Gartner Director: Nokia Supply Chain Management Key for Microsoft

Peter Sondergaard, a director with the US market research company Gartner believes that Microsoft will not be looking to cut loose Nokia employees once they become part of the software behemoth.

“We don’t necessarily see high risks in the short term for workers in Finland,” Sondergaard said recently.

On November 19 shareholders will attend an extraordinary general meeting to vote on whether or not to accept the 5.4 billion-euro price offered by Microsoft for the company’s mobile phone business.

If the deal gets the blessing of shareholders, Nokia’s mobile phone workforce will become Microsoft employees.

Sondergaard: Nokia a leading player in supply chain management

Nokia interim CEO Timo Ihamuotila (left), chairman Risto Siilasmaa and departed chief executive Stephen Elop. Image: Markku Ulander/Lehtikuva

Sondergaard based his optimistic view on Microsoft’s lack of expertise in manufacturing and materials and supply chain management.

In its heyday Nokia was widely admired for its skill and efficiency in managing all aspects of global supply chains, from parts procurement to product distribution.

“On a global scale Nokia has been a leading player when it comes to optimising materials and supply chain management. That’s no easy achievement,” Sondergaard stressed.

The Gartner analyst also pointed out that the smartphone market has seen increasingly lower growth, while the demand for basic phone models has shifted to developing markets.

“Mobile phone trade in the west has become a replacement market, and consumers there are changing their devices at a slower pace than before,” he noted.

He said that the acquisition of Nokia’s mobile phone business was important to Microsoft in many ways.

One goal was to ensure that there would be a suitable hardware platform for its mobile phone software.

Mobile phones using Microsoft’s Windows Phone operating system command just three percent of the global market. When it comes to mobile phones, the PC software giant is dwarfed by the likes of Apple’s iOS and Google’s Android.

Source: yle UUTISET