Microsoft’s Nokia Deal Is Only Rattling Chinese Smartphone Makers

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Nokia Lumia 920

Chinese smartphone manufacturers are worried about Microsoft’s (NASDAQ:MSFT) decision to take over a large portion of the handset manufacturer Nokia (NYSE:NOK). Microsoft and Nokia — two companies with mobile futures are already deeply intertwined — announced their plan to combine forces in September. The maker of the Windows operating system agreed to purchase substantially all of Nokia’s Devices & Services business, license the company’s patents, and license and use its mapping services for 5.44 billion euros, or about $7.5 billion.

For Microsoft, it was a clear bid to accelerate the its growth into mobile computing, a transformation that has largely left the company lagging behind. Personal computers once dominated the technology sector, but now consumers spend more time using their mobile devices to watch videos, shop, and communicate with friends and family.

The mobile revolution has forged winners, like Apple (NASDAQ:AAPL), and forced other market players to play catch up after having failing to adapt quickly enough to the changes. Those companies include PC-software pioneer Microsoft and Nokia, which was a leader in early cellphone design until Apple’s introduction of the iPhone in 2007 shook up the technology world.

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