Microsoft, the US-based software giant has said that it would be closing its operations in Finland.
Microsoft To Close Its Mobile Phone Unit In Finland
In 2014, Microsoft bought Nokia’s handset business for $7.2bn but so far, the company has not succeeded in its marketing and sales efforts with the new devices.
In the latest reports published in May, smartphones powered by Windows software accounted for less than 1% of smartphone sales globally.
According to industry analysts, the software giant had made a late entry into the market.
Eddie Murphy, a Priory Consulting telecom analyst said, “Microsoft spent so much money given that they saw the importance of the smartphone market.”
He added, “But it is just too late given that Android and Apple devices have dominated the larger part of the market while Windows has not made much of an impact.”
A major reason for this gap is that Microsoft had a lag in the apps that appeared on its smartphones, with consumers looking for more apps than Windows phones were offering. This was also true for Blackberry’s BB 10 operating system.
Mr. Murphy added that compared to Android, Windows phones have a very small number of apps and this continues to be a “real disadvantage for Microsoft.”
Following the closure of the Finland mobile phone unit, up to 1,350 jobs would be cut. In May, the giant software company announced that it would close as many as 1,850 jobs in its smartphone business globally.
Windows 10, the latest operating system from Microsoft can still be used as a smartphone operating system. Indeed, computer giant HP announced the launch of a smartphone that uses the Windows 10 software, allowing the phone to transform into a desktop.
Mr. Murphy pointed out that perhaps Microsoft could have emulated Google’s strategy with Android. Google allowed the Android platform to remain open so other companies could use the software on their own.
In an effort to catch up with the competitive and fast moving market, Microsoft has introduced Window s 10, a common platform that enables app compatibility across mobile, tablet and desktop. This might allow more apps to be developed for the platform.
It is certainly in the best interest of consumers to have more variety on the market.