Microsoft's Strategic Alliance with Nokia - Essay Example

The influence of the political factors is deemed quite considerable in the global smartphone industry within the current periphery. Notably, most of the companies operating in this particular sector use outsourcing partners to assemble their products. Hence, any political problem in the region of the outsourced partner is supposed to cause a direct influence on the companies. For example, final assembling of most of the products of Apple is conducted in Asia. Therefore, problems relevant to logistics, IT failure, political instability, legal issues or environmental problems in Asia are quite likely to impose an impact on the operations of the company.

Furthermore, political issues such as war, terrorism and geopolitical instability aspects also have major impacts on the operations of smart phone companies. For example, the political riot continuing in countries such as Egypt and Libya have impacted the market performance of Nokia in those regions to an apparent extent.Observably, economic downfall in any nation of the world directly impacts the purchasing power of the customers within the region. Correspondingly, the global economic recession had several noteworthy impacts on the sales of various smartphone companies.

For example, the recovery for North America from the recession is deemed sluggish, which further resulted in the rise of unemployment rates and a decline in customer spending within the nation, which directly affected the sales of the smartphones in this particular region. Another example of the economic impact on the smartphone industry can be comprehended from the approach of Nokia. The company introduced the product Lumia 1020 in the US market, which was later launched in the Indian market rather than during its introductory phase.