Breaking: Microsoft to Buy Nokia Phones Division, Make Its Own Phones

Microsoft has concord to grease one’s palms Nokia ’s hardware division for $ 7.1 billion in John Cash . Microsoft ’s a company that makes its own phone now .

Specifically , the deal is for Nokia ’s Devices and Services sectionalisation . Microsoft will also licence Nokia ’s patent portfolio . 32,000 Nokia employee will join Microsoft as part of the great deal . It comes about two and a one-half years after Nokia originally wager the farm by jumping all in with Microsoft and Windows Phone . The pairing has rick out some telling hardware — most recently theLumia 1020 , which has the undivided respectable camera we ’ve ever seen on a smartphone — but has n’t been near as popular as either side had hoped . The thinking here seems to be that by bringing Nokia hardware under its roof , Microsoft can make a really co-ordinated experience , like Apple and the iPhone .

https://gizmodo.com/nokia-1020-review-at-last-a-terrific-camera-in-a-great-886123042

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One Microsoft—But Too Late?

Microsoft has been making a big push into hardware over the past class or so . It announced the Surface just last June , and both models are due to see updates to current guts some clip soon . It ’s suffer a major vent for the Xbox One derive up which will see it push the Xbox further into the living elbow room than any console table to date . And now it ’s got Nokia , which completes the cycle , and intend Microsoft build up every type of gimmick you compute on ( if you think the Surface Pro a true personal computer ) . It ’s got all the pieces it needs to wall itself off and build the One Microsoft unified experience it ’s been eyeing for age . That is , if it can convert anyone to really use its product .

Nokia ’s hardware is actually a fitting parallel to Microsoft ’s Surface division — superbly made hardware that simply does n’t ( yet ) have the software system or installed base or feature of speech set want to be truly competitive , and more importantly , to be good enough and compelling enough to lure most masses away from the established alternative , be it Android and iPhone or traditional laptop computer and PC .

Consider : All of Windows Phone only describe for 3.7 percent of smartphone shipments in the second quarter of 2013 . accord to Microsoft ’s own projections , which it release this evening , it hop for a 15 pct worldwide share by 2018 . Microsoft is ripe that it ’s a prospicient plot , and there is still time to catch up , but those are meager goals over a five - twelvemonth period . Five year is enough time for massive ducky to precipitate to musical composition and be replaced by newcomers . Five year ago , the iPhone was still in its infancy , and RIM was unconcerned about its place on the pot — now the iPhone is the iPhone , and BlackBerry is begging anyone who will listen to buy it up and strip it down for parts .

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Nokia has been rumored to be build a 10.1 - column inch tablet of its own , codenamed Sirius , and resemble the colorful Lumia sound . The pad was said to be running Windows RT , but it ’s not clear how that will fit into Microsoft ’s roster of Surface tablets . Microsoft has been trying to consolidate as many devices into each other as possible , so it will be interesting to see what it does with a ( presumptively nicely plan ) 10.1 - inch pill .

Does Anything Change?

To be exonerated : Microsoft wo n’t stop licensing out Windows Phone software to other manufacturer , it ’ll just be make its own phone as well . This is n’t unlike Google buying Motorola , but cover to play nice(ish ) with HTC and Samsung . Microsoft came out and say it ’s still dedicated to those partner , but if you think the PC makers were unhinged when Microsoft declare the Surface as a direct contender to them , just opine how bad it ’s plump to be after this to wrecking bar quality ironware out of HTC and Samsung , which were already halfhearted about supporting Windows Phone . In practice , this could mean Microsoft is now charge with building the only relevant Windows Phones that are being made .

One big contingent that ’s immerse in the documents released tonight is that Microsoft , predictably , gets the rightfield to utilise Nokia ’s HERE maps across all of its devices . antecedently , Nokia ’s maps and many of their feature were exclusive to Nokia . The underpinnings ( in part based on Nokia ’s Navteq ) finally power all Windows Phones map , but the ability to use the superior maps on all of its devices and services is a big win for Microsoft . It ’s also a further vote of non - trust in Bing Maps , which could be on its manner out . So that ’s one up on Apple , at least .

Similarly , many of Nokia ’s technologies that were being used to pitch Nokia Windows Phones — think camera tech , Windows Phone apps — could now , presumptively , be fold into the broader Windows Phone world . There have n’t been any promulgation on that front yet , though .

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One reason the softwood makes horse sense for Microsoft is that it wasgetting less than $ 10 in software royalty per phone sell by Nokia , according to the company .

The New Plan

The word came late Monday Nox , inan open letterfrom Microsoft and Nokia CEOs Steve Ballmer and Stephen Elop ( which comes with an lovely mendicancy - for - a - sitcom “ Steve & Stephen ” sign - off ) . Ballmer also sent outan interior electronic mail , explain the acquisition to Microsoft employees , along with a nuts - and - boltsStrategic Rationale document ( PDF ) .

Elop will take a young Devices team , and Julie Larson - Green ( who briefly led the Windows division , before head up to Devices and Studios , which is handling Xbox One and Surface ) will finish out her current projects before link up Elop ’s team .

Buying Nokia plainly has sweeping ramifications on the hereafter of Microsoft , but in the good - term , it could give a clue as to the next CEO as well . Last week , Ballmer announced thathe would be stepping downas CEO of Microsoft in the next twelvemonth , once a successor had been found to help retain Microsoft ’s move into a equipment and services troupe . And now it ’s bring in Nokia devices and service wholesale , as well as Elop its CEO . It ’s too soon , obviously , but coming over to Microsoft in such an influential role seems to make him the ducky to win Ballmer .

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So What’s Left of Nokia?

That ’s interesting , in reality . We mentioned earlier that Microsoft gets access to Here maps , as well as certify Nokia ’s patents . Both of those divisions will remain under Nokia , and are enough to keep it relevant on their own . single-valued function and patents are n’t likely to be fading out any clock time shortly , and decouple Here from Nokia computer hardware should have an especially positive essence on it . But the third , its web equipment business , might be the most interesting .

AsBuzzFeed ’s John Herrman aim out , Nokia Solutions and Networks is itself an heroic byplay , and one that is n’t chasing after a revolution that might be too far go to get a part of . The division had also been fight , until it decided to refocus itself on building mobile broadband infrastructure in previous 2011 . By that point , it had already buy Motorola ’s wireless mesh equipment sectionalization , and sire itself call for in a sweeping cell - headphone spying scandalwith its involvement with the Iranian government .

This is clearly where the new Nokia is focusing its energies . The trade with Microsoft had apparently been in the works since Mobile World Congress , and just last month , Nokia announcedthat it had complete get Siemens ’s stake in NSN , then call up Nokia Siemens Networks . It currently has a variety of contract bridge , includinghelping to build out mobile broadband in Iraq .

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Anything Else?

Small ordered series , it will be interesting to see what happens to the design of Nokia / Microsoft headphone . While a lot of the Nokia engineering squad is get together Microsoft , it ’s indecipherable how much of the intention team will be making the head trip . A heavy part of Nokia ’s identity over the retiring few years has center on around the central Lumia design ethos , and it will be interesting to see how that meshes with Microsoft ’s own design mother wit . The Lumia always made perfect sense as a vas for Windows Phone , but next to the Surface , which is beautiful , well built , and presumably the direction Microsoft is select its computer hardware , it look out of place .

More importantly , though , it ’s up in the air how much this even matters . Microsoft just dumped 7 billion dollars into float the best computer hardware partner it had for Windows Phone . But it ’s uncertain if that changes anything as far as the phone and software and experience that show up in your hand . We have n’t really seen any final welfare on the software terminate to the integrating of Windows 8 and the Surface . The hardware was a more tailored to the world-wide Windows 8 experience , but it ’s hard to see Microsoft reinvent the phone the way it ’s endeavor to merge the pad of paper and laptop computer with Surface .

At the very least , this means you ’ll continue to see pretty new Windows Phones every few months , but if that ’s all it is , and Microsoft can only muster up more of what it ’s been doing , it wo n’t weigh who ’s establish the phones . This could end up simply keeping Microsoft in a game that ’s already stacked against it . meter will recount .

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