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Strategy Analytics: Microsoft Set for Boost from Acquisition of Nokia Assets

Microsoft showing strong signs of capturing third ecosystem prize, acquisition of Nokia devices and services a strong statement of ambition

BOSTON, Dec. 16, 2013 /PRNewswire/ -- The multi-billion acquisition of Nokia's devices and services business sends a strong statement of ambition to the industry that Microsoft is pulling no punches in its renewed vigor to push into the mobile industry.  This is being supported by Microsoft's own industry-leading cloud computing offers and the strong following enjoyed by Skype. App developer sentiment is also shifting in Windows Phone's favor. However Microsoft needs to improve its assets and offerings in areas related to social and mobile payment, says the report "Handset Vendor Content & Services Strategies: Microsoft" published by Strategy Analytics.

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The report is the second of a series published by Strategy Analytics to assess the strengths of mobile device vendors' competitiveness in the mobile content and services ecosystem, following the report on Apple, published in October.  Through a panoramic assessment of Microsoft's key assets, the analysis recognizes Microsoft's industry leadership positions in cloud computing and its strengths in communication and search & advertising.  It also highlights Microsoft's weakness in social aspect, and its almost complete absence from mobile payment.

"Using similar methodologies as we did with Apple, we dive deep into Microsoft's content and services assets in different sectors, and evaluate them against the main competition Microsoft will encounter as well as the industry in general", said Nitesh Patel, Director at Strategy Analytics.  "It's clear that Microsoft is leading in cloud computing and productivity, and is strong in communication through its Live legacies and Skype acquisition. It also enjoys a dedicated following in the gaming community, and although its advertising business pales in comparison to Google's, it is ahead of Apple in that regard."

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According to Wei Shi, Analyst at Strategy Analytics' Wireless Media Strategies (WMS) and the author of the report said, "The acquisition of Nokia gives Microsoft a significant boost in hardware, but a new challenge for Microsoft is integrating the new assets gained through the deal while, building on its position as the 3rd mobile ecosystem. If the integration is managed well, the addition of Nokia's services, such as its highly regarded app developer program, strong imaging applications and competitive music services will give Microsoft a boost. A long term strategic partnership with HERE will bolster the mapping capabilities, although their is potential for consumer and advertiser confusion with HERE Maps being offered alongside Bing Maps. However, in the key apps battleground, while Microsoft remains clearly behind Android and iOS, developer sentiment is growing for Windows Phone with 32% of mobile app developers intending to support the platform in the coming year."

More analysis on mobile content and services can be found at Strategy Analytics' Wireless Media Strategy and App Ecosystem Opportunities services.

About Strategy Analytics

Strategy Analytics, Inc. provides the competitive edge with advisory services, consulting and actionable market intelligence for emerging technology, mobile and wireless, digital consumer and automotive electronics companies. With offices in North America, Europe and Asia, Strategy Analytics delivers insights for enterprise success. www.StrategyAnalytics.com 

Main Contact: Wei Shi, +44 (0) 1908 423 627, wshi@strategyanalytics.com

European Contact: Nitesh Patel, +44(0) 1908 423 621, npatel@strategyanalytics.com

SOURCE Strategy Analytics

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