Microsoft To Acquire Nokia's Devices And Services Business,...

[6Foot2]

Link: Microsoft to acquire Nokia’s Devices & Services business, license Nokia’s patents and mapping services

 

[subject to approval by regulators and Nokia's shareholders]

Edited September 3, 2013 by 6Foot2
Re-arranged final sentence for better readability.

[CyberNerd]

See what the BBC said:

Another consequence of the action will be that Stephen Elop, Nokia's chief executive, returns to Microsoft just three years after he left. His experience running the handset firm has to make him a favourite to replace Steve Ballmer bearing in mind the Microsoft boss has pledged to stand down within 12 months.

 

!?!?!? So Elop leaves MS for Nokia, issues the 'burning platform' memo and essentially drives nokia into the ground after pairing with MS. Then MS gets to buy Nokia at a cut down price and Elop returns. hmmm.

[Dos_Box]

The BBC are running with this article: BBC News - Microsoft to buy Nokia's mobile phone unit

They point to the fact that Microsoft have been slow to react to the massive increase in the tablet/smartphone sectors and the corresponding decrease in PC/laptops sales. I can sort of see their point. I think that the problem Microsoft has is that they have actually been in the market since the very early days, especially in the tablet/touch screen area. What they don't do very well is to keep developing it. Ever since XP for tablets and Windows mobile you could have a device that used a touch interface (albeit only usable with a stylus in most cases), but there had been no further development in those areas. Sort of brings to mind the whole IE 6 debacle.

Many of us here has used Windows tablets over 10 years ago and touch based Windows phones at least a couple of years before the iPhone emerged.

But, they now have Windows 8 and Windows Phone 8 to build upon, and hopefully they can begin to get back some momentum. What they shouldn't do is rest on their laurels and let an idea/product stagnate as they have done too many times in the past. Microsoft used to innovate a lot more than they do now, what they should do is ensure that they have teams in each product area that will keep it fresh and current and perhaps with the potential purchase of Nokia's mobile division they will get the skills and vision they need to keep Windows Phone a current and future handheld OS.

[jinnantonnixx]

I'm waiting for Tomi Ahonen's blog to update with this news. He's an ex-Nokia exec with 'strong views' about Elop.

 

Communities Dominate Brands

 

 

@CyberNerd - which sage, which seer of visions, could possibly have foreseen this happening?

Edited September 3, 2013 by jinnantonnixx

[nicholab]

I would suggest this is MS trying to become like Apple.

[sparkeh]

Ooh two companies for Elop to drive into the ground. Awesome.

[zag]

Windows phone is a complete waste of space anyway. Interesting strategy to buy Nokia at a cut down price

 

I always wondered what the sales would have been like if the Lumia ran on Android!

 

Good strategy by Microsoft though. Now they just need to write a Mobile OS that doesn't look like a children's toy

[Dos_Box]

Windows phone is a complete waste of space anyway. Interesting strategy to buy Nokia at a cut down price

 

I always wondered what the sales would have been like if the Lumia ran on Android!

 

Good strategy by Microsoft though. Now they just need to write a Mobile OS that doesn't look like a children's toy

 

You haven't seen the next version of iOS then?!

[sonofsanta]

This may backfire horribly as all other device manufacturers decide that it's stupid to try and compete with MS/Nokia with Windows Phone devices, much like the Windows RT experiment. Microsoft not having to pay licensing to itself doesn't half give them an edge on profit margins/device value.

[sparkeh]

Can't see that its a great strategy myself, tying up a dying device manufacturer with an OS that has a minuscule market share?

I agree that other manufacturers will probably swerve Win Phone now which won't help matters.

[jinnantonnixx]

This may backfire horribly as all other device manufacturers decide that it's stupid to try and compete with MS/Nokia with Windows Phone devices, much like the Windows RT experiment. Microsoft not having to pay licensing to itself doesn't half give them an edge on profit margins/device value.

 

The licensing is quite a thing. If you look here (Form 10-K) you'd be forgiven for thinking that WP brings in $1.2bn. However, the lions share of that cash comes from Android licensing. (Microsoft's new billion-dollar business: Android patents? - GeekWire)

[Dos_Box]

Can't see that its a great strategy myself, tying up a dying device manufacturer with an OS that has a minuscule market share?

I agree that other manufacturers will probably swerve Win Phone now which won't help matters.

 

Like it ever hurt Apple?

Admittedly that is another kettle of fish altogether, but Nokia was int trouble before it ever teamed up with Microsoft, and this may actually give the company the focus it needs. Windows Phone as an OS is actually very good as quite a few 'geekers can testify. What it does not have is the kind of platform base Android has i.e. with some powerful and extreme hardware thrown into some devices.

With Apple you get what you are given (and pay a premium for it), with Android you get whatever the various hardware manufactures think you will pay out for with specs to match. Which direction Microsoft will take shall be very interesting indeed.

[Geoff]

They just want the patent portfolio to go bashing Apple/Google/Samsung etc with.

[sparkeh]

Like it ever hurt Apple?

Admittedly that is another kettle of fish altogether

Yes its completely different. Apple release a (at the time) revolutionary product, made people want it and made the iThing a lifestyle choice that a lot of people bought/still buy into. MS + Nokia is taking two unpopular and uncool items that the majority of people don't want, merging them at, probably, the expense of having the other, small amount, of other manufacturer handsets on the market.

but Nokia was int trouble before it ever teamed up with Microsoft, and this may actually give the company the focus it needs.

Well yes Nokia wasn't doing that well before Elop took over, but after he burned the platform and hooked up with MS things are significantly worse. Market share and share price has collapsed. Yes he managed to cut some costs, which needed doing at Nokia, but tech companies don't grow my cutting the bottom line, the top line counts and he made a mess of it. Tying up with MS hasn't succeeded and this event just ties them closer.

Windows Phone as an OS is actually very good as quite a few 'geekers can testify. What it does not have is the kind of platform base Android has i.e. with some powerful and extreme hardware thrown into some devices.

Yeah, I haven't used it myself but I know that people who do actually think its good. As as become usual under Ballmer, MS made a right mess of the mobile market. Possibly its too late for Windows Phone as the market it sewn up between Apple and Android (Samsung in particular) and something major would have to happen to recover from that.

[CyberNerd]

Nokia was int trouble before it ever teamed up with Microsoft, and this may actually give the company the focus it needs.

 

Nokia wasn't in trouble at all before Elop screwed them~; Communities Dominate Brands: The Final Reckoning: Burning Platforms Memo Damaged Nokia: Wiped out $13B revenues, Destroyed $4B profits in just 12 months

[rich_tech]

Windows phone is a complete waste of space anyway. Interesting strategy to buy Nokia at a cut down price

 

I always wondered what the sales would have been like if the Lumia ran on Android!

 

Good strategy by Microsoft though. Now they just need to write a Mobile OS that doesn't look like a children's toy

 

I thought the same about Android, I have used a 710 Nokia several times here when phone has been playing up and wondered that about the device.

 

I cant abide Windows Phone in its current format with the metro like interface, shame because Nokia are actually making some pretty decent looking devices now after a fair few anonymous years.

[SYNACK]

As long as my Lumina 920, which I like, keep's getting updates I'm happy. WP is the middle ground between Apple and android, I can't stand android as it takes days of fluffing and a dozen apps to get it to do simple stuff built in efficiently to other platforms, Facebook calendars for instance, automatic on WP and a pita on Android.

[TecD]

Most consumers will go and buy Apple or Android only the select few will go for WP only way for them to get back to where they once were would to be innovative, focus on smart watches or glass tech then maybe they could win back customers somehow i dont see them doing this

[john]

Love my WP, then again I have had WP and WM devices for years so kind of brought up and learnt them. If you are like me and live in a MS ecosystem then its perfect, it has my Xbox, Music, Email, Voice etc.. all integral

[sonofsanta]

Now I'm not normally one for conspiracy theories, but...

# Stephen Elop leaves the Microsoft Senior Leadership Team to become Nokia CEO

# Stephen Elop almost immediately destroys Nokia & Symbian's market-leading share in smartphones, as well as a lot of profit and share value, with his "burning platform" memo. Share price drops from $9 at Elop's appointment down to a low of $1.63 in mid-2012.

# Elop commits Nokia wholly to Windows Phone.

# Three years later, Microsoft's CEO Steve Ballmer announces his retirement with words that suggest he was rushed - "My original thoughts on timing would have had my retirement happen in the middle of our transformation to a devices and services company". Nokia's share price has since risen back up to ~$4.50. One suggestion for his replacement is Stephen Elop.

# Within a week, Nokia's phone division has been bought and Elop returns to the fold as a Microsoft manager, ideally placed to jump into a position as CEO.

 

It all seems to have worked out pretty well for a Microsoft wanting to model themselves on Apple and replace a CEO, doesn't it?