against Apple, but at least it has some protection for the phones to ship with Windows 7 Phone. More likely, Nokia will watch market dynamics, and choose a court battle with Apple is not a productive use of resources – like Microsoft and Apple chose years ago.


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