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Business means uncertainty! Microsoft acquired Nokia at $7.2 billion in 2013 i.e. really huge and it shows the expectation level of Microsoft from the Nokia mobile business. Unfortunately, it does not move well with Microsoft; may it be due to lack of enthusiasm or may be improper business strategy, but at the end it has to accept the failure. Experts believe that, it could not revive because of its incompetency with respect to aggressive players of the industry like iOS and Android.
iOS and Android have gained a tremendous market share in the Smartphone industry. Though, they are having absolutely contradicting business policies with respect to smart phone business, still both are success in the industry. iOS keeps its phone ecosystem limited by producing flagship models under the in-house apple brand whereas Android keeps it open for every manufacturer; but anyhow, they are getting positive response from the industry that does not happen with Windows phones till date. So, it is really a headache for Microsoft to comeback in the industry that is already loaded with iOS and Android Smartphones.
The problem is with the business policy! Nobody can ignore the potential of Windows operating system in the Desktop industry. It can be well witnessed from the desktop market share in the industry. But, since it has acquired Nokia for the mobile device business, everything goes against it. The most important thing is the quality of Nokia business phones. Though Nokia has an extremely good reputation in the mobile handset industry; but the same does not happen with the Smartphone devices. Except one model i.e. Lumia, no other model is a successful one till date. This is probably because of high competition from already established players like Apple, HTC and Blackberry etc. Nokia Microsoft is unable to produce such standard of high end devices for its customers. Again, the operating system itself is having some trouble i.e. Windows 8.1 and above OS are par behind iOS or Android OS. Experts also believe that, Microsoft was in hurry to enter into the hardware device manufacturing industry instead of concentrating on the Operating System. If it would have more concentrated on its OS just like what Google does, then it might not have to suffer so severely in the industry. So, when all these mistakes mix together resulting a bad output for Microsoft.
Microsoft to follow Apple’s path: After a lots of bad decisions that were taken in a hurry, Microsoft now tries to correct them in a systematic approach. Now, it is adopting the core concept of Apple i.e. to manufacture few flagship products for the user and do concentrate more on the operating system. The CEO Satya Nadella has recently announced that Microsoft will no longer concentrate more on the Phone business instead on the Operating System. He also announced that we will focus on few class business phones with a clear vision to provide better quality of experience to the customer. From his words, it is clear that Microsoft is going to follow Apple’s path with little deviation. Apple produces single phone in a year but now Microsoft will produce 3 categories of Smartphones. The first category phones will for the higher end business users who want strong management options, productivity apps and of course excellent security. The second category devices will be for cost sensitive customers with special focus on the developing countries like India and China etc. Now the third category Smartphones will be gifted to the Windows fans.
Microsoft is firing around 7800 professionals: This is yet another important message to consider. The CEO Satya Nadella’s announcements made the New Yew York Time to make it a headline as “Broad Rethinking”. Microsoft clearly told that, it is going to focus more on its operating system instead of Smartphone device manufacturing. In fact, they have decided to write off most of its Nokia deals to the tune of $7.6 billion today. This clearly shows their complete change of business strategy for the device manufacturing. Again, they are going to fire around 7800 professionals soon. All these things to happen due to failure of Microsoft smart devices in the industry. Microsoft is unable to accumulate profit from its mobile manufacturing business and hence they are now trying to stop it though not completely sooner.
Windows Smartphone business is not as per their early estimates: Players like Google and Apple are way ahead of Microsoft. They are attributing much higher for their operating system than that of Microsoft and this triggers the unexpected result for Microsoft. Microsoft is unable to grow as fast as these players in recent period. It is also cleared that, it cannot compete with these players unless until it focuses more on its business especially on its software part; because, smart app developers are not encouraged enough to develop windows apps due to its low penetration in the industry. To encourage them, Microsoft is now asking developers to develop cross platform apps instead of dedicated one to save its brand. Anyhow, we can’t comment on the real future of any business rather we can simply assume that Microsoft may lose even more if not take some preventives now onwards.
So, has Microsoft accepted its failure? This is the most gossiped topic of internet today. After a lot of mistakes from Microsoft, it might have thought that its ambitious venture is losing its grip with every passing day. Though Microsoft is not admitting the same publicly; but it can be well observed by the industry experts from the recent behaviour of Microsoft. Microsoft is to write off most Nokia deals at $7.6 billion and the recent firing process is making everyone think twice on the future of Windows phones. Yes, Windows phones still matters a lot for Microsoft but not as it was before and it is cleared by Nadella. He is now concentrating more on its operating system instead of mobile devices.
Finally, it is really a question mark for Microsoft how to come back to the battle to fight iOS and Android? But, again we know how much potential Microsoft possess for more than decades. It may come back anytime into the industry; but it is just our assumption and we hope it come true in near future. After all, if Microsoft comes back that means we will get yet another potential offering for our hard earned money while purchasing a new gadget.
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