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MS buying Nokias devices and services unit

Passepartout

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Probably a good move all around. Nokia has 15% handset market share and is #2, ahead of Samsung, though behind in smartphones. This will ensure continuing development of Windows Phone. NOW, if app developers will recognize W.P. as viable and make apps for all platforms.

Competition is a good thing.

Jim
 

l2trade

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Probably a good move all around. Nokia has 15% handset market share and is #2, ahead of Samsung, though behind in smartphones. This will ensure continuing development of Windows Phone. NOW, if app developers will recognize W.P. as viable and make apps for all platforms.

Competition is a good thing.

Jim

App developers will make apps for whatever platforms have marketshare. That said, WP has enough apps already to be viable. It does not matter how many apps, but rather that the most popular ones are there. Most apps nobody ever downloads or knows about at the apple store. There are countless independent business app developers out there with a core competency in all thing Microsoft. When those developers get WP, they will port more complex and custom biz apps to it, which in turn will create demand from business for WP.
 

Ken555

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We've been waiting for this very predictable and expected purchase. I think it's a possible good move for Microsoft, even if the stock got hit today. But this assumes MS will, you know, actually make some smart moves with this new capability, and I don't have much confidence in that. I'd like to be surprised.


Sent from my iPad
 

Passepartout

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Will Microsoft still use the Nokia brand or just drop it?

Haven't heard, but Nokia invented and made the first handheld cell phone. In much of the world, Nokia is synonymous with cell phones like Kleenex is synonymous with tissue. My small unspecified wager would be that the Nokia name is safe.
 

Elan

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Haven't heard, but Nokia invented and made the first handheld cell phone. In much of the world, Nokia is synonymous with cell phones like Kleenex is synonymous with tissue. My small unspecified wager would be that the Nokia name is safe.

I was thinking I read that the phones would be branded Microsoft. Could be wrong.....

I agree that Nokia is the first name in cell phones. Personally, I don't think anyone touches Nokia in hardware. I would buy a Nokia phone in a heartbeat if it ran Android; that would be the best of both worlds. If WP gains enough traction that it eventually competes functionally with Android, and MS doesn't screw up the Nokia acquisition too badly (lets Nokia do their thing), I'll definitely consider a Microsoft/Nokia phone in the future.
 

Passepartout

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I don't want to jinx their deal, but it'd be about like MS to sell phones under both Nokia and Microsoft names, just to be in competition with themselves under the guise of offering people a 'choice'. 'Course Apple sells different hardware all with the Apple name disguised as choice.

Like GM. Is it a Buick, Olds, Pontiac. They are all the same car with a different name. They finally came to their senses and closed 2 divisions. Chevy truck or GMC? DamnifIknow.
 

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It appears the CEO of Nokia is a candidate for the Microsoft CEO job. Maybe a sneaky take over of Microsoft by Nokia?
 

T_R_Oglodyte

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It appears the CEO of Nokia is a candidate for the Microsoft CEO job. Maybe a sneaky take over of Microsoft by Nokia?

Not necessarily. Sometimes you buy a company to buy talent.

A key part of any acquisition is assessing the management talent that is being acquired, and that is factored into the offer pricing and terms, as well as the post acquisition operational strategy. Good companies often recognize that the one of the best ways to find new senior management is in the ranks of acquired companies, because those people often come in with a different perspective - often because those individuals came from a smaller company initially they have often bring in some of he entrepreneurial spark that often gets washed out of companies as the grow.

Also, in the case at hand, MS and Nokia have actually been partnered pretty deeply for several years now. So they've had a good opportunity to size each other up.
 

Kal

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It appears the CEO of Nokia is a candidate for the Microsoft CEO job. Maybe a sneaky take over of Microsoft by Nokia?

The Nokia CEO was previously a Microsoft Executive and had already been at the top of the list of potentials to replace Balmer.

Also, Nokia phones are very popular in Europe but their ranking largely comes from sales of low-end handsets. The acquisition provides MS with a hardware manufacturing component. The previous MS/Nokia relationship called for separate corporate decision-making on critical issues. Each company had to protect their stockholder interests; therefore, decisions were not only slow but often a negotiated compromise.

For me I see Nokia's success in high-end smartphones as being well below Apple and Samsung. So the acquisition will be a long haul to success.

Another interesting fact is all the funds for the purchase were held in off-shore accounts which are not subject to US Tax issues.
 

MULTIZ321

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Why Microsoft Had to Buy a Phone Company : http://m.newyorker.com/online/blogs...html?utm_medium=referral&utm_source=pulsenews


"Microsoft has been in the computing business for nearly four decades. For a time, it utterly dominated that business as a company that essentially sold software. But over the past several years, personal computing has evolved in a way that Microsoft had not entirely anticipated. Personal computing became very personal, moving from desktops to pockets, from keyboards and mice to sheets of glass, and from hard drives to clouds.

The way that Microsoft traditionally sold its software to most consumers—by licensing it to computer builders, who then sold their wares running Windows to normal people—has fundamentally not worked in this new world. Though its Windows and Office divisions continue to make tens of billions of dollars a year, its market share (and its mind share) of phones, tablets, and search is a fraction of its leading competitors, Apple and Google. It is lagging, and the future is not promising for laggards..."


Richard
 

MULTIZ321

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Where Nokia Went Wrong : http://m.newyorker.com/online/blogs...html?utm_medium=referral&utm_source=pulsenews


Nokia’s agreement on Tuesday to sell its handset business to Microsoft for $7.2 billion is something of a minor business coup for Nokia, since a year from now that business might well turn out to have been worth nothing. It also demonstrates just how far and fast Nokia has fallen in recent years. Not that long ago, it was the world’s dominant and pace-setting mobile-phone maker. Today, it has just three per cent of the global smartphone market, and its market cap is a fifth of what it was in 2007—even after rising more than thirty per cent on Tuesday.

"What happened to Nokia is no secret: Apple and Android crushed it. But the reasons for that failure are a bit more mysterious. Historically, after all, Nokia had been a surprisingly adaptive company, moving in and out of many different businesses—paper, electricity, rubber galoshes. Recently, it successfully reinvented itself again. For years, the company had been a conglomerate, with a number of disparate businesses operating under the Nokia umbrella; in the early nineteen-nineties, anticipating the rise of cell phones, executives got rid of everything but the telecom business. Even more strikingly, Nokia was hardly a technological laggard—on the contrary, it came up with its first smartphone back in 1996, and built a prototype of a touch-screen, Internet-enabled phone at the end of the nineties. It also spent enormous amounts of money on research and development. What it was unable to do, though, was translate all that R. & D. spending into products that people actually wanted to buy..."


Richard
 
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