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Microsoft’s toughest choice

08
Feb
2014

Never mind Bing and Xbox. What the heck is Microsoft’s new CEO going to do about its feature phone unit that is churning out 200 million low-end  handsets a year? The dilemma here is that Nokia’s handset unit has two very disparate parts: feature phones and smartphones. Feature phone demand is now dropping rapidly as low-end Android smartphones are beginning to hit the $100 unsubsidized price. That was the segment of Nokia’s feature phone business that kept the whole low-end business profitable: The $80 to $100 premium feature phones that offered tolerable camera performance, relatively tight pixel density and extras like WiFi support. Now that this precious slice of the budget phone market is about to be engulfed by an

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