Microsoft has branched out by signing up to buy Nokia’s mobile business.
We give you an insight into this plan, thanks to WebHostingBlueBook.com, which was in place prior to Microsoft’s CEO Steve Ballmer’s making his announcement to retire.
The deal
- The deal, which has come in at a staggering 5.4bn euros, is part of the computer giant’s plans to transform itself into a company which specialises in all sorts of devices and services – rather than just computers and software.
- As part of the arrangement, Nokia will license its existing patents to Microsoft as well as its mapping services too. The tech firm will also become owner of the mobile corporation’s Lumia and Asha products.
- More than 30,000 Nokia employees will also be transferred over to Microsoft as part of the purchase.
- The acquisition is due to be complete by the early part of 2014.
Natural step
Some might consider it a gamble, but it was the next logical move for Microsoft and Nokia following on from the two companies’ ongoing partnership. About two years ago, the two businesses joined forces to bring out the smart Windows phones. This meant Microsoft went from having almost no place in the mobile market to its many offerings today. And now with Nokia under its belt, the company can now focus on being a top player in the mobile market.
Nokia has unfortunately taken a back seat against its rival market leaders Apple and Samsung. This means the business had to take action and do what was right in order to ensure its future and the jobs of its employees.
Bright future
Microsoft may have been slow in taking its slice of the mobile devices sector, but its new focus will allow it to get back to what it does best – leading the computer technology industry.
Many people are choosing to buy smartphones and tablet computers instead of PCs and laptops, which is why this move has been vital in order for the company to enjoy continued success.
Microsoft may have taken its time in launching its smartphones and Surface tablet computers, but what may have appeared to be a weakness is sure to turn into one of the company’s biggest strengths in the not too distance future.
All you need to do is wait and see what Microsoft has planned next within the mobile technology world, once the deal is signed and sealed.
What about Nokia?
Microsoft is only buying out the devices and service division of the Finnish Nokia business. This means Nokia will still exist and run, but will focus on other sectors such as its mapping service.
So, having led the mobile market previously before other brands took over, it looks like the company will be leaving its manufacturing days behind and, instead, become a business specialising in technology and IP licensing.
What does this mean for you?
This move won’t affect you, as the consumer, because the Nokia brand will still be available to buy for the foreseeable future.
However, it looks likely that Microsoft will be encouraging you to upgrade your current mobile phone to one of the Lumia or Asha handsets.