Microsoft’s acquisition of Nokia does not seem to affect greatly the Indian mobile phone brands. Nor are the local handset-makers worried of new devices (from Microsoft) challenging their dominance in the mid-to-mid-high segments (between Rs 7,000 and Rs 18,000). Google’s Android will remain the preferred operating system still.

“Android will be the first choice. I do not think Indian vendors are worried about the acquisition,” S. N. Rai, Co-founder & Director, Lava Mobiles, told Business Line . According to Krishna Singh, COO, Maxx Mobiles, Indian vendors would have felt threatened had Nokia acquired Microsoft. “There’s not much to worry at the moment. The Windows phone has not done any wonders for Nokia so far,” he said. Currently, all local vendors — including Lava, Maxx, Micromax, Karbonn, and Intex — operate on Android. These vendors have shied away from the Windows platform because of fewer apps and the need to pay Microsoft royalty for the software.

Slow off-take

Microsoft might see a slower offtake. The company has become a hardware vendor for its own operating system, thereby disrupting the ecosystem. “With Microsoft acquiring Nokia, there may not be many takers for the Windows operating system,” Rai pointed out.

Of the five smartphone operating systems, RIM (now BlackBerry) runs on BB10, Apple on iOS, and HP webOS. Windows and Android — the other two — are not exclusive to any single device-maker.

Once Microsoft starts selling Nokia phones, frown lines will show. The key question will be: Will all licencees will get the same (software) updates as quickly as Nokia or will Microsoft favour its own hardware? “Microsoft will push for greater adoption of its operating system across vendors. Google didn’t stop licensing Android after it bought Motorola,” pointed out Katyayan Gupta, analyst at Forrester Research.

Aggressive move

According to him, Indian vendors should actually be cautious. It will be surprising if Microsoft, with deep-pockets, does not use its resources and marketing muscle to leverage the Lumia (Nokia’s smartphone range operating on Windows) brand.

With better control over hardware, Microsoft will reduce costs. Hence, bringing out low-cost devices to take on Indian vendors cannot be ruled out. “It will be surprising if you do not see more launches and faster go-to-market devices. Nokia’s marketing push was tripping on the cash hurdle,” he said.

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