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Nokia name to continue on Lumia Windows phones for 'some time'

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Microsoft completes its acquisition of Nokia

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Nokia's Chennai factory will be excluded from sale to Microsoft

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Another day, another official app in India, Airtel Money arrives on Windows Phone 8

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Nokia: No plans to become a patent troll after deal with Microsoft

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Chinese Government gives green light on Microsoft's acquisition of Nokia

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Microsoft: Acquisition of Nokia’s Devices and Services unit will close in April

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Microsoft reportedly closing Nokia deal within a month

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Korean electronics companies concerned over Microsoft-Nokia deal, fear patent abuse

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Report: Ballmer had board pushback on Nokia deal, originally included HERE Maps division

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Samsung and Google fear higher patent fees; raise concerns with Chinese courts about Microsoft's Nokia purchase

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Long term thinking: Can Microsoft stay in the consumer game?

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Court allows Nokia India to transfer their manufacturing unit to Microsoft so deal can go forward

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Ballmer pumped
188

Microsoft buying Nokia makes perfect sense

Despite the weakness in Microsoft’s stock price today (it’s down about 5%), I think their decision to buy Nokia’s hardware and services business is absolutely the right move. And it really shouldn’t be much of a surprise. When Stephen Elop made the gutsy decision to kill Symbian and bet entirely on Windows Phone, most people correctly had a strong sense that this would eventually happen. 

But Wall Street isn’t too excited at the notion of Microsoft spending over $7 billion in cash to double down on its smartphone bet. And that’s understandable. It’s a lot of money for a potential failed deal. I think it probably will end up being successful for Microsoft. They’ve already climbed up to the #3 position in the smartphone market, having overtaken BlackBerry. If they can achieve this while having to balance the growth objectives of two separate companies, then I think it should only get easier for them as a combined entity.

As a long-term BlackBerry user I always hoped the Canadian competitor would cement its #3 position in the market. But they haven’t been able to do so. And I think Microsoft’s push to get more apps on its platform has been one of the driving forces behind its success. BlackBerry didn’t dump enough money (in a smart enough way) into developer recruitment. I remember when I’d visit the website for pretty much any popular app and I’d see little advertisement for both the iTunes App Store and Google Play. Now I’m seeing more situations when Microsoft is mentioned. Microsoft says that it is outselling BlackBerry in 34 markets around the world. They’ve got some decent momentum happening.

$5 billion of the deal is attributed to Nokia’s hardware business. It’s widely reported that Microsoft was bringing in less than $10 of revenue per handset sold, but will now bring in about $40 per unit. Let’s assume net profit can be half of this, or $20 per phone. If Microsoft can maintain a solid #3 position in the market it isn’t crazy to think of them selling 250 million units over several years. This could bring in $5 billion of additional income based on my quick math. In other words, I don’t think Microsoft is overpaying here.

In reading the report from Kantar Worldpanel from yesterday I think it’s interesting how Microsoft has been successful in gaining market share by convincing first time smartphone buyers to try Windows Phone. The high end of the market is dominated by Samsung and Apple. But almost half the planet is still buying dumb phones, and this is bound to change. Nokia was successful with the Lumia 520, and it seems that under Microsoft’s ownership the Windows Phone OS will build critical mass as Lumia penetrates the lower end of the market. Not everyone wants to buy cheap Android phones. BlackBerry’s legacy OS isn’t compelling and the company has been too slow to bring BlackBerry 10 to emerging markets. Apple hasn’t attacked the lower end of the market at all yet. That leaves a lot of opportunity for Microsoft. And I’m not saying Microsoft has to compete only at the low end. That’s just where they get their critical mass. From there, they can fight for customers in the entire spectrum of price points.

As for Nokia?  This sale is exactly what they needed. They were not big enough (any more) to guarantee themselves success, but they were too large to fail. They will now have a hugely strong balance sheet with which to invest in wireless infrastructure and location based services.

(Chris Umiastowski is a contributing financial writer to the Mobile Nation network. You can see the rest of his posts at AndroidCentral, iMore and CrackBerry.)

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Comments

There are 188 comments. Sign in to comment

I feel the stock will go up for maybe a week or so, then go back down because all Nokia is now is a Mapping company.

LastBattle says:

On the long term, I believe it have the potential to go back to at least 10 USD.
Compare Nokia Simens (changed to Solutions now) Network [NSN] to Ericsson, at the current 19b valuation is still way undervalued. What's more is that Nokia have HERE maps as a bonus..
 
Of course, it'll definitely go down for the next few days. Due to the flood of people buying into Nokia after the announcement. That's exactly why I sold my Nokia shares and plan to get it back next week.

pulkit10 says:

Hardly. NSN is where the guts of the company is at and they are light years ahead of everyone in there. Combine that with fears over the Chinese competitors and you have a pretty strong position for Nokia. If I were a career in the Western hemisphere, NSN would be the most attractive option for infrastructure for me. And there is big money in here. Consider this: despite a large-ish loss in the hardware business, Nokia actually came close to breaking even in the last few quarters purely because of NSN. They're basically a wireless infrastructure and services company now dealing with corporate clients. Sort of like IBM in a mobile world. I expect the stock to perform decently for the foreseeable future and that's mainly because of the strong earnings AND the fact that they'll be away from the perception based consumer market.

In a few days, Carl Icahn will announce that he believes Nokia is undervalued, and he has invested several hundred million making him a 2% owner of Nokia, and he's proposing a new slate of directors to maximize stockholder value.

LastBattle says:

Nevertheless.. I'll still miss Nokia, after all these years of innovation and pushing the entire industry forward single handed..
 
While companies like Samsung sit by and copy... sigh

Eas195 says:

even Windows 8's side-by-side app screen is copied by Samsung. Ah, pity.

rfrapp says:

That's an incredibly biased statement. Every company, including Samsung, have made contributions to the Mobile Industry. Regardless of whether you like a company or not, you have to admit it

rockstarzzz says:

Contribution and original contribution - two different things.

uopjo6 says:

You're right, but the question here is how it was contributed. Samsung did it in a way that gave me a bad impression about them.

snakechia says:

The ONLY Samsung contribute to the mobile industrial is, copy copy copy, pirate, pirate, pirate...

bjax says:

Along those lines of missing Nokia, has any of the articles said what will (specifically) happen to Nokia Music along with some of their other services?

When you have 250 billions you can do a lots of thing , pretty much whatever the fuck u want lol

LastBattle says:

Market capacity != total cash.
Microsoft only have 70b in reserves..

WinFan1 says:

I wish I had only 70b

LastBattle says:

*only by definition is because of the huge difference as compared to 250b he's saying :(

travisonfire says:

A failed partnership and failed products are somehow going to lead to success. Very funny.

Whoa, we should hire YOU to write our editorials...such depth, such analysis...truly blown away...nah, I'm kidding.

Acbuono5 says:

Daniel be nice to your readers! Lol

WinFan1 says:

Lol Danny always make me laugh with your sarcasm :)

lippidp says:

He's obviously a fanboy of one of the other platforms and he is scared. With growth numbers that Microsoft and Nokia have been showing with WP and Lumia, bro is spewing falsehoods in a desperate attempt at self-validation. So sad...

I think people want a 'blockbuster' overnight, if it doesn't happen, they become haters... lol

LastBattle says:

Anal-yst speaking here :) Its true! YEAH

U'r ID should be assonfire.!

astraith says:

How is selling 7m+ Lumia devices in one quarter a failed strategy?

Cellus13 says:

Are you lost? Because this isn't the verge.

rockstarzzz says:

It only shows, stagnant waters will stink. If you want to stay relevant, keep innovating. Apple Im looking at you now.

kaynachtsman says:

What if Microsoft adds Nokia reading to their störe line up like they create a book störe in wp and win 8 :)

DJCBS says:

If they wanted to do that, they would be better off just buying Kindle from Amazon...or buying Amazon, period.

rockstarzzz says:

They will do that. Im sure an ex MSFT is somewhere in Amazon.

MediaCastleX says:

His name is...wait for it, Charlie Kindel! =P

sumton says:

and Brandon Watson

kwambe5 says:

I thought Microsoft and Barnes & Noble had some kind of partnership going?

DJCBS says:

One flaw in your logic: "Microsoft has been successful in gaining market share by convincing first time smartphone buyers to try Windows Phone".

Actually, NOKIA was successful in convincing people to try Windows Phone. Microsoft didn't move a finger. If it wasn't for Nokia, Windows Phone would be dead by now.
With Microsoft in charge, if they indeed erase the Nokia brand from their smartphones...well, I think it's safe to say Windows Phone's growth will go down. 'cause unlike Nokia, Microsoft has a serious image problem which they haven't been able to get rid of. Not even the success of Xbox helped. Actually, if you notice, Xbox 360 was at a distance from the Microsoft branding. They acted always as if it was an independent company. With the XboxOne they tried to bundle the brands together again...and look at the backslash. When Microsoft announced those terrible DRM policies, no one was attacking "Xbox". They were attacking Microsoft directly.

So...buying Nokia, getting rid of the Nokia brand...all terrible moves to everyone except Microsoft. And probably Google who'll be able to cash in from Nokia fans that don't want to have any relationship with Microsoft for one reason or another.

Nokia would have been dead without windows phone and Windows phone would have been dead without Nokia. They already were practically one entity. Nothing is going to change. This only means that we will get Better Lumia phones.

rockstarzzz says:

How are you missing out the whole loyalist fans and branding issue here?

Loyalist fans should be happy that Nokia now has the resources to pull off even better phones. Its just the Nokia name that is gone. You people act like Nokia died or something. They still here, just under a different name. And better then ever.

DJCBS says:

There's no warranty that Nokia would be dead without Windows Phone. Say they had gone with Android back then? Or something completely different? You don't know that. You can't know that.

Now, many things will change. Better Lumia phones? Why? Because Microsoft has more money? What if they lack the driving spirit Nokia had and has for the time being? Microsoft never showed true comittement to WP. The platform was developed around the demans of Nokia. Look at the GDR's. They didn't show up because Microsoft wanted to perfect WP. None of the GDR has perfected WP. All they did was answer Nokia's demands for enabling certain hardware (like the L1020).

Now remove Nokia from that equation. No autonomy, no brand, nothing. All sucked into Microsoft and commanded by Microsoft. Do you REALLY believe it will get better?
If you do, I praise your faith in miracles.
Based on the experience of 2 years with WP (because of Nokia), I have very very very little faith in anything good coming out of this to the consumers.

What if they lack the driving spirit Nokia had and has for the time being?" Dude they ARE NOKIA. They are going to transfer half of nokias employees to Microsoft. The driving spirit is still there. They are the same people under a different name. You act like suddenly all these people died and the only thing Microsoft did was kill the Nokia brand.

+200000000000000000000000000000000

Imagine the Lumia 920, but instead of the Nokia logo, You see Lumia written in the corner. It is made by the same people. There is no fucking difference, just a different name. You people are just negative nancys.

DJCBS says:

Killing the brand that has put your OS on the map and IS the os, is just plain stupid and BAD business.
It would be the same as if, say, Amazon bought Apple and killed the iPhone brand. The "NOKIA" brand SELLS. Microsoft doesn't. "Lumia" alone doesn't sell. People identify "Nokia" phones. They don't identify "Microsoft Lumia" phones. Not to mention Nokia as a long tradition of support and quality construction as well as loyalty towards their customers. Microsoft has nothing of sorts. Actually, Microsoft has a bad overall image, and a terrible tradition of dropping projects and platforms.
 
Yeah, there is a fucking difference. And you'll see it if you take off your fucking fanboy-sunglasses and use your brain for once ;)

I don't speak retard, thus I can not continue this conversation.

DJCBS says:

You aren't able to speak at all. You bark. It's understandable you have those disabilities.

Tips_y says:

And I don't understand why you are still speaking here when you already have emphasized several times on different occasions you were done with WP and going over to iPhone!

Well said. Microsoft brand in mobile is a no go. Remember KIN, ZUNE AND EVEN SURFACE. They should keep the NOKIA brand.

krishna6233 says:

Leave it man ..They dont know what Nokia is !
 

chocka says:

"Microsoft never showed true comittement to WP. The platform was developed around the demans of Nokia. Look at the GDR's. They didn't show up because Microsoft wanted to perfect WP. None of the GDR has perfected WP."
Microsoft would have done all these improvements anyway even without Nokia. It was Microsoft that started WP and they always had plans for enhancements. They started it in a hurry because they were too late to the market and is catching up. But without Nokia WP would not have had this much success. 

astraith says:

You seem to think that Nokia, the brand name, built the phones. It was the people behind the brand that did. Microsoft bought them. They are coming with. So, "Nokia" has more money, has the ability to have direct say in what happens to the OS, and will probably get more people on their team. Yeah, that is leading towards failure. Yeah ... You're right. :/ In reality, my friend, this is GOOD for Nokia's hardware fans. It's bad for WP. But oh well.

sasukeluffy says:

Which will not be Nokia's :( They will be Microsoft's Lumias from now on I think.
That's just better for me, but not for all.

Actually they want to drop the Lumia brand, would make more sense a NOKIA WINDOWS PHONE.

sandelius says:

Nokia is pretty much dead now. I'm 100% sure that Nokia would be still making phones if they had chosen any other way than Windows Phone.

J Papi says:

I'm afraid of that happening.

+1
This ... This.... This!!!

MediaCastleX says:

You must be real fun at parties and have a really rich, active social life...people must love you! =P

DJCBS says:

I actually do. But I'm lucky my friends all have inteligence above that shown by the average WPCentral-user. So I never have to explain obvious things to them.

guillams says:

DJCBS, what is your f**king problem dude? Everybody can give the opinions they want! You look like the retarder one here!

Tips_y says:

I don't understand why you are still hanging out here when you have already made it clear that you were moving to the iPhone.

OMG55 says:

They moved enough fingers to sign checks over to Nokia to enable them to manufacture, market, and pay developers to bring apps to the Lumia line of Windows Phones. If you say they didn't create the Nokia partnership to move WP forward then you just in denial because you want to believe in Nokia so badly; Steve Jobs believed in Apple so much, he formed an alliance with Microsoft to get 150m dollars he needed to save Apple when it was in trouble.....I suspect this is exactly what Ballmer did in reverse, he purchased MS to potentially bring them to relavancy in the cell phone market after he missed the boat years ago. So, the question becomes......If sucessful, will people give him credit for the parting gift he gave to Microsoft? Will they credit this to his finally legacy?

Rehan Saleem says:

Killing the Nokia name will make a difference to half of the consumers who don't know much about technology...who doesnt know the employees are the same, who doesnt know there is Nokia running behind still because they ain't all deep readers like maybe you and me. This will maybe make a difference because most of them feel safe with the name NOKIA, not WINDOWS PHONE nor any WINDOWS branding. Just see the difference? Not even a loser asked me whether my phone was a WP. Infact everyone asked me whether it was a LUMIA. There lies it. Em sure Microsoft will improve its OS with this deal but a Brand name makes a difference. At first, maybe a number of customers will be reluctant to buy phones coming from MICROSOFT WINDOWS PHONE, then some people take their risk, buy them, get to know how wonderful the OS is and then the news spreads out eventually.

ymcpa says:

Those Nokia fans were using Microsoft's OS for the last 2 years. If they wanted to distance themselves from Microsoft, they wouldn't have bought Nokia phones. I bought Nokia phone because of the design and excellent hardware and ease of use of the windows os. I didn't buy it because it had Nokia's name on it. As long as those employees that used to work for Nokia continue make nice designs and great hardware, I will keep buying it. If Microsoft somehow mismanages them and they start making generic slabs made of cheap plastic, I will stop buying their phones.

Erik Rutberg says:

Loved my Lumia 920 and love my 1020, but this has me more nervous for Windows Phone than before. I always had Palm/webos phones (only gave it up for my 920) and am reminded of hp buying palm and shutting it down a year later.

This is not the same relationship.  Microsoft chose to buy Nokia devices and services.  Palm was going out of business and HP was the highest bidder.  To me this proves that Microsoft is fully behind WP.  Microsoft did not become the most sucessful tech company in the world by spending billions of dollars on entire braches of their business to just kill it off a year later.  Microsoft is in the phone business for the long run and they proved that by putting their money where their mouth is.

Mr. Brown says:

I agree. I had slight fear of MS giving up on Windows Phone, but this purchase goes to show they are in it for the long haul. I also think they will leverage Nokia in building tablets/PCs.

astraith says:

This isn't the same. HP had a CEO who was going to stop making hardware all together. Microsoft isn't buying an OS. They bought a hard war OEM. Meaning they want to continue making hardware.

ymcpa says:

Big difference here is that if Elop is the new CEO, he won't abandon the lumia line. The new ceo of HP decided he wanted the company to be a service company and abandoned webos. He is gone now, but the damage is done. Microsoft is going in the opposite direction. They want to become a hardware company and there is no way they are abandoning the Nokia hardware division.

Eas195 says:

Do you know what I think? That's what I think today! Thinking about Nokia's limited production capacity (remember that Nokia is still in its loss?), Microsoft did the perfect step by bought Nokia's devices and services division to keep maintaining its sales of Lumia phones. Also, its big production capacity, I believe that they can ship a lot more Lumia phones to the market, so it will be less likely to be out of stock. ;)

Kudos, Microsoft and Nokia!

rockstarzzz says:

Who will buy Microsoft Lumia? Does Microsoft have a following? Nokia Lumia was a hit as much as it was, because of a massive loyal following. Heck, it sold 70%+ WP. Lumia = WP.

Eas195 says:

...then Microsoft should name its devices to just Lumia. I did sure about MS, that it has a following. Like Nokia, which is now a part of big Microsoft family. Or, take a view of its Windows OS sales.
Yeah, I know that NL has 80% of market share of WP, but it's still a way to go to keep pushing it through, so it can reach 10%+ market share globally.

ParoleGA says:

Does MS have a following?  You do realize you just posted on WPCentral, not Nokia Central...right?

rockstarzzz says:

All I will say is. Nokia Lumia. Microsoft Surface RT.

astraith says:

Honestly, everyone calls my phone (L920) the Windows Phone. Not Lumia. Not Nokia. Not Microsoft.

kullkid92x says:

This is accurate. All my boys call it a windows phone. And that to me is the perception Microsoft really needs to change.

The name Windows is extremely common (the pc market of course) Microsoft s trying to change is common talk of windows and how many people consider it to be "wack, old, slow" and not hip enough. That's why I believe their commercials are taking a different spin on things now. They want people to speak of Windows and how vibrant, fluid, fast, doesn't crash, doesn't get slower after months of use, ect.

Little by little some of my friends are talking different about Windows and they speak of the Lumia 1020 cause of its camera and the second thing they say is "Yeah man isn't it a windows phone"

daveh101 says:

I'm pretty certain if you read a few things that MS have a license to use Nokia for up to 10 years.

10 years ago, none of the current competitors made phones. 'Nokia' brand is very unlikely to disappear overnight - lets not panic!!

MobileJunkie says:

Whatever you say, i am not happy Nokia has been bought by Microsoft.
On top of it, i read Nokia's name will be wiped clean of all (high-end?) devices and replaced by 'Microsoft'.
Nokia, in my eyes, lost it's prestige.

fwaits says:

Then you do a disservice to the 32,000 employees of Nokia that come along and will still be making, designing and selling these devices.  That is your right however.

MobileJunkie says:

That is what i fear they might do...

ThePangolino says:

What's to say they won't leave. I say they'll all - well, most of them - jump ship.

MobileJunkie says:

There's the whole of internet for you to check out.

J Papi says:

Kinda sucks!

Nobody said its going to be replaced by "Microsoft".
No Microsoft product has Microsoft written on it. At least not the mainstream ones. Look at Xbox and Surface. I think its going to be branded "Lumia" from now on.

J Papi says:

Lumia products minus the "Nokia" name?? I don't know if that will work but we'll see. Will miss the Nokia brand though.

andrewb65 says:

All this because not one single fucking American can pronounce the word 'Nokia' correctly. Perhaps that's why hardly anyone in the US gives a fig about Nokia or the brand, MS included - whereas in the rest of the world it actually means quality, reliability and robustness.

Reeves says:

Can't disagree more with this editorial.
 
Microsoft has been consistently non-communicative, lagging on several WP development fronts (e.g. Xbox live games, the horrible Xbox music app, a notification center, etc., etc.) and mispricing their hardware (SURFACE). Nokia has been coming up with great software, cool marketing ideas, and negotiating pretty good pricing in order to get their foot in the door with high-volume, low cost devices.
 
Most importantly, Microsoft is a FAR inferior smartphone brand to Nokia.
 
Will this bring an end to high end Nokia sets being carrier exclusives in America, thereby limiting the customers available? No. Will this get updates like GDR2 out any faster than the already glacial pace? No.
 
The new "Windows Phone ONE" may have some Lumia design language, but it won't be the same. Microsoft simply has yet to get thir act together when it comes to bring Windows Phone up to feature parity.

kamikaze80 says:

Agree. And to the people who keep saying that the Nokia people will be coming to MS too... did you listen to the MS conference call? They made it pretty clear that there would be a lot of layoffs outside sales and manufacturing. And you think the executives at MS are going to let the executives at Nokia outshine them? That's not how office politics works, esp at MS, which is known for its corporate dysfunction. Nokia's head of design has already left; more will follow.

ThePangolino says:

"may have some Lumia design language"
Well, good luck with that! Their main designer just left.

xankazo says:

MEGA LOL at the live tile!!!

In Limbo says:

As a long time Nokia fan, I must say that this is a bitter-sweet affair for me. Regardless, I wish Nokia the very best.

Nejcooo says:

and makes me CRY

jkrc717 says:

Well, the only reason I bought a windows phone was because of Nokia. Wasn't interested in the Samsung or HTC phones. No reason now for me to not buy an IPhone or Android. 

Did you buy the phone for a logo or for the 33.000 employees who worked hard to give you the best smartphone?

rmichael75 says:

I feel the same way.. 33,000 employees work with Nokia and because of that Name which is a trusted brand to give you a product which will work.. That's why pple buy.. you can have a whole world as empliyes and you give a shit phone and lets see how many pple buy.

explosive0 says:

No it doesn't make sense. LOL. This guy. 

Karanstyle says:

Article full of waste lies from Windows fan

NIST says:

Thank you. Do you like pudding?

rockstarzzz says:

Hey welcome back!

_Emi_ says:

if you stopped your stupidity, you would know Chris is NOT windows phone fan, probably its not even a windows phone user, he probably doesnt even care about it. he is only a "contributing financial writer" and thats all.
get a brain next time you will comment please, you are just a waste of time.

 

MediaCastleX says:

Why else would you come here..? =P

jcsoriano18 says:

That's cool. Did it take you months to come up with that?

lippidp says:

I'm not so sure about "I think it should only get easier for them as a combined entity." Acquisitions can be tricky and time consuming. This is a distraction the Nokia employees don't have time for right now. WP Blue launch will be so crucial, my fear is that they might take their eyes off the ball. No amount of execs saying "continue on as usual" will work. Every employee will be wondering about the future of their career. I guess we'll see what happens!

diplomat696 says:

Umm your forgetting that WP blue is a Microsoft release not a Nokia release...try again pls k thx

blackprince says:

Microsoft gains a phone manufacturing business. Nokia gets a huge cash infusuion and can focus on forward looking technologies for the next three years with all that cash and the cash that NSN is going to make them. Then when the name deal ends in 2015 Nokia releases a Meego powered phone in a new design language with all sorts of cool new shit. If not then shareholders can enjoy a nice healthy dividend from a cash rich Nokia for years to come because their patents and NSN will keep them in the black for a long time.

ScubaDog says:

I'm unsure of my confidence in this choice.  Microsoft has, in my opinion, made necessarily bold decisions as to objective--they could no longer stick to the TIRED desktop concept, and I felt from the beginning that the Metro approach was better in most respects than iOS or Android.  I think where they are ultimately headed is right.  Microsoft's mistakes have been in the horrible decisions in tactics.  They kicked out WP7 to introduce the world to their bold vision for smartphones---but neglected to tell us they where already working on the do-over with WP8.  In their desperation to get WP7 out they bowed deep to the carriers and allowed us to go on believing the misconception that carriers couldn't get in the way of updates.  Their marketing has been hit-or-miss (mostly miss).  The one thing that has turned this around has been Nokia.  Nokia had to huge things going for them.  First, they had the technical chops to do exactly what they've been doing, and do it with amazing agility.  Second, and in my opinion more importantly, Nokia was hungry.  They essentially found themselves in the same boat Apple was in.  They had to make a decision that would chart their course definitively.  It would have been to their demise had they chosen Android.  Anyone who believes differently is just simply clueless as to Android's strength and Samsung's domination there.  Choosing Windows Phone when nobody was putting both feet in (every WP device has been Android retreads).  Nokia has, for all intents and purposes, become the Samsung of Windows Phone, and has done so because there was no half-way for them.  Microsoft, in contrast, has had the luxury of really stupid choices in execution because they are so big (still) and could afford to p*ss off everyone.  Or so they believe.  Nokia solidified its position as THE saving grace for Windows Phone and, as such, was able to leverage that position as a way to get Microsoft to do things it likely wouldn't have done, and to do things much more quickly than it would have
I'm afraid that once Nokia's devices & services have been rolled into Microsoft that the so-called "acceleration of the ecosystem" will be nothing more than another failed slogan.  And, as I expect, if the Nokia name is dropped from the devices, the consumer confidence that followed the Nokia name (rightly or wrongly) will evaporate in the face of the predictable lack of consumer confidence in Microsoft devices (save the Xbox).  The average consumer (low information voter) will not know or care if the entire Nokia devices team is still intact and that all the design & manufacturing of these devices will continue for the forseeable future.

R0bR says:

I agree with a lot of what you say but there is one saving grace...Elop. I truly believe he understands the importance of pushing the OS to maturity. As CEO of Nokia he didn't have any push in that regard, but as VP of devices of better yet CEO of MS could put Windows Phone on the right path. Had Elop remained CEO of Nokia I would have been concerned.

Agree. Microsoft brand is weaker than NOKIA in the worldwide scheme and geopolitics.

It is no huge accomplishment that windows phone is ahead of blackberry. They have been dead since blackberry introduced the atrocious Storm about six yrs ago. When they come close to IOS and Android I'll start celebrating. Not that either of the phones are wonderful but until the app store gets it together windows phone unfortunately will always come in last. Love my 1020 but can't stand the marketplace its a disgrace.

gsquared says:

I'm sure its mentioned around here somewhere but MSFT may not have been given a choice in regards to buying there division and bringing Elop along. Though I'm a big Nokia and MSFT fan and investor, but one has to look at all the angles.
Nokia could have very well told Elop and MSFT there time was up. Hopefully this wan't the case and given the sale price it likely wasn't. Nokia has been left in a very good position with two other profitable divisions.

pickypg says:

Microsoft can also leverage Nokia's camera knowledge to assist the other parts of the business: Surface units, which are limited to 720p cameras (granted, I am not a fan of using tablets as cameras, but it is useful to have an above average front facing camera for Skype), and Skype in general.

Microsoft has also been particularly bad at manufacturing on a large scale, while Nokia has had years of experience. Given Microsoft's cash, and Nokia's talents, they should be able to roll out things more intelligently (e.g., Surface 3).

hokto says:

Nokia basically gave up hope on WP to ever be a commercially viable option.

rockstarzzz says:

And they didn't that's why want to keep Asha phones either? Yeah sure.

Adretheon says:

I think a lot of people are jumping to conclusions and seeing this in the opposing direction that it's(hopefully) going in. MS might have bought that section of Nokia, but I think that the Nokia side of things are going to leak into and change the MS side, not the other way around. This will bring us better devices with better ideas, MS didn't just buy the name and the ideas they bought the people behind them too. Especially if the reports are right and they're grooming Nokia's Steve for CEO. You can't say that won't be a good thing.

Also, Windows Lumia sounds way sexier than Microsoft Lumia. But that's just me.

The1nChicago says:

MS has two issues to overcome in order to make the merger a success which is Marketing and execution.  They should have licensed the Nokia name for smartphones in addition to feature phones.  Furthermore, the need to make sure WP OS is ready for feature phones tomorrow and release their Surface phone under the Nokia brand.  Last, I do not support Elop as CEO of MS, although I do think he should continue to run the phone/hardware side of the business.  MS needs a savvy technie CEO that is suave and arrogant like Oracle's CEO.

ra05 says:

i miss nokia  sad day miss you nokia i am big fan of you

rmichael75 says:

+521
 
I really feel empty today.

MediaCastleX says:

Nobody ever has anything good or constructive to say... =/

allos autos says:

Yeah, it's to the point that I would be suspicious if a particular thread/comments section was filled with constructive, respectful, and thoughtful comments.

First off, let me just say that I am an avid Microsoft user, my first ever smartphone was the Samsung Blackjack I that I had & have never used any other OS. Now, this is exactly why Steve Ballmer needs to step down as CEO of Microsoft. He severely downplayed the smartphone/mobile OS market & has been trying to play catch-up ever since. Now that Steven Elop is coming on board & as Nokia's CEO, he dumped every resource Nokia has into their success. He has been successful thus far, but it's an uphill climb. He helped reestablish Nokia as a solid phone manufacturer & can make Microsoft/Nokia a solid brand. The naysayers who have been on a rampage all day today saying this will fail (both here, Facebook, Twitter, & the internet) can't predict the future. Now's the time to sling mud & make iOS & Android look like has beens & make Windows Phone an aesthetically pleasing & worthwhile option for both consumers & enterprise markets. I am very optimistic in the Nokia buyout & see a bright future ahead. Several of my coworkers said I was crazy when I said that 2013 will be a breakout year for Microsoft & Windows Phone & so far, I am right. With Microsoft's resources & Nokia's innovation & engineering, the sky is the limit for Microsoft/Nokia. Here's to a successful future for Microsoft as our small community will rise.

Cheers. Microsoft made Nokia relevant again as an IT brand, and likewise Nokia made Windows Phone a viable smartphone choice. Very interesting times ahead, with, now, truly 3 major players (it would be sad if consumers only had Android and Apple to choose from. Sorry BB, you're as good as gone). I am a very avid MS ecosystem user, but I hope the 3 players continue to impress us, by competing with each other. Good job Balmer, going out in style.

People seem to forget that Microsoft now has 33.000 former Nokia employees. That is almost half of what they currently have, 97.000. This buyout is going to heavily influence Microsoft and their image in a good way. You're going to see them care more about their customers like Nokia does.

kc77 says:

They're still using the Nokia name for at least 10 years I believe. It will just mean the phones are even more tightly integrated with the is. I think it will work out.

toph36 says:

Only for the feature phones (i.e., Asha), not the Lumias.

TechFreak1 says:

Damn, whats with all this negativity?! you bunch of pessimists lol.
You lot must be mad if you think MS will fire all the employees at Nokia after spending billions on a division acquisition. People make or break or company. they don't just appear and disappear magically.
I for one hope to see more Nokia influence on WP, in my eyes nokia now will be essentially building and progressing WP.Given that apparently Stephen Elop has been selected internally as a prospective canditate to replace Steve Ballmer.

rockstarzzz says:

MS won't fire anyone. NOKIA fans will fire WP for Android or anything cheaper.

kitaisky says:

 
Couldn't have said it better myself !!!

R0bR says:

I hope to see Nokia influence Microsoft as a whole not just WP.

toph36 says:

"...little advertisement for both the iTunes App Store and Google Play...", I hate even when there is a WP app for something, they don't always even mention that fact.  I heard an in-game ad for MLB At Bat and they didn't include WP.  Granted that the app just came out a few weeks ago, and at least they did update their web-site.

Gemini Ace says:

Who cares if the Nokia name is on the device or not? It'll still be made by them, meaning it will retain the high build quality and innovation.

rockstarzzz says:

Nokia fans do, hundreds of millions of them

Agree with the rockstar below. People attached to the name Nokia out weight even Samsung. This is the reason why Nokia made wonders with an unproven platform such as WP. Not Samsung not HTC, but Nokia did it. Against all odds, with people saying them to shift to Android, Nokia helped WP gained market within record time, why? Only based on its name.

daredevildan says:

I just hope the peoplebehind Nokia's design and marketing teams get to hold the reigns on the WP platform going forward. They've done a great job making Lumia's a household name and I'd hate to see them get stifled. There's really no one working with WP that we see as a visionary or a driver. I thought Joe Belfiore would be that guy to really get people excited about WP and I don't see him just frothing at the mouth when he talks about a product he should absolutely be in love with if he wants other people to buy into it.

rmichael75 says:

WEll I am a nokia fan. I dont know if i want to buy anything other than Nokia. Now i dont have a choice i need to find some phone to buy.. Acutally I am bored of Windows Phone as i am using it for two years now. I was sticking aorund for nokia to get the nokia asha phone to use it when ever i am bored. now let us see how it goes..
 
 

squire777 says:

People here are overstating the actual popularity of the Nokia Brand name.

Let's face it, compared to Apple and Samsung the Nokia fan base isn't that big. I would even argue that HTC is probably a bigger brand name than Nokia at the moment thanks to the One.

At the end of the day it's just a phone and nothing to lose sleep over.

Reeves says:

In the mobile space, it's a very strong brand name worldwide. Conversely in the mobile space, "Windows" and 'Surface" are synonymous with failures and disinterest.
 

lubbalots says:

But the funny thing is, MS windows has helped millions than any other. Its like Jesus. Helped many and hated over jealousy. Its not a failure. Its just hate for no good reason.

Come to the second largest smartphone market in the world and you shall understand the value Nokia brand holds. You think Windows Phone in India got the popularity cause of Microsoft? WIndows Phone? UI? Services? Specs? Nope. It got the popularity based on only one name that is Nokia, and now it has been taken away

squire777 says:

If Nokia was as popular as you say it is then why was Nokia about to go under before MS bailed them out?

I understand some people are faithful to Nokia but some of the comments being made today are lacking logic.

Guess they underplayed their own value. You won't understand the logic the behind this comments cause you have never been to such place where what exactly Nokia brands means. You lack perspective and are thinking on your experineces only. This is the same perspective that MS lacks and if they don't get it, they are going to have a hard time with WP in emrging markets where Nokia held a name. Cause after Nokia, there comes Samsung and Sony, not MS. Even companies like Micromax and Karbonn have better things attached to their name than Mircosoft 

squire777 says:

Micromax and Karbonn are way ahead of Nokia smartphone sales in India.

If Nokia was selling phones based on brand name alone then I would have expected them to control a much larger segment of the Indian smartphone market.

Well they rise, they fall, first they had the top spot, made some mistakes, they lagged behind, then they fell, and now again they were on the rise again but I guess we will never see that. 

jcsoriano18 says:

That's the thing, if brand name was all that then Nokia wouldn't have to sell.

tobz121 says:

No they're not, unless they're all American. Outside the US, Nokia has always been incredibly popular. 

Apply_Logic says:

WP can gain more market share if they pop out an other device with the same price range as the lumia 520 aka the markertcapitalizator (doctor doofenshmirtz voice!!)

ejlee072006 says:

if they will drop the NOKIA name on future phones..what about the future tablets??I think they should still use the nokia brand on the phone but adverise it as LUMIA!!
well you know what people know it by LUMINA,LUMIYA,HAHAHAHA

iamoniwaban says:

Death to apple and android

They’ve already climbed up to the #3 position in the smartphone market, having overtaken BlackBerry - Thanks to Nokia

I think it’s interesting how Microsoft has been successful in gaining market share by convincing first time smartphone buyers to try Windows Phone. - Not Microsoft, Nokia's name on those phone did it. Without Nokia's brand name, WP was dead in gutter. Neither Samsung nor HTC could have pulled it off what Nokia did, and now I am doubtful even MS can

 

Both the important factors where largely driven by Nokia and its Brand name. Now that out of the picture. I don't know how they will survive.

squire777 says:

Delusion at its finest

crazygonzo says:

Low end is the key for them, the upcoming 6" inch phablet monstrosity is just a good promotion for the platform but won't get them millions of new customers. Other markets like huge phones right now so it's a nice move to release a few models but they need to be priced accordingly.
So what can the Win8 users expect from this deal ? Will Surface RT get a refresh next month or will Nokia take care of that with their RT tablet ? What will be the hardware/software gain ? I don't think it changes Nokia plans for the Lumia models that are about to be released this year.

Wow! Seems icredibly stupid to me, that people equate Windows Phone with only Nokia. Remember, Nokia was no where to be seen when MS designed the WindowsPhone OS. Yes....their contribution to the platform and its continued development is next to none. Kudo's to them for that. They have certainly heightened the profile of Windows Phone. Nokia though, was a bit hamstrung under the specter of "will they survive or won't they", and rife for being taken over, or failing financially. Now their continued existence, in one form or another, is assured. Is this not a good thing? The same team who developed the Lumia brand, and its subsequent software exclusive's, is still in place. And also, suddenly the resource pool has increased 50 fold. Microsoft has too much at stake here, to let Windows Phone fail. Their reputation as as the new "devices and services" company means too much to them, to not be completely on top of their game here. I welcome Microsoft and Nokia being one entity, and I think that all the naysayers are going to be proven wrong. I am excited at the prospect of what we will see happen in the next two years.

squire777 says:

Excellent post.

Reeves says:

Microsoft has too much at stake to GIVE UP on Windows Phone, but they certainly don't have enough at stake to make it a priority. It's taking how many years just to get something simple like Xbox Video on the devices? Or to get a first-in-class Skype client? Or to release easy-to-port titles from Xbox Live?
 
All the resources in the world are useless if you lack the will to utilize them properly.

crazygonzo says:

That really astonishes me and I hope that this deal will finally change their approach. Merging RT with WP, frequent updates, better integration would mean more apps and better experience for Nokia users. Also no Ballmer sounds great for the future 2014/2015 :)

Alan Boyar says:

The market is worried that MS will screw this up and MS is down 5%.  This is a buying opportunity.  MS already showed with SKYPE that they have the ability to absorp a company, let it function semi-autonomously.  I still run into people who do not know that MS owns SKYPE because SkYPE remains independent.  I imagine NOKIA will be the same.  Eslop has done a great jop with with NOKIA phone lineup and pricing.  My biggest concern with NOKIA now is distribution and supply.  They can't keep up with 520 demand, I was at my local Sams club yesterday and still no NOKIA phones on display, there are markets, such as Indonesia, that they just haven't even been able to get to yet.  MS has the bucks and back end resourses to plug their supply holes and allow them to get more product out into the market.  NOKIA has been limited by cash which isn't a problem for MS.  MS is huge and can absorb the back end functions of NOKIA so that it can concentrate on doing what its best at - making phones.  MS can also go to businessses and sell both devices and back end services together - see the Delta Airlines deal, and put together custom apps with their phones and back end services for other business.  Esolp should be able to hold onto NOKIA employees so I don't expect a lot to jump ship.  MS paid bubkus for NOKIA, Google paid 12 billion for Motorolla and what did they get for it?  MS pays half for NOKIA and gets hammered.  I don't get the street, I'm long on MS.

allos autos says:

The market is probably worried more about the fact that MS just bought a chunk of a company that has a credit rating of "junk" rather than being concerned that MS is going to screw up WP. :/

squire777 says:

The thought of an MS phone that resembles a Zune HD has me salivating.

topcms says:

Microsoft is not gonna sell WP well in Brazil of the phones don't have the Nokia brand. People here just like NOKIA and can't help to associate the brand with good and durable phones. Whears apple is as fragile as a Cristal and android as the worst phones. People here buy windows phones, because it's Nokia not because it's windows phone.

pierrerv says:

Nokia music will get integrated into Xbox music, here/bing, express bworser/IE

gcdc_lumia says:

pardon my ignorance, but are they keeping the Nokia brand despite the fact that Microsoft's buying it?
I've have been a nokia user through and through, and i hope they keep the brand as is.
 

zacman says:

Not MS has been great about convincing first time smartphone users to buy a WP but Nokia has been. Nokia was getting developers on board that would never develop for WP without Nokia. Nokia was pushing WP by not mentioning the name WP at all but pushing for the Lumia brand. MS has been doing nothing for the platform at all.

My opinion:
• Nokia wanted to drop WP exclusivity and go for an android phone, so MS htrew a deal Nokia would not reject.
• WHY THE FCK! they (MS) want to focus on the "Windows phone" brand? Apple doesn't sell ios phones, Google doesn't sell an "Android Phone". Would be great to only stay with the Nokia brand: Nokia 1020, Nokia 720.

• This is hurrying up because now apple wants to enter the entry level and fisrt adopter market.

 

• MS knows that Nokia is doing well, so better buy it before it becomes bigger.

tegraz2 says:

apple doesn't sell ios phones like they don't sell osx computers...
 

That's what I said. Thanks.

Cellus13 says:

No Nokia Android phones. EVER! hahaha! Yes!

astraith says:

What happens to Nokia Music though?

Maybe they will (xbox music and nokia music) merge together as Windows Phone Music.

Pewee2 says:

I haven´t written that many comments, but I am very disappointed about microsoft buying nokia. I was here mostly because of Nokia. Not that i dislike microsoft but it was really nokia that got me interested in the development.  Microsoft alone is just not that exciting for me....
I´m outta here....so that means we won´t be seeing us again... Keep buying MSFT shit so Google won´t take over our lives!!!
Peace out!

osoalex says:

I just want the Nokia logo on my smartphone xD

No matter if Nokia is bought by Microsoft, I know they will deliver the same quality.

topcms says:

Agree!! I like Nokia

kc77 says:

I don't want to lose the Nokia ringtone :(

jebroni jeb says:

i hope nokia lumia brand should be there always. but it seems ms name will blend with lumia..not a good name. im sad..

uopjo6 says:

Could be good, but I think I'll be sticking with my 920 for longer than expected. 

topcms says:

Microsoft is not gonna sell WP well in Brazil of the phones don't have the Nokia brand. People here just like NOKIA and can't help to associate the brand with good and durable phones. Whears apple is as fragile as a Cristal and android as the worst phones. People here buy windows phones, because it's Nokia not because it's windows phone.

gamato says:

I don't think it was / is MS convincing first time buyers. It was / is Nokia, its strong brand around the world and especially in third world and emerging markets, its quality phones, its huge distribution network. Also, it was Nokia to add extra value to WP, something that MS should have done but failed.

tegraz2 says:

it's hilarious reading all these comments about people leaving windows phones now just because there won't be the nokia name on it. so you know it's still the same great hardware from the same people, just with a different name. what difference would it make if microsoft COULD brand their smartphones as nokias? you guys would probably cry about that too. "yeah it says nokia on the phone, but it's really a microsoft phone." goodbye to all of you fools saying you're switching to ios or android just because that shiny new lumia won't say nokia on it. what kind of dumb logic is that? hilarious.

Nobody is discussing what will happen to the Dumb Phone business of Nokia. Are they selling it too? Will M$ discontinue these. It is currently bigger business than WP

Misab Em says:

sad day indeed.windows phone wasnt nokia at all, should've changed the 'live tile' standby screen  to a 'nokia',the one with shortcut bars on top or bottom(where android made the right choice).i miss nokia already and i hope someday  it will ... no we all know that is not gonna happen :(
p.s:- hate WP 

browryan says:

This looks a little too familiar with respect to another mobile OS that was purchased by hardware company a while back. Let's just say I haven't had good luck with mobile platforms as I've been trying to avoid the 2 big players.