With the post-Labor Day news that Microsoft was to acquire Nokia’s devices and license various parts of the Finnish firm’s empire–including Nokia’s CEO, Stephen Elop–it’s fair to say that the Internet has been resounding to the sounds of dropped jaws.
The Nokia blog has a joint open letter from the two Stev/phens. The firms are “committed to the next chapter” and will, together, “redefine the boundaries of mobility.” There’s a lot of talk of choices, innovation, and a “global mobile ecosystem.” The thrashing out of the deal took around 50 meetings, says Reuters, which reveals that Microsoft’s codename during the talk was Edwin Moses.
The tech sites have been poring over the details of the acquisition. What is Nokia going to do now? Engadget says its Here maps platform and network infrastructure business are the focus. TechCrunch points out that Microsoft is actually buying the Lumia and Asha brands outright, and merely licensing the name of the lower-end devices, and suggests that the Finnish firm could be back in the hardware game by as early as January 2016. “That’s right, old Nokia may go back to its innovative, disruptive roots,” writes Ingrid Lunden. “Considering its current smartphone share is only 3%, it’s a brand really with nothing to lose.”
Business Insider has an interesting take on why the deal happened: because Nokia threatened to stop making Windows Phones. Elop, argues analyst Ben Thompson, backed the wrong horse when he chose Windows Phone over Android. Another Ben, this time Ben Evans, reckons that Microsoft’s acquisition of Nokia means that, despite it saving the biggest manufacturer of Windows Phone devices, the software giant’s sudden arrival in the phone hardware arena means that other OEMs will abandon the Windows Phone OS.
And finally, if you want to know how the Finns feel about losing a fat slice of their biggest firm to a U.S. tech giant, then look no further than here (the gist of the post being that they’ll get over it). As way of compensation, Finland will host a brand-new $250 million data center courtesy of, you guessed it, Microsoft. No chances of that overheating in winter, methinks.
[Image: Leaving Helsinki by Flickr user LHOON]