Microsoft’s move to acquire Nokia device business for $7.2 billion has evoked mixed reactions in India. While some feel that it would have an impact on low-priced smartphones, others feel that it will have minimal impact.
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Mansi Yadav, senior market research analyst, smartphones and tablets, IDC India said that Microsoft may reduce or remove the huge amount it charges for licencing its mobile operating system Windows 8.She added that the company has said it wants to get into the sub-Rs.10,000 device segment for volumes.
While writing off a huge impact in India, some experts feel that Microsoft is a leader in software and even though Nokia saw its market share declining in the last three years, it is still the second largest in the world.
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“The combination of Nokia's recent struggles, it being wedded to the Windows platform, and Microsoft declaring its clear intent to become a devices and services company has made this a natural marriage. Having said that, to what degree it will impact the market, especially the emerging dominance of the Android platform, remains to be seen,” Jaideep Mehta, Country Manager, IDC said.
Livemint has quoted Ravi Venkatesan, former chairman, Microsoft India as saying
“Nokia has a far larger footprint in India and is far more pervasive as far as sales and distribution go but Microsoft has more resources in the engineering department. Nokia is more a consumer brand. For Nokia, India is the second most important market and is now the third largest smartphone market,”
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"Nokia is an iconic and important buy for Microsoft, considering the mobile phone brand's legacy and potential. Handhelds are the devices of the future that may even make traditional computing obselete. For Microsoft, owning a mobile device company will give it control of a prime property which will be a gateway for the software company's current products and future forays. Through this buy, Microsoft has brought the consumer trust held in brand Nokia.", N. Chandramouli, CEO, TRA.
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