Microsoft has always wanted go get into the smartphone game. Their sales have been chugging along. Today, I wake up to the shocking news Microsoft purchased Nokia.
For an astronomical 7.17 billion dollars, Microsoft bought Nokia’s devices, services, licenses and mapping services. So now, Microsoft has the world’s biggest cell phone maker in it’s arsenal. Add this to the Skype, which Microsoft purchased in 2011. Outgoing CEO Steve Ballmer claims it’s, “A bold step into the future.” At the heart of this acquisition is Asha, a Nokia brand. This gives Microsoft more room and resources for the Windows phone, and better access to the millions of Asha users, particularly in rising nations like China, India, Russia and Brazil. Other issues given for this deal include profit acceleration, competition with Google and Apple and to give a better experience for Windows phone users.
But is this a good idea? Nokia has been struggling for years. In 2013, Nokia expects to lose over 10,000 jobs. In July, they closed a major plant in their home in Finland. So they’re drowning and in need of a rope. Microsoft is there to pull them in. At least that’s the way it appears. Microsoft?wants to compete in the phone business, so this seems like a good fit. But many experts aren’t excited about this deal for several reasons. My problem is that with this purchase, Skype a couple of years ago, and the power Microsoft has already, I’m more worried about less competition and a monopoly being created. I should be thankful that there’s Apple and Android to stop that from happening. But what about the smaller companies that want to get their feet wet? Think about how much power the world’s largest computer company gets now that they have the world’s largest phone maker. Is this too much power for one company to have?