Microsoft Buys Nokia’s Phone Business to Target Emerging Markets
Microsoft’s acquisition of Nokia’s Devices and Services division (D&S) is a part of its strategy to target emerging markets. Microsoft will be able to use Nokia’s feature phones as an “on-ramp” to penetrate developing economies with Windows-based smartphones in the future.
Entering emerging markets is a sound decision for Microsoft. Although the company will face harsh competition from other phone vendors such as Samsung, it will have an opportunity to flourish in a promising market. (Emerging markets are expected to account for 70.6% of all smartphone shipments by 2017.) The expansion will also give Microsoft a chance to gain back the customers they have lost as a result of consumers shifting away from PCs to mobile devices. To thrive, Microsoft must design and produce unprecedented, “cool” mobile devices that consumers desire. Without such products, Microsoft will remain as “Mr. Boring.”
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