Microsoft has risen to buy Nokia for $7.2 million USD. It makes complete sense for this move to happen, even as market share for Windows Phones stands at the moment. This move does remind us a little about Google’s buyout of Motorola earlier this year in a few ways but also differs.
How so? Well, for starters, “Nokians” aren’t too happy with the sellout. They are posting everyone from Elop (Nokia’s CEO and now possible new Microsoft CEO) being a sellout/trojan horse in the company to them having mixed emotions about it. It makes sense considering the fact that Microsoft’s pledged to cut costs by $600 million annually within the first 18 months (how does that even work?) There are also others who say that this sale was done for “peanuts”, even more so since Motorola sold to Google for over $12 million.
Next, we have Microsoft, much like Google, saying that even though they have purchased their own handset company, they are still there for everyone else who uses their operating system. This move, of course, makes sense, but unlike Google Microsoft just took the powerhouse of Windows Phones under its wing. When most people think of Windows Phone, they think Lumia. When they think Lumia, they think Nokia. When they think Nokia, they think of something of quality from the company that made phones an anti-theft device.
Touching on the whole Nokia brand, there’s something in the Terms of Agreement of this sale that makes me feel a little iffy.
Microsoft is acquiring Nokia’s Smart Devices business unit, including the Lumia brand and products.
Microsoft is also acquiring Nokia’s Mobile Phones business unit … Microsoft will acquire the Asha brand and will license the Nokia brand for use with current Nokia mobile phone products. Nokia will continue to own and manage the Nokia brand. This element provides Microsoft with the opportunity to extend its service offerings to a far wider group around the world while allowing Nokia’s mobile phones to serve as an on-ramp to Windows Phone.
It seems that the Lumia brand will be Microsoft’s, but the Asha will be licensed to Nokia, and of course, Nokia keeps any of the other brands it has such as the Series 30 and 40. My question is, will the next Lumia be labelled as the “Microsoft Lumia” or will they license it off to another company?
It’s safe to say there’s a bit of an uproar with this, but it might end up being for the best. Well, so long as Apple doesn’t start with their “I’m a Mac and I’m a PC” type commercials again.