The Nokia Status: Just yesterday, Microsoft took a bold but dedicated move to up-their-ante. How? By bidding a 7 billion dollar deal with Nokia Corp's smartphone market (quite a struggling market at best). But in 2007, the Finnish company gained 40 percent of the mobile handset market, qualifying them (just that once) as a leader in the mobile phone industry. Currently however, this has drastically dropped to a mere 15 percent, with just 3 percent in the smartphone market. This to an extent, explains how they have found themselves fallen into the very gigantic arms of software master, Microsoft. In 2011, the company came to the harsh realization of their deteriorating ability to live up to their competitors (i.e. Apple & Android). Nokia Chief Executive, Stephen Elop, then decided to use Microsoft's Windows for smartphones over their own software. Nokia states they are now willing to settle into a concentrated networking equipment sector, where business and tech patents will be their focus. This decision was anything but spontaneous, as Mr. Elop has long been hacking costs out of Nokia since their relationship with Windows OS began. Truth is, Nokia sales have fallen so drastically, a merge became the best decision to aid the struggling cellphone component.

 

Microsoft’s Need For Momentum: From news that Microsoft Chief Executive, Steve Ballmer, will be retiring once a successor is found, to the company's lag in mobile OS sales, it is apparent that whoever is to replace Mr. Ballmer will need a bit of preparation. Microsoft needs to regain control over the entire Windows Phone market. A buyout is hoped to soothe their lack of highly demanded apps in the Windows Store by boosting big names such as Instagram. This was a huge part of 8's downfall, despite the popularity of the Windows Phone interface. Also, Nokia rarely reported hardware complaints with their systems, which carries more hope that this merge will bring great improvement; especially with Window's determination to increase app-related competition. Microsoft, indeed, desires to accelerate the growth of its market share and profit, so with the quoted "phenomenal partnership built with Nokia" it should be a "smooth transition to integrate Nokia's mobile business into Microsoft", says Ballmer.

 

Hard Decisions: For both companie, a lot of thought went into this venture, and undoubtedly, this is a steep step into the future of Microsoft's enterprise. Evidently, the Nokia board met more than fifty times to discuss the once hypothetical deal with MS. Yet, for Ballmer, it has long been a high priority for him to make it happen. Sadly, Elop's legacy will be a bitter one for the Republic of Finland's people, as they have long seen Nokia as the mobile market they grew up with. Overall a possible “last opportunity to sell Nokia”, the decision does not come without bittersweet reasoning. As one anaylst stated, "What should be paid for a declining business, where market share has been constantly lost and profitability has been poor?".

 

The End Result: Despite the inevitable anxiety of what Nokia's changes stand for, what it shall bring, and what is to come, Ballmer is excited to have made “excellent progress” with the partnership. And according to the Wallstreet Journal, he believes it is the best approach for both companies' shareholders. The deal will leave the Nokia business with Nokia Solutions and Networks, both of which compete with Ericsson and Huawei in telecoms equipment. So as an individual company, Nokia is anything but lost. As far as Microsoft goes, they do not expect to be fully profitable until 2016, and need to make more than 50 million sales a year to break even; both due to development and marketing costs to Nokia. Finally, another part of the agreement brings aboard 32 thousand Nokia employees, including Elop, who is rumored be up for the part of CEO Ballmer's current position. For the first time ever, Microsoft will have control over both the smartphone hardware and software teams, finally meaning they are paralleling the same powers as Apple, a much desired place in the market. Much competition to be excited about, as the Microsoft/Nokia mergence will up-the-ante both companies have been craving.