With Nokia acquisition Microsoft aims to achieve 15% market share until 2018
Microsoft has posted on its investor site a statement with the reasons and plans behind the decision to acquire Nokia. There are many interesting points, but briefly the goal is to save money and accelerate the market growth for its mobile operating system by bringing the biggest Windows Phone manufacturer at home. Moreover, Microsoft plans to increase the platform`s market share three times to 15% in 2018 and reach 1.7 billion shipments. At present, Windows Phone holds slightly over 4 %. Its share varies from country to country and is over 10% in 9 markets.
As we informed you yesterday, Microsoft is acquiring Nokia`s devices and services business for 3.79 billion euros, as well as its patents` portfolio for 1.65 billion euros. Thus, Microsoft gets a full freedom to use all Nokia`s patents for its future devices. The is a big deal as Nokia holds quite valuable patents in the mobile industry, opening widely the doors for Microsoft to become a serious player on the mobile market.
Another interesting point is that, according to the deal Microsoft is allowed to use HERE mapping technology. The statement reveals that the mapping and geospatial services are of crucial matter for the future plans of the corporation to offer “an effective alternative to Google”. Although Microsoft is getting a license for Nokia`s patents for 10 years, there is an option to make it lasting. With Nokia`s acquisition Microsoft gets a complete control over its mobile software and hardware business.
Source: The Verge