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Microsoft Still Needs Nokia

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Microsoft Corporation (NASDAQ:MSFT) is entering the mobile phone business. The company reached an agreement to purchase the Nokia Corporation (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V) mobile device business some weeks ago. The deal is still awaiting full approval before it can be closed. One of the disadvantages of the deal, which was brought up by Dan Rowinski of readwrite.com today, is that Microsoft might still need the company.

According to Rowinski “If the Windows Phone operating system is to ever succeed, Microsoft is not going to be the company that leads the charge.” He argues that the Nokia division will need to act independently and in line with the company’s current philosophy in order to make Window Phone 8 a success.

Nokia and Windows Phone

Microsoft Corporation (NASDAQ:MSFT) has not managed much success with Windows Phone. the company has lagged being Apple Inc. (NASDAQ:AAPL) and Google Inc (NASDAQ:GOOG) to an embarrassing degree. With the help of Nokia Corporation (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V) the company has manged to pull itself into a firm third place.

According to Rowinski it is the Nokia Corporation (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V) input that has made the difference. The company’s unique hardware design alongside its developer clout has helped Window Phone become a viable mobile operating system.

Microsoft mobile troubles

The Microsoft Corporation (NASDAQ:MSFT) strategy for mobile, as analysts from Longboard understand it, is to leverage its enterprise offering in order to drive sales of its mobile devices. The company is seeing successes in its enterprise cloud and enterprise services divisions. Integrating these with Windows 8 and Windows Phone 8 is supposed to drive sales of devices to enterprise, and drive results across the company.

According to Rowinski this is going to take a serious amount of work from those in the Nokia Corporation (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V). Microsoft Corporation (NASDAQ:MSFT) still needs Nokia, even if the company loses its brand name and its individual identity, it needs to function as it has in recent years.

If Microsoft takes control of the company, Windows Phone 8 may not go far. That doesn’t discount Microsoft Corporation (NASDAQ:MSFT) input, however. Rowinski discounts the effects of enterprise, and the company’s overall strategy on the platform. That should not be forgotten. If Windows Phone is to succeed it will be a joint venture between Nokia and Microsoft, not an effort from Nokia alone.

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Paul Shea

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