Missed Microsoft's conference call on the acquisition of Nokia? Get the summary right here

Earlier today Microsoft held a conference call for investors, analysts and the press to discuss its acquisition of Nokia's devices business. The audio only call followed a very tight structure around slides that had earlier been revealed to show some of the specifics of the deal.

If you missed that call don't panic as there wasn't a whole lot of new information, and you'll pick up everything important in the slides which you should be able to download at this link Edit: looks like that link has been pulled by Microsoft so here's a backup on Skydrive (app users remember to swipe right and tap the "View Links" button). Said presentation was then followed by a Q&A which we've done our best to capture in writing which you'll find after the break.

Apart from the information in those slides and the Q&A below, it was interesting to hear Stephen Elop acknowledge the emotions of Nokia's current employees as they will be transitioned to new roles in the expanded devices group at Nokia. Also on the call were of course Steve Ballmer, Amy Hood, Terry Myerson, Brad Smith and Chris Suh. Not surprisingly all were very enthusiastic about the acquisition and keen to demonstrate a confidence in the regulatory process and shareholder approval, as well as consumer acceptance.

"The Deal" slide from the pack

Please note that the following Q&A notes were taken live during the call then cleaned up prior to posting. Therefore they should not be considered as direct quotes from any of the individuals concerned:


Q: Concerning Tablets, much of this presentation is rationale for phones, how does the transaction impact the tablet strategy?

A: Myerson: Certainly a continuum. Fair to say that our customers are expecting us to offer great tablets and we'll be pursuing a strategy along those lines.

Ballmer: Have our own hardware and have strong programs with our OEMs which I think people will get a lot of value from


Q: Question for Steve Ballmer, how does this affect the reorganisation given the hardware / content device structure at present?

A: Ballmer: Still intact, this will expand the devices group and Julie will continue to run the existing group. But the critical mass will increase with Elop running phones. Then the two will integrate figuring that out. In response to a follow up question regarding current OEM's share of the Windows Phone market: I don't see the percentage of OEM phones compared to 80% of devices from Nokia changing in the near future. But with us leading the way and driving volume, we expect Windows Phone to be more attractive.


Q: Nokia has 33,000 employees where Microsoft has over 90,000 how will this personnel integration work out?

A: Ballmer: In many hardware companies there is outsourcing...

Hood: 18,000 of the 32,000 are directly part of manufacturing, they are part of the new vision. Outside of that will be different, sales force will remain as we know. Other jobs are dependent on looking at integration


Q: What does the acquisition enable you to do that the partnership couldn't? Or is it more about solidifying MS's presence?

A: Ballmer: 1 brand, looks better than the "Nokia Lumia Windows Phone 1020" which has been confusing for consumers. A range of improvements can come which will be simplifying how we work with operators. On Innovation, there's always some areas where we can't innovate with the current partnership. For instance more services and software could have been invested in that awesome Lumia 1020 camera. Finally there is some financial inefficiency with the current arrangement so by being one company we gain agility.


Q: You have assumed a 15% share in the marketplace in 2015, to get there you're going to need a lot of developer support (already iOS, Android and HTML5), how do you plan on achieving that support?

A: Myerson: Developers today Windows offers an incredible opportunity (PCs, Tablets, Xbox One, Phones) you can already use HTML5 for some of those platforms. We're excited about the platforms we're bringing to market, and we know we have a lot more work to do.

Ballmer: Driving volume, the key is offering first party applications and awesome first party hardware to increase the market share volume and bring developers on board once that volume has been achieved. HTML5 takes away a little bit of the apps barrier to entry and we’re aware of that.


Q: Was ValueAct made aware of this proposition?

A: Smith: No you would not expect the company to disclose that information, the answer is no.


Reader comments

Missed Microsoft's conference call on the acquisition of Nokia? Get the summary right here


This is THE biggest publicity stunt Microkia has ever pulled❕ This is possibly the biggest publicity stunt ever pulled in the history of mobile... And, well,,, deep in my gut I feel very good about it. Change is good if you accept it, but if you go against the inevitable you'll never be able to move forward.. I think that's mans biggest imperfection,, not being able to accept change.. It's a obvious defense mechanism, but if its not overcome it can lead to fear, hatred, jealousy, and closed mindedness. So, I'm moving into the future with WP, and I hope you guys come with me.. We're literally going into a new season, and what a way to wash away the past a prepare for the next great chapter in life... Well, life inside of WP.. I'm not that crazy.. Lol❕

Microsoft has a history of botching things that have great potential. I truly AM worried about this. Skype is working, yes, but where is that really deep integration that everyone was promised? How is it that 2 and a half years later there is no significant difference between a Microsoft product supporting Skype and iOS and Android? Skype is Skype, the way it was. And you look at Google, and how when they buy something like YouTube it becomes the biggest hit there ever was.
Nokia partnered with Microsoft back in 2011 and we all thought it was such a big potential. Nokia did their part. They did deliver awesome, mouth watering hardware that Fandroids were dreaming about. I think MS disappointed all of us by practically providing no features in 2 years. Not even fixed the most annoying things that users have been screaming about.
Not a SINGLE Microsoft product launch recently has gone smoothly. And when I looked at Nokia's history, and saw that they weren't in a bad situation as Elop described before throwing out Symbian, I felt like Microsoft has done it again. They seem to have used their influence to bring Nokia down, and don't even take the fight in the mobile sector seriously to help their partner that has given so much. I really was disappointed by this announcement.
I don't know. I feel like Microsoft is like a kid whose parents buy him expensive toys, and then he throws them away a week later, not realizing what valuable stuff he has.

EDIT: I meant to reply to rodneyej but hit the wrong link. Now there seems to be no way for me to delete this.

NOKIA made some simple and solid design and some great camera technology, but there was always that high-end device missing. As the LUMIA line currently stands, I'd rather buy a low-end LUMIA than a high-end.

I don't see that way, microsoft is slow, but VERY smart.
just take a look at windows system, windows xp was a BIG hit (see as sybiam system, n95), and it came vista (meego/wp7?), which was a ''failure'', but it opened the doors for the future and delivered awesome UI, then windows 7 arrived (wp8), being perfectly as it is, and besides sales number about windows 8, everyone that knows that is a VERY VERY good system and stable..
Windows phone is going onto the same way, wp7 is okay, wp8 is great and who knows? wp9 may be a big hit, microsoft has been improving it's products since a while, and just like the windows system, we're growing, and the tendency is to grow faster and faster..

I like and use W8 on a desktop but forcing Metro on desktop users wasn't smart. Offering a choice at intallation or purchase would have been smart and very easy to do. Releasing W8 a year too early before it was complete wasn't smart. Comng very late to the party with smartphones, digital music players, consumption tablets, and browsers was not smart. Their marketing until very recently wasn't smart. 
MS's reorg can't come too soon; they are just too damn big and slow. MS can repair the damage but they will have to be banging on all cylinders to do it. You only get so many chances and f'ing things up before you're done. 

Brainprecision❔... Lol❕.. I guess he means mind reading,, IDK.. But, that's a hilarious way of putting it..

Me too, i think they now have the options for doing things they never could before this.
Just hope they grab it with both hands and make it one hell of a product

Microsoft can now reveal that surface phone they've been working on in the "Black out" area inside of MS. Show me the the Money!

Dear new readers, most of us would like to apologize for GideonTerblanche. Some people feel the need to hijack threads with hate and despair. This is one such example.

Oh, so now I'm not a Nokia fan❔ tell me something,, exactly how old are you❔ Because I'm 36, and I had my first Nokia phone before your daddy burst his first nut❗❗.. As a matter of fact I still have tha damn thing, and its in PERFECT condition, so don't tell me nothing about being a Nokia fan fool... Do you know how many Nokia devices I've had❔ What's wrong with you, MAN❓

I'm a fan of technology. Nokia and Microsoft are at the top of their respected fields. The upside far outweighs any negativity you express. You should actually be excited for Nokia as they are rising back like a phoenix and leveraging the resources that only Microsoft can provide. Change may be scary but in IT, change is the only constant. Lead, follow or get out of the way. You really just need to take a deep breath and calm down.

then why you just dont get  symbian phone and go away?
really... "nok fan" do you know who is agreeing to sell Nokia Devices? Nokia guys, not Microsoft, Microsoft only offered money. if nokia didnt see anything bad in getting alot of money for selling that part of nokia, why would you care? same with partnership, people said Nokia was doomed and that was what saved nokia fome dying months ago.
do you even own a windows phone? I bet you dont. but still talk crap. but like i said, get a symbian phone, and stay away from windows phone community, since you arent bringing anything good in the comment section

No, but it bloody well should have because now it could be Microskypkia which is a marketing gem because it just rolls off the tongue like when my girlfriend...oh, nevermind...you get the idea I'm sure.

"1 brand, looks better than the "Nokia Lumia Windows Phone 1020" which has been confusing for consumers."

They brand the phones "Nokia Windows" or "Nokia Lumia" and they may still sell. Remove the word "Nokia" from the phones and sales will drop even more than they already will due to everyone who does not want Microslowft in charge on WP without an outsider pushing for them and fulfilling the gaps they keep refusing to fulfill, adding to everyone who owns a non-Lumia Nokia and doesn't want to have anything to do with Microslowft (go to Nokia's facebook...you'll see the vast amounts of customers displeased with this attempted acquisition).

And that, sir, is the main reason why I'm totally against this attempted acquisition.
I don't hate Microsoft - contrary to popular believe - but I hate their WP development team. Why? Because they've shown over the last 2 years that their commitment to the platform is not serious at all. If it weren't for independent Nokia pushing and doing their job, WP would still be on the ground.
Sack everyone responsible for WP at Microsoft and replace it with the people currently in charge at Nokia, and WP may still have a chance. Destroy Nokia by imposing Microsoft's modus operandi on them and byebye WP. In a couple of year we'll be seeing "WindowsWireless" or something of sorts.

You're implying that companies cannot change. Did you ever think this is why MS purchased Nokia devices division? To change the environment within MS? Maybe a lot of internal MS employees are going to be replaced by the incoming Nokia employees???

I agree with what you say DJCBS, Nokia was the one pushing for new features and sales from the windows phone team. I still think they need to go for volume, which means adding in all those things people want plus new features. I guess this was the best way to gain a whole bunch of new talent. Ballmer is not helping by saying hardware companies outsource.

Could he have been implying that MS doesn't have to out source for its hardware anymore? Remember those Q&A were, "cleaned up"

If you want to blame someone for Windows Phone's slowness DJCBS, then Joe Belfiore and his WP team are the wrong people you're blaming.
It's their departing boss, Steve Ballmer's to blame 'cause Ballmer's the CEO of Microsoft, plus I believe Belfiore and his team had already done their best to get GDR2/Amber be released early to save Nokia from being sold but it's Ballmer that kept delaying the update with stupid excuses like need testing, pull this feature, that feature for future WP updates.
Now that son of a b**tch Ballmer's happy that Nokia sold HALF of core business away and if those f**ckers start to throw away the "Nokia" brand name immediately then sorry Microsoft, the Lumia 920 will be my last Nokia phone and if I want my next Windows Phone two years after I can choose a HTC WP, Huawei W or a Samsung Ativ phone instead.

Those Facebook users, along with this over excited buddy over here could use their savings and make an offer, I'm sure the 32K employees would feel their jobs secure. Or a petition. Or, still, there are lots of brands out there, competition is good, get yourself a Huawei.

If Microsoft decides to go all snobish on mobile users as you suggest they do, they'll fall faster than Miley's career.

All that bad publicity just did wonders for her career❕... People are attracted to others who act up or do outrageous things.. She knows what she's doing... Like I said its all Publicity Stunts❕

I still don't understand why Microsoft haters have Windows Phones.
I understand some if you like Nokia, but the way you talk, it amazes me that you didn't abandoned ship immediately.
Let's just hope Microsoft doesn't remotely melt your phone before 2015 when you get your iPhone.

Agreed. The danger here is that Microsloth's management style will stifle Nokia's hard charging innovation which, quite frankly is the only reason Windows Phone still exists.
This is also the reason they should hire Elop to replace Balmer. He's been high up in both Organizations, and he didn't exactly ruin Nokia's Innovativeness did he. If anyone can clear out the barriers to success within Microsloth I think its Elop. He just might manage to have improve both organizations. That would make WP a very serious threat to the Fruit and the Droid.
(BTW, The Fruit and Droid sounds like a great name for a Pub in the next Star Wars movie ;) )

Where have you been?Microsoft has been showing close minded managers and individuals the door for 2 years now from Sinofsky, Allard, to Ballmer, yet you cannot see a shift?? Synofsky reportedly didn't get along well with others, Allard thought the courier could oust the iPad, and Ballmer down played both the iphone/ipad. Each of these individuals along with other have been shown the door.

From what I understand, Nokia Asha phones get to keep the brand.  Windows Phones won't.  They'll be Microsoft-branded.
Lumia is probably going away, to make room for a 'Surface' brand phone.

Nokia brand is phased out from phones. 
Though the deal includes that Nokia can't use Nokia brand on its mobile products before 2016. Lets remember that Nokia is now fully profitable with NSN, HERE and Advanced Tech (includes Nokia's patents) and has over 10 billion euros in net cash. 
It buying Jolla or similar and just starting to make Nokia phones is quite likely at some point. 

Nobody ever said "Nokia Lumia Windows Phone 1020."
If anything, it was a Nokia Lumia 1020, powered by Windows Phone. Still confusing, but not the same. The "issue" was probably that most people probably said that they own a "Nokia" or a "Lumia" or a "Lumia 1020" and not "a Windows Phone." Microsoft probably wanted more brand recognition for the OS and not the phone manufacturer. 

What if the reason people say that is because they bought the phones because they were Nokia and NOT because they were a WP? Because that's basically what happened with the vast vast majority of Lumia owners (myself included). The phone was bought because it was a Nokia phone - a reliable brand - and not because it was a WP - a 3yo OS.
If Microsoft is trying to erase Nokia from the equation...they're gonna have a bad time.

My mom though the 1020 was a camera not a WP phone from the commercials.To the avg consumer all the numbering is confusing.Microsoft needs to stick with one name for upcoming phones.

Yes. And "Nokia Lumia" should be the name. If they erase that brand which has gained momentum in the last year and replace it with anything that only reports to Microsoft, they're shooting themselves in the foot.
People recognize Nokia, not Windows Phone. Erasing Nokia to try and bring attention to WP is a failed strategy.

Initially I too was worried that removing the Nokia name would be detrimental in all markets except for North America. I am still concerned about this, but it also makes me think of what happened when Lenovo bought out IBM's computer business. They dropped the IBM name, used Lenovo, but kept the ThinkPad brand. They've been doing pretty well for themselves and they had to start from scratch.

Same here, I bought Lumia not because of WP, it's because of Nokia. I don't care if they use Android, Ubuntu, Sailfish, etc. Aslong as it's Nokia, I'll buy it. Now, if they destroy Nokia, erase their brand, it'll be their worst move.

I'm the same. I like Microsoft, but I didn't buy a WP until Nokia made them. If someone asks what phone I have, I say Nokia most times, not Windows Phone.

I bought my Nokia because it had Windows Phone 8 on it, not the other way around and I would say that it is highly unlikely that the "vast majority" did as you suggested.

I'm wondering what the percentage of Lumia owners are, who bought the device because it's a 'Nokia' brand phone, and not because of Windows.
And if those customers leave the platform, who's left?

Which means the loss of the brand momentum of Lumia (which was growing significantly in the past couple quarters) will be lost. Microsoft would be dumb to ditch the name. Ever dumber to rebrand it as Surface Phone, which at this point has the foul stink of fail all over it.

From my understanding of the deal, from what I've read from Reuters and the NY Times, Microsoft licenses the 'Nokia' brand for a period of time for Asha feature phones, but can't use the 'Nokia' brand for Windows Phone devices, though they can use Lumia brand if they want. Given though, that Lumia is tied to Nokia, odds are that Microsoft will go with a self brand device.
So, the question going forward is, given the low sales of the Microsoft Surface, how many former Lumia owners will go for a 'Microsoft Surface' phone?

That'll be interesting.

Microsoft bought the Lumia and Asha brand names. Go check out the Nokia conference call.
So Lumia is here to stay.

Read the article their is going to be a name change plane and simple.Ballmer in the conference call says one brand name so their is no confusion.

I for one bought my 920 because it combined WP8 with Nokia design and quality.. it might not have been the same choice without Nokia.

I think it is quite safe to say that around 90% of Lumia owners bought it because it was a Nokia phone.
I am one of them. Sure I live Microsoft, I've been their customer for years. But I didn't buy a Lumia because of WP. I bought it because of Nokia.
If Nokia had gone with Android, Firefox, Ubunto, BB, whatever, I would get it anyway because I trust the Nokia brand.

Except now, if Nokia shareholders and Finish authorities allow it to be sold and Microsoft destroys the brand (which seems to be the plan), I will leave the platform. Because I was never on WP for WP but for Nokia. Nokia's gone so there's no reason for me to stay commited to something that no longer exists. Because with Nokia I had the certainty of quality services, something they proved for years and years. With Microsoft I have no warranty. The only warranty I have is that there's nothing safe. Just look at Windows Phone 7.

You really are full of it aren't you.
Look I'll pay for your iPhone, I was hoping the community could all chip in, but screw it.

Not me. I never brought Nokia Symbian phones - and would never have brought even if it had NL920 hardware, nor if it was Android. The sexy hardware will most likely stay - since MS is buying all device employees. IMO it is foolish to be so emotional about just a NAME. afterall, why would a multi billion company like MS use other companie's name?

Wow, that's illogical. So, you only bought WP because it was a Nokia phone, and you'd buy any phone OS as long as it was Nokia. And now that Microsoft is absorbing Nokia you're going to turn to a different OEM instead of staying with the one that just obtained everything that you liked about Nokia? News flash: the next smartphone you buy that isn't a Windows Phone made my Microsoft is not going to be a Nokia either so what exactly is your point? So, now that Microsoft has bought Nokia, instead of assuming that the quality of the hardware will continue (akin to how the quality of IBMs computers continued onward with Lenovo), you assume everything good Nokia does in the hardware business will suddenly die? You think Microsoft bought Nokia to kill it? No, they bought it to use it.

Who's left? People who actually want a WP.
I think it's good actually, it will weed out all the MS haters that do nothing to promote the phones and send them back to their iPhones by 2015.

I'm not doom and gloom about this news but Nokia not being Nokia feels off I've had alot of Motorolas and Nokias my whole cellphone life them being brought is fine but I don't think they should kill off the Nokia name and businesses like to say it will be less confusion if we change the name kinda like Hp did with palm though I shouldn't bring it up because it's still a bit depressing to me

Internet is in love with doom and gloom wishes, everything leans towards the worst case scenario, but in this case what I find most abhorrent is some people sugesting it would be better for Nokia to bankrupt and fire 32k employees rather than being integrated in a wealthy company.

Somehow I don't see Microsoft as a company that has the vision to produce a device like the Lumia 1020.

You know those 32000 former Nokia employees that Microsoft is getting. Those are the people who came up with Lumia and they aren't going anywhere. They are going to receive a lot more financial and operational support and will be able to make even better, more feature full phones in the very near future. This isn't starting from square one. Many plans are already in place and the future is bright.

Did you read the transcript? It's very clear that the bulk of those 32k employees will be laid off, exc those in sales and manufacturing.

Not at all funny, it seems they overpaid and the rest of the world doesn't see the value in it. Nokia is unlocking real value, Microsoft is an unsure item, no one likes that.

Certainly there is room for competing offers just to make Microsoft pay up even more. Apple, Google, even Samsung have the financial fire power. Imagine how much each will have to pay Microsoft now if the deal goes through. And yes they may have gotten a bargain.

I doubt the Lumia brand is being ditched. Otherwise, the wholoe talk on branding wouldn't have been brought up in the conversation. Maybe there will be a Surface phone, but it'll probably be quite different from what the Lumia line will offer. Also, purely from an aesthetic point of view, writing LUMIA where NOKIA was written on the phones is probably much easier than writing SURFACE.

I'm probably the minority judging from the comments but I got my phone because I wanted a WP and Nokia made the one that looked most appealing. I couldn't care less for their app portfolio since that's secondary and I think oem apps just add unnecessary fragmentation.
Anyhow, my theory is that they'll be called Microsoft Lumia from now on (I don't think ms will leave their phones unbranded..that's simply not happening).

I don't see how the whole thing surprises people btw. And am actually glad it happened. I seriously don't understand all the whining about it. Especially here.

I think the NOKIA will get dropped and the LUMIA will be the name they will use on the phones..i just hope MSFT doesn't fuck this up.. We all know what history they have when it comes to purchasing..
One thing that excites me is that the surface phone will be built by NOKIA!!!

Microsoft bought the Lumia and Asha brand names. Go check out the Nokia conference call.
So Lumia is here to stay.

Yes,they will use Lumia and Asha,but not the Nokia name. I think they will go with a different name in the U.S and use Asha and Lumia in other countries.

I think its gonna improve on the Nokia range. They purchased the name ..the brand. Microsoft can throw money left right and centre to improve. Instead of putting this buy down look on the postive for ones. So bloody negative some people lol

For those who don't understand this deal. Microsoft is buying the current mobile division of Nokia. Nokia has only licensed its brand for the feature phones. Nokia can now go to Huawei and license the Nokia brand for Android Smartphones. You tell me what is smart about it? Nokia is still around after this deal and they sold the whole Windows Phone mess to Microsoft. Also, Samsung, Huawei etc. Can all legally bid higher before the shareholders agree to any deal.

Feel bad about the impending layoffs at Nokia. Regardless of how much of a fan boy you are, that's not cool.

Negative people tend to sound louder. It takes at least 5 positive posts to balance each negative. People even pulls percentages out of their arse to sound louder.

What everyone forgetting is what's gonna happen with the other Windows Phone htc, Samsung now there competing against the one person who puts the software on there phones because Microsoft now has a phone the best Phone Lumina. I love my Lumia 928

I was looking to buy a Windows Phone last year. It was a toss up between Nokia and HTC. Very glad I went for the 920. But, truth is I have no problem with moving away from the Nokia brand to Surface or Microsoft.

I see myself trying out Jollas offering but if I don't Like it, I Will propably come back to WP.