Microsoft will grow in Brazil with Nokia

When you complete your purchase of Nokia's mobile phones unit at the beginning of next year, a deal announced yesterday for $ 7,18 billion, Microsoft can reach annual revenues close to $ 2 billion in Brazil, according to analysts consulted by the value. Is more than double the current level. Most of the result would of Nokia, which are bigger than Microsoft's in the country.
Nokia's cell phone business, which are under the command of Almir Executive George six years ago, employing 2 million people. Most of them are on the Nokia factory in the city of Manaus. There are 17 appliances, produced between smartphones and simpler phones. Traditionally, the Nokia not only manufactures in Brazil its top-of-the-line model, which arrives in the country through import. Microsoft also has manufacturing in Brazil. From 2011, the company has agreement with Flextronics to produce the videogame Xbox 360. Microsoft has 800 employees in Brazil.
At the end of 2012, Brazil occupies the 5th position in the order of relevance of the Nokia's global business, behind China, India, Japan and United States. The placement represented a fall of two positions in comparison with 2011 ranking. The company has 39 outlets in the country, between stores and franchises.
At Microsoft the country has also been one of the priorities. In 2011, the company opened a data center in the country for the provision of services over the internet, in the model known as cloud computing. Last year, it was announced an investment of $ 200 million in research and development activities, and support to start-up companies.
The company also has a team working on the adaptation of the Bing search engine for the local market. The service is in beta version and it is expected that the final model will be launched in the country by the end of the year.
The activities of research and development at Microsoft may be complemented by projects developed by Instituto Nokia de Tecnologia (Indt), maintained by Nokia. Installed in Manaus, the entity makes software development projects specific to Nokia and Brazilian central Office of the company, in Finland.
For Fernando Belfort, an analyst with research firm Frost Sullivan &, Brazil will remain among the most important for Microsoft, since all areas what does currently (offer of services over the internet, smartphones and tablets) have shown accelerated growth in the country.
Just as in the rest of the world, Nokia was showing in Brazil improvements in sales of phones with the Windows Phone operating system, from Microsoft. The appliance has been adopted as standard on their smartphones of the line in early 2011 Lumia. According to research firm Nielsen, the system reached a market share of 3.3% at the end of the first half. Seems little, but is an important evolution in front of market share in the previous year: zero.
In the evaluation of Jorge Monteiro, Superfones, Webshop and mobility consulting, with Nokia, Microsoft will have as its major challenge offering a line of products that fit the market demands, especially from emerging countries such as Brazil. According to him, the participation of Nokia was being held too on account of sale of simpler devices, so-called "feature phones".
These templates work with own operating systems developed by Nokia, which has nothing to do with Windows Phone. Now, Microsoft will have to decide what to do with the line. "They could do a version of Windows Phone for these devices cheaper, or leave now and this thread and create line options Lumia cheaper," said the Executive.
Microsoft's business in Brazil switched command in early August. In the move, the Executive Michel Levy, who held the Presidency for seven years, gave way to Mariano de Beer, former phone company that led the education unit of RBS Group since the beginning of last year.