For Microsoft, the only way out of its big Windows Phone mess is to follow Apple

surface-phone-1-100577980-largeA few well-regarded flagship devices, a focused core experience, a vibrant app ecosystem, and a belief in the quality of its own products: Apple lives and breathes these things, and has achieved massive profitability in the phone space as a result. And it’s about the only strategy Microsoft has left to try. Check this article from

Soon after purchasing Nokia’s device business for $7.2 billion last year, Microsoft began to dismantle it—first laying off a third of the staff, and more recently waving goodbye to business unit head Stephen Elop and other top executives. Today it’s writing off another $7.6 billion in impairment from the Nokia Devices and Services Business and laying off 7,800 employees. These actions tacitly acknowledge two errors: First, buying Nokia itself was a colossal mistake. Second, the strategy of making mass-market boring phones instead of eye-catching flagship phones was failing.

But ignore all the enormous numbers flying around, and focus on what’s important. The $7.2 billion Microsoft paid for Nokia is the same amount the company doled out to shareholders just last quarter, in both share repurchases and dividends. Wall Street might be livid, but Microsoft’s still got plenty left in the war chest.

by: Mark Hachman

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