Microsoft's deal to buy Nokia Equipment Department aborted

Absrtact: A few days ago, foreign media disclosed that the clandestine Microsoft acquisition of Nokia Equipment Department (Nokia mobile phone) transactions in the last minute because of the price of the issue of abortion. Seeing this news, we felt a sigh of relief, though the Nokia 14 billion dollars

A few days ago, foreign media disclosed that the clandestine Microsoft acquisition of Nokia Equipment Department (Nokia phone) transactions in the last minute because of the price of the issue of abortion. See the news, we feel relieved that while Nokia's $14 billion worth of cash is less than Microsoft's $66 billion trillion, the so-called money is going to be spent on the edge, and when Microsoft's traditional Windows business is under unprecedented pressure, 14 billion dollars should be spent in more strategically valuable places.

Of course, we're not saying that Nokia has no meaning for Microsoft's mobile strategy, and that Nokia is in some sense in a way that is related to the success or failure of Microsoft's mobile strategy. According to the market share data of May Windows Phone users released by the advertising service network Adduplex, Nokia occupies a large part of Microsoft's Windows Phone with a 83% market share. It is for this reason that we believe that Nokia's core support for Microsoft's mobile strategy has emerged, unless Microsoft is able to tap Nokia's brand, market, channel and other potential and influence more fully after it buys Nokia, otherwise Microsoft's Windows Phone does not have substantial market share and revenue changes because of the quiff of Nokia.

In that case, the only reason Microsoft can support Nokia's takeover is to prevent it from "treason" or "half-hearted", in which Nokia defected or partly adopted other ecosystems, such as Google Android, which industry and analysts have been recommending. After all, Microsoft Windows Phone's market share of about 3% in the smartphone market is almost supported by Nokia, not to mention the defection, which is that Nokia's "half-hearted" could be a fatal threat to Microsoft. is Nokia going to flip or part with Android? We don't think it's likely.

First of all, Nokia CEO Elop (step Elop) repeatedly repeated its strategic partnership with Microsoft on a variety of occasions, but some may say that it is not impossible for Nokia to make a stopover if the gains and losses are driven enough. There is some truth to it, but if Nokia's own situation is taken into account, the cost and timing of its defections will not allow Nokia to try again. The industry knows that in order to work with Microsoft's strategic cooperation, Nokia in less than two years time, the previous Symbian has been completely sacrificed, but also supplemented by a sharp decline in the volume of functional machines. At the time, Nokia had fallen out of the top five of global smartphones, with a market share of just 2.8%, in the smartphone market and the global handset market, which is still the boss. If Nokia is more string, the only capital is the declining function machine market, but this is Nokia's business, if the replay of Symbian and Microsoft Windows Phone Non-zero and conversion scene, Nokia only dead.

Another is to turn Android, and Nokia will face a more competitive market than Microsoft Windows Phone. The advantage of the so-called differentiation, which was created by adopting Windows Phone, has vanished. Samsung has seen the intensity of the Android camp as its Galaxy S4 handset sales fall by half in the third quarter, according to new reports, with a sharp drop in Samsung's flagship Android fleet. Nokia, as a successor, apparently lacks much reason to come from behind. On the contrary, you may hasten your own march to hell.

At this point, Nokia's defection, even if the possibility of some of the use of Android is lack of foundation, then Microsoft's acquisition of Nokia's last reason is not there.

But we are puzzled by why Microsoft is willing to invest heavily in a company that has no strategic value for itself, or has made it a strategic goal but has no potential to dig, but does not have the courage to change its existing business model? According to relevant reports, Microsoft's high licensing costs in the smartphone market are one of the main reasons OEMs are reluctant to adopt Windows Phone. In addition, Strategy Analytics, a market research firm, reported that the average price of smartphones on the global market had fallen below the 300 dollar mark for the first time. In addition to the cost reduction, the company's fierce price war is also one of the reasons. With the combination of high licensing fees and increasingly thin profits, Microsoft's lack of partner support seems logical. Since this is the case, why not Microsoft to try to change it? According to the current market size of Microsoft switched phone, even if it is free, Microsoft's revenue to reduce to the acquisition of Nokia's 14 billion of dollars also takes a long time, in other words, the reduction of revenue for Microsoft is irrelevant, But it is possible to put the Android camp into Microsoft's arms and what Microsoft now needs is "flame" support to be able to break the approximate spell of about 3% of the market share, because as a platform-level manufacturers, only a considerable platform market share only exist value and significance, Microsoft has been amply proven in the traditional PC industry.