The joint forces of two Technology giants, Microsoft and Nokia, which officially announced two years ago has come to an end. With more competitors now in the market, the duo appeared to have a hard time coping up to the consumer demands. Time has come for Microsoft to concede and admit that the Windows Phone market — whose hardware made by Nokia Lumia series — struggled from the beginning of its inception in the Smartphone arena.
The acquisition of Nokia was a big risky decision made by Microsoft in the hope of diverting public interest from the ever growing Android and iOS platforms. I myself is a Windows Phone user (Nokia Lumia 925) and I must admit that the software is awesome but the difficulty in surviving the test in a low market is daunting. See: Top Ten Struggles of a Windows Phone User in the Philippines.
Since Windows Phone currently shares 3% of the handset market, the firm decided to focus on its development to software and cloud away from hardware concerns. This give way on Nokia to go back on its feet in manufacturing phones again in the aspiration to regain its former glory.
An expected 7,800 jobs (7% of the workforce) will be slashed on the first wave of the move and about 18,000 jobs in the end of July for the second round. Microsoft will write off $7.2 billion it spent for the Nokia handset in 2014. In Finland, Microsoft will breathtakingly shut down a whole product development unit.
Like any relationship, it hurts ever time a couple splits up. However, if there is a greater reason behind of it, separation could be a good opportunity to grow. Nokia will enhance its supreme hardware development. Microsoft will continue its gains to the software market starting from the release of Windows 10. See: Windows 10 and Minecraft Will Be Released Together and Video: Microsoft Introduces the New Windows, Windows 10
Will Nokia succeed in restoring its status in the global market? Will Microsoft not regret this another massive decision? The future can only tell.
Credits to Devika Krishna Kuma and Abhirup Roy of Yahoo News
(Picture in courtesy of Google Images)