If you haven’t read it yet, your read it now! Nokia was bought by Microsoft. Of course Apple has it own phone hardware division. Google bought Motorola for it’s phone hardware division (still using Asus for tablet though) and Microsoft needed to find the right partner to make Windows Phone successful and become a staple. Well. This is how I see it played out……
Microsoft bought Nokia’s phone business for $7.2 billion to secure to rising future of the Windows Phone business plan. Hey! Google did it with Motorola. But I think ther purchase was too early since Motorola had limited world market penetration. As of last month, Motorola phones only were sold by Verizon in the US. This changed with the launch of the Moto X last month in a campaign to gain more momentum as a one device phone for all the carriers in the world. However Samsung and it marketing and product team really took ownership of Google’s Android. They battling up against their own platform, how ironic. Apple of course always made their own devices, but is now diversifying the iPhone line for different populations. The cheaper iPhone 5C is about to be announced and Apple will not just be a one device for all company anymore.
This how I think the Microsoft – Nokia deal was planned out perfectly like a Chess Game to be a winner in the Mobile market by committing, investing and take owner ship of the right partner.
- Microsoft is looking to get control the phone hardware for the Windows Phone platform. It knows besides Apple (iPhone line) and Google (Motorola Hardware) they need to be the third big company to have control in the Mobile Phone market.
- Microsoft are looking at diminishing popular hardware companies like Nokia, BlackBerry and HTC to create a partnership to save that company from the downhill spiral in the saturated Mobile Phone market. Samsung already controls Android and with Google already being partnered with Motorola this will have conflicts and issues later on.
- After talks with Nokia they device a plan to prove Nokia’s board that this is the only way for Nokia to get rescued from the downhill spiral and sell off the company after it has established a great presence in the Windows Phone market.
- Nokia is looking to sell at the highest price knowing that their days might be numbered.
- September 10, 2010 Stephen Elop Left Microsoft to become CEO of Nokia. This was part of Microsoft’s plan with the injection of funds when the partnership officially was announced on September 10, 2001
- October 21, 2010 – Microsoft Hard reset of Windows Mobile to Windows Phone 7 launches
- February 11, 2011 - Stephen Elop orchestrated within Nokia the motivation of the already chosen direction of Windows Phone as the platform for Nokia.
- May 2011 – Microsoft releases Windows Phone 7.5
- October 2012 – Microsoft releases Windows Phone 8. Camera on Windows Phone becomes the focus. Nokia has the KnowHow.
- December 2012 – Windows Phone takes over and secures 3rd place as most used platform from Rim/BlackBerry in the US.
- January 2013 – Microsoft releases Windows Phone 7.8
- April 9, 2013 – Nokia dominates 80% of the Windows Phone market
- May 2013 – Windows Phone secures global 3rd place and brings a definite global competition to iOS and Android.
- June 2013 – Microsoft nearly purchased Nokia’s mobile phone business.
- August 23, 2013 – Ballmer to step down as CEO within 12 months. Lookin to hire CEO within Microsoft.
- August 27, 2013 – Stephen Elop supposedly an outsider runner up to replace Ballmer.
- September 2, 2013 – Windows Phone sales close to overtaking iPhone in Germany.
- September 3, 2013 – Microsoft buys Nokia devices & services business (including patents) , License Nokia’s patents and mapping services. Stephen Elop steps down as Nokia CEO and becomes Nokia Executive Vice President of Devices & Services. When transaction closes (Q1 2014) he lead and expand the device team and report directly under Steve Ballmer
- September 3, 2013 – Stephen Elop is now an Microsoft insider runner up to replace Steve Ballmer as CEO of Microsoft.
I am not sure how many moves there are. But I see that this chess game has been going on for a while. And I have to say it is well played. However there are many more chess moves happening in this game that does not involve Nokia at all. Think about Xbox, Skype, Skydrive (new name coming), Office 365, Windows 8. Microsoft’s strategy to gain back momentum with their whole eco system is definitely a well thought out chess game where they are placing pieces on the right spots However it is still a chess game and unexpected moves or surrenders can change this game drastically.
The summery above are really my thoughts of how things are taken place within Microsoft….do you have any moves to add to this game?