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Will Nokia survive as Microsoft Mobile in an Android and Apple world

Microsoft finalized its $7.2 billion acquisition of cell phone maker Nokia with the announcement on Friday of the new Microsoft Mobile subsidiary.

Nokia executive Stephen Elop now executive vice president of the Microsoft Devices Group
Photo by Justin Sullivan

Microsoft hopes the rebirth of Nokia as Microsoft Mobile can help the Windows Phone operating system grow in market share and provide a new global outlet for Microsoft.

Like so many technology companies that have long histories, the story of Nokia is one of a rise and fall.

Growing the Windows Phone OS will be a new battle for Microsoft as the Android OS and Apple IOS currently dominate market share.

Android and Apple dominate

The latest mobile subscribers survey numbers released by The Nielsen Company, updated on Thursday, show that 52% of smartphones in the United States run the Android operating system. The Apple IOS was second at 42%, with Windows Phone OS a distant third at 3%, and Blackberry showing a 2% share.

Because the Android OS is sold by many companies, Apple leads the list of phone manufacturers by mobile subscribers with a 42% share, Samsung is second at 29%.

The Nielsen Company numbers are not directly related to sales but are based on Nielsen’s monthly survey of mobile subscribers asked to identify their primary mobile handset by manufacturer and model.

As far as current phone sales trends, reported on Thursday that the title of the most awaited smartphone of the year undeniably belongs to the Samsung Galaxy S5, which has beaten Apple’s iPhone 5S in terms of launch weekend sales figures.

The future of Windows Phone

Even though Windows Phone only had a 3% share, on the upside, Nokia’s market share doubled over the last year and overtook BlackBerry.

Looking at Windows Phone from an investment perspective, The Motley Fool says that "Windows Phone has real potential."

Also promising is that reviews of Windows Phone 8.1 are generally good, such as this Engaget rating that "Microsoft's mobile OS finally feels whole."

As Apple and Samsung battle for smartphone supremacy Microsoft Mobile enters the smartphone market as a new player with a new set of tools.

The question to be answered in the months ahead is whether the rebirth of Nokia as Microsoft Mobile can help Windows Phone gain market share.


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