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.

Thread beginning with comment 571156
To read all comments associated with this story, please click here.
by pandronic on Tue 3rd Sep 2013 05:46 UTC
Member since:

Considering that now Microsoft owns the largest Windows Phone producer, what motivation do other companies have to get into Windows Phone?

Reply Score: 12

RE: comment
by galvanash on Tue 3rd Sep 2013 06:14 in reply to "comment"
galvanash Member since:

Considering that now Microsoft owns the largest Windows Phone producer, what motivation do other companies have to get into Windows Phone?

What makes you think Microsoft wants other companies getting into Windows Phone at this point? That has worked out so well for them so far...

Look at Surface. Yeah, it has problems, no doubt there - but it represents 50% of the entire Windows 8 tablet market in sales (more if you count the surface pro). Microsoft can do whatever they want at this point, their mobile hardware partners are going to all leave anyway (most already have)...

Microsoft is going vertically integrated, this is the final memo for those that didn't see the writing on the wall already. They don't have a choice really, if they don't do this now Windows 8 is effectively dead as a mobile platform because everyone else already left the party - you can't build up a platform that no one licenses...

ps. For those wondering why Nokia's board decided to go to the dark side in the first place - well right here lies the 7.7 billion reasons...

Edited 2013-09-03 06:26 UTC

Reply Parent Score: 15

RE[2]: comment
by TM99 on Tue 3rd Sep 2013 08:44 in reply to "RE: comment"
TM99 Member since:

You are right about the vertical integration, and it is yet another reason why many, including myself, will not get an Xbox One. The same walled-garden, vertical integration, one OS to rule them all, mentality will apply now to gaming.

But it still remains to be seen if Microsoft can make it alone with Windows phone.

Reply Parent Score: 6

RE[2]: comment
by bassbeast on Thu 5th Sep 2013 08:27 in reply to "RE: comment"
bassbeast Member since:

Yep and you can say goodbye to MSFT while you are at it! The ONLY reason Windows sold was thanks to the OEMs and the economies of scale, nobody is gonna shell out Apple prices for Windows products, not a chance in hell. Instead you have valve putting out their own game focused Linux and Acer reporting that now nearly 14% of their PC sales are ChromeBooks!

If there is anything written about Ballmer in the history books it'll be that he took what was a 90%+ monopoly on the desktop and burned it to the ground in a foolish bid to become another Apple which mark my words WILL fail. Valve is gonna end up taking the gamers, who just FYI can't stand the bloated mess that is Win 8, and Google with their business apps and virus proof ChromeOS will end up snatching away a good chunk of the business users.

I never thought I'd see the day but unless they stop shooting themselves in the foot I have a feeling the EOL of Win 7 will also be the EOL for MSFT as any kind of competitor. Real shame as Sinofsky made a damned good OS with Win 7 only to see Ballmer destroy it for "Oh hai! I'm a cellphone LULZ, did you see my apps?".

Oh and for those that say only "Luddites" are not embracing the "innovation" that is windows 8...why have you not replaced your car's steering wheel with handlebars? Bikes are the largest market by far, you are just a Luddite for not embracing the innovation of driving your car with bike handlebars! Or maybe, just maybe, a UI that works good in one place doesn't magically work good in all?

Reply Parent Score: 2

RE: comment
by REM2000 on Tue 3rd Sep 2013 08:46 in reply to "comment"
REM2000 Member since:

i agree, i know that Microsoft is trying to push WP8 for licensing but they need to accept that they are basically going to do an Apple and have their own phone with their OS, which may not be no bad thing.

Other OEM's have already got a free OS with Android, which Microsoft gets a fee for anyway.

I just hope that the influx of Nokia engineers at Microsoft will increase the speed of development of WP8. If Microsoft had any sense they would allow the nokia engineers to simply get on with it and not try and micro-manage them. The problem for nokia engineers in the past was there was no clear vision on what they had to develop. It should not be easy, here's windows phone, develop it, make it competitive against iOS and Android.

Reply Parent Score: 4

RE[2]: comment
by Radio on Tue 3rd Sep 2013 11:01 in reply to "RE: comment"
Radio Member since:

I just hope that the influx of Nokia engineers at Microsoft will increase the speed of development of WP8.
I thought it was well-know that you never, ever solve software development problems by throwing more coders at them (The Mythical Man-Month, Fred Brooks).

Reply Parent Score: 5

RE: comment
by aqd- on Tue 3rd Sep 2013 13:58 in reply to "comment"
aqd- Member since:

Considering that now Microsoft owns the largest Windows Phone producer, what motivation do other companies have to get into Windows Phone?

They don't matter. Their focus has always been Android.

Reply Parent Score: 2