Microsoft eyes $50bn market post Nokia deal
Microsoft has officially announced it has completed its acquisition of the Nokia Devices and Services business. The takeover has been approved by Nokia shareholders and by governmental regulatory agencies around the world and arrives right on schedule, as announced earlier this week.
As part of the transaction, Microsoft will honour all existing Nokia customer warranties, beginning April 25, 2014. Approximately 25,000 employees will be transferring to Microsoft from around the world.
“Today we welcome the Nokia Devices and Services business to our family. The mobile capabilities and assets they bring will advance our transformation,” said Microsoft CEO Satya Nadella. “Together with our partners, we remain focused on delivering innovation more rapidly in our mobile-first, cloud-first world.”
Former Nokia President and CEO Stephen Elop will directly report to Nadella and will serve as executive VP of the Microsoft Devices Group, overseeing development and progress of the Lumia range and other Nokia phones, Xbox hardware, Surface PCs and Perceptive Pixel (PPI) products.
Microsoft says in a press statement that Windows Phone is the fastest-growing ecosystem in the smartphone market. “Furthermore, with the Nokia mobile phone business, Microsoft will target the affordable mobile devices market, a $50 billion annual opportunity, and delivering the first mobile experience to the next billion people while introducing Microsoft services to new customers around the world.”
The statement also confirms that Nokia as a brand will become largely irrelevant when it comes to handsets. Microsoft says Microsoft Mobile Oy develops, manufactures and distributes Lumia, Asha and Nokia X mobile phones and other devices, with no mention of the Nokia brand in the statement when talking about what Microsoft constitutes.
Microsoft also reiterated that it will not acquire Nokia factories in Masan, South Korea, and Chennai. The latter will stay with Nokia due to the ongoing tax row in India that prevented the transfer.
As part of the transaction, Microsoft will honour all existing Nokia customer warranties, beginning April 25, 2014. Approximately 25,000 employees will be transferring to Microsoft from around the world.
“Today we welcome the Nokia Devices and Services business to our family. The mobile capabilities and assets they bring will advance our transformation,” said Microsoft CEO Satya Nadella. “Together with our partners, we remain focused on delivering innovation more rapidly in our mobile-first, cloud-first world.”
Former Nokia President and CEO Stephen Elop will directly report to Nadella and will serve as executive VP of the Microsoft Devices Group, overseeing development and progress of the Lumia range and other Nokia phones, Xbox hardware, Surface PCs and Perceptive Pixel (PPI) products.
The statement also confirms that Nokia as a brand will become largely irrelevant when it comes to handsets. Microsoft says Microsoft Mobile Oy develops, manufactures and distributes Lumia, Asha and Nokia X mobile phones and other devices, with no mention of the Nokia brand in the statement when talking about what Microsoft constitutes.
Microsoft also reiterated that it will not acquire Nokia factories in Masan, South Korea, and Chennai. The latter will stay with Nokia due to the ongoing tax row in India that prevented the transfer.
