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Impact of Nokia-Microsoft deal on mobile consumers

Buying Nokia's gadget business thrusts Microsoft intent on proving mobile and tablet consumers of Nokia and Microsoft a new paradigm shift and an alternative to Google.

Nokia has been a synonym for mobile phones in most of the countries for a long period of time and only in last couple of years the image has taken a beating.

Putting an end to the era, Nokia has now decided to sell its device and services (including Nokia’s patents, licenses and mapping services) business to Microsoft. The transaction is expected to close in the first quarter of 2014, subject to approval by Nokia’s shareholders, regulatory approvals and other closing conditions.
Impact of Nokia-Microsoft deal on mobile consumers
Obviously with Nokia’s business, Microsoft would be hoping to provide mobile consumers a complete ecosystem right from devices to services across the globe, like Apple doing with its iOS devices.

The impact of today’s agreement on consumers of Nokia and Microsoft can be as follows:

RIP: Android operating system

After the Nokia- Microsoft tie up in 2011, Nokia was expecting things to improve for both the companies but results till last year turned out to be rather disappointing for both the companies, even more so for Nokia who decided to do away with its homegrown operating system for the Windows Phone OS.

In 2012, Nokia’s board chairperson Risto Siilasmaa had admitted during a Finnish talk show (Päivän Kasvo), saying, “Every good government and good leadership is preparing for every contingency plans unexpected situations and problems arising.”

However, he didn’t clearly mention what Nokia will do in a situation when partnership with Windows doesn’t yield the desired result. But, during that time the rumours suggested that Android will be the only logical choice.

However with Microsoft taking control of Nokia’s device business, the dream of seeing a Nokia phone with Android operating system will never be a reality.

Brand identity

In mobile space Nokia is a much powerful brand than Microsoft and atleast for the next couple of years all the mobile phones for Microsoft will have Nokia branding.

Asha range of feature phones are quite popular among entry level handset buyers across the developing markets, and off late Lumia range of smartphones are gaining traction. Thus, Microsoft most likely would not disturb the recall value and goodwill of Nokia brand by selling Nokia phones under its own brand.

Fragmentation in market

It is too early to comment but one can expect that other handset players like Samsung, HTC, Sony and Micromax may not launch devices based on Windows Phone OS in future. They would rather go with open source operating systems like Android, Mozilla, or Tizen.

It is expected Samsung will launch Tizen operating system based smartphones somewhere next year. Also, as of now Android is way ahead of other operating systems in the market. Apple’s iOS appeals to a select user base, while Windows is still to get a foothold; BlackBerry too is struggling.

More apps for Nokia devices

As a result of the deal, future Nokia smartphone users will better integrated version email solutions from Microsoft, Mobile Office and Multimedia solutions. Along with existing Nokia services like navigation and music.

Nokia tablets on the cards

There have been many rumours about a Nokia tablet but the Finnish company is yet to launch one till date while on the other hand Microsoft did try its luck with Windows based Surface tablets.

Perhaps Nokia was waiting for this deal to happen so that they don’t have to invest in developing a tablet. On the other hand, Microsoft will like to leverage the brand Nokia to sell its Surface tablets in future.

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