Electronic component manufacturers, distributors and retailers are gung-ho about the deal.
“It is a big positive for us,” said Ashok Dhawan, Country Manager, Flextronics India. The company supplies cell phone chargers from its plant at Sriperumbudur, near Chennai, to Nokia globally.
Out of its factory in China, Flextronics manufactures for Microsoft the Xbox, a video gaming brand. It includes a series of video game with consoles. “We do not know, we may, in future start manufacturing Xbox in India,” he said.
“We look at it very positively,” said R. Srinivasan, Managing Director, Redington (India) Ltd. Microsoft’s distribution strategy for devices was different from that of Nokia, he said. Redington has been a Microsoft partner for over 15 years in India and distributes Micorsoft’s gaming products such as Xbox and Kinect. Last year, Microsoft appointed Redington as a value-added distributor (VAD). Since then, Redington has been driving the VAD business through focused value-added resellers (VARs). It is now one-stop shop for VARs to provide total solutions to their small and medium-size business and mid-market customers using complementary products and solutions along with Microsoft offering.
A mobile retailer in Chennai said it was too early to say how Microsoft will change its strategy to distribute Nokia phones in India, which is one of the biggest markets for the Finnish major.
“However, we are excited about deal, which will give us an opportunity to work with two big brands that have huge market base in India,” he said.