WASHINGTON — Microsoft, looking for an edge in cell phones, has bought out the cell phone division of struggling Finnish phone giant Nokia.
The Wall Street Journal reported that Nokia has struggled since it peaked in 2008 in the cell phone market as competitors caught up, and this was an opportunity to regain some needed financial stability for the company.
Microsoft has not been able to pass Apple or Google in the smartphone software business. They only have an estimated 4% of the smartphone software market share compared to the combined 90% of Apple and Google.
Now Microsoft has to integrate Nokia’s 32,000 cell phone employees with Microsoft’s 100,000. It could help Microsoft’s struggling app developers and innovators, but investors were very skeptical of the move.