Microsoft will buy Nokia handset business for 5.44 billion euro . Nokia once the handset market dominator decides to exit handset business. It is the chance for Microsoft the maker of Windows moves into hardware to boost growth.
Microsoft will pay 3.79 billion euros for the devices unit and 1.65 billion euros for its patents under the deal, the Finnish company said in a statement. It is a win-win situation for both companies 's employees, shareholders and consumers, said Microsoft CEO in a statement.
The acquisition news push up the Nokia shares by 38 % higher in early trading. Nokia investors are welcome the deal and its price. Nokia is dealing with cash flow challenge causing by weaker demand. Nokia is losing its battle with its competitor Apple and Samsung. Its handset market share is keep dropping over the past few years and lost more than 5 billion euros in 9 quarters.
Microsoft has try to stay relevant to consumers market as consumers shift their behavior from using its Windows personal computers to mobile devices. Global mobile devices demand is doubling every years and its demands still keep going up while personal computer sales drop year over year. With the ease of Internet, communication and multiple choices of applications in the mobile devices like smartphones, tablet and phablet is gradually replacing personal computer either laptop or desktop.
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