Microsoft to Streamline its Smartphone Business
Microsoft corp told that company is planning to cut down its Smartphone business. This will make company to cut almost 1,850 jobs.
Company is planning to cut its research and development unit in Finland. Microsoft entered the mobile handset business in 2014 by buying the Finland based Mobile phone Company, Nokia. Actually, the company intends to streamline its Smartphone business.
The company differentiated the Smartphone market segment by introducing the Windows phone Nokia Lumia in 2014.  The company further intends to develop its Windows 10 Nokia Lumia. This is something that can be regarded as wise strategy too. It’s because company gained popularity in the market by introducing the Windows phone. Company has not said anything regarding its plans about developing phone devices in future or not.
Satya Nadella, the chief executive of Microsoft said, “we are focusing on every specialty that had made us differentiate the Smartphone market segment’.
Microsoft’s Failure to Innovate in Phone Devices
The divestment from the handset business has already begun. In the start of May 2016 the company has divested more than $350 million from its entry level phone handset industry. It is a fact that company has actually failed innovating in the phone industry.
In the year 2014, Microsoft had bought Nokia $7.2 billion. Despite making hard efforts, the company was not actually able to turn the business around. This made it write down more than $7.5 billion by closing down the operations. The recent cut down of research and development office in Finland will make Microsoft write down $950 million due to the closing of operations. Initially, more than 7800 jobs were cut due to Microsoft’s operations cut down the process.
There are chances that innovation in mobile phone devices due to the introduction of Windows 10 will increase jobs.