Speculation continues that Microsoft will buy Nokia's phone divison

Way back in May we first covered that Nokia may sell its phone division to Microsoft. Those rumors have again show their face and this time it was picked up by Bloomberg citing Danske Bank saying that "the mobile-phone maker may sell its smartphone business to Microsoft Corp".

Of course, like any good rumor, Nokia's stock jumped up a healthy 3.2 percent on the rumors and for those that may not know, Nokia is more than just a mobile phone vendor so this would not kill the entire company.

If Microsoft would purchase the unit, it would take them down a similar path to Google who recently made a move to snatch up Motorola Mobility. But, if Microsoft does purchase the unit, it could unsettle the relationships with its current vendors such as HTC and Samsung who also make Windows Phone hardware.

Will Microsoft purchase the unit? It makes for an interesting thought as Microsoft is primarily a software maker and bringing in a hardware company would allow it to have complete control over its products. Only Microsoft knows at this point whether it will actually happen, but for now the rumor is still very much alive.

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16 Comments

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Doubt it and hope not. Microsoft's focus is mostly on software, and getting into hardware means competing with your clients who buy your software. I don't think Microsoft has enough clout to sell Windows Phone on its own.

It appears that Microsoft is making a conscious effort to migrate away from the notebook and desktop PC business. First, its to-be-released Windows 8 is for tablets, and now a rumor to buy Nokia's phone division. Tablets...(smart)phones, are they really different, except for size?

This won't happen happen for the same reason they didn't buy the HP PC division: Phone makes would start seeing Microsoft as a competitor.

Coi said,
This won't happen happen for the same reason they didn't buy the HP PC division: Phone makes would start seeing Microsoft as a competitor.

wonder what they will see google as when Motorola's mobile division is owned by them...

neufuse said,

wonder what they will see google as when Motorola's mobile division is owned by them...

All things being (hypothetically) equal between Nokia's and Motorola's adquisitions, if Nokia was owned by MS they wouldn't have to pay for WP licenses, which would give them an edge over competitors.

TechieXP said,

Because they don't own it. A partnership is not the same as ownership.

It's run by an MS guy. It exclusively makes Windows devices now. I'd say that's the definition of ownership.

"Way back in May we first covered that Nokia may sell its phone division to Nokia"

Lol. This is interesting.

OT: I think this won't happen soon. I think it would be great though. But Nokia can save itself without being bought by Microsoft.

This might not be a bad thing and honestly Nokia needs a saving grace as they went from king to jester rather quickly since the smart phones have taken popularity away from standard phones.

the better twin said,
I doubt this would happen. the current partnership they have is win-win for both companies.

Yeah, there is no reason to do this and lets not forget Nokia still sells the most phones round the world and that includes non smart phones. MS only care about smart phones. So, you've lost 2/3 or more of the Nokia phone business if you buy them. It's not going to happen.

The Nokia deal is only to help MS get a bigger user base and phone variety. Once that is done, all the other cards fall into place which is more manufactures making devices. Make deals for nice hardware from whoever and the rest is history.

I guess the article is meant to say that Nokia plans to sell to MS, not to themselves...

Also, is this really going to happen? Both CEOs has plainly stated that a deep cooperation is the best for both companies.
And there is the recent acquire of Skype, how much more money will shareholder let MS spend?