The long awaited sale of Nokia to Microsoft has finally been completed. This deal which was first announced last September 2013 had to be approved by several global government regulatory agencies before it could push through. Microsoft spent an estimated $7.2 billion to acquire almost all of the Devices & Services (D&S) business of the Finnish company.
Microsoft CEO Satya Nadella announced that “Today we welcome the Nokia Devices and Services business to our family. The mobile capabilities and assets they bring will advance our transformation. Together with our partners, we remain focused on delivering innovation more rapidly in our mobile-first, cloud-first world.”
Nokia CEO Stephen Elop who formerly was in charge of Microsoft’s business software division will return back to the U.S. to become the executive vice president of the mobile devices business. He will be overseeing several products which include Lumia smartphones and tablets, Nokia mobile phones, Xbox hardware, Surface, Perceptive Pixel (PPI) products, and accessories.
So where does the Nokia X fit in on this latest development? When asked about this Elop said that the Microsoft Mobile division will remain “committed to continuing our support for feature phones, the Asha family, and the Nokia X family of devices, announced at the Mobile World Congress in February.”
Of course the main concentration of the company right now will be the Lumia line which runs on the Windows Phone platform. The Nokia X devices which runs on the Android platform is interesting since it has been heavily skinned to look like the Windows Phone interface. This is a great product that Microsoft can use to lure Android users into the Windows Phone platform.
What is not known as of the moment is if we will be seeing more Nokia X devices in the future. If these devices prove to be a hit in emerging markets then Microsoft may come up with new models.
Now that the sale has been completed about 25,000 Nokia employees in 50 countries will be transferred to Microsoft including 4,700 employees in Finland. Microsoft will also have the right to use Nokia’s patents for 10 years. Not included in this deal is the Nokia plant located in Chennai, India which is being investigated by Indian tax authorities and the Masan plant in South Korea which is going to be shut down.