Microsoft makes bold bet on mobile in Nokia deal
WASHINGTON (AFP) - With its purchase of Nokia's handset business, Microsoft is making a bold, risky bet to gain traction in the smartphone market after missing the tech sector's shift to mobile.
The deal worth US$7.2 billion (S$9.2 billion) gives Microsoft Nokia's mobile phone operations along with an array of patents and licences to help compete with rival platforms from Google and Apple, and manufacturers such as Samsung.
The deal is "transformational," said Microsoft chief executive Steve Ballmer in a conference call. "We are trying to accelerate our phone market share," Ballmer said. "We know we need to accelerate, we are not confused about that."
Mr Ballmer said in an email to Microsoft employees that the deal with Finland-based Nokia is "a bold step into the future and the next big phase of the transformation we announced on July 11," when the company unveiled a reorganisation to concentrate on "devices and services."