Microsoft Spent $9.4 Billion on a Sinking Ship

Waarom heeft MS Nokia toch gekocht?? Is er een geheim plan???

Less than one and a half years after Microsoft completed the acquisition of Nokia’s mobile phone division for $9.4 billion, the company announced a new plan to restructure its phone hardware business. The plan that involves a massive $7.6 billion write-down and the layoff of up to 7,800 employees is all but an admission of defeat, as Microsoft still hasn’t managed to gain traction in the smartphone industry.

Looking at today’s chart, it doesn’t come as much of a surprise that buying Nokia turned out to be flop. The former market leader was already in steep decline, when Microsoft decided to shell out $9.4 billion for its handset business.

Going forward, Microsoft plans to trim down its bloated smartphone line-up and focus its efforts on business customers, the low-cost segment and high-end devices.

This chart shows Nokia’s market share in the global smartphone market before and after its acquisition by Microsoft.