Skip to content Skip to footer

Here is Why Microsoft is buying Nokia

All though Steven Ballmer is leave Microsoft soon, there is one last thing he wanted to do that would possibly change Microsoft forever, the acquisition of Nokia. Monday Evening, Microsoft revealed that it has offered $7.2 billion dollars for both the Nokia Devices and Service department and the companies intellectual property.

Why does Microsoft want Nokia?

Nokia is currently one of the only manufacturers that uses Windows Phone as Operation System on its smartphones and with this, allowing Microsoft to own 10% of the Smartphone market. This means that Microsoft is 100% relying on Nokia as far as market share goes, anything Nokia does wrong will also affect Microsoft and the other way around, and this is something they can prevent by purchasing the Nokia Device and Service department. Allowing them to take full control over the 10% they already owned.

What will Microsoft do with the Lumia?

Microsoft has been falling behind a bit on the Smartphone business, but it did manage to take third place as far as market share goes with the sales of the Lumia, beating Blackberry. So how will the acquisition affect the Nokia Lumia’s? Microsoft is looking into creating a more “streamlined and united process of beefing up its smartphone business.”. Microsoft is currently making $10 profit on every device sold with Windows Phone, now Microsoft owns Nokia it makes $40 for every sold Nokia device.

Why also acquire Nokia’s Intellectual Property?

Microsoft has said several times before that it thinks the intellectual property is very important in the Smartphone business, with the acquisition of Nokias Intellectual property Microsoft will own over 8.500 patent designs and full ownership of the Lumia and Asha. All of these patents and other agreements will help Microsoft gain more market share and as Microsoft them self said: “Put all together, Microsoft will have the most cost-effective patent arrangements for smart devices.”