Microsoft Buys Nokia for 5.44 Billion

Reuters) - Two years after hitching its fate to Microsoft’s Windows Phone software, Nokia collapsed into the arms of the U.S. software giant on Tuesday, agreeing to sell its main handset business for 5.44 billion euros ($7.2 billion).
Nokia, once the world’s dominant handset maker, has failed to close a yawning lead opened up by Apple and Samsung in the highly competitive market for smartphones and will now concentrate on its networking equipment unit, navigation business and technology patents.

Nokia’s Canadian boss Stephen Elop, who ran Microsoft’s business software division before jumping to Nokia in 2010, will return to the U.S. firm as head of its mobile devices business - a Trojan horse, according to disgruntled Finnish media.



But the sad part is they lost their ability to be Innovators and became Corporate Pirates instead… so sad…:sad:Maybe if they spent all that money to make a decent O/S W9 that would do more for their bottom line…

[QUOTE=coolcolors;2702562]But the sad part is they lost their ability to be Innovators and became Corporate Pirates instead… so sad…:sad:Maybe if they spent all that money to make a decent O/S W9 that would do more for their bottom line…[/QUOTE]

Spending US$300 billion instead of US$30 billion does not necessarily improve the innovative aspect of mass market operating system software such as Microsoft Windows and Google Android. Both companies have always had that much money to invest on the operating systems. Same with Apple, IBM, AT&T, Xerox, Samsung.

Microsoft could have spent that money to make some decent hardware by buying Asus and Foxconn of Taiwan instead of Nokia of Finland and Skype of Estonia. The combined cost of acquring the two European companies amount to approximately US$16 billion. Bill Gates could have donated five America-class amphibious assault ships with that.

“Microsoft” and “Innovator” used seriously in reference to each other? Hmmm - sounds like a history lesson needs to be learned, starting with CP/M. sdPascal. Displaywriters. Parc.

It is estimated Samsung Electronics recorded US$30 billion sales and US$6 billion profits from its mobile business department during the last quarter (2013/07~09). Apple made more proifts out of smaller sales. Apple can afford to buy several Nokias and Motorolas every year.

The number of world’s mobile telephone subscribers is probably somewhere between five billion and six billion. One fifth of that is Chinese and Chinese mobile device manufacturers tended to do well in domestic Chinese markets whereas South Korean counterparts make most of the sales in overseas markets. Japanese manufacturers make advanced, well-designed phones and tablets and laptops with LTE and wireless connectivity, but there was no Japanese maker aggressively marketing outside Japan. Both Chinese and Japanese can introduce sometime in the coming years some things that could defeat iPhones and iPads. The combined marketshare of Apple and Samsung in China and Japan is small, not negligible but smaller than the marketshare controlled by Chinese and Japanese respectively. For some mysterious reasons that cannot be easily understood by someone outside the northeastern part of Asia, Samsung and LG will never gain meaningful marketshare in those markets. Apple will continue to make big money thanks to the existence of hundreds of millions of the most loyal customers. That cannot continue forever though. Maybe three years. Maybe five years. Samsung can continue to rise, but it can also become another disintegrated South Korean chabol anytime. The third king of Samsung is also Lee, the grandson of the founder Lee Byungchul, the son of Lee Gunhee. He’s Samsung’s Kim Jungun. Just like Kim Jungun, educated in the West, liberal, not very strict, not very sharp, not so charismatic as his predecessors had been in their own times. History will not repeat itself.

Though one of the first companies providing mobile telephone service in the world, Nokia ceased to exist as a great mobile device manufacturer approximately ten years ago. That was already years after Apple first released Newton. Samsung was experimenting powerful phones and other types of mobile devices, some with somewhat confusing success with varied results in different markets. Most mobile service providers and most computer companies equally ignored such developments in technologies and markets as it was the convenient option and excuse to do nothing while continue to earn great salaries then. But Europe did not lose everything. The world’s mobile equipment market is still owned by European companies. A few Chinese makers are trying, but it will take at least ten years for them to catch up in the lower-end category and make only small profits. Though Samsung and Intel are the two largest semiconductor companies, Europe still has some of the most important such as ASML and ARM. That’s only the surface. Looking deeper, productivity per capita’s still extremely low in South Korea. Half to quarter as small in mainland China. Average employee makes twice or more at Google, Apple, and Microsoft than at Samsung Electronics, Samsung’s highest-paying company, while working half as many hours. It’s amazing to see people under extreme stress work and abuse one another at home and on the net in general while states and economies still able to function.

[QUOTE=coolcolors;2702562]But the sad part is they lost their ability to be Innovators and became Corporate Pirates instead… so sad…:sad:Maybe if they spent all that money to make a decent O/S W9 that would do more for their bottom line…[/QUOTE]

CC, that is so true. But it happened with a little help. In 2011 Nokia introduced a smartphone, Nokia N9 (in Finland it was called: Lankku) with a Linux-based MeeGo (Harmattan) OS. It was the first and last Nokia with MeeGo. It was considered one of the best smartphones ever made. And now comes the interesting part. In August 2011 Stephen Elop (former Microsoft employee) announced that it was the first and last Nokia with MeeGo OS, and it would not be marketed in the US, Canada, UK etc… the biggest markets. Well… the rest is known what happened next to Nokia.

P.S.: I had a chance to use Nokia N9. It was really an amazing smartphone (Texas Instruments OMAP 3630, eMMC chip (16 or 64 GB), OLED screen, anti-glare polarizer, accelerometer, GPS, WiFi, GPS navigator, Nokia Maps, 8.7 megapixel camera, dual led flash, Carl Zeiss lens, noise cancellation, High Speed USB 2 (micro), BT 2.1, FM receiver/transmitter, NFC, support of wireless keyboard, headphones, loudspeakers etc., battery 11 hours continious talk, 19 days standby…)

MeeGo has become Tizen which now is just one of Samsung’s latest attempts concerning mobile OS whereas Nokia’s fully with Windows.

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