Nokia chief Elop, a former Microsoft executive, will return as Microsoft's board ponders a successor to current CEO Steve Ballmer, who will depart sometime in the next 12 months after initiating a reorganization intended to transform the software company into a devices and services group in the mould of Apple Inc.
Microsoft Corp said it will buy Nokia Oyj's phone business and license its patents for 5. Nokia chief Elop, a former Microsoft executive, will return as Microsoft's board ponders a successor to current CEO Steve Ballmer, who will depart sometime in the next 12 months after initiating a reorganization intended to transform the software company into a devices and services group in the mould of Apple Inc.
The sale of Nokia's phone business marks the exit of a year-old company that once dominated the global cellphone market and remains one of Europe's premier technology brands, even though Apple and Samsung Electronics' ascendancy all but reduced it to irrelevancy in Asia and North America in recent years.
Plus the PC/laptop market is still declining. Microsoft is only added their apps and services to other platforms or else they risk loosing more market share. Listen when billion smart phones sold last year (), and billion are suppose to sell this year (). The market is still growing. Nokia seemed to be lagging in the race. Where Samsung from nowhere entered the race and focused on innovation as its core competence to gain the market share, Nokia was very late to realize this fact. Please note that while market share was declining unit sales were increasing before that announcement. It is decline of unit sales/profit that is fatal in this kind of situation. For a company that have healty underlying assets/organization temporary market share decline is not a problem as long as it readjust accordingly.
Many first reactions to the deal will be emotional," said Alexander Stubb, Finland's minister for European Affairs and Foreign Trade, on his Twitter account. The sale price of the phone business, at about one-quarter of its sales last year, represented a "fire sale level," according to analyst Tero Kuittinen at consultancy Alekstra, although others disagreed on pricing.
Sales of Nokia's Lumia series have helped the market share of Windows Phones in the global smartphone market climb to 3. Canadian Elop, hired from Microsoft inhas been cited among the frontrunners to take over from Ballmer, criticised for missing the mobile revolution, kicking off Microsoft's foray into the market with the tepid-selling Surface tablet only in Buying Nokia's gadget business thrusts Microsoft deeper into the hotly contested market, despite some investors urging the company to stick to its core strengths of business software and services.
Lower margin Activist fund manager ValueAct Capital Management, which has been offered a board seat, is among those concerned with Ballmer's leadership and his attempts to plough headlong into the lower-margin, highly competitive mobile devices arena. Others applauded Ballmer's aggressive gambit.
So buying Nokia comes at the right time," said Carolina Milanesi, an analyst at Gartner.
How else could Microsoft achieve this? Julie Larson-Green, who in July was promoted to head a new Devices and Studios business in Ballmer's reorganisation, will report to Elop when the deal is closed.
Analysts say Elop's bold bet in to adopt Microsoft's untested Windows Phone software has yet to pay off. It did not say what roles they would take there. The deal is expected to close in the first quarter ofsubject to approval by Nokia shareholders and regulators.Nerval's Lobster writes "Last week, research firm IDC issued a report suggesting that Windows Phone shipments exceeded those of the iPhone in seven countries around the world, including Argentina, India, Poland, and Russia.
The data startled some people — Daring Fireball's John Gruber, for exa. Get the latest news and analysis in the stock market today, including national and world stock market news, business news, financial news and more.
The market response to Nokia's revival has been swift and overwhelming. Less than a year after its return to the market, Nokia has risen to become the third most popular smartphone manufacturer in.
* Declining profits and market share in smartphones segment * No plan B if the collaboration with Windows doesnt work out * Applications on windows operation system only exceed to 50, compared to Apple’s , * The ”Osborne effect” created by announcing windows phone before its launch impacted on sales.
At the same time, market forces, are driving the cable industry toward virtualization, driven by a hyper-competitive market where service velocity combined with declining revenues have created an imperative for an agile service delivery environment.
In we will see significant traction toward virtualization.
Plus the PC/laptop market is still declining. Microsoft is only added their apps and services to other platforms or else they risk loosing more market share.
Listen when billion smart phones sold last year (), and billion are suppose to sell this year (). The market is still growing.