Microsoft buys out Nokia
by shubhankarrustagi
As of September the 3rd Microsoft announced that it would buy out Nokia for 5.44 billion Euros. This would be an easy way for Microsoft to enter the phone market directly and bring more innovation to the market than Nokia. We see that this not only good for Microsoft but also for Nokia as now the shareholders in Nokia will face a rise in the value of shares and profits due to its buy out by Microsoft.
We see that this has also cemented Nokia as a Microsoft carrier for its phones. This is profitable to Microsoft as android was growing at a very fast rate. This protects the future of Microsoft as a Operating System on phones as Nokia is now the only phone company that uses the Operating System.
This buy out also means that Microsoft will have the design team and the patents from Nokia which means that they save money which would have been spent on research and development. This also allows them to have access to the employees that have years of experience in the industry.
For the consumers on the other hand this means that the lack of competition will lead to fewer options in the windows phone market and will also lead to slow release of new apps and updates.
Websites Used,
http://www.microsoft.com/en-us/news/press/2013/sep13/09-02announcementpr.aspx