Microsoft Acquires Nokia Devices and Services Division

by HEMANTH KUMAR on September 3, 2013


The long speculated, rumored and once cancelled deal, The Microsoft’s acquisition of Nokia Devices and Services Division is begun. Microsoft is going to pay $7.1 Billion to close the deal. Its very necessary for Microsoft to have a well experienced Smartphone maker capabilities of Nokia along with its portfolio of patents. The once legend of phone business, Nokia is sinking, Windows Phone to table just made it slow. And this selling off decision of Nokia is necessary for them, to stop positioning the company as BlackBerry. This is a Good thing to happen for a consumer, but the bad thins is we are not going to see any Nokia branded smartphone in future, Nokia brand stays with it self.

Microsoft is going to pay EUR 3.79 billion for Nokia Devices and Services, EUR 1.65 Billion  to license Nokia’s patents. The deal is expected to close in the first quarter of 2014. Not only smartphone division but also feature phones also will be part of Microsoft and Nokia will not make another phone in the future. Which means Lumia and Asha trademarks is now property of Microsoft. The Lumia range of devices will continue, at least up to sometime.

This acquisition strengthens Microsoft Devices Division, and Microsoft can take advantage of one of the best hardware manufacture in the world capabilities to its existing devices like Surface, Xbox. This will ensures better devices from Microsoft. But we have to see how far Microsoft utilizes this opportunity.

Stephen Elop is now internal candidate to the future CEO of Microsoft as Steve Ballmer is stepping down in a year. Stephen Elop was a Microsoft Head of Business and now CEO of Nokia. He is the rightful person for the new CEO of Microsoft, and many people wanted him to be and drive Microsoft to a faster phase.

Like Apple, With this Acquisition of Nokia, Microsoft is in a position to control both software and hardware that can drive better experiences for the consumer. Dear Microsoft, forget about OEM licensing, look at Apple, learn things and produce your best bet yet, we look forward to great devices and experiences, just with Microsoft branding.

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