Nokia had lost the smartphone wagon when the Finnish company sistematically rejected Android as an OS for its devices. Then, Nokia sold the Qt/Symbian bussiness too, inevitably linking its fate to Microsoft's mobile operating systems.
After, building the Surface tablet, this was the logical move for the Redmond guys. Maybe this is a new beginning for Microsoft, but... what shall Intel think about this?
Looks like Nokia has got a deal here!! Not sure if Nokia re-aligned its strategy to make Windows phone thinking about this possibility of making a deal with Microsoft, but I would tend to think so. Now the question is if Microsoft got a good deal or not...only time will tell. But atleast it could be thought as the last chance for Microsoft to make a desparate turn around in the mobile market.
According to some of the analysts in India, it was reported by one of the business channels that there is speculation that Microsoft (after completing the deal) might reduce the cost of Lumia. They could do that as they could absorb the licensing cost for Windows. Several years back Nokia had 70% market share in India and in 2013 it s less than 20% and has become fourth, below Samsung and two other local companies. But recently Lumia has gained some ground here for Nokia. Hence, by reducing the price in India, Microsoft could get a major gain interns of smart phone market share. There is huge potential as only 10% Indian population use smart phones as of now which would increase multi folds in next few years.
You are right about "six years is all it took." In 2008 Nokia showed advanced designs at the MEMS Executive Conference, from a think-tank group formed in 2004, that in many ways are still more advanced than any smartphone today--for instance a flexible phone that wraps around your wrist, but flattens out for shoving in your pocket (see photo). Yes, it was ahead of its time, and that design still is, but that just tells me there are hidden jewels inside Nokia that Microsoft might be able to harvest. But will its top-heavy organization be able to?
I was kind of sad when first heard about this news. Nokia has changed thecell phone market the same as apple did for smartphone.there was a time when nokia has almost monopoly in the market and was considered the same trademark as apple has set up today. But I guess failure to undersrand the consumer needs and changing accrdingly has ledto it. Also the os made lot of difference. But microsoft buying it won't make muchdifference. Android and ios have pretty strong hold in smartphone market. Hope they keep nokia brand name alive.
One experience I ad of Nokia R&D was that they were very good at creating "vision" videos that were science fiction.
I was on a trip to Helsinki and viewing such a mobile phone "vision' on screen of course. It was shown as having a roll-out screen and perfect high-definiton video and bandwidth for video conferencing and i am thinking this must have been in the 1990s.
A fellow journalist asked me why they didn't hand the exciting phone around for him to touch and play with and how much it would cost, etc. I had to explain to him that Nokia couldn't make the thing and probably never would, which disappointed him.
However on the same trip Nokia did tell me they would make millions of dollars per year by licensing alternative ring tones to their customers because everybody couldn't have the same ring tone (due to confustion) and customers would pay Nokia to obtain pop-song samples for use as ring tones.
I think Nokia may have achieved that. But I have to admit i found the idea somewhat banal and didn't report it. After all that is just software.
Nokia made several mistakes that led it down this destructive road. Nokia stuck with Symbian too long and then hedged its bets with a new OS from Intel and finally selected Microsoft as an OS partner. Nokia had the opportunity to select Google and Android at the same time, but selected Microsoft, because Microsoft offered cash and to do most of the software engineering work. So, Nokia made one bad choice after another.
However, this split will allow the company to focus on other areas and let Microrsoft worry about a dwindling handset unit. Will this really increase Microsoft's chances in the handset market? Probably not, but Microsoft will continue to through money and resources at it. The real sad part is that Nokia has produced some really good hardware, but it's the software choices that have been the downfall.
Samsung and HTC would be crazy to sell Windows phones after this.
Today, there is maybe a three horse race, Nokia, Samsung and HTC selling windows phones. Everyone is mostly on the same ground, where they need to llicense the software from Microsoft. Nokia it in the lead.
Microsoft bought the leader, so probably Nokia's licensing fees will go right back into the companies pocket. HTC and Samsung will now have to pay the parent of the chief rival to use the OS. Maybe until the current stock runs out, after that, they will try something different.
The Windows phones will be made exclusivly by Nokiasoft.
32k employees (even if 18k are in manufacturing) and patent licenses all for $7b is a pretty good deal I think if you consider the going rate per engineer seems to be about $500k ~ $1m. Even if you take the low-ball number for Nokia pedigree, it still seems pretty good as a total package.
I think first and foremost, Nokia went wrong by not responding to the low cost market. Chinese low cost manufacturers powerd by turn-key solutions ate their lunch and then spread it around the world. They had many chances to get into this, using the same solutions, but passed on it every time. At the same time they were not responding to the smartphone market, again they had numerous opportunities, but passed.
The question I would love answered is why did they pass on both these market opportunities?
For skype there could have been a bidding war. Nobody wants Nokia and No bidding war. So MS got it cheaply.
Now the question is , what will happen to blackberry ? Since MS is out of phone acquisition market the only potential acquirer is Lenovo. Means blackberry could be going much cheaper than 100+B market cap it once had.
I wonder if anyone who is trivializing this deal and OS have even tried WP.. I have. I've had one for 3 years now and I really love it even though it's the old generation running on a poor quality Samsung device (I've have many issues including a defective Samsung battery). I have used both Android and iOS. WP is good, quite good actually. Let's get over the 90's MSFT is evil nonsense. Let's also not forget that Samsung is doing quite well with Android even though Google bought Moto. The only issue now, the true issue will be if MSFT will allow an adequate marketing campaign to push Lumia and change perception. This truly is the name of the game here IS perception not quality nor price (look at the lineups every year to replace a 1 year old phone with the latest slightly faster, shinier and bigger/smaller device so that one can remain cool and trendy).