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Daily Archives: September 3, 2013
In the mid-1990s, Nokia was well on its way to becoming the world’s leader in the adolescent mobile phone business, a dazzling rise that would see it peak with a 40 per cent global market share.
The reborn Finnish upstart, casting aside its heritage in pulp and paper, was brimming with confidence based on its market-leading technology, neat handset designs and a vision of the future that at times seemed to stretch credulity.
Microsoft’s €5.4bn acquisition of Nokia’s devices business was both long predicted and a bolt from the blue, coming so soon after its chief executive Steve Ballmer announced his retirement. Here Mr Ballmer explains the logic of the deal to investors.
Why now? The key seems to be Microsoft’s ambition.
Since it joined forces with Nokia in mobiles in 2011, neither company has prospered. Microsoft remains a distant third to Google and Apple in terms of operating systems, while Nokia’s share of the smartphone market has collapsed from 17 per cent in 2011 to 3 per cent in the first half of this year, according to Gartner.
“We know we are number three in the market, we’re not number two or one and we need to accelerate,” Steve Ballmer, chief executive, told the FT’s Richard Milne.