- MICROSOFT NOKIA WRITEDOWN FOR ANDROID
- MICROSOFT NOKIA WRITEDOWN PC
- MICROSOFT NOKIA WRITEDOWN WINDOWS
Shares changed hands recently at $45.65, down $1.63 or more than 3 percent. Nonetheless, Microsoft shares fell in after-hours trading. “We finished the fiscal year with solid progress against our strategic priorities, through strong execution and financial discipline,” CFO Amy Hood said in a statement. The company had been expected to post per-share earnings of 56 cents on revenue of $22.06 billion, according to Yahoo Finance. Excluding the costs related to the Nokia writedown and other restructuring charges, Microsoft said it would have posted per-share earnings of 62 cents.
MICROSOFT NOKIA WRITEDOWN FOR ANDROID
So, what does this mean for Microsoft's future in smartphones? Will the company ever get back into making its own smartphone hardware, or will it be relegated to simply providing software and services for Android and iOS devices? "We should only be in the phone business when we have something that is really differentiated,” said Nadella.Software maker Microsoft on Tuesday reported revenue and earnings well ahead of expectations, although the company took a big hit from a writedown of its Nokia phone unit acquisition.įor the three months ended June 30, Microsoft posted a net loss of $3.2 billion, or 40 cents per share, on revenue of $22.2 billion. “We had the wrong monetization model, we had the wrong delivery model - all of that, and it's because we didn't build new capability."
MICROSOFT NOKIA WRITEDOWN WINDOWS
"We tried to use all the same techniques, and the same techniques were never going to get us there,” added Ballmer in reference to Microsoft's licensing model for Windows Phone devices. “I wish we'd built the capability to be a world-class hardware company, because one of the new expressions of software is essentially the hardware, and I think we came to that later than I think the company should have built that under my leadership should have built that capability earlier than we did." And particularly in hardware,” said Ballmer in a May interview. “I think I was too slow, in cases, to recognize the need for new capability.
MICROSOFT NOKIA WRITEDOWN PC
Recently, Ballmer expressed his own regrets about how he handled hardware at Microsoft - both in PC and smartphone form-factors. Microsoft eventually took a $7.6 billion write-down on its smartphone business and cut 18,000 jobs in the process. And even though Nadella vowed to adopt a "mobile first" strategy when he took the helm in 2014, Windows Phone's fortunes never improved. With Nokia under Microsoft's umbrella, Ballmer couldn't stop Windows Phone's bleeding. We were chasing our competitors’ taillights," Nadella opined.įor this reason, Nadella voted no on the merger, although we know now that his dissent alone was not enough to stop the transaction from going through. "It was too late to regain the ground we had lost. Given that Microsoft had already thrown away whatever goodwill it had with Windows Mobile before the iPhone arrived on the scene, its chances for survival were dismal at best in the current market.
However, Nadella did not agree with this line of reasoning, and stated that the market could neither sustain, nor wanted a third player in the smartphone OS market to challenge Android and iOS. "The merger could be the big, dramatic move Windows needed to catch up with iOS and Android in mobile.” “The hope was that combining the engineering and design teams at Nokia with software development at Microsoft would accelerate our growth with Windows Phone and strengthen our overall devices ecosystem," said Nadella in his book.
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