Microsoft and Nokia: 'Marriage' campaign has changed?

If you do not create these mobile devices are affected, Microsoft would risk a shell stuck in his own. Microsoft has decided to spend more than $ 7 billion to "put on the palace Nokia" with the goal of improving the future for its mobile segment. However, many people skeptical about the possibility of "running change" that this acquisition brings two "giants" are lagging behind in the mobile market full of fierce competition.

Nokia CEO Stephen Elop (left) CEO Steve Ballmer and Nokia.

According toWall Street Journal

Microsoft is raising hopes that the owners of Nokia mobile segment will help both parties resolve their problems can not be solved well by the relationship partners. It was won dominance in the smartphone market (smartphones) from the hands of rivals Apple and Google.

After nearly 3 years of collaboration with Nokia, Microsoft is number 3 position in the global smartphone market, but its mobile software market share is only about 4%, compared with 90% of the total market share in the hands of Apple and Google software. The Nokia smartphones only account for a negligible share for the year from nearly half the market before Apple's iPhone appeared.

For Microsoft, to create a breakthrough, it is the need to create compelling mobile devices both consumers and business customers, in addition to finding themselves a place in the array hardware manufacturer, and won the support of the shareholders and the developer which is held skepticism. Another task is equally important to smooth merger of Nokia employees in 32,000 military personnel is 100,000.

The Microsoft stock investors did not seem very confident in the future of "marriage" Microsoft-Nokia. During the session last Tuesday, Microsoft shares fell 4.6%, increase performance wipe comes after chief executive (CEO) Steve Ballmer claims about to retire.

Also on Tuesday, Mr. Ballmer said that Google and Apple will not keep forever on the upper mobile market. In addition, Microsoft has a very strong financial strength. Its annual revenue of more than $ 70 billion, and the acquisition Nokia will not cause "harmlessly" What on cash reserves 77 billion.

Talking to analysts via phone, Mr. Ballmer said that Microsoft needs to become a hardware manufacturer instead of just providing software for computers, phones and other devices. "To really achieve the vision of what can be done for customers, we have to adjust my way of thinking," Ballmer said.

However, to turn himself completely into a hardware manufacturer, Microsoft will have to become a very different company today. And analysts believe Microsoft does not seem to do this.

"I always see where Microsoft mobile technology will die. I'm not sure whether the Nokia acquisition will enable it to produce phones is better than in the second period firm alliance, "analyst Michael Morgan of ABI Research says the company.

If you do not create these mobile devices are affected, Microsoft would risk a shell stuck in his own. CEO Ballmer called Nokia acquisition is a move "aggressively" to put in Microsoft speed mobile segment, but there are many dangers waiting for "giants" in the software plans.

So far, the application developer still fascinated with general information about an upcoming Nokia with Microsoft. Meanwhile, the application development plays a vital role in supporting Microsoft closed the gap with rivals in the phone application running on Windows. "We can not put into force to support the platform. It's too small, "said Patrick Geuder, director of business development of video game maker minecraft, said.

Microsoft almost no experience in equipment manufacturing segment than Xbox games console. The first trials with the Surface table computer has failed with the meager sales in the first year. Last quarter, the company downgraded the value of inventory shipments Surface a $ 900 million account.

Nokia acquisition also means that from now on, the makers other mobile devices will increasingly concerned about the use of Windows over.Nokia remains a major producer of smartphones running Windows, while other firms such as Samsung and HTC are the focus for the Android operating system.

After acquiring Nokia, Microsoft to create a market segment in the middle segment and cheap products segment gourmet products. Until now, Windows Phone is not cheap enough to appeal to ordinary consumers choosing Android phones, and also not good enough to entice consumers loyal to the high-end devices from Apple and Samsung .

Also, Microsoft should avoid old-new conflict occurs when employees receive a new series from Nokia. Nokia's acquisition of the second largest acquisition ever, its, following the acquisition of Skype for $ 8.6 billion in 2011. Besides, many shareholders expressed dissatisfaction when Microsoft bought Nokia, as the company said it would cut spending on inefficient array operations.