Published on September 3rd, 2013 | by James Smythe0
Microsoft buys Nokia’s devices for $7.2 billion
Microsoft have made a very bold step by purchasing Nokia’s Devices and Services unit, bringing the Lumia lineup under the Redmond roof. The move unites Windows Phone 8 with its biggest hardware supporter, giving the company the integrated mobile offering it’s been looking for with Surface and other devices. When the deal closes in the first quarter of 2014, Microsoft will pay 3.79 billion Euros for Nokia’s business, plus another 1.65 billion Euros for its portfolio of patents.
What might appear strange to some is that the purchase does not include future licensing deals for the Lumias, however it does own the Asha brand outright which is Nokias low end phones. This appears to be Microsofts main target as it will give them access to millions of customers in developing countries that it plans to use as an “on-ramp to Windows Phone.”
Unfortunately this means the Nokia brand, in the mobile phone industry, is effectively dead. It will also be interesting to see if Microsoft carry on the high end strategy but under a different name than Lumia