The number of mobile phones being used worldwide is expected to touch 7.3 billion in 2014, after which it may overtake the planet’s population. Microsoft’s takeover of Finnish pioneer Nokia’s handphone business makes a lot of sense when you consider the global outreach of this ubiquitous communications device. The acquisition is the boldest yet in Microsoft’s strategy to stay relevant in a world that has taken to the smartphone like ducks to water. The American software giant can now design both software and hardware of its products in a move that soon-to-retire CEO Stave Ballmer hopes will bring the kind of success enjoyed by Apple.
There’s also the race with Samsung, that outsells Nokia’s Lumia 10 to one, to consider as galloping technological advances put the World Wide Web at the mobile user’s fingertips. Some analysts see it as a necessary gamble for Microsoft. Nokia, that made its first cellphone in 1981 and became a world leader, then lost marketshare from 49.4 per cent in 2007 to just three per cent now, also gets a lifeline for its strong telecom networks and equipment business in a changing world.
The market didn’t take too kindly to Microsoft’s move, but knee-jerk post-deal reactions shouldn’t be given too much importance. Innovation will lead the industry from here, and even giants like Samsung, Apple, Google and Microsoft have to reinvent themselves constantly if they are to continue holding their positions in the marketplace, from which so many traditional economy companies and their devices have simply disappeared.