Read this: The inside story of how Microsoft came to buy Nokia
Monday night was supposed to be the end of a holiday here in the United States. Not the start of one of the biggest tech news of the year. It was just two days ago we learned of Nokia agreeing to be bought by Microsoft. Over the course of the evening and subsequent days we read, analyzed, and discussed the issue.
Over at AllThingsD.com we learn the inside story of how the Microsoft/Nokia deal came to be from Ina Fried.
We’re not going to copy and paste the article, it’s totally worth reading. But we’ll highlight a few interesting parts of how the deal came.
- It all started in January 2013 with a phone call from Microsoft CEO Steve Ballmer to Nokia Chairman Risto Siilasmaa
- Both Nokia and Microsoft were frustrated with the single digit marketshare of Windows Phone, despite both companies pouring money into marketing
- Four main meetings resulted in the deal
- Steve Ballmer at one point tripped over a glass table during meetings, resulted in a gash on his forehead
- Deal stalled over both sides not seeing eye-to-eye on how much Nokia was worth and the value of HERE services
It’s an entertaining read and gives a behind the scenes look at how 8 months of talks lead to this point. Hit up the source below, read it, and come back to discuss.
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Turns out, Elop wasn't the Trojan horse. In fact, he had very little to do with this. T'was all Balmer and Siilasmaa.
Go figure, (not that I believed the conspiracy theories)
This article gives an overview of the process. I am sure Siilasma alone did not make the decision. There were other involved too. There is always more than what meets to the eye.
I don't believe the "trojan horse" idea, but then again stranger things have happened.
Don't get me wrong. I am. WP user and care about the platform. I just hope that Nokia will make 'that' high end phone everyone will want. Same as 520. We all know that there are capable.
Agree that sell teams are not pushing WP devices. Also agree that with 925 Nokia is heading in right direction. However,
That doesn't explain huge margin sales in terms of quantity between S3 and 920. Lets be realistic here. In terms of design: S3 is hugely lighter and thinner, have bigger screen and yet is almost identical size to 920. Not even mention about bezel.
That's massively important and undoubtedly contributed towards 920 poor sales (in comparison to S3). Just hope MS will get it right.
Besides, how many of those premium look and feel devices get stupid cases thrown around them, to the point you have to take a second look to see what kind of device is actually hidden inside?
It's not the design that's really the issue - it's more inertia from perceived lock in with the ecosystem in which they are invested.
It starts with an assertion that WP/Nokia Lumia sales were not growing fast enough and that the reason for this was somehow linked to the relationship between Nokia and WP team / MS. From what I can see, sales for Nokia Lumia WP devices are growing very nicely in many parts of the world. It's just the US and China who are lagging. MS and Nokia should have put more effort into finding out why. Didn't they see that the growth in WP sales is all with Nokia and not with Huawei/Samsung/HTC. What should this tell them? Nokia branding is the driving force in most of the world, less so in the US. I think that MS are jealous of this situation, it makes them look 'less' than Nokia in some way.
They just needed to work out an alternative strategy for marketing within the US to satisfy the vanity of MS.
From a consumer/fan point of view, the issue that has been holding back WP sales is inertia within development of the OS, and that responsibility is all down to MS. Sill basic functionality missing. Separate system/ringer volume controls anyone? Notification centre? Close programs from multi-tasking view? - this back, back, back, back, back thing is a hideously bad UX.
However, to say that Nokia deserves 100% of the credit for the rise of Windows Phone and MS is the only reason it's not growing faster is provably false and not an accurate description of the whole situtation. Nokia's market share with Symbian was in a death slide. It was only after shifting to Windows Phone that it stabilized and has now begun to grow again. This is a credit to both companies working well together. It's clearly not all Nokia's brand name, or they wouldn't have been in the situation that required licensing Windows Phone in the first place.
An excellent post Sam!
The only thing I am nervous about is loosing the Nokia brand on the smartphone front. Nokia has worked really hard over the years, and with WP to gain a massive amount of brand recognition. Nokia = solid nie-invulnerable build quality.
In every other aspect, I am excited for the deal, since Microsoft will be able to poor far more resources into pushing the platform, the relationship with carriers, advertising, and so on.
And yes, the Nokia team will still be firing on all cylinders within Microsoft. As a part of their new "devices and services" transformation, I think Microsoft could not have scored a bettter acquisition. If only there was a way to retain or smoothly translate that legendary Nokia "brand". Ironically, Microsoft has a long list of excellent hardware products under their belt.... but for whatever reason, it's not at the forefront of the "Microsoft" brand in most people's minds.
I predict that MS will smother the Nokia ethos and we'll just end up with bland dogma. MS want to be 'more like Apple' it would seem, with integrated devices and software. They envy the profitability of Apple, but have to accept that MS will always be a volume business and cannot become a niche high margin player. They'll probably copy and just produce one over priced crap phone a year, thinking this is the secret sauce.
Apple have already run headfirst into a dead end and are about to fail big-time, unless they can build $99 off-contract phones. There's no point in trying to copy. All the money will be in volume at the low end before long, exactly where MS should be able to excel, and where Nokia were kings for a decade.
Also, is there any guarrantee that Microsoft will pour the quality into their phones they did into the Surfaces? They spend a lot of money on the Surfaces quality build and they are, indeed, amazingly build. But their sales are a disaster. So I'm ready to bet the Surface 2 and other Microsoft hardware will be "cheaper" in terms of construction, just in case it backfires again. As for the "it will be better since that hardware team will work one on one with the software guys"...come on, Sam. Not even you believes that. Here's what'll happen: one of them will stall the others. Currently you have Nokia (hardware) pushing Microsoft (software) to evolve, perfect, inovate. With Microsoft controlling both that's highly unlikely to happen. Unless, of course, they fire Belfiore and the entire current WP team and replace them all with the Nokia developer team and we see a 180º degree change in the modus operandi of the software guys.
Not seeing improvements for the Microsoft user base where money is spent leads to the more likely outcome of Microsoft enforcing a faulty leadership on a superior team (whose key members may choose to leave, as some have already done) and bringing it down to their level. I think there is no argument that Nokia, unlike Microsoft in WP, had a superb team that was very agile in providing both great hardware and superior software and accompanying updates, while Microsoft was the big software guy with all the money and kept on not providing anything tangible to the users.
So no, buying Nokia doesn't necessarily mean support. It might prove to be the end of Nokia's quality, something that is not unheard of in the world of technology. Like what HP did with WebOS.
ALso they had to develop for windows a way new app, with new apis and etc etc. I know its microsoft but they have no magical programmers that can do everything at once.
and its not like WP isnt getting the features same with Win8 app. its not like only because they are adquired by Microsoft, the technology ports automatically to Microsoft products... they need time.
2. Release WP8 & WP7.8 versions
3. Wait one month
4. Release Android & iOS versions Honestly, how hard is that?
Nokia phones have never let me down and I base my future purchase based on my history with that company guess what no history with a Microsoft phone.
We shouldn't forget they are a business. They're in it for the money.
So we should also think about quality. Though I'm sure they won't produce phones as well as Nokia, I wouldn't wish them to produce cheap crap like Samsung. As for the speed...yeah, exactly. And what can assure us that, just because they have hardware and software under the same roof they'll be able to work faster than until today? Nokia's hardware and software departments were pretty fast. Microsoft's software department is abysmally slow. I see a collision right there.
Well, not to mention Microsoft isn't particularly knowned as a company whose internal divisions work wonderfully together. Just look at the lack of cooperation and shared vision that exists between the Windows division and the Windows Phone division.
Ideally this restructuring of MS could lead to the end of that...but I highly doubt it. I think this "restructure" that they seek comes in the line of the "something must change so that everything remains the same".
I'm personally sad to potentially see Nokia as a collateral victim of this.
What about aQuantive ?
All that exists now is a proposal and a declaration of principal from Nokias Board of Directors and Microsoft. But the board of directors doesn't own Nokia. So this can lead to nowhere if the shareholders vote "nay". Or imagine someone comes along and offers to buy Nokia for a higher price? Someone who wants to p*ss off MS and get a new OEM...someone like...Google. It IS theoretically possible at this stage.
This is all hypothetical based on experience and current scenarios.
now samsung can rule the world
when the whole world is filling with people using Android and iOS...and we have to accept...Samsung is using Android to make some badass phones out there...which Nokia can...but still can't...how will MS ever see a future...without the Nokia brand...all stats say that only reason WP8 is even on third position...it beat blackberry...all happened...because of Nokia...if Nokia even now adopts Android...I'm sure...Nokia can easily beat Apple by the end of 2014...people want to see Nokia succeed...i can bet that more than half of the Samsung owners out there are dying to go back to Nokia...but are victims of advances in technology...the main reason why Nokia is getting screwed over between Elop and MS...i will still say...if MS removes Nokia brand name...noone can ever beat Android and iOS...BB is almost down...and this acquisition will push all other OEMs to Android...what will MS do with its Surface phones then?? Probably recognize a write down of 1billion dollars this time...
If Windows Phone doesn't appeal to more people, Microsoft and their sloth-team are the ones to blame. So I don't see how the source of the problem buying and destroying the only thing selling their product will help the product grow. Actually, I can even think of a few many reasons while it will work the other way around. Now on a less serious note:
"Ballmer had not seen a clear glass coffee table and had tripped, hitting his head and leaving a gash on his forehead, just above the eyebrow." In other words, God was giving them a sign of how stupid the idea is and none of them understood. I honestly suggest that God throws a Nokia 3310 to their heads next time.
This was a very smoothly planned acquisition from the start.
The division that concerns phones.
Every Microsoft product I've ever owned has been well built and with outstanding support.
Zune - quality, excellent support
Surface - quality, haven't used support
Mouse & keyboard - best around
Xbox - quality (except 1st Gen 360)
It's not as if they are only buying the rights, they've bought the whole boat.
So MS buying Nokia isn't going to fix either problem. Rebrand it as "Surface Phone, design by Nokia" and they'd have half a chance.
It's frustrating and I can only account it to Microsoft hate (or ignorance)... odd since these people have bought phones with a Microsoft OS.
simple :Nokia is now run by MS not by NOKIA ideologies ..so how its same?? :D
And I honestly don't know what to expect from this. I do know, however, that is a pity that the Nokia brand for phones will be gone. I (happily) bet on WP mostly because of Nokia. In my country (Brazil) Nokia has a huge following and the brand is really loved. The lack of Nokia's appeal is the worrying factor out of this story. At least for me...
I don't buy this "Microsoft doesn't care about Windows Phone" for one second. They have sank too much into it already not to care. They pay devs a higher percentage for their on store apps than anyone else. They pay devs to bring their apps to WP. They even build apps for some of these services (YouTube, Facebook, instagram, etc).
Microsoft's future is all in on the "3 screens" plan, if it fails... well, dark days ahead for MS. It has taken time to get this far and its gonna take even more time to get where they want it to be. I suspect in the next 2 years we will see the plan start to come together.
Edit: as a matter of fact, check the article just posted on WPC. It shows off one of the forms of advertisement.
"ball"mer : good job! :P
will the altenticity and behaviour still be there for the upcoming lumia device. To be frank buying nokia will not change any thing i would not improve window phone neither will it worsen, did android buy any phone? yet they are doing well buying nokia will even make window phone loose clients as you can see the clients are already shaking as they are all going to head for android becouse nokia will eventually take the remaining 30% left for other device.
what windows phones needs to do is improve their apps and get more apps to their app store not aquisition of hardware the problem is with the platform
Now android on the other hand had almost the same characteristics with ios their stimulous was making the platform avaliable to other devices trending on ios weak point.
Rim of blackberry came in with a thought of what other platforms dont have which is the bbm and they made a great smash and leaving symbian far behind and nokia began to panic that was black berry's stimulous the BBM i know how that phone sold in africa flooding the whole market people couldnt do without BBM every home had a black berry till today despite they have been pushed to fourth position by window phone thats a great move from window phone.
Am not saying this because i hate windowphone am a big fan of window phone platform but if not nokia with its amazing map windowphone would not even go a mile that is while nokia has been pulling the market share in windowphone.
TELL ME what stimulous has window phone got? have not seen any nokia map is not enough to pull consumers even with small app windowphone can pull as many consumer as needed if they can make that thing that no other has and people are envious of because people will not leave other os for windowphone if they can not be offered what others cant offer them windowphone should only buy nokia map sevice thats all and focus on getting what other dont have and not pursuing them in who dominates in app because windowsphone cant catch then because they are not sleeping look for something else to pull your croud then apps will come because developer are after profit the more consumer the more developers the more apps THATS MY IDEA AND CONTRIBUTION.
Ballmer: Ohh computer language... Fortran!!!
They were irrelevant and on the cusp of complete failure.
I'm wandering what you are still doing here, why worry about Windows Phone when you want an iPhone?
The problem of little developer support, and slow OS updatesfrom Microsoft, still remain. And now, you're adding, with this deal, Osborning most of Nokia's current branded devices.
WP has to basically start again, in a year, from zero.
I'm beginning to think the OS is at a dead end. The transition/acquisition period alone takes their eye off the ball, they'll essentially be out of the mobile game for months.
1. From January 2008 to September 2010, Elop worked for Microsoft as the head of the Business Division, responsible for theMicrosoft Office and Microsoft Dynamics line of products, and as a member of the company's senior leadership team. It was during this time that Microsoft's Business Division released Office 2010.
2. In September 2010, it was announced that Elop would take Nokia's CEO position, replacing Olli-Pekka Kallasvuo, and becoming the first non-Finnish director in Nokia's history. On 11 March 2011 Nokia announced that it had paid Elop a $6 million signing bonus, “compensation for lost income from his prior employer," on top of his $1.4 million annual salary.
3. Sold Nokia Devices & Services Unit for MUCH LESS than Microsoft boutght Skype for. Why so..?? Elop accepted the deal to sell off Nokia in just $4.99 billion where Microsoft bought Skype(a mere app) for $8.5 billion(alomst double).
4. Elop(CEO of Nokia & Former Microsoft's Senior team manager) kills Nokia in 3yrs(2010-13) and sold it off to Microsoft at a much lesser price(He saved Microsoft's money). Now, Stephen Elop got the job at Microsoft as 'In charge of the division of Nokia that is being sold to Microsoft'.
5. After he brought a legendary company's corpse to Microsoft. Now, Stephen Elop eyes for the CEO position of Microsoft after Steve Ballmer steps aside(after 13 yrs as CEO).
6. By bringing Nokia's corpse to Microsoft he adds a huge halo to become the most loyal and eligible CEO for Microsoft.
7. Just to become a bigger CEO Stephen Elop sacrified a legendary company. Nokia got crushed between Cooperate politics.
8. Microsoft is not gonna brand their Phone division with Nokia as a brand name. So ppl pls Nokia is disolved & destroyed by Stephen Elop to become the most eligible CEO of Microsoft. Rest you can now conclude what is the truth that Stephen Elop was a Trojan Horses sent by Microsoft or Not.
Here is the True story and I'm further copy pasting the exact Chat of Steve Ballmer & Stephen Elop, Which WPCentral hides, I dont know why they're aren't being as fair as Engadget, Verge and Others. However, Stephen Elop cant be considered as a CEO in the truest sense because tomorrow he can sell off Microsoft for his further progress. How unethical he is or can be... SMH....
and they are wondering and frustrated .... funny
i don't deny the fact of it being smooth, fresh, relatively secure, keyboard goodness, live tiles, people hub fb,twitter, Skype integration..etc
but as a loyal user we expect our platform to be better not comparable as nokia ceo has said ' reason to use ' over the other platform must be there.