Nokia not just helped Microsoft, yet, hindered Micro’s interests
International Data Group IDG News Service noted that Microsoft paid more than 7 billion for Nokia mobile phones and services in the past, but what this means for its future are still inconclusive. In the past quarter Nokia promoted Microsoft’s revenue, yet also swallowed some of Microsoft’s profits.
Till the end of June, Microsoft’s quarterly revenue was $ 23.4 billion, grew 18% compared to the same period of last year, in which Nokia promoted 2 billions. According to analysts of Thomson Reuters survey company, the success of Microsoft’s quarterly revenue growth helped Microsoft broke the 23 billion which most analysts had predicted.
But since the acquisition of April 25, Nokia’s trading was nearly stagnant over a third of a quarter, stung the tunes of Microsoft which profit $ 0.08 per share, resulting in Microsoft’ miss the target for Wall Street $ 0.6 per share. Finally, its earnings per share fell by 7 percentage compared with the same period .
CEO Satya Nadella said he was satisfied with a lower sales price of Lumia and non Lumia phones, he also said that he expects to the sales of high-end Lumia phone would be better, just like Microsoft treat their productivity applications and services differently.
Nokia’s business is now known as part of the mobile phone hardware, equipment and consumer products, which should break even financially in 2016, CFO Amy Hood said.
She also said: “We are actively working to promote development throughout the synergies and other major functions, like we integrate the industrial supply chain and operations to adjust the appropriate size and scale of business.”