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Microsoft swallows Nokia's phone business for $7.2 billion
SUMMERY OF ARTICLE:
Microsoft Company plans to buy Nokia phone, license, and its patents for EUR 5.45 billion. Since two years Nokia has been struggling hard to survive in the market and is able to save itself from the Microsoft deal but eventually the company had to surrender because Nokia once the dominant in mobile phone market is ravaged by the rival companies such as Samsung and Apple. Microsoft retiring CEO plans to make Microsoft into a high-technology serving company such as Apple, but this move is still not accepted by many shareholders. The CEO of Nokia, who was the Microsoft software division head before joining Nokia plans to return to head the same job after he retires from Nokia (Ritsuko, p.1).
STATEMENT OF HOW THE ARTICLE RELATES TO THIS CLASS:
It is imperative to analyze the fundamentals of business and the economics it operates into. The macro-environment plays an important role in the business operations, and the business competitor has a significant role to play. Nokia had a huge market share of 40 percent in the handset business in 2007, and now it has only 15 percent of market share with only 3 percent in the smartphone sector (Steve, p.1). Microsoft Company plans to buy Nokia phone, license, and its patents for EUR 5.45 billion. Since two years Nokia has been struggling hard to survive in the market and is able to save itself from the Microsoft deal but eventually the company had to surrender because Nokia once the dominant in mobile phone market is ravaged by the rival companies such as Samsung and Apple (Ritsuko, p.1).
Work Cited
Ritsuko Ando and Bill Rigby “Microsoft swallows Nokia's phone business for $7.2 billion” p.1, (Sep 3, 2013) Reuters, http://www.reuters.com/article/2013/09/03/us-microsoft-nokia-idUSBRE98202V20130903
Steve Kovach “Microsoft Closes Its $7.2 Billion Purchase of Nokia” p.1 (Apr 2014) Business Insider http://www.businessinsider.com/microsoft-closes-nokia-acquisition-2014-4#ixzz3JNwzec5t
