Tomahawk, WI 10/30/2013 (BasicsMedia) – Microsoft Corporation (NASDAQ:MSFT) has entered the phone market. Every single investor should be excited with this move since it indicates that the company is willing to diversify. MSFT has been criticized for long due to its inability to diversify and stop being heavily reliant on its Windows Operating System. The fact that MSFT’s Windows OS is used in several Smartphones and tablets shows that it has already been in the phone market. I think this is untrue since the company needs to make its own phones to qualify for inclusion in the market.

MSFT Waiting for EU’s Approval

I believe one of the reasons why MSFT has now entered the phone market is because of its decision to acquire part of Nokia Corporation. MSFT still needs to wait until December 4 when the European Union is set to announce whether it approves the deal with Nokia Corporation or not. Cell phones that take the user directly to Internet are hot properties right now in the market. MSFT intends to get into this market with its new phones. Its Windows Phone was developed with this goal in mind. The launch of Windows 8 was done with this goal also in mind.

MSFT is set to go into partnership with Sweden’s Ericsson. This deal will also increase MSFT’s presence in the phone market. Ericsson will release new phones into the market that use a scaled-down version of Windows OS. Ericsson will own a majority stake in the new partnership with MSFT, in addition to supplying the latter with 100 engineers. One of the first products the two companies will launch together is email for cell phones. This venture has great potential and holds the key to MSFT’s ability to boost its market share in this phone industry.

MSFT Should Develop More Deals with Global Cell Phone Makers

The deals between MSFT and other major phone makers are good and should be encouraged. The company has sought to be one of the major suppliers of Internet-based cell phones and these deals are propelling it towards achieving these goals. MSFT never achieved much success with its Windows CE Operating System, but the deals with cell phone makers should redress this situation. One reason why its CE OS never attracted much demand is that its requirements were beyond what cell phone makers were willing to come up with and introduce in the market.

MSFT has not enjoyed much success in the phone market because major global manufacturers such as Nokia, Ericsson, Motorola and Matsushita were unwilling to give it much leeway. The four aforementioned cell phone makers are making Internet-base cell phones. No one should completely write MSFT’s Windows CE off. It has introduced a Mobile Explorer, which has great potential as well. The Mobile Explorer already runs on a number of operating systems, and not only on Windows CE. This new Explorer runs on the Epoc System as well.

I believe that MSFT is within its rights to pursue such types of deals, which allow it to diversify into the manufacture of new products. The way the business environment has changed makes it extremely dangerous to rely on a single product for revenue and profits.

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