Terming the Microsoft’s move to acquire Nokia as a ‘natural marriage’, experts say they do not see any immediate impact of the deal on the Indian market. However, they added that the deal will help the software giant strengthen foothold in the market by offering hardware and software expertise under one umbrella.
“The combination of Nokia's recent struggles, it being wedded to the Windows platform, and Microsoft declaring its clear intent to become a devices and services company has made this a natural marriage. Having said that, to what degree it will impact the market, especially the emerging dominance of the Android platform, remains to be seen,” Jaideep Mehta, Country Manager, IDC said.
Jaideep Ghosh, Partner, KPMG, said, “Both Microsoft and Nokia are leaders… Microsoft is a leader in software and even though Nokia saw its market share declining in the last three years, it is still the second largest in the world.
The two have been partners for some time and going on, when the acquisition gets approved, I do not see an immediate impact on the Indian market nor do I see any impact on Nokia’s plant in Chennai.”
``With this deal, Microsoft also gets all patents. It will help the software giant expand devices portfolio… we can see more device capabilities in gaming space. It is a win-win for both. Microsoft will get greater foothold in the market as it will not have hardware capabilities along with software expertise,” he added.
The handset maker had entered into a MoU with the Tamil Nadu Government in April 2005 to set up its production facility near Chennai. The workers’ union at Nokia’s factory has said that if the workers are not adversely affected, the deal is not a concern.
According to A Soundarajan, who leads the Nokia India Thozhilalar Sangam, an independent union, the union has entered into a long-term wage settlement with the management. “This agreement will be in effect up to 2015,” he said.
A Nokia India spokesperson declined to comment due to the sensitive nature of the global deal.