Tag: Microsoft Nokia Deal

Nokia May Make a Comeback in the Smartphone Market Next Year

Microsoft acquired Nokia’s devices and services business for a heavy sum of $7.2 billion last year. The Finnish company can no longer use the Nokia brand name on smartphones till Q4 2016, and on feature phones for ten years. Once the biggest smartphone maker in the world failed to catch up with the fast-growing market trends set by Apple and Google. But, as most of us considered, it was not the demise of the titan.

Nokia is planning to bounce back to the smartphone business sometime next year. Reports by online publishing daily Recode suggest that Nokia is gearing to make a comeback in the mobile business, and is working on several new ambitious projects including virtual reality. The company has so far released only two products – an Android app called Z Launcher and the Nokia N1, also dubbed as the first Nokia-branded Android tablet.

The 6600 was one of the most popular devices by Nokia and was almost the star of the movie, Cellular.

It is expected that Nokia will employ the same strategy for the new device as it used for the N1 tablet. The device was launched last year along with a brand licensing agreement with Foxconn. The Finnish company hopes to find a similar brand licensing agreement partner for its next release.

There has been reports that Nokia has “a lot of great stuff in development’, but there is no certainty about the upcoming Nokia product or if the company is making a comeback by 2016. Therefore, the news should be taken with a pinch of salt.

With its latest acquisition of Alcatel-Lucent for $16.5 billion, together as Nokia Corporation, the company has set its sights on Virtual Reality, Internet of Things and Cloud Computing, and is ready to greet the world with brand new treats.

April 21, 2015
After Selling its Mobile Unit, Nokia is Now Seeking Buyers for its Maps Business

Nokia, the Finnish equipment maker who recently sold its mobile business unit to Microsoft, is reportedly considering selling its maps business HERE. The move reflects its plan to boost the company’s core wireless network unit and push up the shares rating.

According to a report by Bloomberg, the company is in talks with potential buyers such as Uber Technologies and a number of private-equity firms, as stated by people familiar with the matter. The source revealed that some German carmakers have reached Nokia for the same and will bid for its maps service, expected to take place as soon as this month.

As per the source, Nokia has hired a finance adviser to explore the sale of the maps business. The official financial reports suggest that HERE (Nokia’s Map Business) is 2 billion euros ($2.1 billion) worth, while Inderes Equity Research made different estimations about its current price. “We have estimated that HERE’s value is around EUR 3.3-4.8 billion, and in a possible deal the price should be more than that,” stated the research firm on Twitter.

If we evaluate Nokia’s mapping assets with the official report as a base, its value has seen a steep fall since its buyout in 2008, which cost the company a hefty $8.1 billion. The company might drop the plan to sell out its unit if they don’t get a price deemed sufficient.

Nokia’s HERE unit provides data to many tech and e-commerce giants such as Amazon, Microsoft, Yahoo, along with some renowned names in the car manufacturing business. The maps division reported a net sale of 970 million euros and an operating loss of 1.24 billion euros, as per the report. In January, the company made public the Q4 results of its net income and sale, which were 443 million euros and 3.8 billion euros respectively.

Nokia presently holds three divisions; first one is the maps units, the other is research and development that licenses its patents, and the third one is the networks division that makes 90 percent of the total revenue.

Meanwhile, Nokia spokesperson has declined to comment on the report and there is no official word on the news. But it would be interesting to see if Nokia sells out its second major unit and becomes an entity focusing solely on network services.

April 11, 2015
Nokia Boss Talks Future Plans and a Possible Return to Consumer Electronics

With the legendary Nokia name getting scrapped off the mobile market listings, everyone is wondering what’s next for the company. Under the acquisition agreement, Nokia’s phone business is now owned by Microsoft. Nokia is now left with it Nokia Networks, Technology and the Here Maps business. But it seems like the company is contemplating a re-entry into the consumer electronics business.

The new boss who is entrusted with taking the business of the fallen giant spoke of the company’s future plans in London. CEO Rajeev Suri said that the company will make a re-entry into the consumer market. It was his answer to a query that inquired about rumors that the company was looking to make a comeback the handset market.

Mr. Suri spoke of some brand licensing opportunities for the company.

What was interesting was the comments of the CEO about brand licensing. Mr. Suri said “We see brand licensing as an opportunity … But I would say it is more of a long-term opportunity.” Using the tremendous goodwill it still has in the market, the company might try to use it to its advantage. You might see electronics branded with the Nokia name in your electronic showrooms in the future.

Presently Microsoft has licensed to use the Nokia brand on mobile phones Nokia Asha, Nokia X and Nokia feature phones for ten years and on Lumia for 18 months. The Lumia brand had the option to retain the Nokia brand till December 31, 2015. Microsoft clearly wasn’t in the mood to wait long and dropped the Nokia brand last week when it introduced the Microsoft Lumia 535.

For the folks who were mourning the demise of the Finnish giant, this comes like a light at the end of the tunnel. Of course, it might be a bit of a wait before this news materializes but for the faithful fans of the brand, it means that it’s not goodbye just yet. We will be waiting for your comeback Nokia.

November 17, 2014
Microsoft Will Acquire Nokia for €5 billion

Microsoft is set to buy Nokia’s Devices and Services unit, bringing the Lumia lineup under its own ownership. The move unites Windows Phone 8 with its biggest hardware supporter, giving the company the integrated mobile offering that it has been looking for with the Microsoft Surface and other similar devices. When the deal closes in the first quarter of 2014, Microsoft will pay 3.79 billion Euros to Nokia, plus another 1.65 billion Euros for its portfolio of patents.

Microsoft hopes that acquiring the largest Windows Phone manufacturer will speed up growth of the operating system that has yet to see commercial acceptance like similar platforms i.e. Android.

“It’s a bold step into the future – a win-win for employees, shareholders and consumers of both companies. Bringing these great teams together will accelerate Microsoft’s share and profits in phones, and strengthen the overall opportunities for both Microsoft and our partners across our entire family of devices and services.”- Microsoft CEO, Steve Ballmer.

According to the press release from Nokia, about 32,000 Nokia employees will migrate to Microsoft on the completion of the deal. The release further adds that Nokia is assigning its long-term patent licensing agreement with Qualcomm along with other patents to Microsoft.

Microsoft also announced that it has selected Finland as the home for a new data center that will serve its consumers in Europe. The company also said it would invest more than a quarter-billion dollars in capital and operations of the new data center over the next few years, with the potential for further expansion over time.

September 3, 2013