Repurchase Nokia Phone by Microsoft, I had unfortunately anticipated .... - ZDNet

Summary: I announced two years ago, the acquisition of Nokia by Microsoft … What are the implications for Microsoft and the mobile OS market ….

It is never pleasant to announce disasters and then find that they come true.

August 2011, there is a little more than two years, I wrote on this blog a text under prescient: “ Economy fiction: Nokia and Microsoft: a Machiavellian plot “

I was wrong a few months, announcing the acquisition of Nokia by Microsoft could be the end of 2012, it took until the end of summer 2013

.

sad story …

Nokia’s market value was $ 40 billion in September 2010, with the arrival of Stephen Elop as CEO: for those who do not know, it was one of the leaders of Microsoft.

September 2013, Microsoft announced that it bought the Nokia phone division for $ 7.2 billion and Nokia keeps its network infrastructure division, NSN, Nokia Solutions & Networks,

As Nokia had bought, 1 month ago (coincidence, coincidence?) 50% of their joint venture Siemens NSN for $ 2.2 billion, this enhances the part of Nokia remaining after sale of mobile Microsoft, to 4.4 billion. (The S stands today NSN Solutions, instead of Siemens;. Clever because it avoids changing the brand)

The total value of Nokia came in at 7.2 + 4.4 = 11, 6 billion. Under the direction of Stephen Elop, Nokia lost 71% of its value ;! What a great performance

In 2011, when I wrote my previous text, the overall value of Nokia was “still” of $ 20 billion. Meanwhile two more years Microsoft has obtained this value still down 50% before taking action.

class=”c6″>

“This is a smart acquisition for Microsoft, and a good deal for Both companies. “(This is a smart acquisition for Microsoft and a good deal for both companies.)

I’m not sure that this view is shared by the employees and shareholders of Nokia …

class=”c6″>

Nokia has cost less to Microsoft Skype , bought more than $ 8 billion, which would have dared to imagine, 3 or 4 years ago

?

What future for Windows Phone

In 2012, Nokia already marketed nearly 80% of smartphones running the Microsoft OS, Windows Phone 8. Now that Nokia phone is fully “integrated” in Microsoft, it is clear that more no manufacturer will push Windows Phone. End of 2014, Microsoft has over 95% market share, if not 100%.

Some have wrongly rapprochement with the acquisition of Motorola by Google, Google has left Motorola as an independent and separate enterprise while Google Phone Nokia will be “integrated” in Microsoft

Many commentators have found positive that Windows Phone has become in many countries the number three mobile OS behind Android and iOS.

A “successful”? No:

• The third is due primarily to the marginalization of BlackBerry, in a state of clinical death.
• In one year, sales of smartphones sold by Nokia fell by nearly 60%. As this table shows, in the second quarter of 2013, the cumulative Symbian and Windows Phone sales accounted for 3.6% of the market for smartphones. They represented 8.5% a year earlier.

clarifies market for mobile operating

systems

This is an important subject that I discussed a few months ago, the acquisition of Nokia Phone by Microsoft makes it even more clear picture

.

There are two major suppliers, Apple and Microsoft, which sell their own smartphones, with their own OS. (BlackBerry, the third in the family is disappearing from radar.). Apple is number two in the market and Microsoft number three.

The absolute leader, with about 70% market share, is an open player, Android, will paradoxically, play the market moving objects had the role of the traditional Windows PC: hundreds of manufacturers market Android smartphones in the world.

This acquisition is great news for my favorite underdog, Firefox OS and the few manufacturers like HTC, which still producing Windows smartphones are likely to convert to Firefox OS .

Who will be number three, the end of 2014? Today I’m betting that it will be Firefox OS, Windows Phone before.

What future for Microsoft

Everyone tries to guess the name of the successor to Steve Ballmer as CEO of Microsoft. Bookmakers give for the moment favorite … Stephen Elop, 5 against 1

I really hope, for the sake of Microsoft, they are wrong. In view of its spectacular performance s as boss of Nokia, I can not imagine what could happen if it became that of Microsoft.

If, unfortunately, it happened, I only have one advice for you: sell immediately all Microsoft shares you might still hold

!