Microsoft buying Nokia's Phone Business

Nokia, the telecom giant is the most trusted brands around the world. It is going through a bad patch with the shares being low. This is triggering a lot of speculation that Microsoft might acquire Nokia. The brand was once the most valued company in Europe. Currently, the company is facing an issue with the shares as they are the the lowest in a couple of decades.


The purchase comes on the heels of what appeared to be a failed acquisition in June, at which point it seemed conversations had broken off entirely. Now the two come together, in what outgoing Microsoft CEO Steve Ballmer called "a bold step into the future." In an email, Ballmer cited the Lumia 1020 as an example of what the companies could do together, but said the phone hadn't caused the marketshare bump it deserved. "Now is the time to build on this momentum and accelerate our share and profits in phones," he wrote.

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Asha Will Become an On-Ramp to Windows Phone

A driving force behind the sale seems to be Nokia's low-end Asha brand, which Microsoft has acquired outright. Asha gives Microsoft a far larger footprint for Windows Phone, and access to millions of customers in developing countries that it plans to use as an "on-ramp to Windows Phone." The emphasis also lends some credibility to the notion that Nokia's high-end strategy isn't working — analysts predicted a horrific Q3 for the company, and its struggles to find a foothold are well-documented. In fact, Microsoft's licensing deal for the Nokia brand doesn't include future Lumias — Nokia as a smartphone brand is effectively dead, as Microsoft takes the lineup in-house.

Nokia Smartphones are Past

Though Nokia was by leaps and bounds Microsoft's best hardware partner for Windows Phone 8, EVP of operating systems Terry Myerson was careful to note that Microsoft's purchase doesn't come with nepotism. As Google has with Motorola, Myerson promised every partner would be treated the same, even quoting a song by The Killers to make his point. And from Huawei to HTC, there are still other partners — Nokia's coming in-house, but Windows Phone 8 isn't being walled off.


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So let's see what would be the combination of nokia-microsoft mobiles in the next days.We all are quite excited about this new made combination.Hope they will work well as a brand on future days.

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