Story 2015-07-20 EXQ5 Microsoft admits failure in Nokia acquisition

Microsoft admits failure in Nokia acquisition

in microsoft on (#EXQ5)
story imageWhen Microsoft announced its deal to acquire Nokia's mobile phone business, Steven A. Ballmer, Microsoft's chief executive at the time, boasted that the deal was a "bold step into the future." But on Wednesday, Microsoft's current chief executive, Satya Nadella, sought to leave that deal in the past. He announced a broad rethinking of the company's phone strategy, a change that includes cutting up to 7,800 jobs, mostly from the phone business, and writing off nearly all of the value of its Nokia acquisition. The move is a clear acknowledgment that the deal was a multibillion-dollar strategic blunder by Mr. Ballmer, who had envisioned it as a way to make Microsoft more competitive in the mobile market.

While Microsoft will not stop making smartphones, Mr. Nadella said on Wednesday that it would no longer focus on the growth of that business. Microsoft has continued to lose market share in smartphones since acquiring Nokia's handset business. The company has failed to turn the Windows Phone operating system, which runs on its handsets, into a vibrant alternative to the two leading mobile platforms, iOS from Apple and Android from Google.

This has been "a big blow" for Finland's economy. The "death curve" of their electronics industry as Nokia faltered and fell to just 2-3 per cent of the global smartphone market, along with falling global demand for paper products and EU sanctions on neighboring Russia, have entrenched the Scandinavian country in a three-year recession. Meanwhile, Nokia has confirmed rumors that it intends to reenter the smartphone market. Nokia certainly won't be recouping the massive investment required to start manufacturing smartphones again, instead they would design the products and earn the royalties, but everything else would be up to whomever they partner with.
Reply 9 comments

MS OS (Score: 0)

by Anonymous Coward on 2015-07-20 23:14 (#EXZ4)

I have to use Microsoft crappy sottware all day at work. There is no way I would have it on my phone. They must be nuts to think that people would actually want more Microsoft in their life.

5110 (Score: 1)

by on 2015-07-20 23:15 (#EXZ6)

Yet there is still a market for nokia 5110 phones.

Not Short-Term Enough (Score: 1)

by on 2015-07-21 01:02 (#EY68)

Microsoft is so big that they couldn't slow down to give their phones enough time to mature. Big companies have a lot of inertia and they don't like to carry the dead weight. It's a shame they burned through Nokia, but maybe Nokia will make a return.

Re: Not Short-Term Enough (Score: 1)

by on 2015-07-23 21:24 (#F8D3)

Such a bizarre statement. MS didn't change Nokia phones hardly at all. They didn't even try. If they didn't want to change them they could have simply not purchased the company. It anything MS was too slow in developing windows phone 8, which according to reviews doesn't suck. But it came well after the iphone and andorid platforms stopped sucking. They were *years* late. The fell asleep at the wheel of inovation, and got crushed. having once had the best mobile os in winmobile circa 2003-2004.

Who owns the rights to the Nokia N9 UI (Meego) (Score: 0)

by Anonymous Coward on 2015-07-21 08:33 (#EZ0S)

I am just sad that the Nokia N9, and specifically the user interface of that phone, doesn't seem to come back. The Joola people have stated that they don't own the rights to the UI, and considering the UI of their phone it doesn't look like they were the ones inventing it either.

Nokia N9 still has the best interface of any touch device I have ever tested: 3 screens.
#1 is apps in a scrollable, configurable list
#2 is all your active apps, running in parallel. Open one, close on, close all
#3 is all your messages, combined in one long chronological scroll list: Facebook, rss, twitter etc. No need to open any web page!
You navigate between the screens by swiping left or right. All apps are closed by swiping from top to bottom, and you leave to the home screen with the app running in the background by swiping from right to left. So elegant and simple

Re: Who owns the rights to the Nokia N9 UI (Meego) (Score: 1)

by on 2015-07-22 13:34 (#F3DQ)

Yes, I remember looking at the N9 a few years ago, and don't remember much other than that I was impressed by how the UI functioned.

Re: Who owns the rights to the Nokia N9 UI (Meego) (Score: 0)

by Anonymous Coward on 2015-07-30 11:51 (#FX92)

Yeah it was probably the best phone I have ever owned (until a 'friend' threw me an my N9 into the sea at a beach party).

"Microsoft admits failure in Nokia acquisition" (Score: 1, Funny)

by Anonymous Coward on 2015-07-22 17:06 (#F43W)

no shit? EEE!

Next failure admission: Skype (Score: 0)

by Anonymous Coward on 2015-07-28 04:24 (#FN10)

Microsoft purchased Skype. Millions left for other services. Microsoft replaced the front end of its software, Lync, with something called "Skype for Business" which is just crap. Both efforts are a failure.