Thursday, September 12 09:46:03
What exactly are Microsoft's plans in regard to Nokia and how will the new combination compete effectively with Apple and Samsung?
Apple and Google have won the hearts and minds of developers, who design the apps that lure consumers to their devices, while Samsung is the dominant maker of mobile phones, most of which run Google's Android operating system. Even though Microsoft's and Nokia's products have won praise for their quality, they have arrived late.
"What matters is not the phone per se but a dynamic app and services ecosystem," said Brad Silverberg, a former senior Microsoft executive who is now a venture capitalist in the Seattle area.
Microsoft's predicament is a flashback to the situation Apple found itself in during the early 1990s. At that time, Apple arguably had a superior computer product, the Macintosh, but it languished as PCs running Microsoft's Windows operating system engulfed most of the market. One of the biggest problems for Apple then was that Microsoft had succeeded in gaining the allegiance of software developers, who produced a bounty of applications.
"They're stuck in the same vicious cycle that Apple was in 20 years ago," said Benedict Evans, an analyst with Enders Analysis, a research firm, and a former strategist in the wireless industry according to The New York Times.
The challenges for the marriage of Nokia and Microsoft go far beyond support from developers. Microsoft is in the midst of the biggest organizational changes in its 38-year history. In mid-July, Steven A. Ballmer, Microsoft's chief executive, unveiled a plan to restructure the company's often clashing fiefs into business groups intended to cooperate more.