Microsoft's Nokia Buy: Consumer Chase Is On - InformationWeek

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Microsoft's Nokia Buy: Consumer Chase Is On
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cbabcock
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cbabcock,
User Rank: Strategist
9/4/2013 | 11:25:18 PM
re: Microsoft's Nokia Buy: Consumer Chase Is On
It's true Microsoft is trying to preserve a hardware partner on the brink of failure, but that partner produces consumer mobile devices. There' s no point in making this move if you're in a headlong chase after consumers. But your effort places you in the back of the pack.
WKash
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WKash,
User Rank: Author
9/4/2013 | 8:32:10 PM
re: Microsoft's Nokia Buy: Consumer Chase Is On
Another way at looking at this is that Microsoft's decision to buy Nokia's smartphone business and patents was as much about preserving a crucial, dedicated hardware partner as it is about getting more squarely in the consumer game.
Thomas Claburn
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Thomas Claburn,
User Rank: Author
9/3/2013 | 8:39:05 PM
re: Microsoft's Nokia Buy: Consumer Chase Is On
Microsoft seems to be trying to run its own game using Apple's playbook and it's far from clear that it can do so. There are not many other examples of successful hardware/software companies. BlackBerry comes to mind as an example of what not to do. Apple seems to be more the exception than the rule, so I doubt that Microsoft will prosper with Nokia's baggage.
cbabcock
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cbabcock,
User Rank: Strategist
9/3/2013 | 6:08:41 PM
re: Microsoft's Nokia Buy: Consumer Chase Is On
Excellent analysis here. Microsoft believes it must be a consumer company and is on a mission, I guess, to prove that one massive consumer hit, Windows, guarantees another. It ain't necessarily so. Microsoft first gained the consumer market by producing good consumer software, then using agreements with PC manufacturers to place its operating system -- and not anyone else's -- on new PCs. It could reward manufacturers with a price advantage if they did; punish, if they didn't. This control point no longer exists. You have to win consumers by appealing to consumers. In that sense, Steve Jobs took this direct route much more effectively than Microsoft ever did, Microsoft's DNA is more strongly as a software development company than as a company with consumer insight. It's now set out to prove that it has the insight, as well as the development smarts. I'm holding my breath.
rradina
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rradina,
User Rank: Ninja
9/3/2013 | 6:00:16 PM
re: Microsoft's Nokia Buy: Consumer Chase Is On
If it's based on Intel and it's running Pro, it could be a reasonable option in an already-crowded field. If it has an ARM chip and RT, the price is wrong. Competitors already offer a full Windows laptop-like tablet at that price point. Buying an RT device seems like less for the same price. Of course Microsoft has confused the market with it's ARM vs. Intel and touch vs. classic strategies that it's hard to tell what the public thinks of any of this.
Laurianne
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Laurianne,
User Rank: Author
9/3/2013 | 5:50:41 PM
re: Microsoft's Nokia Buy: Consumer Chase Is On
A $499 laptop-like tablet from Nokia in late Sept.? This surprises me that they would not learn from the reaction to Surface RT hardware.
Lorna Garey
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Lorna Garey,
User Rank: Author
9/3/2013 | 5:19:54 PM
re: Microsoft's Nokia Buy: Consumer Chase Is On
Seems like the draw of Nokia should be its patent portfolio, yet the deal only brings a 10 year license. I don't get the logic of that for MS.
DDURBIN1
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DDURBIN1,
User Rank: Ninja
9/3/2013 | 5:16:59 PM
re: Microsoft's Nokia Buy: Consumer Chase Is On
Acquiring Nokia doesn't give Microsoft resources to success. Microsoft has all the resources it needs at it's disposal. What Microsoft needs is better management and decision making at the top as current product features and pricing are designed to maximize the most profit not to satisfy the most consumers.


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