New in OS X: Get MacRumors Push Notifications on your Mac

Resubscribe Now Close

Microsoft Purchases Nokia's Device and Services Division to Unite Windows Phone Hardware and Software

Microsoft and Nokia today announced that Microsoft will acquire Nokia's Devices and Services unit, allowing Microsoft to unite its Windows Phone software efforts with its primary hardware partner in Nokia. The deal also includes a licensing agreement to provide Microsoft with access to Nokia's mapping services and patents.
Building on the partnership with Nokia announced in February 2011 and the increasing success of Nokia’s Lumia smartphones, Microsoft aims to accelerate the growth of its share and profit in mobile devices through faster innovation, increased synergies, and unified branding and marketing. For Nokia, this transaction is expected to be significantly accretive to earnings, strengthen its financial position, and provide a solid basis for future investment in its continuing businesses.

“It’s a bold step into the future – a win-win for employees, shareholders and consumers of both companies. Bringing these great teams together will accelerate Microsoft’s share and profits in phones, and strengthen the overall opportunities for both Microsoft and our partners across our entire family of devices and services,” said Steve Ballmer, Microsoft chief executive officer. “In addition to their innovation and strength in phones at all price points, Nokia brings proven capability and talent in critical areas such as hardware design and engineering, supply chain and manufacturing management, and hardware sales, marketing and distribution.”
microsoft_nokia
The deal will see 32,000 Nokia employees transfer to Microsoft, with Microsoft also acquiring the Lumia and Asha brands while licensing the Nokia brand for continuity with current Nokia-branded hardware. Microsoft will also acquire Nokia's long-term license with Qualcomm for chip technology.

Microsoft and Nokia have seen some success with Lumia phones running Windows Phone, but the platform remains well short of becoming a third major player in the smartphone market alongside Google's Android and Apple's iOS. By uniting the hardware and software, Microsoft seems intent upon offering a more complete and end-to-end user experience, similar in some ways to Apple's work integration of iOS and iPhone.

Top Rated Comments

(View all)

17 months ago
Glad I came to MacRumors today for this vital piece of Apple news!
Rating: 52 Votes
17 months ago
And excuse my ignorance but... Nokia has something besides a devices and services division? Without their Nokia phone business what is Nokia left with?
Rating: 35 Votes
17 months ago
That's why Elop has been regarded as a Trojan horse since his installment from Microsoft to Nokia. And now he accomplished a lot: to tank Nokia's smartphone business to oblivion and let Microsoft purchase it with a fraction of its value in the past - and return to Microsoft! RIP Nokia, the once global almighty mobile phone giant. I don't know how to describe my feelings.
Rating: 31 Votes
17 months ago
Now when their crap crashes, it's 100% Microsoft's fault!
Rating: 27 Votes
17 months ago
This is HUGE news. I always wanted Microsoft to buy the relevant smartphone pieces of Nokia and it's happened for a reasonable price($7.17 billion). Now MSFT is a fully vertically integrated smartphone maker along with Apple/Google.
Rating: 24 Votes
17 months ago
Two roofs, same suck ----> One roof, same suck
Rating: 22 Votes
17 months ago

Now when their crap crashes, it's 100% Microsoft's fault!


What crashing? My experience with Windows Phone 7.0/7.5/8.0 has been one of utter stability. Maybe 2 crashes in 18 months.
Rating: 22 Votes
17 months ago
And here continues the trend of becoming a devices and services company.....

Now will other handset makers just give up on windows phone entirely?
Rating: 19 Votes
17 months ago
Two drunks holding each other up...

Can't see too many ways where this winds up well.
Rating: 17 Votes
17 months ago

Tiles are hated! :cool: That's why Windows Phones don't sell.


I have a Windows Phone and I vastly prefer the Live Tiles to iOS, at least on a phone. It gives me far greater control over what's displayed on my screen, which at only 4"-5", has a premium of space. I can resize tiles, which I can't do on iOS; I can change their colour scheme, which I can't do with iOS icons; I can delete any tile I chose, which I can't do with all iOS icons; and some provide real time feedback which has never been a function of iOS icons. It is a different mobile experience that is, in some ways, better than iOS and, in some ways, worse. Among the main reasons it hasn't been selling is a dearth of app store software, when compared to both iOS and Android. Not to mention that the iOS/Android aesthetic has become so ubiquitous it has become difficult to get people to "think different", even when different could be better. My how the tables have turned.
Rating: 17 Votes

[ Read All Comments ]