Microsoft buys over Nokia to challenge Apple and Google - NAIJA INFORMATION

September 03, 2013

Microsoft buys over Nokia to challenge Apple and Google

It is just confirmed that Microsoft has bought Nokia mobile phone business for €5.44bn (£4.61bn) multiply by 158 to get the value in naira this was done in an effort to help Nokia challenge the dominance of Apple and Google in the smartphone market.

The deal will see Nokia’s current chief executive, Stephen Elop, join Microsoft and makes him favorite to replace Steve Ballmer, who announced his retirement last month. Labrokes said he was now 4/6 favourite to take the role, with Facebook’s Sheryl Sandberg 7/1 and former Microsoft executive Steve Sinofsky 12/1.
Nokia’s chairman, Risto Siilasmaa, admitted that the Finnish company’s effective exit from the mobile phone business it pioneered was an “emotional” decision but made financial and strategic sense.
He said it lacked the resources to properly promote its Lumia smartphones, which use Microsoft’s Windows Phone operating system, in a sector dominated by the Apple iPhone and handsets running Google’s Android software, particularly Samsung’s Galaxy range. 
He said: “The industry is becoming a duopoly with the leaders building significant financial momentum. Nokia alone doesn’t have the resources to fund the required acceleration.” 
Microsoft's Steve Ballmer (left) and Nokia's Stephen Elop show off the new Lumia 920.
The struggles of Nokia’s mobile phone business, which accounted for around half the group’s revenues last year, have weighed heavily on profits. In the first half of this year underlying margin was 4pc, it said, but would have been 12pc without having to battle in the fiercely competitive sector. 

source: telegraph

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