By Vamien McKalin | Jun 21, 2013 05:21 PM EDT
We've heard talks of Huawei being interested in acquiring Nokia. However, that's a difficult decision for the company t make at this time, as Nokia is solely focused on Windows Phone. And now, we are hearing talks of Microsoft plans to fully take Nokia under its wings, but that hasn't panned out as talks between the two have failed to meet expectations.
The move to acquire Nokia by Microsoft isn't all that surprising, considering that Nokia's current CEO is an ex-Microsoft executive, and that both companies have a strong partnership going on. Furthermore, Nokia holds 80 percent of the Windows Phone 8 market and is the only OEM to take the platform seriously. So it is not surprising that Microsoft believes acquiring Nokia could be a major business decision.
According to the Wall Street Journal, Microsoft plan was to combine the company with a device maker that has scale and is able to crank out Windows Phone and Windows-based tablets. This would allow Microsoft to compete more efficiently with the likes of Samsung and Apple. However, it is not known if owning Nokia would affect Microsoft shares in a good way, because the Finnish giant is bloated with unwanted things such as the Asha line of feature phones.
The WSJ noted that Microsoft walked away from the buying table due to Nokia's standings in the smartphone market. As it stands, Microsoft might be thinking it needs a company that is closely aligned to the company to make a dent in the smartphone market. Nokia is there, but nothing is improving, so we might see Microsoft take to the streets to find a new partner.
The problem is, not many OEMs are out there right now that are willing to focus much on Windows Phone. Currently, HTC is feeling the pinch where Android is concerned, so Microsoft might choose to partner with that company. However, we don't see HTC being loyal to anyone any time soon.
At the end of the day, Microsoft may just have to find a way to work with Nokia or watch its main OEM take a leap of faith into the realm of Android.
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