Bohemia, NY (PRWEB) September 12, 2013
Leading financing expert Alec Sohmer discusses an article published by Bloomberg on September 3rd, which discusses Microsoft’s purchase of Nokia’s device unit for $7.2 billion.
According to a September 3rd article published by Bloomberg titled “Microsoft to Buy Nokia’s Devices Unit for $7.2 Billion,” Microsoft recently announced its purchase of Nokia’s mobile handset unit for $7.2 billion in an attempt to catch up to Apple and Google in global smartphone sales.
The article says Microsoft is “deepening a push into hardware as dwindling computer sales sap demand for the programs that made it the world’s largest software market.” When combined, Microsoft and Nokia will still only make up 4 percent of the smartphone market, the article says.
Alec Sohmer, a financing specialist and managing director at Plymouth Rock Capital, says, “Both companies are still heavily trailing behind Apple and Google in terms of smartphones. So will the merger of two lesser successful companies build a strong competitor? It still remains to be seen. Nokia has been in a steady decline since the mid 2000s, and while Microsoft is a successful software company, it is only now making a serious push into the smartphone market.”
Sohmer says these companies need to focus on product development before all else. “Was it a good merger? Well, for Nokia it was,” he says. “Nokia settled major debts it acquired over the past few years. However, it remains to be seen whether Microsoft will gaining much. The merger of two weaker companies in a single industry can produce success, but only with a very robust integration plan. These companies need to take a step back and think about development as opposed to potential revenue gains. They must focus on integration, development and then market expansion in order to maximize success.”
Alec Sohmer, a strategic business and financing leader at Plymouth Rock Capital, has 20 years of Board-level experience. He has served in many interim management positions for businesses requiring significant turnaround or restructuring. He is able to increase revenue streams by utilizing a variety of line management techniques. In his two decades of experience, he has dramatically increased revenues of businesses by identifying untapped markets.