World’s leading software giant is suffering from extinction fever. Microsoft is having a massive setback as Nokia is planning to switch to the Google’s Android OS. Last September, when Microsoft declared to takeover Nokia’s reeling handset division for a mighty 7.2 billion dollar deal, it was trying to safeguard its Windows OS platform in the ferocious mobile battlefield. Other than that, the conglomerate of Apple and Google in a bid to merge their firmware was a major threat to the Microsoft’s position in the mobile universe.
Even worse, Google cut down its Motorola Mobility arm by selling it to the Chinese PC giant Lenovo for a hefty $2.91 billion deal.
And now the Wall Street Journal set the fire ablaze by claiming that Nokia is coming up with an Android-run series of smartphones that are built for developing markets.
All of these terrifying news is a big and tough challenge for the newbie CEO of Microsoft, Satya Nadella. How will he respond to the Nokia deal with Google to opt for its Android OS? Can Microsoft’s survive and make its way out in these intense and cutthroat circumstances where Google is always termed as a front-runner?
Analysts reckon that Microsoft’s major problem is that users have selected an OS for themselves, and that is possibly Google’s Android operating system.
Nicholas Economides, economics professor at the Business School of New York University quoted as, “The fight for operating systems has been won by none other than Google. We can easily admit that Android is dominating the OS market on the globe. Apple can be rendered as the second most favorite OS, whereas Microsoft is way below in this line-up. Microsoft should give up, I guess”.
In answer to this, Microsoft says that it is fighting at two frontiers at the same time. It not all about smartphones or its built-in OS. What matters most, is the wide range of apps and facilities it offers to the clients. Hence, Microsoft is not left with a choice other than to double down on Nokia and its mobile phones.
Economides further said that Microsoft should aim where Windows-enabled phones can utilize the apps and software offerings by Microsoft for desktops and tablets. If Microsoft is able to turn the tables, it would be a major victory.
Microsoft’s shares in Nokia businesses are considerably humble as it still possesses $83 billion cash in its balance.
Anyways, the chances for top hardware manufacturers like Microsoft, Lenovo or any other to get the best of the market are very rare. The once global mobile market leaders such as Nokia and BlackBerry are now trying their hard out to survive in this brutal battlefield. IDC points out that Nokia’s shares were slashed by 25% to end up at 13.8%, whereas Canadian handset manufacturer BlackBerry’s market share was a meager 1.9%.