Microsoft Corporation (MSFT) and Nokia Corporation (ADR) (NOK) Nearly Betrayed Each Other

As Nokia’s mobile position in the world was ailing, switching to Android may have improved its situation, but it wouldn’t have been cheap. The company was knee-deep in the Windows Phone platform and making the switch would have cost time and lots of marketing dollars.

A perfectly timed deal
With the recent deal, Nokia gets to dump the part of its company that has struggled over the last few years and Microsoft gets a piece of the puzzle it desperately needs to build its mobile future.

While owning Nokia’s devices and services business is anything but a sure thing for Microsoft, investors should be glad that neither of the above scenarios saw the light of day. While the former partnership between the two may have been beneficial for a time, the two were toying with new directions that could have ultimately hurt both of them.

Going forward, Microsoft Corporation (NASDAQ:MSFT) investors should closely watch Microsoft’s cohesive strategy of building devices and services, and how it incorporates the Nokia Corporation (ADR) (NYSE:NOK) business into that. The company has a long way to go to catch up to Apple Inc. (NASDAQ:AAPL) and Google Inc (NASDAQ:GOOG), but the Nokia deal should prove a better bet than going it alone with a Surface phone and competing with Nokia.

The article Microsoft and Nokia Nearly Betrayed Each Other originally appeared on Fool.com and is written by Chris Neiger.

Fool contributor Chris Neiger has no position in any stocks mentioned. The Motley Fool recommends Apple and Google. The Motley Fool owns shares of Apple, Google, and Microsoft.

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