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September 3, 2013 08:34 pm GMT

For Microsoft, Nokia Represents A Crossroads In Its Emerging Markets Strategy

asha-210-allMicrosoft's acquisition of Nokia's Devices & Services division for $7.2 billion is a bet on emerging markets and a continuation of Nokia's emphasis on "connecting the next billion" users. In order to make that strategy pay off, Microsoft has to figure out how to thrive where Nokia floundered. Feature phones were a key part of Nokia's strategy, especially in emerging markets like India, where it recently announced 2 billion downloads from the Nokia Apps store. As worldwide sales of smartphones start to overtake feature phones, however, it might be a smarter bet for Microsoft to concentrate on creating low-cost smartphones if it wants those next billion users to chose Windows Phone instead of Android.

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