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Microsoft Buys Nokia

In a major yet unsurprising move, Microsoft has acquired Nokia’s device and services devision for around $7.2 Billion.

Building on the partnership with Nokia announced in February 2011 and the increasing success of Nokia’s Lumia smartphones, Microsoft aims to accelerate the growth of its share and profit in mobile devices through faster innovation, increased synergies, and unified branding and marketing. For Nokia, this transaction is expected to be significantly accretive to earnings, strengthen its financial position, and provide a solid basis for future investment in its continuing businesses.

Microsoft is a now a vertical smart phone and tablet maker. Google and Microsoft are beginning to see the benefits of being the software and hardware makers for their devices like Apple. The likes of Dell, Sony, HP, Asus should be somewhat concerned now. Suppose Microsoft decides to only make Windows Phone 8 devices with Nokia and not them? Overall, this is a good move by Microsoft right now.

Another loser here is BlackBerry. At one point I was theorizing that Microsoft would use them for their secure enterprise services and perhaps hardware such as the Bold. In essence now, this move to acquire Nokia proves that Apple was right.

Oh yeah, free KitKats with new Android phones….