Nokia will always be remembered as the company which pioneered the era of handsets and feature phones. By transforming the Nokia brand, Microsoft is bound to face difficulty in convincing traditional Nokia fans to switch to Microsoft Mobile. The merger is a win-win for both companies, as the global smartphone market now matures into a three-way horse-race.
It is estimated that in 2015, one out of every two devices shipped, will be an Android powered device. With the deal set to close finally, Microsoft is now fully ready to enter the competitive smartphone market, despite lacking large market share, developer acceptance and ubiquity across manufacturers.
Dazeinfo Inc is one of the leading industry intelligence platforms, immensely focused on creating business content that revolve around industry gowth, companies performance, analysis, market research and projection.Our content and service help business executives make fact-based decisions and accelerate their growth. Sales of smartphone devices outsold those of feature phones worldwide for the first time in 2013 and it remains to be seen if Microsoft will continue to sell feature phones in India.
Despite these issues, having a trusted mobile brand as its hardware partner will allow Microsoft to oversee the speedy and flawless implementation of Windows Phone OS. This increased saturation in the Android device market is likely to force OEMS to consider the Windows Phone OS for their device. Microsoft has already unveiled a free version of Windows OS to hardware vendors for devices with a screen size of less than 9 inches. Apple’s flagship devices retail for no less than $500, despite the average selling price of a smartphone falling to US$337 last year.


It’s HERE Maps project is devising plans to produce semi and fully automated software for controlled car driving. The tech giant has found a steady place in the mobile market, and its urgent need will be to capitalize on its pricey acquisition, by selling to enterprises, networks and consumers alike.
If Microsoft decides to go ahead with the re-branding, the iconic brand name of Nokia Mobile could disappear by the end of 2014. In 2012, it began selling smartphones under the Lumia brand, initially powered by Windows 7 Phone OS. Despite the phenomenal market share of Samsung and other local brands, the share of Nokia Lumia in the Indian smartphone markets stood at 5% for Q3 2013. Nokia remains a particularly trusted brand in India and Brazil, for its range of handsets and Asha feature phones. The introduction of the Nokia-X range of phones was largely seen as an attempt by Microsoft to tap the low-end smartphone market, by allowing Nokia to use a forked version of Android .
This effectively gives the Redmont giant, the opportunity to promote all its key services and features on its very own devices. The firm can still charge license fees on other devices such as PCs and tablets, but the move enables it to compete head-to- head with Android OS.
By selling the Lumia range of  phones under $300, Microsoft has set its sights on capturing the mid and entry levels smartphone market in several emerging countries, while selling premium products in emerged markets. There are also rumors that the Here division will drive future hardware products from Nokia.


Stephen Elop, the former CEO of Nokia before the acquisition, will continue to head the mobile division under the Microsoft banner. In 2014, several hardware vendors, such as HTC Corp (TPE:2498) and Samsung have reportedly announced plans to develop Windows powered phones. Windows phone platform was initially seen lacking in a number of features that were regarded as requirements by most consumers. The other non-mobile businesses such as Nokia solutions and Networks telecom group, HERE Maps and  the Advanced technology division will continue to be managed by Nokia.
Throughout 2013, it sold 30 million handsets globally, an increase from the 13.3 million handsets sold in 2012. The upgraded Windows Phone 8.1 OS has  improved functionality, personal voice assistant technology and improved core services, allowing Microsoft to project it as a feature-complete OS.
In September 2013, Microsoft acquired Nokia handsets and services for US$7.2 billion, but the deal closure was delayed due to various international hurdles.



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