What will be left of Nokia after Microsoft's deal closes?

Nokia Solutions and Networks will be one of the three businesses Nokia will run after Microsoft's deal closes.

Monday evening brought the surprise announcement that Microsoft was indeed going to purchase at least part of its long running Windows Phone partner Nokia. The $7.17 billion cash deal will mean that Nokia will sell its smartphone hardware business to Microsoft, among other things. However, Microsoft didn't pay to acquire all of Nokia.

Yes, the Finland-based company will still be around when and if Microsoft closes the deal in the first quarter of 2014. So what will Nokia be like after that date? the company's press release states that Nokia will still have 56,000 employees after the transfer of 32,000 team members to Microsoft is completed and will operate three business divisions.

One of the three businesses that Nokia will run is Nokia Solutions and Networks, or NSN. The telecommunications equipment division was recently a joint venture between Nokia and Siemens but Nokia bought Siemens' stake in the company just a few weeks ago for 1.7 billion euros, or about $2.2 billion.

Nokia will also keep its HERE mapping and location section, which is used in the Nokia Maps apps in its Windows Phone devices. Finally, Nokia will still have its Advanced Technologies business, which the company claims will continue to expand its patents holdings while also working on new projects in "connectivity, sensing and material technologies, as well as web and cloud technologies."

Source: Nokia | Image via Nokia

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21 Comments

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That's exactly what's going to happen. All future phones and tablets running Windows will likely be designed and branded by Microsoft. Essentially, Microsoft has conceded that Apple's business model of controlling both the hardware and software is the way to go. I can't really blame them given the total and utter lack of innovation coming from the OEMs. I don't think Microsoft will make it's own desktop or laptops (except the Surface Pro hybrid), but that's a shrinking market anyway ...

sabrex said,
That's exactly what's going to happen. All future phones and tablets running Windows will likely be designed and branded by Microsoft. Essentially, Microsoft has conceded that Apple's business model of controlling both the hardware and software is the way to go. I can't really blame them given the total and utter lack of innovation coming from the OEMs. I don't think Microsoft will make it's own desktop or laptops (except the Surface Pro hybrid), but that's a shrinking market anyway ...

The Apple business model will never work for MS. No matter how hard MS try it can not emulate Apple model and vice versa. There is a reason for Apple to have small share in computer desktop and MS over 90% share. One of the main reason is Apple business model. Why Android has such a huge market share, its because Android is following MS model which made MS so successful in PC era. Now Android is going to be next MS, Apple will remain Apple, and MS will be confused corporation and will loose its strengthening position.

iron2000 said,
So now Nokia is like Sega?
No more hardware.

Well, hopefully Nokia doesn't forget that they used to make things other than hardware as Sega did... LOL

Neobond said,
I guess that answers the possibility of an Android Nokia phone being made available

While it's obviously a highly unlikely possibility as Nokia won't be making phones now, they still retain the Nokia brand. You won't ever be getting more Nokia phones made by Nokia, but they could eventually decide to reach an agreement with a third party OEM to release their phones under the Nokia brand.

It would be an utterly weird move but since the Nokia brand still has some mindshare in the phone market they might capitalize on that.

But yeah, no Android phones from the former Nokia devices unit, that's a given

While it's obviously a highly unlikely possibility as Nokia won't be making phones now, they still retain the Nokia brand. You won't ever be getting more Nokia phones made by Nokia, but they could eventually decide to reach an agreement with a third party OEM to release their phones under the Nokia brand.

It would be an utterly weird move but since the Nokia brand still has some mindshare in the phone market they might capitalize on that.

But yeah, no Android phones from the former Nokia devices unit, that's a given

I'm sorry but that's just stupid. MS is buying the phone division of Nokia, which includes the brand with regards to phones, and they will definitely have an agreement where Nokia would not be able to enter the smartphone business again under that brand name.

hipporama said,

I'm sorry but that's just stupid. MS is buying the phone division of Nokia, which includes the brand with regards to phones, and they will definitely have an agreement where Nokia would not be able to enter the smartphone business again under that brand name.

Microsoft will not own the Nokia brand as it relates to Smart Phones. They are only licensing it. Though I'm sure there is a restriction as well on Nokia's use of that for a set period, they could certainly at some point license it to someone else...

Really an odd arrangement. Buying a well known brand without the brand is ridiculous.

M_Lyons10 said,

Microsoft will not own the Nokia brand as it relates to Smart Phones. They are only licensing it. Though I'm sure there is a restriction as well on Nokia's use of that for a set period, they could certainly at some point license it to someone else...

Really an odd arrangement. Buying a well known brand without the brand is ridiculous.

Just think of it like going out and buying a copy of Windows and then installing it on your PC only to find that you don't own the copy of Windows you thought you bought.

Or think of it like Microsoft just clicked on the OK button sooner than read than EULA - so what if we are buying a multi national corporation and who the hell reads EULA's anyway right.

Or think of it like eBay buying Skype... but not actually buying Skype and then selling Skype when they realised they couldn't make any use of the thing they bought without buying the underlying technology that they didn't buy when they thought they were buying Skype.

From the Nokia press release:
Microsoft has agreed to a 10 year license arrangement with Nokia to use the Nokia brand on current Mobile Phones products. Nokia will continue to own and maintain the Nokia brand. Under the terms of the transaction, Microsoft has agreed to a 10 year license arrangement with Nokia to use the Nokia brand on current and subsequently developed products based on the Series 30 and Series 40 operating systems.