07:23 04 September 2013
On Monday night, it was revealed that Microsoft has agreed to buy Nokia’s devices division for £4.6billion. This move will mean that Microsoft will control Nokia’s smartphone manufacturing unit. Pending the completion of the deal, 32,000 Nokia employees will now work for Microsoft.
Microsoft chief executive Steve Ballmer who said that the deal was a “big, bold step forward” told BBC that his company’s vision, to be focus more on devices and services after being known for software and PC, will be realised with the help of this deal.
"We've done a lot of great work in the two-and-a-half years that we've been in partnership with Nokia, going literally from no phones to 7.4million smart Windows phones in the last quarter that was reported.”
In the recent years, Microsoft has struggled as more and more consumers turned to smartphones and table PCs, shunning traditional laptops and PCs. Although the company tried to compete against giant names like Apple and Samsung by releasing the Surface tablet PCs last year, the sales of the device has been relatively slow.
Manoj Menon, managing director of consulting firm Frost & Sullivan, said that the deal will help in bringing “hardware closer to the operating system and achieve a tighter integration. He added: "This should help Microsoft make a more effective strategy to compete in the mobile sphere.”
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