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Here's Why Microsoft Bought Nokia's Phone Business

Technology research firm Gartner  (NYSE: IT  ) released a report stating that by 2017, shipments of devices using Google's (NASDAQ: GOOGL  ) Android operating system are expected to dwarf shipments of Windows-powered devices. In a last-ditch effort to get back in the race and stem the tide of Google's surging market share, Microsoft  (NASDAQ: MSFT  ) purchased Nokia's (NYSE: NOK  ) handset business and related patents for approximately $7 billion.

In the following video, Motley Fool analysts Joe Tenebruso and Eric Bleeker discuss why it appears Microsoft may have already lost the race to Google and Apple  (NASDAQ: AAPL  ) , and that this latest acquisition may turn out to be another in a long line of mistakes for the fallen king of software.

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Read/Post Comments (5) | Recommend This Article (4)

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  • Report this Comment On September 16, 2013, at 1:24 AM, Bull683 wrote:

    "...discuss why it appears Microsoft may have already lost the race ..."

    Note to Microsoft and Nokia bashers, when the words "appears" and "may" are an integral part of your argument you lose serious credibility with anyone taking the scant amount of time to read your speculative garbage.

  • Report this Comment On September 16, 2013, at 1:34 AM, sniperboy wrote:

    More clickbait articles from MF.

  • Report this Comment On September 16, 2013, at 12:12 PM, GameBot wrote:

    snore, TMF Microsoft hate fest continues....

  • Report this Comment On September 16, 2013, at 6:31 PM, chilero wrote:

    They haven't burned their bridges with OEMs. That was the argument used against the Surface launch but the OEMs are releasing a tremendous number of Windows 8.1 tablets this fall.

    So far no OEM has bailed (since the announcement) and there have been rumors of LG coming back as well as HP and Lenovo getting on board.

    Worldwide market share is only 4% but growing fast. Some markets are already seeing 10-15% market share.

    Now with MSFT owning Nokia devices it may be time for them to start giving away the Windows Phone OS to the OEMs. Then sell the services on top.

  • Report this Comment On September 16, 2013, at 8:05 PM, chilero wrote:

    Retracting the HP rumor as their PR say that it is not true.

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