Microsoft makes good Nokia’s losses

Microsoft has a plan to help its newest acquisition, Nokia reach break even in two years time. Microsoft has reported a loss of 7% in the second quarter of 2014 due to the struggling state of the Finnish mobile maker.

Microsoft has already announced layoffs and reorganization of its structure as a part of the plan to get Nokia on track by 2016. It also intends to take in analysts to cut the USD 1 billion losses.
The move not only cheered those on the Wall Street, but also sounds like the end of frustration and pain for Microsoft with this heavy-lifting.

 Nokia’s purchase by Microsoft was purely for the purpose of taking on giants such as Apple Inc and Samsung. However, the software firm reported an unfortunate operating loss of USD 692 million.

The kind of success Microsoft projected with Nokia Lumia smartphones wasn’t as per expectations, as it only captured 4% of global market. In the second quarter Lumia sold 5.8 million units are compared to 35.2 million iPhones sold in the same period.

To make the plan work Microsoft will drastically cut down on Nokia’s operation by shutting down few facilities and about 25,000 employees. Microsoft intends to concentrate on cloud-computing as under the guidance of Satya Nadella.


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