Should Apple acquire Nokia ?

October 8, 2012 0 Comments

Tristan Louis wrote interesting article illustrating the value of Nokia to Apple.  Though I agree and understand the value of patents to Apple, the author misses a couple of other aspects of the acquisition.  As one of the commentator Mr. MauritzNordlund has already pointed out that the acquisition will suffer from the overhead of excessive labor restructuring. Not only the restructuring costs but also it will be an enormous overhead for Apple to convey the message to shareholders and  preserve the brand perception of iPhone.  Apple will be forced to stop the production of Nokia phones, which are still very popular in India, China and other countries.

If one were to look at this problem from Game Theory point of view, Apple dominant strategy is to license the maps and patents rather than acquiring them and bear the costs of house cleanup. To support this argument, look at the pain of Google with its Motorola acquisition. Google is still trying to figure out what to do with all the non-mobile portion of the Motorola.

The other point of  view to consider is that it breaks the basic rule of “The enemy of my enemy is my friend.”  There is no way Apple can beat Android in volume shipments. So how can Apple weaken Android ? Just by letting Windows phone live it would be weakening Android.

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