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Microsoft: This is why we bought Nokia

What just happened? Did it finally happen? Nokia has just been bought by Microsoft. At least the part of Nokia that directly impacts the hardware in your hand. For 7.2 billion dollars, Microsoft has just bought Nokia’s Devices and Services unit, the part that makes your beautiful Lumia running Windows Phone. It will also license Nokia’s patents and use their mapping services. Why? Here’s why according to Microsoft’s CEO Steve Ballmer and Nokia’s Stephen Elop.

A joint blog post between the two has been published on TechNet. It marks today as a moment of reinvention for the goals of a computer on every desk and a phone in every pocket. It was just a month and a half ago that Microsoft started the transition to a “devices and services” company. So what’s going to happen to Microsoft and Nokia during and after this transition?

For Nokia, the part of Nokia that Microsoft didn’t buy, they’ll focus on networking, mapping and location, and finally other advance technologies. Microsoft bought the Devices and Services unit of Nokia, which includes over 32,000 people that will be now joining Microsoft.

For Microsoft, this move starts them towards their future as a devices and services company. One that not only builds experiences, but the portals to those experiences. This move will help get Nokia hardware into the hands of even more people as the two giants merge.

Microsoft and Nokia also put out a slide detailing more rationale behind the move. Here’s why the two have decided to join together.

  • Accelerate share and profits in phones
  • Create first rate Windows Phone experience for its users
  • Prevent Google and Apple from foreclosing app innovation, integration, distribution and economics
  • Prepare for the financial opportunity that will be fueled by a growing smartphone market

So why did Microsoft buy Nokia? To build devices and redefine the boundaries of mobility.

What do you guys make of all this?

Source: TechNet (opens in new tab), Via: AllThingsD

  • Not that I care, others do, but there goes a Nokia Android phone.
  • That was the first thought that came to mind. Oh well, I'm still happy.
  • Anybody that thought that was ever going to happen obviously had no clue how Microsoft operates. I knew Microsoft would buy Nokia, so I wasn't worried about that ever happening.
  • It could still happen if this doesn't pass regulatory approval in both countries. I don't think that's going to be an issue in the US, and I think they will eventually get approved in Finland as well.
  • I expect that Nokia's greedy shareholders block this deal asking for a big sum of money. Although Microsoft did pay a lot more for Skype in my opinion.
  • Finland:
    Microsoft is going to build it's European DataCenter in Kajaani (or Oulu).
    That pretty much passes the deal in Finland.
    The Deal is closed already.
    Every base has been checked BEFORE the announcement.
    The Major shareholders back it up, so it's formalities from now on.
    This was plan B
    MS never wanted this to happen
    They wanted just to swap Nokia Symbian to Nokia Windows Phone and succeed in the USA, too.
    That was plan A
    Who would put down their crown jewels, the Windows Trademark just to buy a HW co. ???
    No way!
    That would have been bad business.
    Killing Symbian quickly was stupid.
    That's all...
  • Or had no clue about how businss works.  Microsoft already receives patent fees from the majority of Android manufacturers.  Now they'll receive even more fees from the Nokia patents that Android breaches.  Every day Android looks less and less like a money-maker and more like a money-loser.  So why one Earth would any company want to start using a loser?
    There are now 3 ecosystems, Windows, Apple and Android.  There are three hardware platforms, Windows, Apple and Samsung/Motorola.  The question we should ask now, is why would Samsung stick with Android when Google/Moto competes directly against it?  We know Samsung have Tizen under development with Intel.  Chances are they'll soon dump Android and switch to Tizen.  The timing couldn't be better for them. 
    That will result in 4 platforms: Windows, Apple, Samsung and Motorola.  One of these won't survive.  No points for guessing which.
  • Nokia still owns the patents; Microsoft has simply purchased rights to use that library.  Nokia will still collect royalties and pursue infringement lawsuits.
  • Thank god. It's bad enough uninspired mobile OS' dominate so much of the market as is.
  • Ditto
  • I wouldn't say it's unispired. It's a good OS, but its massive flaws outweigh its (few) advantages over our OS.
  • If somebody was waiting this long for Nokia to produce an Android phone, wtf is wrong with you?
  • +820
  • Oh yeah! Didn't think of that...awesome!
  • I'm ok with that. Screw Google. They've never supported us or Nokia. I stay as far away from their services as possible as a result and encourage others to do the same.
  • Nokia was NEVER, I repeat NEVER, going to make an Android devices. Quite a few clarifications have already been given on this matter. They had first decided to go with Android but Google was simply not ready to give them the freedom they wanted with the core OS and without that it would have beeen very difficult to become relevant in a market already saturated with OEMs. That is why they went with Windows Phone.
    So all that wishful thinking aboout a Nokia Android Device came as close to reality as it could with the N9, and ended right there. Nothing beyond. Nada!
  • Dude Android is Open source even you can make it at home. Next Microsoft banned Sony who made a WP OS. Sony again was a not a company supported by Google at all untill 2011 Xperia S & SL. And then it Google helped them since Xperia S ASOP programs. Micromax, Karbbon and XYZ local brands all over the world are making it. Why because they dont have to buy license for Android as Google earns from Advertisments in Gmail, Youtube, Seach, etc. Thus licensing is free in Android.
  • oh boy, when nokia decided to drop symbian they analyzed their options and gone to google first, but google didn't cared anything about nokia and they proposed so many agreements.
    If nokia gone with android, what will nokia do with thier leading innovations like nokia music? here maps? why cant u guys cant see the point??
    And for your kind information Android is no more open source or free, its for the name sake! If u buy an android device, you are paying tens of dollars to microsoft as patent licenses. Google burdens the patent payments to the device manufacturers. nokia cannot survive with android. Period  
  • 1. Bro, Its true Google didnt care like I said above Google didnt cared about Sony as well but later after Xperia S & SL Google started to take interest in Sony.
    2. Nokia still could've had its own apps of Nokia Here Maps, Nokia Music, etc like Sony has its own TrackID app, Samsung's SVoice, Sony Walkman, etc they all have their own properitary apps of their own TV's Remote control apps.
    3. I belive Nokia could've survived that too what you said Patent payments because Nokia had Maps, Music apps, great 41 Mpx to beat the shit out of Sony & Samsung & HTC  with a 1080p screen 2 years back from now. With an Android device of 41Mpx, 1080p Display, Wireless Charging and Superb Phone designs backed by Nokia's Goodwill.
  • "Nokia still could've had its own apps of Nokia Here Maps, Nokia Music, etc " oh oh you are so wrong here, no way google can allow those on android because it defeats the purpose of google's ecosystem.. and track id,walkman are not comparable to nokia music, maps because nokia's services are better than google's. so its so difficult to have nokia on google's campus. nokia analyzed this very much than you and me.
    Just i cannot even imagine that crap android on awesome nokia hardware. even after tons of arguemwnt i will stand that if nokia gone with android they will be shadowed by samsung, in deep trouble in differentiating themselves from other oems, sony is in losses just like other android oems except samsung, thay are definitely trying hard but sony is the best example for staying behind even after having a big push.
    The reality is even google is already afraid of samsung, nokia deserves unique way for that windows phones is the answer and the future lies there.
  • Very well put.
  • 100% AGREE.
  • Say whatever fact is Nokia made Android phone. Fact is it was happening but halted because of Stephen Elop's greed to be MSFT CEO. Fact NOKIA WANTS ANDROID THEY BUILT IT AND EVRYONE WILL BUY IT MORE THAN WP8 OS. Chill
  • thanks sir, I now really understand why Nokia ditched Android. But I was already so happy with this decision.
  • "Thus licensing is free in Android." Jeez, what a joke. Try telling that to ZTE who have to pay up to $35 per handset/tablet to Microsoft for Android's breach of Microsoft's patents. Now they'll have to pay another $10 - $20 for Android's breach of Nokia's patents. If they license WP8 they pay $14/handset. And BTW anyone who still thinks Android is "open" is just barking. Google refused to produce the source code in court because they claimed it was "proprietary".
  • "proprietary".
  • Rohit, everyday everyone wants a Nokia with Android & see the fact buddy its in production what more proof you want..?? Its fact those clarifications are rumours Android is the most flexible to any device Watch, in Car computer, mobile, camera & Xiaomi's OS is best example today and you say that Android said no to Nokia for its core OS..?? Dear it was that traitor Elop(worked at MSFT prior to Nokia & now eyes for MSFT CEO) who never did an android Nokia phone & sold off company before renewing the WP treaty Android was the plan B.
    FACT is Nokia was daily frustrated by MSFT OS constraints like OS was not 1080p ready for a 41MPx phone whereas Android was, WP8 OS cant open 38MPx like heavy files thus Nokia needed to save one 5MPx + 38MPx, Storage problems, Background Tasks(only 6-8 apps het real time updates rest gets updated in 30mins) is this the functionality MSFT provides Nokia with whereas Android is way way flexible dear rohit. Well I await NEWKIA, and trillions others also do with great camera, designs and durability.
    Trolls pls fake it below, even after me and many tech blogs quoting this fact after verge, engadget, etc.
  • I'm actually so glad I don't have to see that on every Nokia Facebook post now... People always comment about it. Ridiculous notion to begin with. Nokia have too much class for Android.
  • Well if they made a nice Android skin (like Sony's skin, it's average), maybe their Android phone would be nice. I like Windows Phone more though.
  • Again Nokia nevr made a Android phone
  • Read my full comment.
  • You brought tears to my eyes. +1
  • I think you're wrong. It'll take a good few months for those idiot trolls to realise that this deal means there will never be a 'Nokia' running Android. They'll keep on posting.
    "give me this phone running Android and take my money, yadda, yadda..." 
  • Microsoft bought the Devices and Services unit of Nokia. Nokia will focus on networking, mapping and location.
  • I said IF. Meaning if they never made Windows Phones.
  • I actually wish that Microsoft would've purchased the networking, mapping, and location parts too. Mapping is huge and will only get bigger. Bing Maps has made great strides in the past few years to catch up with Google Maps, but Google isn't sleeping (purchasing Waze). Microsoft should've purchased the entire HERE suite and merged it with Bing Maps, although it seems they are still going to be sharing data.
  • I knew this wasn't going to happen. All those lagdroid slugs who said  Nokia was going to make a Android phone, looks like I was right.
  • Stop being a freaking fanboy and read ALL of my comment. I never said I like Android more than windows phone and that Nokia should switch. So shut up. Recently, A LOT of you guys have been little fanboys and accuse everyone of being a troll and an Android fan, yet they are WP users and love it. Just because you love WP doesn't mean you can't like Android as well. Geez!
  • Dude relax, I'm not criticizing you or what you like.
  • Hahahahaha; I think they are trolling you. It might be because your avatar looks like Steve Jobs :P
    Anyway, your posts seems well balanced to me.
  • My avatar is Steve jobs, holding a 1020. Meaning, I love windows phone and Nokia. But I think Nokia won't be branded on phones anymore. *sigh
  • "But I think Nokia won't be branded on phones anymore. *sigh" No more NOKIA Devices & factories & personnel.
    MS right to use brands:
    "Lumia" for smartphones
    "Asha" for feature phones
    "Nokia" for basic phones
  • Why would you want to unify the whole world with only 1 boring OS. The thought of that makes me sick. I am glad everything in MS / Nokia is all about WP only. Can let iOS and Android do their thing somewhere else. Creates more choice.
  • That's what happens when you put all your eggs in one basket. In this case only Nokia really makes WP devices. MS have done the compulsory move and bought Nokia device units. That's the ONLY way to ensure they stay in the race against evil Google.
    Don't forget that Nokia is public company. What about if Google went for Nokia patents portfolio?
    Yes, sadly the DO HAVE the money and power to do it. Remember Motorola?
    In this light I think that's a good move for all of us that support WP.
    Let's hope MS will make big success of it. Well they must do.
  • are future ''nokias'' going to be designed by the nokias actual design team? Are they still going to be called Noiia Lumia?
  • Yes, old Nokia people came along from Devices: 32,000 (including 18,000 factory workers)
    and the same people continue to innovate, but now with the extra money from the deep pockets of MS
    Lumia is the brand "rented", like in "Lumia 1520"
  • Not that I care, others do, but there goes a Nokia Android phone.
    Oh my god seriously is there people out there who still think that? Nokia took a look at Spamsung and that mess known as android and thouhgt "we're better than that". Way way overdue to get over it.
  • The bad news is there goes a surface phone :-(
  • no real nokia anymore? no finnish design? are they still going to be called nokia?
  • There will still be Nokia handsets. Nokia is a well known brand, people know it and know the handsets and design are quality, MS are buying the company (the devices bit) and the brand name. After all brand recognition is priceless and otherwise take years to rebuild if the scrapped the Nokia brand.
  • Hate steven elop for that.
  • Nokia could've made Android phones alongside the WP OS much like: Samsung, HTC, Huawei, ZTE, Fujitsu, etc. But Steven Elop the Traitor/Trojan did it on purpose to get his promotion he squashed a legendary company. Steven Elop was a Trojan(from Microsoft former key player) since beginning Killed Maemo OS meego OS (Now Jolla OS) and then Symbian OS then dropped idea for Android. Dont you think it was on Purpose. 
  • I actually hate android, but your point about Elop being a trojan is absolutely true. And he is not even trying to hide it!!
    I mean there should be a law against this kind of action. The entire negotiation process between the two companies was undermined because Elop had a job waiting for him in Microsoft. It is normal for him to undervalue Nokia!!
    This is simply crazy!! 
  • A law..?? A law..?? If i ever see that bastard Elop I'm gonna kick on his face so hard that the the mark of his glasses would stay there forever SON OF A BIT**..
    His license must be cancelled like a doctor or lawyer's, that kinda law would be best for him to be shameful and jobless for the rest of his life.
  • Arrant boy of the Board of Directors gets the heat?
    The Major shareholders may have been behind the hiring of Eflop,
    but he is just the CEO, still a worker, got it?
    Kick the BoD (Siilasmaa came in as late as 2012, not him)
    Thank you!
  • Android must die. Anyone I know who owns one complains about it
  • I love my andoid thanks.
  • And you can't spell. Lack of education got you a GayDroid
  • Android** And yes, the maturity of attacking someone over a misspelling alone is evident.
  • I'm just kidding :) Obviously there's fans to both sides. I'm the last person to care what someone is using. I simply think that android could be more elegant and intuitive. Not that WP8 couldn't use some work also. But it hasn't been out nearly as long.
  • Not really.....
    the Jolla phone is coming...
    and its Mer so a better OS than droid with android apps.
  • A little late on that reply.
  • I'm going to keep an open mind. I see how it can improve the situation and at the same time worsen it. Time will tell.
  • Exactly, time will tell, but I have a bad feeling that Nokia's innovation is going to slowly die and become a Microsoft lazyness and slow, very slow product advances; and revolutionary tech like the 41mp camera is probably the last revolutionary thing that WP will see in terms of hardware.
    But I would love to be proved wrong, the next two years are going to be very interesting to watch.
  • Well, if Nokia's 32000 workers also come in pack and Elop will still be in charge, it's safe to say that inovation will continue. I hope
  • my result of having an open mind: plus, I use the Old Nokia. which is Symbian.
  • Holy crap!
  • Holy shit.....first
  • Haha! Fail!
  • Lol! "not in my house!"
  • Epic fail!
  • Well, we can only hope they do well.
  • All I want to know: "Microsoft buys Nokia will be a feature on Windows Phone GDR3"??
    :P :P :P
  • Microsoft is going to mess everything like they always do. I hope not  but they always do it. They take what is working and mess it up. Nokia is the one that is taking care of Microsoft mobile OS. Microsoft doesn't care about Windows Phone. They are slow at improving the OS. They forgot about Windows Phone 7.5 and left it behind when they promise they won't. What else you can expect. I like to think the opposite but it hard given the way Microsoft behaves with its products
  • I fear as much too, but for now its Nokia people in charge of phone hardware and sales at MS. That might have an impact on Microsoft, in a good way
  • Hope Nokia people take over the windows phone OS too.
  • Apples and oranges.
  • MS doesn't care about WP... LOL.
    They just showed how much they care about WP billions of times.
  • 5.44 billion to be exact
  • +1
  • I thought it was 7.2 billion. Oh well.
  • Depends on your local currency - $7.2 or €5.4
  • Oh yeah. Thanks.
  • Alex, if they didn't care they wouldn't bother. They could just as easily do what their shareholders tell them and focus exclusively on the enterprise. What kind of ruins it is everyone slams them for every single move they make's not that big a deal. =[
  • I agree, for some people nothing they do is right.... But also part of those 32,000 people at nokia work on Windows phone OS just as people at ms do... Hence the amber update, glance screen, storage and so on are all OS writen rather than apps so all those people can now help with the core of WP, clearly alot of good ideas
  • I think you skip that part Elop isn't going anyway he is still there wait wait and wait EX vice president of the part sold to microsoft but still wait for next 11 months :) Hoping k He gt his CEO ship back As MICrosoft ..!!
  • Elop as the next CEO would probably be the best thing that can happen for both Microsoft and the Nokia part they just bought.
    The only other acceptable choice would be to bring back Bill Gates.
  • ^^ I fear the exact same thing. I have a bad feeling Microsoft will screw it all up, and with it goes not just WP but also the best Phone Manufacturer in history... Nokia.
    Who knows maybe the shareholders will block it or the Finish or EU goverments will have something to say about loosing their key hardware manufacturer.
  • This reminds me when I had the HTC radar... And there was a keynote promising win7.8 to every 7.5 device....i was stoked... Coming to android and sick of 6 month phones being abandoned from support and updates.. When it was promised.. I boasted about how nice it is being off android, and no patches... Then the HTC radar got abandoned also... Felt swindled... went to the galaxy nexus... Felt the love for over a year... But when the nexus 4 came out the performance started to free fall... Now I'm on the Nokia 925 and I credit the great experience 70% Nokia and the rest M$.. This deal makes me nervous.. Maybe if Elop is the next CEO... He might not forget the phone when he's on his new throne... Hope so... I liked him in his 1020 keynote
  • Agree... I get a feeling MS will screw this..
    I am also wondering if they will make so many nice features that Nokia added to the phone software (like mapping & other tweaks) a US centric only... They always do it... for MS, US means everything... rest of the world doesn't exists...
  • If they do that WP will fail within a year, just like google crashed bing completely everywhere other than US, because Bing outside of US is absolutely useless.
  • Wow... Just wow... I write about Nokia myself on Seeking alpha and i just can't stop saying wow. Problem is .. I need to get back to sleep!
  • =)
  • It sounds great! :D
  • This is huge. Let's see how it will all work out.
  • Awesome.! :D
  • SO IT BEGINS......... :D
  • I told my coworkers last week that this is on the horizon. I knew they were going to do the transition before the CEO retires, allowing a chance for someone from Nokia to take the lead....and innovate. Maybe that too will happen and we may see Elop in the lead role.
  • I Sure hope so!, Elop is a great CEO, much like Bezos, Jobs (IMO)
  • I hope so too, if anyone else then Elop takes over, they are doomed, unless Gates comes back and Elop stays the head of MS-Nokia. (they should license the name for their new division, because if they loose the Nokia branding, they will loose millions of Nokia die-hards.)
  • It could be good. But this is one of those where it sounds good on paper but the actual execution I think will suffer. Prime example.. (for the USA fans) the Lakers last year. The team sounded like a dream team but ended up faltering. This is what I see here, I think they was better off as separate companies, because Nokia only had to answer to Nokia and they move quick, Microsoft has too many projects and hands to update and be fresh like Nokia.
  • Bad example because very few people thought the Lakers were contenders. The best things about this deal are in the details.
  • The Lakers are a joke.
  • Regardless of the metaphor you make a great point... I'm hopeful but nervous... I like my 925 a lot. And I know Nokia does too... It feels like it was made with pride and attention to detail
  • When is the article about the name change?Maybe Surface Phone:)
  • I hope they license the Nokia name (but very unlikely Nokia would allow that).
  • The 10 year contract they signed is for feature phones,so we will probably see the Nokia name used in other countries and a different name in the U.S
  • Stupid, STUPID move!
  • when you use your brain and try to read the whole document why they are doing this maybe you would understand a little (no i dont think you would).
    I love how people like you dont even know about these kind of things and still say if its good move or not. but hey, im sure you arent CEO of a company and you dont do billions dollars business around, to tell someone what would be good or not for their company. but keep dreaiming you know what you are commenting about :)
  • So Elop can replace Ballmer in 12 months
  • I need this to benefit WP in a very huge way.. I don't have time to mess around with nonsense❗
  • Nobody got time for that.
  • It's funny that people think there's gonna be a bunch of name changing of Nokia products... Lol❕
  • You talkin to me?
  • I don't know about you two lovers, but I am happy as long as all future devices have the classic Nokia logo around that speaker on the top. (I still wouldnt dig a Nokia with a strap-on lens though). :|
  • ^ This. All of his words.
  • Exactly, for this to suceed the phones still need to carry the Nokia and Lumia brand names or it will be a massive fail if Microsoft tries one of its dumb naming schemes.
  • MS is not getting the Nokia brand. Nokia is not selling Nokia.
  • MS got the Lumia brand, so I expect future phones to be dubbed "Microsoft Lumia xxxx".
  • I knew it. Good move.
  • The GREATEST heist in the history of heists. Steve + Steve pulled off what would go down in history as the greatest acquisition of all time. A plan that started in 2011! I'm impressed, I'm f**king impressed.
  • Now you see me. :P "Look closely. Because the closer you are, the less you will see"
  • You sound like Samsung Galaxy 4 Zoom. LOL.
  • LOL❗❕❗❕
  • That's actually the tag line for the movie, "Now you see me".
  • awesome one :D
    made my day :)
  • Someone gets it. It was all an elaborate plan designed to get Nokia. Well played Elop, well played. Too bad it is far from over.
  • A lot of Lumia customers were Nokia fans, not WP. They are buying Nokia's device, not MS's OS. A bunch of them will now hate MS with a passion and switch, the influential bunch, the larger majority will not care unless influenced...
  • Trust me I'm one of the users switching to android central. imma be demoing the HTC one sometime this week, the only reason I took the WP b$ was cos of Nokia, how u gonna play me like that Nokia? It wouldn't work
  • I also bought my Lumia 620 more of because it's a Nokia, rather then because it's a WP device (although im glad, its not a droid)
    But I don't think Nokia will all of a sudden lose its identity or anything, like look at Skype. I don't realy see a reason for hating M$
  • Well taking about Skype they screwed up a bunch of thing with it, including the pricing.
  • That's smart❗ I didn't think of that.
  • More than you can see. Nothing comes close! I can't wait to see what surfaces.
  • Well played.
  • Definitely Elop as CEO now, if anyone has a chance in hell of turning around Microsoft he is it. If the reaction is good in the stock things may work out. Sad to see Devices and Services sold though. My 920 will be unique in a few years as a Nokia branded phone.
  • Right. Keep it, it will be worth gold later on, and a rare device saying "Nokia".
  • Should of happened long time ago
  • Not to be "that guy", but it's should have happened. "should of" is not a legitimate phrase.
    I think this presentation explains why they bought it :-)
  • Thanks for the quick link.
  • Thanks mang :-)
  • Wow...just wow...JK, this was foreseen by many. The underdog becomes the BigDog
  • I wasn't expecting this at all. Huge shocker... I'd be worried that MS might mess it up somehow, lately they've been making some bad choices.
  • Now Microsoft started to become in some way like Apple, but bigger. They have now: Xbox (games and hardware) , Windows 8.X (software), Windows Phone 8 (mobile software), Nokia (mobile hardware),  Surfaces (tablets), Bing (search adn services), outlook (services), skype (service). The next move Dell (hardware and software). And we will see the first all "Microbook" using dell/Ms guidelines.
    Ballmer legacy is wonderful.  
  • Actually it scares me a bit, when so much power, people can get mad. And at the same time I think some of these things are still a flop for the most of the world like Bing, Windows 8 (OS and Phone OS), Surfaces and the new Xbox One..
  • Except the part where the iPhone is bigger than all Microsoft combined.
  • Will the phones still be known as "Nokia Lumias" or will they now be known as "Microsoft Lumias"?
  • Google bought Motorola and keep the trademark. Same I believe Nokia. Nokia trademark has a huge value. Lost it, is losing price, name, know-how, advertising and etc.
  • That's my thought/hope soon. I've sent Microsoft e-mail, tweet, and facebook messages asking about that, but I don't really expect a reply. Guess we'll find out in the coming days/months.
  • Same question, but I am praying god for they to still be Nokia.
  • It will be Nokia for 10 years. At that point they can either switch or permanently buy the rights to using Nokia name on their devices.
  • Makes sense
  • Wow! This is crazy news! Hopefully this will result in more of "Nokia creating surface" and not Microsoft taking control of the Lumia brand. Nokia does amazing work, and hopefully they will maintain at least a fair degree of autonomy in their own decisions!