Microsoft Corporation (MSFT)’s Expectations From Acquiring Nokia Corporation (ADR) (NOK)

IDC forecasts the mobile phone market will grow 7.3% in 2013 driven by 1 billion smartphones and expects shipments of 1.7 billion smartphones in 2017. The research firm previously projected 5.8% growth for the year. IDC expects that Windows Phone will capture 3.9% of the mobile market this year and 10.2% in 2017.

Source: IDC Worldwide Mobile Phone Tracker, September 4, 2013

For Microsoft Corporation (NASDAQ:MSFT) to gain ground in the smartphone market, the company needs to preserve its feature phone base. As feature phone users shift to budget smartphones, Microsoft needs to be ready to offer a low-cost smartphone to attract them. If Microsoft fails to meet consumer demands, Microsoft’s feature phone users will shift to Apple iPhone’s or other handsets powered by Google Inc (NASDAQ:GOOG)’s Android platform. With Google and Apple planning to release their new mobile operating systems in October, Microsoft will face tough challenges to hold its user base from defecting to competing brands.

The article Microsoft Needs to Maintain Feature Phone Users originally appeared on Fool.com.

Christopher DeSousa has no position in any stocks mentioned. The Motley Fool recommends Google. The Motley Fool owns shares of Google and Microsoft. 

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