Chinese mobile-makers have asked the regulatory bodies to ensure that Microsoft Corp. ’s (MSFT - Free Report) $7.5 billion bid to take over Nokia Oyj ‘s (NOK - Free Report) handset business does not result in higher patent fees in wireless technology.
Microsoft and Nokia announced the planned transaction in September to combat the likes of Apple Inc.’s (AAPL - Free Report) iPhone and devices running Google Inc.’s Android platform. Microsoft won the European Union approval for the bid on Dec. 4, while regulators declared that they would monitor Nokia’s licensing practices.
Shipments of Windows Phone grew 156% year over year and there is a possibility that the inclusion of Nokia’s devices business into Microsoft will make the Lumia a stronger competitor.
However, the deal poses a concern for Chinese manufacturers who apprehend that Microsoft’s takeover will result in higher patent fees on wireless technology.
Of the top seven handset manufactures in the world, four are Chinese vendors. According to IDC, Samsung accounted for a 31% share of the market in the third-quarter of this year while Apple had a 13% share. Huawei came next with 4.8% share, followed by Lenovo Group with 4.7%. The rest of the manufacturers in the list include Korea’s LG Electronics, China Wireless Technologies and ZTE.
Microsoft Corporation develops, manufactures, licenses, sells and supports software products. The company operates in five segments: Windows & Windows Live Division, Server and Tools, Online Services Division, Microsoft Business Division, and Entertainment and Devices Division. Microsoft reported revenues of $18.53 billion in fiscal first quarter of 2014.
Currently, Microsoft has a Zacks Rank #3 (Hold).