Microsoft’s new Handset Business
Microsoft recently acquired the handset making business of Nokia. This is a confirmation that Microsoft’s mobile strategy for the last six years has been off. Microsoft had a mobile operating systems business exceeding $100M in 2007 that was instantly killed off by the introduction of Apple’s iPhone. Since then, the market is selling displays connected to the Internet, ie. mobile devices where software is an integral part. Unfortunately, this is not what Microsoft has been doing. As a matter of fact, Microsoft’s biggest competitor in this space isn’t Google or Apple:
- Microsoft’s #1 competitor is Samsung at 15x “Nokia”
- Microsoft’s #2 competitor is Apple at 10x “Nokia”
- Nokia’s handset business ran low on cash.
- Microsoft acquired it on September 3, 2013.
- Microsoft still does not have a successful strategy in mobile computing and services.