Microsoft to Buy Nokia? Wrong Move Say Analysts.
Monday, 18 June 2012, 14:55 IST
Bangalore: Recently Nokia lost their coveted spot as the world’s biggest phone maker to Samsung. And now upon that Nokia’s future as an independent company is hanging in balance. With their shares dropping a massive 18% for the first time, the Finnish mobile giants are now thinking to cut 10,000 jobs in coming months as a part of resurrection. Now this decision has lead to speculations that Microsoft is on the path of acquiring Nokia to vitalize their struggling Windows mobile platform.
But most of the analysts have already raised their eyebrows after hearing the news. Even though the acquisition will only cost Microsoft little, as the stock prices of Nokia are very low, analysts still believe that acquiring Nokia won’t do any good. Jack Gold, an analyst at J. Gold Associates said that "Microsoft would be foolish to buy Nokia, plain and simple, this idea of Microsoft buying Nokia comes up each time Nokia has a bad quarter, and some financial analysts think it's a good idea -- no doubt to pump up the Nokia stock a bit. There really is no advantage to Microsoft owning a device hardware company."
Analysts think that a software company and a hardware company can never work together because of their cultural differences and their work styles. They also think that the market needs Microsoft to work with several hardware vendors instead of making their Windows operating system exclusive for Nokia. Carolina Milanesi, an analyst at Gartner said that "Microsoft and Nokia need to drive the Windows Phone OS forward as fast as possible, and Microsoft needs to believe that the phone is a crucial element to the success of their ecosystem going forward."
Another reason is that Microsoft is yet to launch their Windows 8 operating system. So in that case people believe that Microsoft should tie hands with other hardware vendors, instead of supplying it only to Nokia.
Also analysts feel that as Microsoft is yet to unravel its hardware for Windows 8, Nokia should think of marketing an exclusive device based on Window 8. Rob Enderle, an analyst at Enderle Group said that "Microsoft has virtually eliminated Windows Phone marketing funding inside the company, and that was the budget they used to fund Nokia. The Windows Phone platform marketing is massively underfunded."