Earlier this morning the news broke that Microsoft is buying the core of the Nokia phones business for $7 billion. There are still some regulatory approvals to overcome so the full impact of this announcement will not really start to make itself felt until later this year however…


Steve Balmer and Steve Elop

• Stephen Elop will now be rejoining Microsoft from Nokia (along with most of the senior Nokia management) with responsibility for not just smartphones but all devices, including the Surface tablet

• The deal kills any rumours that Microsoft might pull out of the smartphones business

• The deal also kills any chance that Microsoft might rescue Blackberry

• By next year there will only be three global smartphone platform players: Android – Apple – Microsoft

• Never mind smartphones, this is also a strategic play by Microsoft to prevent any further erosion of its operating system market share which in recent years has dropped from 95% to 30% if you count connected devices including PCs, smartphones and tablets. See slide


Here is the official Microsoft presentation (it’s a 3.5Mb PDF) explaining the rationale for the acquisition www.microsoft.com/en-us/news/download/press/2013/StrategicRationale.pdf