Nokia has reached an agreement to sell its Qt app development tools unit to Digia as it focuses on Windows Phone 8 and its future partnership with Microsoft. Nokia will be placing all its eggs into one basket and will be pushing its next line of Windows Phones harder to continue the increase in platform shipping and sales figures.
Purchasing the Qt technology back in 2008, Nokia provided its developer community with tools to write apps for both Symbian and MeeGo devices, but the manufacturer has since halted expansion on both platforms, favouring its partnership with Microsoft and the Windows Phone operating system.
According to a statement from Nokia, as many as 125 employees will be transferred to Digia as part of the deal. This sale illustrates how Nokia is looking to both strengthen its partnership with and increase its dependence on Microsoft, attempting to drain sales from Apple and manufacturers building Android smartphones.
Nokia hasn't fallen short of job cuts with more than 20,000 being lost with plant closures to help return the company to profit, and the sale of Qt is another step in the direction to thin out units, projects and properties. Janardan Menon, an analyst at Liberum Capital Ltd., had the following to comment on the deal,
“With Nokia smartphones relying on Windows-based applications, which are rapidly increasing in number, Qt no longer has a role to play in Nokia’s smartphone efforts. Nokia is keen to restructure, to squeeze out margin as well as improve cash where possible.”
Nokia is expected to unveil new Windows Phones at Nokia World this year, which will show what the manufacturer can achieve with Microsoft's new vision of Windows Phone under the hood. It'll be interesting to see what Nokia can bring to the table that will be able to capture the public's attention with a "WOW!" factor.
What do you make of the selling of its Qt unit? Do you believe it's time for Nokia to cut deep and focus heavily on its partnership with Microsoft? Let us know your thoughts in the comments.
via: Businessweek
