Linked by Thom Holwerda on Tue 3rd Sep 2013 05:39 UTC
Microsoft Ever since Stephen Elop became CEO of Nokia we knew this outcome was inevitable. It was his job to make it as easy as possible for Microsoft to acquire the vital parts of Nokia, and here we are: Microsoft is acquiring Nokia's devices unit for 3.79 billion euro, and another 1.65 billion euro for its patents. It's a bit of a complicated deal in that Microsoft buys the Asha feature phone brand and Lumia smartphone brand outright, but will only license the Nokia name for current Nokia products; the Nokia brand will remain under the control of Nokia the company. This means Nokia as a phone brand is effectively dead.

In addition, Stephen Elop will return to Microsoft. I'm sure entirely coincidentally, Ballmer announced recently that he's stepping down.

All this was as inevitable as the tides rolling in. Nokia has been going downhill and has stagnated ever since the announcement it would bank its future on Windows Phone. It went from being the largest smartphone manufacturer to an also-ran, which is made painfully clear by the fact that Microsoft paid more for Skype than it does for Nokia's devices unit.

A painful end for a once-great phone brand. This was the plan all along, and in essence, Nokia's board has executed it masterfully; the Finnish company has switched core markets several times in its long, long history (it started out as a paper company), and the unprofitable phone business was a huge liability for the company, despite claims by some that Nokia was doing just fine. Nokia's board has masterfully gotten rid of this money pit so it can focus on the parts that are profitable.

And, as always, the next Lumia will turn it all around.

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RE: Comment by Nelson
by AnalogOnce on Tue 3rd Sep 2013 12:45 UTC in reply to "Comment by Nelson"
AnalogOnce
Member since:
2012-12-04

Well put Nelson.

With the launching of the multiple platforms of Windows 8, Microsoft has reshaped itself to serve the mobile market. In years past, Microsoft CE devices and Windows Mobile was marketed to give them a toe-hold, with devices like the Compaq IPAQ and the Samsung Blackjack.

Office365 is another example of how Microsoft has changed it's marketing perspective as package software will be come a rare commodity in the very near future.

I have owned a number of Nokia phones, my favorite was an E71, a beautifully built phone, for a time when cell phones were for calling, with occasional texts and emails. My last one was a Nokia 900 with Windows Phone 7.8. I do like Windows phone live tiles and overall usability, but for me, there was still too much lacking when compared to IOS or Android to stay on the platform.

If you look at all the changes and purchases that Microsoft as made in recent years, including Nokia, it is easy to see that Microsoft has adopted of the Apple ecosystem strategy.

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