The deal comes at a time when Microsoft’s mobile phone gameplan has not taken off with the Windows platform. Android has clearly taken the market by storm and then there is the Apple iOS.
Given the large consumer base of Nokia, it could well be that Microsoft is taking a shot at trying to upgrade existing feature phone users to smartphones.
Other than the US, Nokia has been a strong brand in rest of the world while Microsoft has been a big player in the enterprise space in the US. So, for Nokia, the partnership opens up the US market while for Microsoft, it gives it the opportunity to increase uptake of Windows 8 platform in rest of the world.
This combination could be a game changer because there is an opportunity, for example, to make available Windows platform available on the entire Nokia Asha series thus bringing the best of smartphone capabilities at affordable price points to a large number of consumers in growth markets. The market, including India, is moving towards smartphones and this alliance can take advantage of the growth in this segment in the next couple of years.
This is an industry where cycles are so sharp that if you miss a trick then you can lose out. A number of big players have gone through the cycle, Motorola, for example, where big brands have dropped off the peaks.
I always felt sad to see a brand like Nokia decline from the peak. But I am happy to see that it has now been bought by a giant such as Microsoft that can revive Nokia.
(The author was Director of Sales, Nokia India from 2002 to 2007)