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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Comment by MOS6510
by MOS6510 on Tue 3rd Sep 2013 05:44 UTC
Member since:

Nokia is gone and RIM/BlackBerry may be next.

Not so long ago they were big names in mobile and it was hard to imagine them ever going down.

One day this will happen to Apple and Samsung too.

Reply Score: 6

RE: Comment by MOS6510
by tonny on Tue 3rd Sep 2013 05:58 in reply to "Comment by MOS6510"
tonny Member since:

Nokia's down is writing on the wall. Everyone knew that it will happen sooner than later. And blackberry too, of course.

Company that too arrogant and too full of itself will crumble faster.

Lets we monitor how blackberry doing ;)

Reply Parent Score: 3

RE[2]: Comment by MOS6510
by bassbeast on Tue 3rd Sep 2013 10:38 in reply to "RE: Comment by MOS6510"
bassbeast Member since:

What irks me is so many saying "Elop killed it!" when in reality it was a total mess, infighting, poisoned culture, and it was dying by the time Elop was brought in. It would be similar to bringing somebody in to "save" your car while ignoring the fact that there has been flames shooting out from under the hood for the past 100 miles.

Nokia was ALREADY toast folks, the ONLY market where they had any real presence was dumbphones which by the time Elop was brought in was already like being the best 8-track player company in 1985. They had something like THREE different OSes, Maemo, Symbian, and the Java one whose name I can never remember, and we have had multiple guy post here that were working at the company in software who have reported it was a giant infighting mess over there and how NONE of their OSes were ready to compete head to head against iPhone and Android, so what EXACTLY did anybody expect him to do? And don't say Android as Samsung and HTC would have curbstomped them, nobody does high end Android better.

If its any consolation it looks like Ballmer is gonna get the last laugh at the board, not only is he gonna spend billions of a dead company but he'll probably get Elop in the big chair who'll follow Ballmer's "All we care about is overpriced cellphones and tablets, forget that billion dollar Windows business that is dying thanks to Win 8 hatred, have I mentioned we have an appstore?" and Elop will be able to save MSFT about as well as he saved Nokia. I wonder if in 2020 we'll see some company buying MSFT for the patents?

Reply Parent Score: 3