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back to article Microsoft's Nokia plan: WHACK APPLE AND GOOGLE

Microsoft has posted the presentation it's used to explain its decision to acquire Nokia's mobile phone business and it reveals the key reason for the acquisition: hitting back at Apple and Google. The presentation is available as a PDF or a slow HTML slideshow here and gets interesting at slide 15, depicted below. Slide 15 in …

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RIP Nokia

a lot felt this day was going to come. the final nail in the coffin of the old Nokia

Goodbye Nokia we loved you.

Why didn't you stick with Maemo/Meego - you had a world beater which only needed a bit of polish.

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Anonymous Coward

Re: RIP Microsoft

The move that ended Microsoft.

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Unhappy

Re: RIP Nokia

With this move, Micosoft announce they have given up competing with their own products. They see the way the market has gone, with Google/Apple dominating for the next decade at least, and just want a bigger slice of their efforts. Extortion has, and always will be, the only meaningful revenue option open to them in mobile.

Elops back home, they can lay off all those pesky Finns now they have what they really wanted all along, and Blamer is off laughing into the sunset.

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Anonymous Coward

Re: RIP Nokia

Nokia will still exist, Microsoft is just buying the phone division.

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Re: RIP Nokia

Nokia will still exist, Microsoft is just buying the phone division.

So basically, they bought the only thing about Nokia that has any brand awareness whatsoever. That is, unless you're seriously contemplating buying a pair of Nokia wellies instead of your next smartphone. Whatever of Nokia is left might as well shut up shop now. Last person to leave, please turn out the lights.

Everybody saw this coming a mile off, apart from the Nokia execs it seems.

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FAIL

Re: RIP Nokia

"Whatever of Nokia is left might as well shut up shop now. Last person to leave, please turn out the lights."

You mean the group of businesses with approximately EUR15 billion global revenues? Yeah, spare change mate, I wouldn't get out of bed for less than EUR30 billion myself.

Muppet.

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Re: RIP Nokia

The only thing that has brand awareness in the *consumer* space. Phones account for less than half of Nokia revenue, ISTR

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Holmes

Re: RIP Nokia

So basically, they bought the only thing about Nokia that has any brand awareness whatsoever. That is, unless you're seriously contemplating buying a pair of Nokia wellies instead of your next smartphone. Whatever of Nokia is left might as well shut up shop now. Last person to leave, please turn out the lights.

Sorry, but that is inaccurate to say the least. Nokia kept NSN, which is about the only profitable part these says. (Also they no more makes wellies). So you can still buy your 3G or LTE network from Nokia. In fact, after the sale, it is pretty much Nokia = NSN.

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Anonymous Coward

Re: RIP Nokia

Actually, Microsoft can only use the Nokia name on the current product range. Nokia can very easily create a new smartphone division around Android now if they want. Nokia isn't so daft as to lose their brand fully.

Obviously the patents Microsoft gets makes them dangerous now. They'll be knocking on a few doors soon with a baseball bat.

This is the agreement:

"It also gets the Asha brand and will license the Nokia brand for use with current Nokia mobile phone products. Nokia will continue to own and manage the Nokia brand."

http://www.telegraph.co.uk/technology/microsoft/10282521/Microsoft-buys-Nokias-mobile-phone-arm-in-5.4bn-deal.html

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Re: Nokia isn't so daft as to lose their brand fully.

I wouldn't bet the farm on that statement.

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Re: RIP Nokia

A very sad day, the love for Nokia and the hopes of a Nokia Droid gone up in smoke.

However, at least it should give a boost to Jolla - Sailfish time, bitches!

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Re: RIP Nokia

"they can lay off all those pesky Finns now they have what they really wanted all along,"

Microsoft have money. Nokia do not. Nokia has just made multiple billions. Nokia employees now have a better chance of not being laid off than they did before.

You seem to be confusing this deal with situations where a company takes over a competitor which is nit the case here. You're just making things up that sound bad on MS's part.

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Re: RIP Nokia

"Obviously the patents Microsoft gets makes them dangerous now. They'll be knocking on a few doors soon with a baseball bat."

The Army of the Will Not Read are out in force today. MS have not bought the patents. They have licenced them for ten years with an option to renew. Nokia are still the patent owners. MS have simply paid for use of those patents and offered some if their own under the same deal.

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Anonymous Coward

Re: RIP Nokia

Nokia shareholders can still reject the deal. Yahoo rejected a Microsoft takeover remember.

Hedge funds are the big losers in this, they bet on the shares falling 10%.

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Re: RIP Nokia

Nokia shareholders can still reject the deal. Yahoo rejected a Microsoft takeover remember.

Yeah, and that worked out really well for Yahoo!, didn't it?

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Re: RIP Nokia

Did MicroSoft also buy into Nokias' Telecoms infrastructure too? AFIAK Nokia made more then just the Phones. Along with the like of Erickson Built / Sold much of the back-haul Network to the Network Operators too.

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WTF?

Re: RIP Nokia

Did MicroSoft also buy into Nokias' Telecoms infrastructure too?. NO

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Facepalm

Re: RIP Microsoft

Indeed!

Microsoft are already in enough trouble that Balmer was binned, and as Nicholas Taleb writes in his Anti-Fragile book that large(r) corporations are more likely to be Fragile, so vulnerable to negative Black Swan events!

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WTF?

Re: RIP Nokia

What you mean "...just the phone division"?

As in: he still exists, they only cut out his stomach?

/Zane

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Linux

Re: RIP Nokia

> The only thing that has brand awareness in the *consumer* space. Phones account for less than half of Nokia revenue, ISTR

That says more about how much Nokia has screwed the pooch than anything else. They were once a giant and now people are trying to distract from the fact that they aren't anymore.

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Re: RIP Nokia

Well, you seem to be part of the "Army of the Will Not Read" as slides 19 and 23 of the MS presentation (mentioned and linked to in the article) explicitly state that as well as licencing a ton of Nokia's patents, MS have also acquired outright 8500 patents pertaining specifically to smartphones.

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Bronze badge

Re: RIP Nokia

The other parts of Nokia make money afaik.

(Don't get how people value brand awareness more than making money with good margins).

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Re: RIP Microsoft

They are not in that much trouble they just need something to work in the next 10 years or so.

(Think they have about 200 billion $ cash and investments.)

So they will still have half of it if they spend 10 billion a year for 10 years.

(Even if they stopped being profitable which won't happen).

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Re: RIP Nokia

They have licenced them for ten years with an option to renew. Nokia are still the patent owners. MS have simply paid for use of those patents and offered some if their own under the same deal.

This means that if Nokia is clever and aggressive enough, they can set up cross-licensing deals with phone manufacturers to pull the rug out from under Microsoft's intimidation/extortion racket. Microsoft is making a lot of money in mobile -- by extorting Android. Nokia can stick a fork in that.

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Re: RIP Nokia

Erm, 15 billion Euro _revenue_ maybe, but on target to run out of cash by sometime next year. That's the whole "profit" thing business talks about, and makes it worth getting out of bed.

Whooza muppet now?

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Anonymous Coward

Re: RIP Microsoft

LOL, I doubt it - Google just named the new Android 'KitKat' - What does that make me think of? Flakey? Melt Down? Easily Cracked Open?

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Anonymous Coward

Re: RIP Nokia

Luckily short sellers don't have shares to vote with....

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Anonymous Coward

Re: RIP Microsoft

Only if they put Roz Ho in charge of everything.

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Unhappy

It's OK

I already have the last Nokia phone I will ever own.

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They are very reliable so it should last you.

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reliable

mines about 8 years old - does what I want with a phone and I can loose it with impunity which is probably what I've still got it.

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Anonymous Coward

Re: reliable

3310 I take it?

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N2

Re: It's OK

Yup, its been in a drawer somewhere for about the last 5 years.

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Re: reliable

2710 for me.

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Anonymous Coward

They made $10 for a Nokia phone?

Why did they bother at all? They make more per an Android phone from license fees.

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Re: They made $10 for a Nokia phone?

"Why did they bother at all? They make more per an Android phone from license fees"

How much do they make from licence fees per Android phone?

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Good phones and good OS

I know I'm going to get down voted here for daring to say something positive, but...

I gave up on Nokia after the dismal experience that owning an N73 was - I even replaced it with a cheap Samsung flip phone long before I could upgrade on my contract as using it was just so painful.

I now have an 820 - and it is a great phone. Sure the app store needs more apps (kind of like the Android App store when I moved from Apple to Android a few years ago) but most of what is there is useful).

If you don't download a huge amount of apps then it's a stunning little phone that is, mostly, very intuitive.

Lets see what they can do now...

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Unhappy

Re: Good phones and good OS

I agree, I do like my 620 though OS development is painfully slow fixing the foibles it has (i.e. non-existant) and MS is not a good company to run a hardware division.

I just can't see how this is going to be good for WinPho though. What competitor in their right mind is going to want to make WinPho's when MS make their own? This isn't going to be like Google producing good reference devices which people then spin, MS are going to screw it around for what they want and everyone else is going to feel cold-shouldered. They seem to see themselves as an apple who can own the whole ecosystem when they don't have the corporate structure to allow creativity. It seems a sad day all round. I'd rather have had Nokia buy MS's phone OS division ;-).

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Anonymous Coward

Re: Good phones and good OS

It is a good OS from a usability perspective and it is very easy to accomplish many tasks in very few steps.

Android (I'm running stock 4.3) is quite clumsy and fiddly in comparison. It's just that Android is rather more superior in multitasking and notifications.

I prefer to run a "standard" version of Android, most people don't ever see it though and their opinions are formed by Samsung and HTC's interfaces which are more powerful.

What really pissed me off with Windows Phone was the huge lack of urgency. It seems Nokia was doing all the work trying to keep the customer happy. I received just "one" minor update in about 7 months of owning a Nokia 920.

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Anonymous Coward

Re: Good phones and good OS

I share your let's-wait-and-see approach.

Nokia had an awful corporate culture, so I hope that their lagging performance has served as a wake up call for management to get out of the way of the people that are capable of creating the great products Nokia managed in the past (and you illustrated exactly why there is reason to believe that is happening).

Ditto for Microsoft, with Ballmer exiting there will be a drive for people to be seen to deliver. Their main challenge is winning back trust, which also depends on developing a better culture.

Let's see what happens. It is certainly getting interesting.

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LDS
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Re: Good phones and good OS

Didi you get already the latest Nokia "Amber" update?

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Re: Good phones and good OS

"Nokia had an awful corporate culture, so I hope that their lagging performance has served as a wake up call for management to get out of the way of the people that are capable of creating the great products "

Two words for you - Stack Ranking

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Unhappy

Re: Good phones and good OS

Sorry, don't like the tiles, don't like the OS; intrusive, flashy, in your face. I prefer my phone to be quiet and to respond to me. In fact, I also need my computer to do this. I don't want to be interrupted by what it (Well, the developers) thinks is important. Oh, ok, I let it notify me when a call comes it.

You may disagree, and good luck to you there, but I'm not buying a new Nokia. It had been 4 Nokia phones from the 1990's through to now. Now it's a Sony Android (it was a present, I didn't get to choose), but I'm not pleased when I had a play with the new Nokia phones. Lovely hardware, poor software.

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Anonymous Coward

Re: Good phones and good OS

It's not flashy and in your face. Just because there is a bit of movement on the main screen, so what? people install live wallpapers on Android that are more distracting.

Haven't you noticed how the logos and branding of the world is going rather more flat and stylish? that's the web and metro influence.

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@Snark "What competitor in their right mind is going to want to make WinPho's......

................. when MS make their own?"

Since the launch of WP8 Nokia figures have been 80% of all phones sold. Frankly I cannot see why the other OEMs bother. They are scarcely going to lose out in any meaningful way. I run a Lumia 820 btw and am very pleased with it.

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Re: Good phones and good OS

that's the web and metro influence.

I only see this in a few places, and I regard this as either fawning fanboyism (what, Microsoft has fanboys? Stranger things have happened!) or a complete lack of ideas. Or possibly both.

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Re: Good phones and good OS

I am not bothered about whether it is difficult to use or intuitive.

I want it to be a smartphone and the battery to last a week.. (Not had anything none Symbian that has managed that).

(I have a Lumia 800 that has lasted me a year and it still perfect - usually phones last me less than 6 months I keep them in my pocket don't bother about them. See them as a tool not a trophy).

Nokia Drive (Offline Satnav)

Really good virtual keyboard you never make mistakes on no matter how hammered you are

Dodonpachi Maximum (Game - Android versions of the same thing are utter garbage.)

I can get 3 days out of the battery if I am sensible

Good build quality

It is setup so 3rd party apps cannot by default waste my battery.

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Anonymous Coward

No Android Lumia 1030 then..?

One of those would be my perfect smartphone...

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Anonymous Coward

Re: No Android Lumia 1030 then..?

Nokia is free to create another phone division under a different name (Microsoft licenced the Nokia name for 10 years).

Nokia is not being fully purchased, just the phone division.

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Re: No Android Lumia 1030 then..?

Correct.

MS bought about 50% of Nokia.

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