Nokia one of the major manufaturer of mobile phones and a comany to have approximately about 40% of the total maket sales of the phone worldwide.
Nokia was founded as a wood-pulp mill
in south-western Finland by Fredrik Idestam. Idestam team up with co-founder of
the company Leo Mechelin in 1871 and gave the name NOKIA to their joint
venture.The name Nokia come from the river named
Nokianvirta where the paper mill was established.
Recently this company is being
overtaken by the Microsoft which has spent more than $7 billion dollar to
purchase Nokia’s devices and services.
The company has shut down its various
manufacturing plants in Finland, Mexico, and Hungary. Nokia has officially
confirmed to close its plants as it shifts production to Asia, as they wanted
to shift their manufacturing unit closer to the markets so that they could
provide their products more quickly, can introduce innovations into the market
easily and can the more competitive.
Lots of people are going to be affected by
company’s this decision as about 4,000 jobs would be affected.
Microsoft spent about $7.2billion for
Nokia assets. The $5billion dollar is spending for the Nokia device and services,
the brand name Lumia and for Microsoft to use its previously existing mobile
phones.
The remaining money is for the 10
year license for Nokia extensive patent portfolio, Microsoft gets the right to
use the Nokia’s name in connection with feature phones for 10 years.
According to the deal Nokia can’t use
its brand name to sell mobile phones for the period of 30 months, therefore Nokia
could re-enter in market in the calendar of 2016.
Nokia employs 88,000 people, and 32,000 will
become Microsoft employees once the deal is complete, including 4,700 currently
located in Finland.The current CEO of nokia Stephen Elop will join back his former
company Microsoft.
Nokia still exists in the market but
not as mobile phone makers
The company has these three main businesses
as of now:
- Network infrastructure: Nokia has a healthy network infrastructure
business after buying out Siemens share in Nokia Siemens Networks earlier this year.
- Here Maps: Nokia will retain its mapping and location
services businesses. That means Here Maps will not be a Microsoft product and
Nokia will remain free to work on integrating
navigation to various system
- Technology development: Nokia
will continue to develop technologies that it will patent and sell/license to
others.
There will be no new “Nokia” in the market anymore
According to the deal Microsoft can’t use the brand name to launch
any new phone in the market for 30 months while it can use the Nokia name for
the existing phones for 10 years
With entire control over all the units after the deal now the Microsoft
can fully devote itself to promote its platform and we could see some awesome
phones coming with the name of Microsoft in the coming future running on the
windows platform.
Let’s see what changes Microsoft comes with in mobile markets.
