Microsoft is buying Nokia to cement the tech relationship between the two giant firms. But how much of a future does Nokia have, given its sales troubles in the smartphone market? Well, at least one person is optimistic. Risto Siilasmaa, temporary CEO of Nokia, says he sees the company having a long and successful future that lasts at least 150 years.
The figure isn’t a random one. Nokia, having begun life as a paper company, is about 150 years old right now. The core business has changed, and Siilasmaa admits the company “will look very different without the mobile devices and services business,” but it still retains serious value in its HERE location and mapping business, and its networks and Advanced Technologies research business. Nokia has long been known for blowing billions on R&D, although it hasn’t been great at translating that research into products.
Our take? Nokia is certainly capable of pulling off a dramatic pivot, and there’s no doubt there is value and income potential in the remaining parts of the business. But can the company really turn these assets into a 150-year business? That’s going to be very difficult.