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Microsoft Mobile rises from the ashes of Nokia

On Friday Microsoft Corp. announced it completed its acquisition of the Nokia Devices and Services business.

 Microsoft CEO Satya Nadella and Stephen Elop share a moment together Microsoft acquisition of Nokia Devices and Services business finalized
Microsoft Press Release

In the official Microsoft press release CEO Satya Nadella stated, “Today we welcome the Nokia Devices and Services business to our family. The mobile capabilities and assets they bring will advance our transformation.”

Press release photos show Nadella with former Nokia President and CEO Stephen Elop, who will serve as executive vice president of the Microsoft Devices Group, that includes Lumia smartphones and tablets, Nokia mobile phones, Xbox hardware, and Surface tablets.

According to Computerworld the new unit, Microsoft Mobile Oy, will act as a subsidiary of Microsoft Corp. and be headquartered in Espoo, Finland. "Oy" is the Finnish equivalent to "Ltd." or "LLC," a limited liability company.

Nokia Solutions and Networks, also headquartered in Espoo, Finland, remains as a separate non related company as a provider of telecommunications network equipment and services.

The rise and fall of Nokia

Like so many technology companies that have long histories, the story of Nokia is one of a rise and fall.

Microsoft purchased for Nokia Mobile for $7.2 billion. That's a small fraction of its value a decade ago when estimates had it worth around $250 billion. Nokia was once the world's largest vendor of mobile phones.

A 2010 Bloomberg chart of the day shows the fall of Nokia from 2000 to 2010 when it went from being 14 times the size of Apple in 2000 to an eighth of it in 2010. The chart also shows the value of Nokia dropping below BlackBerry, then known as Research In Motion (RIM).

Right now everyone is buying Apple and Samsung devices, as those two companies battle for smartphone supremacy. The rising star that has crippled the sales of both BlackBerry and Nokia is Korean based Samsung. Currently the new Samsung Galaxy S5 is hottest selling phone beating out Apple iPhone 5S sales.

The history of both Nokia and BlackBerry show how quickly global companies can rise and fall. Like Canadian counterpart BlackBerry (formerly RIM), there will be many opinions for the rise and fall of Nokia. Did they lose market share because of technical issues like non standard chargers or non standard accessories? Did they fail in marketing their products to the hot demographic groups making the purchases?

The question to be answered in the months ahead is whether the rebirth of Nokia as Microsoft Mobile can bring new life to a company with a long history, but has been on the decline in recent years.


What's on your mind today?

Check out these thoughts on whether Nokia will survive as Microsoft Mobile in an Android and Apple world.

What do you think, will the rebirth of Nokia as Microsoft Mobile help bring new life to the Windows Phone?

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