Microsoft’s Nokia Mobile Effort Was a Failure, But Management is Learning

Microsoft CEO Satya Nadella is trying to shape up the company’s phone business, and that means cutting 7,800 positions. I feel it’s wise to finally stick a dagger in former CEO Steve Ballmer’s multi-billion-dollar flop, especially with the upcoming launch of Windows 10.

Earlier in the week, Microsoft announced plans to write off most of the $7.9 billion acquisition, and thousands will have to find new jobs.

Instead of trying to worry about the hardware side of things, Microsoft can work with phone OEMs to help build more mobile Windows users. It’s going to be a tall task to take on Google Android and Apple iOS, but it could be neat to watch them try.

Read analyst input and my thoughts after the jump:

Here is what wireless industry analyst Jeff Kagan had to say:

”This was a very expensive mistake both in terms of cash and time for Microsoft.

I think Windows 10 may be Microsoft’s first real chance at growth in many years. It will also work with mobile and will be very interested to see if they can pull all the pieces together going forward.

Stay tuned.

As for this Nokia deal, I believe it was a big waste of time and money for Microsoft.

I certainly agree with Kagan that Microsoft’s effort to own Nokia turned out to be a failure – but not everything in the mobile world is a loss for Microsoft. Expect strong emphasis on smartphones running Windows 10 and other Microsoft software, while the company doesn’t have ambitious plans to expand smartphone sales.

Microsoft needs to find a way to commit to first-party devices, but must have a long-term mobile growth plan ready.

(Image courtesy of E &T)

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