Microsoft Nokia Acquisition Gamble Hinges on Asha Platform


In recent few days, print media and analyst focused on Microsoft acquisition of Nokia. Everyone talked about the possibility of third platform through Microsoft muscle power to shell out Billion of research and marketing $ to enhance WM OS adoption by using wider customer base of Nokia. The deal comes with hidden challenges which many analysts skipped. In the just concluded second quarter, Nokia Asha platform showed promise whereas Lumia range of devices got traction through steep price cuts which were visible as Q-o-Q ASP falls by more than double digit. It would be interesting to observe that how Microsoft plays around with Asha Platform attached devices as it directly connects with masses of emerging countries whereas Lumia connects with classes. The acquisition closure time frame would act as critical trigger factor for the success of Microsoft tactical decision to position itself as device power house. Given the closed OS strategy of Microsoft, it impacted OS adoption as well as volume growth did not pick up. Even the big device OEM’s barring HTC and few others shied away from WM adoptions. The competitors especially Chinese and India home grown device OEM’s are aggressive and refreshes their product in shorter period of time which would be a challenge for processed company like Microsoft. It would also be interesting to observe Microsoft tactical decision to position growing adoption Asha Platform. Any disruption in new product launch around ASHA platform would give huge opportunity to competitor to grab market share from Microsoft branded Nokia.

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