Microsoft has come to the conclusion that acquiring Nokia wasn’t its brightest moment and it is now looking to write off the money it spent on the acquisition. The company is now going through a consolidation phase where it is streamlining its businesses and revisiting them strategically.
The company has come to a conclusion that too much of clutter is present from its end in the budget smartphone space and a clear lack of segmentation is coming forth. For instance, the Lumia 640 which sits higher in the hierarchy than the Lumia 540 sells at a price below it. The same applies to a Lumia 635 vis-a-vis a Lumia 532.
As a result of this, Microsoft will be dividing its smartphone business into three major categories. These will be value phones, business phones and flagship phones. The OEM is further planning to launch simply one or two smartphones per segment. This rule might not apply to the prior launches and will probably be followed for the future launches.