Hasn't Microsoft come a little late to the mobile party?

Microsoft/Nokia deal

News this morning that Microsoft have bought Nokia’s mobile phone unit for £4.6bn is a natural step for the two companies, who have already been working together very closely on smartphones since originally signing a strategic partnership in February 2011. But the question of whether two companies which have both have been accused of falling behind in the smartphone race and resting on their laurels can really regain lost ground, is one that seems too little too late.

The deal, which will see Microsoft license Nokia’s brand to use on its products for a 10-year period, was hailed by Microsoft chief executive, Steve Ballmer, as: "…a bold step into the future — a win-win for employees, shareholders and consumers of both companies… We are excited and honored to be bringing Nokia’s incredible people, technologies and assets into our Microsoft family."

Nokia’s shares rose an incredible 45 per cent on the news and on first glance, it seems like Microsoft have made a canny move in purchasing the second-largest mobile phone maker in the world, who managed to ship 60.9 million units in the second quarter of 2013. However, the truth is that the lion’s share of these sales were feature phones, less powerful than their smartphone brethren, and a shrinking market sector, which actually resulted in Nokia’s sales dropping by 27 per cent from the same quarter in 2012.

But where Microsoft is really hoping to make some waves is with Nokia’s Lumia range of smartphones, which run Microsoft’s Windows Phone 8 operating system and have seen robust growth of 78 per cent year-on-year. In their announcement to the media, Microsoft made a big splash of the fact that the Lumia range was outselling Blackberry smartphones in 34 markets. This seems like a great achievement, but hides the fact that shipments are a country mile behind the likes of Apple’s iPhone and Samsung’s devices running Google’s Android operating system, of which more than 100m were sold in Q2 this year.

With such well developed competitors, it’s going to be a long hard road to fight their way back to the top, especially given the nature of the smartphone market today. It is not just the hardware and the operating system that informs a consumer’s decision on which phone to purchase, it is also the range of apps on offer. Apple and Google’s Android launched their app stores as far back as 2008 and have stolen a march on the Microsoft alternative. By July 2013, both Apple and Google celebrated app downloads in excess of 50 billion.

Microsoft’s Windows Phone Store, on the other hand, has yet to reach such dizzying heights, and this was one of the biggest criticisms of Nokia’s decision to embrace Microsoft’s operating system for its Lumia range. The first product to be launched in November 2011, the Lumia 800, was lauded as a compelling alternative to the duopoly of Apple iOS and Android powered phones, but many critics voiced concerns over the relatively limited range of apps available for the Windows platform. Although the situation has been constantly improving since then, it still lags a long way behind.

To make matters worse, Microsoft has something of an uneven track record as a hardware manufacturer. Traditionally a software developer, it has only had limited exposure in the hardware sector, most recently with the launch of its Surface tablet last year, which has failed to live up to expectations. The company was recently forced to slash the price of the tablet, after writing down $900m because of unsold stock of the Surface RT, more than the $853m it had earned for sales of the device.

Hopefully some of Nokia’s expertise in this area will rub off on the software giant, otherwise things could go from bad to worse in the mobile phone sector for both companies.

Photograph: Getty Images

Mark Brierley is a group editor at Global Trade Media

Photo: Getty
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Which CLPs are nominating who in the 2016 Labour leadership contest?

Who is getting the most CLP nominations in the race to be Labour leader?

Jeremy Corbyn, the sitting Labour leader, has been challenged by Owen Smith, the MP for Pontypridd. Now that both are on the ballot, constituency Labour parties (CLPs) can give supporting nominations. Although they have no direct consequence on the race, they provide an early indication of how the candidates are doing in the country at large. While CLP meetings are suspended for the duration of the contest, they can meet to plan campaign sessions, prepare for by-elections, and to issue supporting nominations. 

Scottish local parties are organised around Holyrood constituencies, not Westminster constituencies. Some Westminster parties are amalgamated - where they have nominated as a bloc, we have counted them as their separate constituencies, with the exception of Northern Ireland, where Labour does not stand candidates. To avoid confusion, constitutencies with dual language names are listed in square [] brackets. If the constituency party nominated in last year's leadership race, that preference is indicated in italics.  In addition, we have listed the endorsements of trade unions and other affliates alongside the candidates' names.

Jeremy Corbyn (46)

Bournemouth East (did not nominate in 2015)

Bournemouth West (nominated Jeremy Corbyn in 2015)

Brent Central (nominated Jeremy Corbn in 2015)

Bristol East (nominated Andy Burnham in 2015)

Cheltenham (did not nominate in 2015)

Chesterfield (did not nominate in 2015)

Chippenham (nominated Yvette Cooper in 2015)

Colchester (nominated Yvette Cooper in 2015)

Crewe and Nantwich (nominated Jeremy Corbyn in 2015)

Croydon Central (nominated Jeremy Corbyn in 2015)

Clwyd West (did not nominate in 2015)

Devizes (nominated Jeremy Corbyn in 2015)

East Devon (nominated Jeremy Corbyn in 2015)

East Surrey (nominated Andy Burnham in 2015)

Erith and Thamesmead (nominated Jeremy Corbyn in 2015)

Folkestone & Hythe (nominated Andy Burnham in 2015)

Grantham and Stamford (nominated Jeremy Corbyn in 2015)

Hampstead and Kilburn (nominated Yvette Cooper in 2015)

Harrow East (nominated Jeremy Corbyn in 2015)

Hastings & Rye (did not nominate in 2015)

Herefore and South Herefordshire (did not nominate in 2015)

Kensington & Chelsea (nominated Jeremy Corbyn in 2015)

Lancaster & Fleetwood (nominated Andy Burnham in 2015)

Liverpool West Derby (nominated Andy Burnham in 2015)

Leeds North West (nominated Jeremy Corbyn in 2015)

Morecambe and Lunesdale (nominated Andy Burnham in 2015)

Milton Keynes North (did not nominate in 2015)

Milton Keynes South (did not nominate in 2015)

Old Bexley and Sidcup (nominated Yvette Cooper in 2015)

Newton Abbott (nominated Liz Kendall in 2015)

Newark (did not nominate in 2015)

North Somerset (nominated Jeremy Corbyn in 2015)

Pudsey (nominated Andy Bunrnham in 2015)

Reading West (did not nominate in 2015)

Reigate (nominated Yvette Cooper in 2015)

Romford (nominated Andy Burnham in 2015)

Salisbury (did not nominate in 2015)

Southampton Test (nominated Jeremy Corbyn in 2015)

South Cambridgeshire  (did not nominate in 2015)

South Thanet (did not nominate in 2015)

South West Bedfordshire (did not nominate in 2015)

Sutton & Cheam (nominated Jeremy Corbyn in 2015)

Sutton Coldfield (did not nominate in 2015)

Swansea West (nominated Jeremy Corbyn in 2015)

Tewkesbury (nominated Jeremy Corbyn in 2015)

Westmoreland and Lunesdale (nominated Jeremy Corbyn in 2015)

Wokingham (nominated Jeremy Corbyn in 2015)

Owen Smith (12)

Altrincham and Sale West (nominated Yvette Cooper in 2015)

Battersea (nominated Yvette Cooper in 2015)

Blaneau Gwent (nominated Jeremy Corbyn in 2015)

Bow and Bethnal Green (nominated Jeremy Corbyn in 2015)

Reading East (did not nominate in 2015)

Richmond Park (nominated Jeremy Corbyn in 2015)

Runnymede and Weybridge (nominated Yvette Cooper in 2015)

Streatham (nominated Liz Kendall in 2015)

Vauxhall (nominated Liz Kendall in 2015)

West Ham (nominated Jeremy Corbyn in 2015)

Westminster North (nominated Yvette Coooper in 2015)

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