A very interesting rumor has popped up courtesy of Russian technology analyst Eldar Murtazin, who claims based on his sources that Microsoft is planning another big acquisition in Nokia's mobile division following their purchase of Skype last week.
How would it benefit Nokia to be purchased by Microsoft
While Nokia is a popular brand the world around, It has had difficulty rooting it's position in the U.S. especially against Apple and Android. With Windows Phone OS from Microsoft, Nokia plans to take it's place as a big player in the U.S. market.
If Microsoft was to purchase Nokia, they would likely become the sole manufactures of Windows Phones. But Nokia's reach is far wider than smartphones. The company offers a range of S40 based handsets which are popular in various developing countries. How will this essential part of Nokia continue to exists?
While Windows Phone OS may offer what Nokia needs to capture the U.S. smartphone market, Nokia needs to realize that tablets have ignited a whole new competition, one for which Microsoft if not yet prepared. Nokia's investments in Meego and Symbian are important for the company to stay ahead. While Microsoft would probably benefit more from purchasing Nokia, it seams like Nokia will have more to loose.
How would it benefit Microsoft to be purchased by Microsoft
Microsoft knows only too well that they need to make big moves to be taken seriously. Their investments and efforts in the Windows operating system and the Office suite has ensured they have brand dominance. They lost ground in their Windows Mobile product when Apple's user experience sparked a new era in mobile technology.
While Windows Phone 7 is an excellent product, Microsoft needs something unique to stand apart from Apple and Google. Could purchasing Nokia and having the Nokia brand behind all Windows Phone devices, be that unique step forward ? How would this effect their partnership with other hardware vendors who manufacture Windows Phones?
While Android grew in popularity we saw many hardware manufacturers jump on the Android bandwagon, and stop support for Windows Mobile. Even with the release of Windows Phone 7, we have not seen the once loyal manufacturers release Windows Phone devices. Even those who did released copies of already popular Android phones leaving a very small choice of Windows Phone exclusive hardware.
If Microsoft had Nokia as the sole hardware manufacturer they would have a product which can directly compete with Apple, while offering a range of designs.
What do you think? Leave your comments below.