Monday, May 16, 2011

Why Microsoft Buying Nokia Might Actually Make Sense

Today's wacky mobile industryrumor is that Microsoft could be interested in buying Nokia's mobile phone division , on the heels of the companies' Windows Phone 7 partnership.
Now, this is pretty out-there. The deal would be huge -- Nokia's market cap is $32 billion -- and it would be a big shift in Microsoft's focus. So it'seasy to laugh this off as a big, silly rumor .
But there's one reason why Microsoft potentially buying Nokia actually makes sense.
Because it's the only way that Microsoft could ever make enough money off Windows phones to matter.
Apple , HTC , and RIM have shown that when a smartphone company is performing well, there is a healthy amount of profit to be made. Apple likely makes a fewhundred dollars in profit per iPhone sold, for example.

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