Microsoft Corporation is now set to purchase Nokia's line of smartphones and all the patents and services of the company for £4.6 billion. Nokia will not only be selling its smartphone line to Microsoft, but will also license its patents and mapping services to the software giant.
This deal between the two tech giants was announced on 2 September, 2013 and it is considered to be a major step by Microsoft in terms of transforming from a software maker to a gadget developer.
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"It's a bold step into the future - a win-win for employees, shareholders and consumers of both companies, "Steve Ballmer, CEO of Microsoft said in a press release.
Both the parties said that the deal will be finalised in 2014 when all the Nokia workers will transfer to Microsoft.
Nokia, once the king of the mobile phone market has now been facing some trouble in the smartphone market with competitors such as Samsung and Apple taking over.
Microsoft too has faced some troubles since the consumers have shifted from PC and laptops to tablets and smartphones. As per some of the critics, the firm has been too slow to response to the growing market of mobile phones, reported BBC.
Microsoft took its time to recover and soon released its Surface tablet PCs, but the gadget did not seem to do very well in the market.
"Mobile is an area of tremendous potential but it has been one of weakness for Microsoft," BBC News quoted Manoj Menon, director of consulting firm Frost and Sullivan. "Clearly the number one priority for the company is to get its mobile strategy right. From a strategy point of view, this deal is the perfect step, the only question is how well they can execute this plan."
With such distinctive increase in terms of technology, it is time for Microsoft to step up and get into the gadget world. Though Microsoft has dominated the PC software market for almost 30 years now, the Redmond based brand is now up against Apple, which has a commendable advantage with its iPhones and iPads, reported ABC News.
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