Ever since Satya Nadella has become Microsoft‘s CEO he has spent most of the time undoing some mistakes. Today, he undid the costliest of all, acquisition of Nokia’s smartphone business amounting to $7.6Bn and moving on. The acquisition took place in September 2013.
The firm’s effort to venture into the first-party hardware has therefore received a setback, it has also announced 7800 layoffs mainly in the phone business and $800Mn restructuring charge.
Nadella has made it clear that the copnay is moving from a strategy to grow a standalone phone business to a strategy to grow and create a vibrant Windows ecosystem including its first-party device family. In the near-term, the company will run a more effective and focused phone portfolio while retaining capability for long-term reinvention in mobility. The deal was a reasonable move in 2011, when Nokia abandoned its own platforms and decided to adopt Windows platform exclusively. It did managed to help Microsoft cross 10% market share in some countries by 2013 but it didn’t do much to revive the company.
Not only this, a few other changes like elimination of noncore businesses like selling display advertising and other changes he has made till date have advocated that Microsoft can now concentrate on future.
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