SEOUL, KOREA- The world’s largest software company Microsoft has acquired Nokia, once called as the kingdom of mobile phones.
Microsoft’s latest acquisition can be interpreted as an attempt to strengthen its Windows phone. However, given today’s weakened presence of Nokia, Microsoft’s acquisition of Nokia may have a limited impact on the mobile phone market.
Microsoft announced on September 3 that it acquired Nokia’s mobile phone devices, services, and patents for 5.44 billion euros (US$7.17 billion). Microsoft spent 3.79 billion euros to acquire Nokia’s devices and map services and 1.65 billion euros for Nokia patents.
Microsoft’s acquisition of Nokia implies a strong sense of anxiety Microsoft has about the growing influence of Google and Apple in the smartphone market.
Before Samsung Electronics and Apple ruled the roost in smartphone market, Nokia had played a leading role in the mobile phone market for more than 14 years. Nokia, however, failed to keep abreast of the change in the market during the 2009-10 period when the mobile phone market was transformed into a smartphone-centered one.