Holly molly who saw this one coming ? Microsoft has just announced the acquisition of Nokia‘s Devices & Services business alongside licensing it’s mapping an patents portfolio for €5.4Billion in cash today. Many like me have guessed that this may have been the big plan all along since the day Stephen Elop was appointed CEO of the troubled phone maker exactly 3 years ago in one week. After the successful launch of several Nokia Windows Phone devices in the past couple of months and the continued growth of Windows Phone’s market share todays seems to be the right time for Microsoft to start a new chapter by acquiring the best Phone maker in the world and securing the biggest patent portfolio in smart device patents.
Here’s are the principal terms of today’s acquisition deal:
Microsoft is spending about EUR 3.79 billion to acquire Nokia’s core cellphone business. Of that EUR 1.65 billion is for Nokia’s devices business
Microsoft will pay $2.18 billion to license Nokia’s intellectual property
Nokia’s patent portfolio includes some 8,500 design patents ranging from mapping to network/cell technologies with approximately 30,000 utility patents and patent applications, ownership of the Lumia & Asha brands and a ten year license to you the Nokia brand on feature phones. (this means that Microsoft’s Windows Phones will only be branded Lumia and not Nokia..strange I know..)
About 32,000 Nokia employees are expected to transfer to Microsoft as part of the deal. Off those 18,300 are “directly involved in manufacturing”
56,000 Nokia employees will remain at the company once the deal has closed
Microsoft acquires rights equivalent to ownership for the HERE Mapping apps
Nokia will continue to improve these apps for other platforms
4 year- agreement for mapping data and services: Nokia will provide MS with mapping data and services in exchange of annual payments Microsoft will combine Nokia map data with other sources and also make it available to Windows AZURE users with an additional fee.?
Microsoft’s gross margin on sales of Nokia’s Windows Phone handsets before the deal: less than $10. Expected to grow to $40 after the deal.
Microsoft will build a $250M data center in Finland for consumer purposes (AZURE too?)
Finland will become a core base of Microsoft in Europe and also the center of it’s mobile hardware R&D and manufacturing.
Stephen Elop will step down and CEO of Nokia and head back to Microsoft as the EVP of Devices a job title that was just recently awarded to Julie Larsson Green which will now basically only handle the upcoming fall hardware launches (XBOX One, Surfaces) and report directly to Elop and Ballmer.
Stephen Elop just went from being and external to an internal candidate for the CEO job that Steve Ballmer will leave in the next 12 Months.
Nokia’s top designer Marko Ahtisaari will leave the company in November to “pursue entrepreneurial opportunities,”
Nokia has just released the first beta of Place Tag for its Windows Phone 8 Lumia phones. So what is Place Tag? It is a camera Lens app that allows you to take pictures with POIs integrated in them. Think of City Lens but with ability to snap a shot.
Nokia Place Tag takes more than a photo. It reveals info about the places within your photo, such as museums and famous buildings, which you can then share as a digital postcard with your friends.
Wish you were here?
You can also use Place Tag to get interesting background info about the places tagged in the photo. And if you need directions, that’s also easily available too.
I personally don’t find the whole thing really that useful especially as a separate application. Adding a camera feature to City Lens would have been more logical IMO… You can download Place Tag by scanning the QR code below.
Nokia has just launched the cheapest Windows Phone 8 handset to date and probably also one of the most stylish one. The Nokia Lumia 520 the company’s lowest-end WP8 device but ironically one of it’s best looking one too. It looks a hell of lot like a smaller HTC 8X… So what’s inside this neat little piece of hardware? Well it’s pretty similar to what you will have in the Lumia 620 and the newly released Lumia 720 but it lacks any NFC feature and there’s no Front Facing camera but it does feature the same super-sensitive screen that was first introduced with the Lumia 920.Head over after the break for the hardware specs:
Nokia has officially introduced two new Lumia devices today at MWC. The first one is the Nokia Lumia 720 which will slot directly between the Lumia 820 and 620 in terms of hardware specifications and price. The Finnish company has decided to retain its signature colorful polycarbonate body design on of its line of Lumia handsets and the 720 is no exception. The handset definitely not groundbreaking in terms of hardware or design but does have new 6.7MP camera sensor with a F/1.9 aperture which is a world’s first. Jump after the break to check out the Nokia Lumia 720 hardware specifications:
Nokia is going to unveil at least two new Windows Phone 8 handsets next week in Barcelona during MWC. Both devices are on the lower end- of the spectrum are far from the often rumored (and probably fake?) Nokia EOS. The first one will be the Nokia Lumia 520 pictured above which is meant to be the company’s cheapest WP8 device. Yes even cheaper than the currently universally acclaimed Lumia 620. The second one pictured below is the Nokia Lumia 720 which will slot between the Lumia 820 and Lumia 620.