Nokia Corporation (ADR) (NOK), Apple Inc. (AAPL): Is Microsoft Corporation (MSFT) About to Heat Up the Mobile Market?

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The risk for Microsoft is that this deal is a me-too strategy on the heels of Google’s deal with Motorola and a fundamental recognition that Apple Inc. (NASDAQ:AAPL)’s content and hardware ecosystem is the only model that can work.  In fact Microsoft is attempting to ‘recreate Apple’ by combining its software and hardware under one roof. This still leaves the strategic question of how Microsoft will be competitive in the mobile space.  A ‘me too’ strategy, catching up with Apple Inc. (NASDAQ:AAPL) is not likely to succeed.  Microsoft needs its own strategy in the marketplace, and Nokia Corporation (ADR) (NYSE:NOK) alone will not deliver that strategy.

Nokia employs 30,000 people too, which will make integration a costly, time-consuming and inevitably blood-letting exercise.  This feels like a clean up deal at the end of an era.”

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