Now that Microsoft Corporation (NASDAQ:MSFT) and Nokia Corporation (ADR) (NYSE:NOK) are going to be one in the same in many ways, it is time to look towards the future. It is time to consider what this means for both companies, with an eye towards MSFT.
On the surface, it is easy to see that Microsoft is hoping to become a bigger player in the mobile device arena. With Nokia’s Devices and Services business at its back, it will be much easier for the company to make headway.
According to Digitimes Research, this move signifies something else. It “demonstrates that Microsoft actually intends to transfer itself into a mobile platform provider.”
Does Microsoft Corporation (NASDAQ:MSFT) have what it takes?
On paper, this deal looks like a perfect fit for Microsoft. But as we know, things don’t always work out the way they should.
Jim Hsiao, Danny Kuo and Joanne Chien of Digitimes Research recently took a closer look at what this means to the future of MSFT.
There is no denying the fact that the company has struggled to become a mobile platform provider in the past. Despite the fact that Microsoft has dominated the PC industry with its Windows operating system, it has not translated into mobile success.
This has led to what Digitimes is calling a “dual-track policy to promote its mobile platform.”
For consumers, the company will focus on marketing its own devices as a means of becoming more competitive. Along the way, it hopes to gain greater acceptance from consumers.
On the other side of things, you have the business sectors in which “Microsoft is expected to continue its cooperation with PC OEMs through licensing.” This will allow the company to maintain its current market share without giving up any profitability in this area.
Don’t get too excited just yet. Microsoft Corporation (NASDAQ:MSFT) will want to make the right moves along the way, meaning that future developments could be held off for a little while. At the very least, expect the company to take things slow at first.
Microsoft Corporation has a golden opportunity at its fingertips. It is in position to change its mobile approach for the better, while continuing to rely on its “bread and butter.”