Here’s why Microsoft is buying Nokia’s phone business

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[Commentary] Microsoft’s acquisition of Nokia cements a partnership that has been central to Microsoft’s mobile device strategy in recent years.

Two years ago, Nokia announced that it would adopt Microsoft’s software for its smartphones. The new deal would make that alliance permanent. Why does Microsoft CEO Steve Ballmer want to do that? Microsoft believes that deeper integration between devices, software, and services will be needed to compete effectively with Apple and Google’s mobile ecosystems. “Devices help services and services help devices.” The company believes that more closely integrating the two will improve the user experience and help to “build a large user base.” Such vertical integration, of course, has been essential to Apple’s business model for the iPhone, and Microsoft has adopted a similar strategy for its Surface line of tablets. Microsoft also believes that vertical integration will make it easier to finance the development of the Windows Phone platform.


Here’s why Microsoft is buying Nokia’s phone business