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Microsoft To Buy Nokia? |
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#1 |
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Microsoft To Buy Nokia?
I had read rumours about that the other week but with Nokia's shares plummeting 18% this week it looks increasingly likely that Microsoft may well buy the troubled phone maker.
http://www.bbc.co.uk/news/business-13619601 http://www.theregister.co.uk/2011/05..._buyout_rumor/ |
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#2 |
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I've seen the rumours too, Eldar Murtazin is saying it's a done deal for $19bn, and he does have a pretty good track record, but I can't see it myself.
Firstly, it would kill any relationship with other OEMs - why would HTC, Samsung, LG, etc want to compete with the people they're paying the license fee to? It wouldn't make much sense. Secondly, Microsoft are a software company. Yes they've had success with the Xbox, but the Zune didn't really work out and Kin was a massive black hole for them (some estimates say the whole debacle cost them around $1bn). I can't see them stepping into phone hardware really. And thirdly, Nokia isn't just in mobile phones. They are a massive telecommunications company with fingers in landlines, networking, and many other pies. Pies that Microsoft has no interest in or business in. The most that is likely to happen is that Microsoft has bought in to become a partner with Nokia - not bought them outright. That would make more sense, as then Nokia could maintain some autonomy while Microsoft could better field-test new features/specs for WP7. |
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#3 |
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#4 |
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I'll never own a Nokia again. Sad times.
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#5 |
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Join Date: Aug 2004
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I'll never own a Nokia again. Sad times.
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#6 |
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Why never?
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#7 |
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Because they'll only come with Windows and I've invested quite a sum of money on games and apps with Android.
But you're right investing in the third-party software creates lock-in. Which makes one think, if Microsoft doesn't move a lot faster, there won't be any customers left i.e. even ones who like the look of their product will be locked-in. But it's interesting to see just how many people are taking account of this sunk investment or not. Seems like a lot of people focus on free apps in Android (less true for iPhone) so perhaps overall there's less lock-in than one thinks. Will be interesting to see how things pan out and why. |
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#8 |
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Quote:
I've seen the rumours too, Eldar Murtazin is saying it's a done deal for $19bn, and he does have a pretty good track record, but I can't see it myself.
Firstly, it would kill any relationship with other OEMs - why would HTC, Samsung, LG, etc want to compete with the people they're paying the license fee to? It wouldn't make much sense. Quote:
Secondly, Microsoft are a software company. Yes they've had success with the Xbox, but the Zune didn't really work out and Kin was a massive black hole for them (some estimates say the whole debacle cost them around $1bn). I can't see them stepping into phone hardware really.
Which is why buying Nokia would make sense, established name, (although arguably with a pretty poor reputation at the moment.) As you say they got burnt badly with Kin, so maybe buying a company with the experience and knowledge, along with all the manufacturing, R&D etc. facilities in place has got to be cheaper than starting from scratch. And if it goes wrong they can always cut their losses and flog them again.Quote:
And thirdly, Nokia isn't just in mobile phones. They are a massive telecommunications company with fingers in landlines, networking, and many other pies. Pies that Microsoft has no interest in or business in.
As I understand it from the reports it's only the mobile division of Nokia that's for sale. It's not that uncommon for companies to flog off various arms that aren't doing to well. It would be an interesting move, I'm no Apple fan but maybe MS have looked at what they've achieved and are looking to grab a slice of that pie for themselves. |
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#9 |
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Because they'll only come with Windows and I've invested quite a sum of money on games and apps with Android.
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#10 |
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I think even Elop made it clear, Nokia and Windows isn't forever, they want to be ready for "the next disruption" in Elop's words.
But you're right investing in the third-party software creates lock-in. Which makes one think, if Microsoft doesn't move a lot faster, there won't be any customers left i.e. even ones who like the look of their product will be locked-in. But it's interesting to see just how many people are taking account of this sunk investment or not. Seems like a lot of people focus on free apps in Android (less true for iPhone) so perhaps overall there's less lock-in than one thinks. Will be interesting to see how things pan out and why. |
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#11 |
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I was not aware that any Nokia handsets ran Android?
![]() I will never be getting a Nokia because they don't run Android. |
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#12 |
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Lock in is more than just paid apps. There's having to look for solutions all over again... free or paid. Familiarity in other words, ironically it's one of the things that kept us with Windows on our PCs but it won't do it for phones. Android and iOS have already got there.
You might be right but I think it's too soon to call on that front. |
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#13 |
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Read the posts again.
I will never be getting a Nokia because they don't run Android. |
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#14 |
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Pretty irrelevant as far this thread goes then.
Nokia may use Android in the future but if MS buys them it'll never happen. |
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#15 |
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Doesn't seem to have done Apple much harm. Although you'd expect MS to offer multiple handsets rather than the Apple single handset offering. In the long term there has got to be more profit in selling the whole package than just licensing the software.
I know it's not uncommon for conglomerates like Nokia to sell off specific underperforming arms of their business, but you have to remember that to 99% of the world, Nokia IS mobile phones. Unless Microsoft renamed the mobile phone division (unlikely, else what's the point in buying the name), Nokia would have to change their name to avoid market confusion (also unlikely, as they've been around for a very very long time). When I said Microsoft was a software company, I meant it in the way that WalMart is a retailer. While it would make logistical sense for them to buy, say, DHL, they wouldn't do it because it's not their wheelhouse. Just like Manchester United will never buy Umbro, or Warner Bros. will never buy Kodak. |
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#16 |
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Additionally, what possible benefit is there for MS to buy Nokia? They've got exclusivity from Nokia in the smartphone space, they've got very close alignment of their teams - they've got everything they need. There's no incentive for Google to buy Nokia - they've got a ton of committed hardware partners and are already doing very well and their main agenda for android is to push their services rather than the software itself. There are no other major players in the mobile space. WebOS isn't going to go anywhere.
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#17 |
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Quote:
I had read rumours about that the other week but with Nokia's shares plummeting 18% this week it looks increasingly likely that Microsoft may well buy the troubled phone maker.
http://www.bbc.co.uk/news/business-13619601 http://www.theregister.co.uk/2011/05..._buyout_rumor/ |
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#18 |
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Read the posts again.
I will never be getting a Nokia because they don't run Android. As for Eldar being accurate - not really. He comes out with so many rumours that some of it is likely to come to fruition. But I was under the impression that M$ had stated that they have no intent to buy Nokias mobile division. Could happen, but seems unlikely. At the end of the day, the drop in shares and Nokias problems are all down to lousy management, worst of them being Elop - he's totally mismanaged the whole transition, and appears to be one of the worst CEOs I've ever witnessed. |
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#19 |
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Apple never licensed iOS to anyone. That's the major difference. If Microsoft owned Nokia, then Nokia phones would undoubtedly be given preferential treatment, Nokia would be privy to new specs and upgrades earlier, and the hardware requirements would be driven by what's cheapest for Nokia. I can't see HTC or Samsung being okay with this.
I know it's not uncommon for conglomerates like Nokia to sell off specific underperforming arms of their business, but you have to remember that to 99% of the world, Nokia IS mobile phones. Unless Microsoft renamed the mobile phone division (unlikely, else what's the point in buying the name), Nokia would have to change their name to avoid market confusion (also unlikely, as they've been around for a very very long time). When I said Microsoft was a software company, I meant it in the way that WalMart is a retailer. While it would make logistical sense for them to buy, say, DHL, they wouldn't do it because it's not their wheelhouse. Just like Manchester United will never buy Umbro, or Warner Bros. will never buy Kodak. Maybe a name change would be required, as you say Jo Public know Nokia as a mobile phone company although they manufacture a whole range of networking and telecoms gear virtually unknown to anyone outside of the telecoms/IT industries. Although, a total name change wouldn't be strictly necessary, when Sony and Ericsson partnered up they just combined the names, so we will see MS Nokia handsets? I can see what your saying about Walmat/DHL etc. but MS have made forays into the hardware side of things. Xbox, Zune, Kin as well as a range of PC peripherals. If they want to grow and add value to the company they have to expand, and the way smartphones are going it's got to be a direction worth going in. Apple have the iphone, Google have the Nexus, what do MS have? |
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#20 |
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At the end of the day, the drop in shares and Nokias problems are all down to lousy management, worst of them being Elop - he's totally mismanaged the whole transition, and appears to be one of the worst CEOs I've ever witnessed.
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#21 |
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Join Date: Jan 2009
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Stephen Elop has said that the current rumours have no base to them. So more than likely it's not true.
I don't see why people think Elop is so bad? Just because he's from Microsoft makes him the son of the devil? There's probably a reason he left Microsoft. By the way... Microsoft DO have control over the hardware. Just not all of it like Apple. They TELL the OEM's which Processor and screen type etc. to use. They also tell them the MINIMUM requirements for RAM/memory/screen size/camera quality to use. The OEM's can bring out whatever spec they want as long as it meets the minimum requirements. Zune seems hardly a fail. The real fail is Microsoft's poor advertising of it. There's virtually none. Also... People still write "M$"? Walk into the modern age will you? |
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#22 |
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That's what I was getting at, Apple have kept everything in house. Maybe MS have decided to follow a similar route. And if MS acquire an 'off the shelf' mobile division would they care what Samsung, HTC etc.think? The OEMs will have a licensing agreement for x years, they can either throw a hissy fit and write that money off or they can see out the license period at which point MS won't renew. One of the points that keeps coming up in the iOS v Android threads is that Android is on too many different handsets with various specs, OEM overlays and different iterations of the OS. MS seem to be taking a more Apple approach with Windows Phone, by not allowing the OEMs to mess around with it too much. The next logical step would be to control the hardware that the OS is put on. And the easiest way to do that? Build it yourself.
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#23 |
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Not a surprise, Nokia has been very badly run for the last few years, they only have themselves to blame for letting everyone else not only catch up but also overtake.
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#24 |
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I don't see why people think Elop is so bad? Just because he's from Microsoft makes him the son of the devil? There's probably a reason he left Microsoft.
Especially when WP7 is far from dominant. It'd make Nokia a lot more sense to go Android - and Nokia's great hardware combined with Android would be rather good. |
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#25 |
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Not a surprise, Nokia has been very badly run for the last few years, they only have themselves to blame for letting everyone else not only catch up but also overtake.
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