Microsoft - Nokia Acquisition : Is It The Game Plan To Fight Apple & Google?

It's a big news day! Microsoft has decided to acquire Nokia's Devices & Services business and get full control of Nokia's patents and mapping services. Nokia, through a press released informed the media that the board of directors of both Microsoft Corporation and Nokia Corporation have agreed on the transaction in which Microsoft will purchase substantially all of Nokia's Devices & Services business, its patents and mapping services for a cool EUR 5.44 billion in cash. Out of the total bill, EUR 3.79 billion will go to the business and EUR 1.65 billion will go to Nokia's patents and mapping services. The transaction is expected to be finalised by the Q1 of 2014. The deal will have to be approved by Nokia's shareholders and require regulatory approvals.

slide

32,000 of Nokia's employees will transfer to Microsoft. Microsoft will also get full control of Nokia's ASHA phone series (which does not run Windows operating system) and HERE mapping service. The brand 'Nokia' will continue. Nokia itself will continue to work on mapping services, advance LTE networks and other advance technologies. The company will also explore newer business opportunities. Nokia's acquisition also means its CEO, Stephan Elop will step down from his position. It's not clear what's next role for him - at Nokia or at Microsoft.

Why Microsoft Acquired Nokia?

Short answer: Hardware control!
Long Answer: Nokia has so far been the biggest hardware maker for the Windows Operating System - an important partner for Microsoft to continue to thrive in the world dominated by Apple's iOS and Google's Android Operating Systems. Both these Microsoft's biggest rivals in the mobile computing have full ownership of the hardware. Apple's been in total control of their hardware since beginning and Google realised that they need a control over hardware much later. That resulted into Google's acquisition of Motorola's mobile division. With the hardware manufacturing process in their check, Apple and Google now control every aspect of their phone and that's a huge advantage in deciding which course software development will take with the continuous improvement in the hardware. Microsoft so far did not have this ability and no other acquisition would have been as easier as Nokia.

The deal works out in favor of Nokia as well. The company, which once dominated the feature phone markets globally couldn't cope up with the assault from the smartphone makers like Apple, Samsung and LG. They got out-innovated in almost every aspect of the mobile computing game. By deciding to sell hardware business to Microsoft, Nokia can go back to drawing boards and find out their niche.

Other potential acquisition could have been Blackberry - but the company's been allergic to Microsoft's operating systems. The company's been looking for buyers but haven't been able to find a suitable mate.

What Does Microsoft's Nokia Acquisition Mean To The Industry?

The industry has been noticing innovations in the mobile computing domain at a breakneck speed. The overall winner in the game will be the company that offers the best overall experience of mobile computing. It'd be interesting to see how Microsoft makes use of Nokia's hardware capabilities to redefine Windows mobile experience. We'd expect the acquisition will put Microsoft in a better position to get more market share for the Windows operating systems.

What does all of this mean to you? 2014 and especially 2015 are going to be very interesting years. You better be prepared!

Source: #-Link-Snipped-#

Replies

  • Kaustubh Katdare
    Kaustubh Katdare
    ...and you hear it all from the horses' mouth - #-Link-Snipped-# . The PDF from Microsoft explains why they acquired Nokia and what users can expect.
  • envira
    envira
    Yeah probably right.
    Microsoft is one company having the poorest of hardware and you can find that from its history , and best example is Zune , which is a sheer failure.
    I was shocked at the deal first, as the price of Nokia is just 7.52 B which i think Nokia should get a bit higher price.
    Stephen Elop, has made 150 year old company , just Gone, hats off to him.
    Hopefully new technology rolls out from this collaboration, and overtake the so called market giants, with buggy software ( I dislike Android).
    But still the deal nags me as the mobile devices which i have been since i know what is called mobile phone is no more.
    RIP Nokia,
    What ever we still love you.
  • Kaustubh Katdare
    Kaustubh Katdare
    People are saying Elop was Microsoft's Trojan in Nokia - sent only to ensure that Nokia sells its business only to Microsoft. Quite a possibility, you see!
  • Pensu
    Pensu
    Holy shit! Is it the kind of deal where two drowning people hold each other's hand to save themselves! Microsoft is doing something fishy, I am sure, first Balmer is going out, now they are acquiring Nokia. I doubt over Symbion's future now.
    RIP Nokia!
  • Nayan Goenka
    Nayan Goenka
    I knew it!! Now this is excellent business. Maybe there is no reason to find out if Elop was a rat in Nokia for Microsoft, but this deal will be profitable for both. And I totally agree with @#-Link-Snipped-# , There is some fishy smell. Ballmer Out, Nokia In. Maybe Balmer was not happy with this decision of the board so he quit.

    RIP Nokia. You were/are/will always be the biggest phone maker.
  • Satya Swaroop Dash
    Satya Swaroop Dash
    The speculations were going on since ages but no one hoped it would happen so soon. Nokia, the past king of feature phones has seen its share of bad days due to competition from Apple and Google, its original factory and head office at Finland have already been sold or leased out. So this deal will definitely benefit Nokia but I hope Microsoft does take some wise decisions in the future and the first thing to be done is 'improve the app ecosystem'. There is no doubt Nokia has better hardware, battery life, camera, look-and-feel as compared to any Android smartphone maker but the only deterrent that is making people stay away from a Windows Phone 8 is its lack of apps and games. People who have bought a Lumia have to wait for quite a long time before the game arrives on the Windows Store, same goes with apps as well. Also a app looks better on iOS or Android as compared to Windows Phone.
  • Kaustubh Katdare
    Kaustubh Katdare
    Update: No smartphone will ever carry 'Nokia' brand name from now on. The brand can only be used on feature phones. Finnish company retains the brand name. The phones that will come out from now on will have Microsoft Branding!

    It's sad to see Nokia exiting out of the 'smartphone industry' it once pioneered.
  • Satya Swaroop Dash
    Satya Swaroop Dash
    Kaustubh Katdare
    Update: No smartphone will ever carry 'Nokia' brand name from now on.
    Oh Come on this is ridiculous !
    Nokia still is considered a cool brand among phones, if you take its name away it looses all its coolness. For example, when Cadbury was purchased by Mondelez International, they kept the Cadbury name for the products because of its popularity. They knew that something called as "Mondelez Dairy Milk Silk" would never work. Imagine owning a Microsoft Lumia 900.
  • prahu mac
    prahu mac
    common i think nokia's decision of selling out the company to microsoft is nothing but bowing in front of apple and samsung !!!!!!! it just couldn't feel the heat!!!!!😀
  • Anand Tamariya
    Anand Tamariya
    This was destined from the day Elop joined Nokia!! His decision to promote Windows based phones instead of Meego or Maemo destroyed the core of Nokia long back.
  • Sreeramakrishnan
    Sreeramakrishnan
    Great!!!!
  • Kaustubh Katdare
    Kaustubh Katdare
    Sreeramakrishnan
    Great!!!!
    Can't believe you quoted entire article to write "Great!!"! 😁 . Removed the quote.
  • Abhishek Rawal
    Abhishek Rawal
    When Elop was selected as new CEO of Nokia, everyone were sure that one day MS will acquire Nokia. This was not a surprise.
    I think Elop will rejoin MS & will be next MS CEO.
  • rithesh salian
    rithesh salian
    Kaustubh Katdare
    People are saying Elop was Microsoft's Trojan in Nokia - sent only to ensure that Nokia sells its business only to Microsoft. Quite a possibility, you see!
    #-Link-Snipped-#
  • Jeffrey Arulraj
    Jeffrey Arulraj
    Microsoft has a more solid base and better mobiles with the Windows OS will surely hit the mobile market real soon and This also means Death Kneel FOr the Symbian OS

    RIP Symbian

    Window mobile rule the market

    But recently no significant models has been launched by Nokia Hope MS addition boosts Nokia's design a little more like that of it's competitors
  • Abhishek Rawal
    Abhishek Rawal
    A new company named "Newkia" is aiming to manufacture Nokia Phones running on Android.
    It's rumoured that many developers,employees & executives have quitted Nokia(now MS) & is working for "Newkia".

    Don't you think it would be cool to have Nokia phones running on Android ?
  • Pensu
    Pensu
    Abhishek Rawal
    A new company named "Newkia" is aiming to manufacture Nokia Phones running on Android.
    It's rumoured that many developers,employees & executives have quitted Nokia(now MS) & is working for "Newkia".

    Don't you think it would be cool to have Nokia phones running on Android ?
    I dont think it's going to cut it for them. Of-course, nokia must have patented all the stuff and without that you cant regenerate the magic!
  • Abhishek Rawal
    Abhishek Rawal
    Ah! Patents 😡

    BTW They(Nokia) should've uploaded the Symbian source & binaries before selling company & let the Opensource community develop it further.
  • Pensu
    Pensu
    Abhishek Rawal
    Ah! Patents 😡

    BTW They(Nokia) should've uploaded the Symbian source & binaries before selling company & let the Opensource community develop it further.
    Haha....Keep dreaming....😉
  • Anoop Kumar
    Anoop Kumar
    Microsoft has only solid base, Microsoft Office ecosystem. On this pillar only they are selling computers and mobiles.
    If they can't able to keep this pillar strong they will fell like World Trade Center.

    PS: Gaming community already started shifting to open source.
  • avii
    avii
    Kaustubh Katdare
    People are saying Elop was Microsoft's Trojan in Nokia - sent only to ensure that Nokia sells its business only to Microsoft. Quite a possibility, you see!
    Elop's family stayed back in US when he left country for Nokia. Well, that says a lot 😏
  • Sarathkumar Chandrasekaran
    Sarathkumar Chandrasekaran
    Recent update😁elhi high court has granted permission to Nokia to sell chennai plant to Microsoft for a whooping 2250crore .
    Nokia was facing problem to sell it to Microsoft due to tax payment problems.Now Nokia came out of that trouble to sell its unit in Chennai.
  • prahu mac
    prahu mac
    i really don't think nokia's acquisition will put apple in harm's way!!! that's never gonna happen!!!!!

You are reading an archived discussion.

Related Posts

friends, i wanted to develop an android app, recycle bin for android..i wanted to know once the user deletes a file where does it go..! Any idea about the app..will...
iBall, the electronics company in India based out of Mumbai, has launched its first projector phone. Called as the iBall Andi 4a, the all new smartphone from the Indian manufacturer...
An engineering student from India, Arul Kumar, has found a critical vulnerability on Facebook that let any user delete photos from anyone's account without the owner's consent or knowledge.The social...
Hi CEans, I am out here with a big question that whether there is any recovery software or app available for mobile phones( smart phones) in the market.You may include...
Duke University researchers come up with a new plastic that actually becomes stronger when stressed. Cell phone body may be a good application for this. https://www.extremetech.com/extreme/...ign=Feed:+ziffdavis/extremetech+(Extremetech)