Microsoft Buying Nokia's Devices and Services Business

This will certainly accelerate Microsoft's transition to a device and service company.

Under the terms of the agreement, Microsoft will acquire substantially all of Nokia’s Devices and Services business, including the Mobile Phones and Smart Devices business units as well as an industry-leading design team, operations including all Nokia Devices & Services-related production facilities, Devices & Services-related sales and marketing activities, and related support functions. At closing, approximately 32,000 people are expected to transfer to Microsoft, including 4,700 people in Finland and 18,300 employees directly involved in manufacturing, assembly and packaging of products worldwide. The operations that are planned to be transferred to Microsoft generated an estimated EUR 14.9 billion, or almost 50 percent of Nokia’s net sales for the full year 2012.

Microsoft is acquiring Nokia’s Smart Devices business unit, including the Lumia brand and products. Lumia handsets have won numerous awards and have grown in sales in each of the last three quarters, with sales reaching 7.4 million units in the second quarter of 2013.

As part of the transaction, Nokia is assigning to Microsoft its long-term patent licensing agreement with Qualcomm, as well as other licensing agreements.

Microsoft is also acquiring Nokia’s Mobile Phones business unit, which serves hundreds of millions of customers worldwide, and had sales of 53.7 million units in the second quarter of 2013. Microsoft will acquire the Asha brand and will license the Nokia brand for use with current Nokia mobile phone products. Nokia will continue to own and manage the Nokia brand. This element provides Microsoft with the opportunity to extend its service offerings to a far wider group around the world while allowing Nokia’s mobile phones to serve as an on-ramp to Windows Phone.

Microsoft to acquire Nokia

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Comments

tpatt100

Kinda figured this would happen eventually, well I think most tech blogs saw the writing on the wall last year. Google buying Motorola made some people scratch their heads at first since after the purchase Google seemed to not have much interest in doing much but I thought it was a protection strategy since Samsung was the only Android phone manufacturer that seemed to be making any money off Android devices.

Snow.bros

In my opinion i think Microsoft is trying to much, Apple is in its on league they might try but they will never catch up with Apple and by the looks of things i think Apple might walk away with this one.

Claymoore

And Stephen Elop is coming home with Nokia. Does this make him the favorite to be the next MS CEO?
Prodigal CEO: Stephen Elop returns to Microsoft with Nokia as the prize - TechBlog

discount81

I expect Microsoft to do the same to Blackberry shortly, Blackberry is as good as dead now.

discount81

Snow.bros wrote: »

In my opinion i think Microsoft is trying to much, Apple is in its on league they might try but they will never catch up with Apple and by the looks of things i think Apple might walk away with this one.

Apple isn't widely accepted by enterprise, while a lot of businesses may use iPhones, it is simply because a couple years ago they were the best option for a smartphone, but Apples market is for the most part consumers.

Microsoft is an enterprise focused business, they make most of their money from businesses and I think with the right acquisitions and software they could potentially become the smart phone of choice for businesses.
When Microsoft gives System Admins the ability to manage Windows phones through Active Directory, and some native management tools I am sure we will see peoples opinions change.

I recently had to upgrade 500 cell phones, I chose to give users the option of Blackberry Q10 or iPhone 5, simply because users know these phones, however if Microsoft had something like I described above I would of only rolled out Microsoft phones.
And I'm sure other IT managers would do the same.

tpatt100

Yeah Microsoft would be smart to build market share by dang near giving the phones away to companies that use Exchange and Windows Server. Dell and Gateway was trying and it seemed to work for a while where if your company used Dell or Gateway your employees were likely to buy their desktop/laptops for home use .