Of the 18,000 Microsoft jobs being shed worldwide, announced yesterday, up to 1,000 are based here in Finland.
Earlier this year, the software company bought Nokia’s unprofitable cell phone operations for 5.44 billion euro to attempt a breakthrough in cell phones.
Nokia made an excellent deal. So far, there is no proof that the demand for phones sold under the Nokia brand would be on the rise, and the unprofitable trade would pick up.
Nokia was relieved of its heavy burden with a magnificent price, and it was not forced to begin new job cutbacks. Microsoft, on the other hand, took on a burden that has had to be lightened.
According to market research company Strategy Analytics phones manufactured with Nokia’s brand sold only as little as 47 million pieces, amounting to 15 million less than a year before in the same time period.
Microsoft’s market share in smart phones was only 2.6 per cent early this year, according to Strategy Analytics. The company is far from its main competitors Google, Apple and Samsung. Samsung is the world’s largest manufacturer of the Android operating system developed by Google.
The demand for phones that use Android has grown significantly in the last three years, and Microsoft has not been able to fight back with its Windows Phone operating system. Time will tell Microsoft’s future with cell phones.
Right now it appears very difficult.
Petri Sajari – HT
Annika Rautakoura – HT
James O’Sullivan – HT