Nokia Sold to Microsoft

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.