The Finland-based Nokia was considered for a merger by none other than Microsoft prior to a breakdown in talks. Nokia of course is down on its luck and needs the support of a stronger organization. An agreement of this kind would have lent Microsoft access to the mobile phone maker’s facilities. Already Nokia was manufacturing the Windows Phone OS for Microsoft. By sealing this pact, Microsoft had a lot to gain and so did Nokia. In many ways, the integration would have been similar to Google engulfing Motorola Mobility. A match made in heaven. When contacted both Microsoft and Nokia refused to give any response to queries. When you look at it, both had been in the doldrums. The PC market was in a slump and cell phone sales had gone down too. Due to the astronomical rate set by Nokia, Microsoft had to bid adieu to the Finn phenomenon.
Meanwhile, another obvious reason was Nokia’s insipid position in the economic status department. While Nokia does rank at #2 in mobile phone production on a global level, in other matters it lags behind other players like Samsung and Apple. It does not even make it to the list of top five contenders that manufacture smart phones on the world scene. And as for the Lumia Series, it has yet to make it big in the electronic establishment. Apple’s iOS and Google’s Android are light years ahead of Nokia’s accomplishments so far.
According to The Wall Street Journal, the deal, had it been finalized, would have echoed through the world of high technology. But although at an implicit level channels are still being kept open, for now at least the contract has been annulled. Blackberry, HTC and Sony are much more lucrative companies to look to than Nokia. Meanwhile, Nokia’s Symbian OS has been trashed for the Windows Phone 7. It is a bit of a letdown since the two desperate companies really needed each other in their bid to reclaim their former glory. Things could have worked out but it seems there was a deep conflict of interests that ultimately led to a parting of ways. They will now have to do what they can on their own or look elsewhere for inspiration.