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Microsoft’s Nokia buyout poses “little risk” to Android, could be used to help “leverage the success of Xbox” – analyst

Tuesday, 3rd September 2013 14:37 GMT By Stephany Nunneley

With Microsoft dropping $7.2 billion on Nokia’s smartphone business, Robert W. Baird & Co. analyst Colin Sebastian has weighed-in on the buyout, stating that it presents little risk to Android or Google’s mobile business.

Sebastian, however believes Xbox will be the firm’s “silver bullet” and expects the “mobile operating system battle will shift quickly” into the living room and onto TVs.

“We note that Microsoft likely felt some added urgency to control more of the mobile and tablet hardware ecosystem, especially following the recent struggles with the Surface tablet,” said Sebastain.

“Looking ahead, we believe that Microsoft may be better able to leverage the success of Xbox and the upcoming console upgrade cycle, by combining hardware initiatives, and integrating content offerings across devices.”

According to Sebastian, Windows Mobile represents less than 5% of the smartphone marketshare compared to Andorid’s greater than 50% share, and considering Nokia already accounts for “roughly 90% of Windows Mobile devices,” the buyout won’t mean much to mobile with other operating systems.

The analyst expects original equiment manufasturers to “continue favoring Android due to its leading consumer mindshare, significant app developer support, high value mobile apps from Google and more generally, the fast pace of Android innovation.”

With “Windows no longer an independent alternative to Android,” and Nokia’s “dominant share of Windows Mobile,” Sebastain feels “Microsoft is doing nothing more than insourcing the vast majority of the Windows phone business, and will now control Windows Mobile hardware, similar to Apple on iOS vs. Google.:

“We believe that Windows Mobile may no longer represent a potential viable alternative to Android, and app inferiority remains an issue for Windows,” said the analyst. “According to recent industry and company data, Google Play currently has more than a million apps available for download on Android devices, while Apple’s App Store has more than 900,000 apps.

“In contrast, Windows Mobile has roughly 160,000 apps, the majority of which see minimal usage. As such, we see little reason to expect that developers will allocate more resources to Windows Mobile following the Nokia deal.”

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17 Comments

  1. illuminatusv

    Buy a Xbox One get a Nokia Lumia 1020 free. 24 month mobile plan includes 1 year XBox Live for free. Welcome in the new world….

    #1 1 year ago
  2. VibraniumSpork

    I had a Windows 8 phone a few months ago (Nokia Lumia 920) and it was a huge mistake. I liked the ‘Live Tile’ aesthetic but pretty much everything else – the IE browser, the music player, contacts list, paltry amount of apps – was a Goddamn horrorshow. They could be giving this shit away for free with every XB1 and I’d still sling it straight on eBay.

    #2 1 year ago
  3. pukem0n

    @1

    you say that as if it’s a bad thing?

    free stuff is bad, you never learn out i guess…

    #3 1 year ago
  4. Talkar

    @2
    I beg to differ, i got my Lumia 920 about 6 months ago, and i’ve not regretted it. Mind you, i’m a person that uses a handheld dedicated device for mobile gaming, such as the vita, so i have little to none interest in what games are available on my phone. And most of the apps i use are already on WP8, or there is an app that can do the same.
    The music player i haven’t really used that much though, since i get all the music i want for free via streaming services from work.
    But my Lumia is faster, more responsive, and have a much nicer design than both android and ios in my opinion.

    #4 1 year ago
  5. VibraniumSpork

    @4 Different strokes I guess. The hardware I actually really liked; big sturdy phone, great screen and lovely camera. But the OS and App Store needed much work. I don’t game on phones either, but not being able to get stuff like Instagram or a half-decent Facebook app just irked me some. I had to go back to (what I considered) the relative reliability of iOS.

    I just felt that Windows 8 on phones felt a little undernourished. Maybe this deal will get MS to start investing in it hard.

    #5 1 year ago
  6. G1GAHURTZ

    It’s not the 90′s anymore. Don’t buy Nokia. #wasteofmoney

    #6 1 year ago
  7. viralshag

    Have to agree with G1GA on this one… I haven’t considered a Nokia phone for many many many years. I mean, they were the shit back in the day but that day has long since past.

    #7 1 year ago
  8. Lloytron

    Whoa I’m staying out of this one :P

    #8 1 year ago
  9. G1GAHURTZ

    @7:

    Yeah, I wasted over £150 on a non-functioning Lumia, recently.

    The stories of people getting the new Lumias, and regretting it after a few weeks also seem far too common.

    #9 1 year ago
  10. G1GAHURTZ

    @Lloytron:

    Lol! Sorry, but that’s just the way I see it.

    The 2nd best phone I’ve ever owned was a Nokia, and I used to think they were the best. The transition into the smartphone business with Symbian just didn’t happen, though. Even though I would have liked it to, in the past.

    #10 1 year ago
  11. VibraniumSpork

    Well like I say, I thought the build quality and feature range of the Nokia was admirable – it was just the UI that I had problems with. If they’d have dropped Windows Phone and went with Android I can see them being pretty appealing to a much wider audience(though others like Talkar obviously felt differently).

    Interestingly, this article sheds some light on that very topic: http://www.businessinsider.com/analysts-microsoft-bought-nokia-because-nokia-was-going-to-stop-making-windows-phones-2013-9

    #11 1 year ago
  12. viralshag

    @8, Haha, yeah no offense intended! Besides, you work for MS now! ;)

    But seriously, if I could switch from my S3 right now it would probably be to the Xperia Z.

    #12 1 year ago
  13. Talkar

    @5
    I hear you. However, the one thing i think really stands out about the Lumia 920 compared to any ios or android phone i’ve owned. It doesn’t get slower over time. It is blazingly fast now, as it was the day i got it. That was a huge problem for me on android, and to some degree on ios too.
    But yeah, all things such as UI, apps and so on are of course subjective :)

    #13 1 year ago
  14. viralshag

    Also agree with #13, all my droid phones seem to get more and more decrepit with age.

    #14 1 year ago
  15. noamlol2

    #15 oh the IRONY

    man this muslem piece of shit needs to get off this site

    android is the leading software in the market, while IOS is more popular
    and more “app rich” then android

    people with brains don’t buy the Iphone
    since it bearly improves each new device

    #15 1 year ago
  16. super3001

    16

    bacdafukup with the religion hatred. not cool

    would be best for windows phone os to die and have android on nokia handset. good hardware

    #16 1 year ago
  17. DSB

    @6 This.

    #17 1 year ago

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