Nokia's hardware business is finally locked to Microsoft, and the technology world is wondering what the software giant plans to do with it. The company is now the number 2 mobile phone manufacturer behind Samsung, a position that carries a lot of weight.
The software giant paid $7.2 billion for the privilege of owning Nokia's smartphone and mobile phone businesses. It is likely this move was a counteraction to Google's acquisition of Motorola, but since that plan has failed, Microsoft could be looking at the daunting task of doing what Google has failed to do.
Then again, the acquisition is likely due to the fact that Nokia was the only company that stood firmly behind the Windows Phone platform with over 90 percent market share. Losing such a partner could have led to the death of the platform.
The big question right now is: Can Microsoft, along with Nokia's mobile hardware business, bring something new to the market?
Not an easy question to answer since Microsoft has failed to bring anything considerably new to Windows Phone. So far, Microsoft has been following the leaders where features and hardware specifications are concerned. Just recently at Build 2013, Microsoft announced its own virtual assistant that goes by the name, Cortana. Both Apple and Google have been doing something similar with the likes of Siri and Google Now for quite some time.
However, despite all the follow the leader actions by Microsoft, we do see this deal working out well for Windows Phone. It should mean that future the very first Windows Phone device with the Microsoft logo should have a deeper integration with the operating system. Users should see faster updates and an overall better ecosystem.
Hey, what about Asha, Nokia X and the feature phones?
The Asha and feature phone line of devices, accounts for the majority of Nokia's mobile devices sale. Include the Lumia line of handsets, and we're looking at over 200 million devices supplied per year. Microsoft would no doubt look into this with hopes of tapping this market to push the likes of OneDrive, Office 365, Skype, and its many online services.
On the matter of Nokia's Android based handsets, these could be discontinued, though Microsoft could truly shake up the market by using Google's own operating system to push its own services. We doubt that will ever happen, but what a surprise it would be if Redmond looks to this direction.
The possibilities are there for Microsoft to take control and push its services to a market of 200 million per year, but things will not be easy.
Despite having Nokia's hardware business under its wings, Microsoft is still relying on partners, which could force the company to be less aggressive in the marketplace. Chances are; Microsoft could choose to ship fewer devices to give help its partners feel less pressured.
The prospects right now for Microsoft and Windows Phone are both good and bad. But with the position Microsoft is in right now, the company may very well use its new found powers to its full potential to cement the Windows Phone platform, instead of bowing to partners.
