MICROSOFT NOKIA – SITUATION
Microsoft will take over Nokia's Devices and Services business, which includes both Smart Devices and Mobile Devices. In other words: The Lumia, Asha and X series are now all under Microsoft's umbrella. Design teams, supply chain, accessories, employees, developer relations and most of Nokia's manufacturing plants and testing facilities are also on Microsoft's side, as are most of the company's services like MixRadio, Store and more. Here, Nokia's mapping entity, is considered a separate business and isn't included as part of the deal, but Microsoft has agreed to a 10-year licensing agreement. (Additionally, Nokia also retains its Solutions and Networks division, its CTO office and a large number of patents.)
Microsoft will also control IP agreements and any third-party contracts related to Nokia's devices. Symbian should fit in this category, as well as any partnerships Nokia had with Qualcomm and other silicon companies. And in case you were wondering, the company's imaging talent will make the switch over to Microsoft as well.
Stephen Elop, who served as Nokia's president and CEO, is now executive VP of Microsoft's Devices Group and will report directly to CEO Satya Nadella. In this role, he oversees the company's entire hardware lineup: phones, tablets, Surface, Xbox, Perceptive Pixel products (PPI) and even accessories. Additionally, 25,000 Nokia employees will make the transition over to Microsoft.
Why is this happening?
Additionally, Microsoft claims that with a greater understanding of how hardware and software work together, it will be able to apply that knowledge to its relationships with existing partners, developers and operators.
How do Microsoft's partners feel?
Aside from generic press statements, most of Microsoft's partners aren't discussing how they feel about the acquisition, but we're guessing there are mixed emotions. Reports say that Samsung teamed up with Google in China last month, arguing with regulatory officials that Nokia's patent-licensing fees would go up under Microsoft rule; in fact, licensing in general has always been, and will continue to be, a concern. However, a handful of new companies have stepped forward as Windows Phone partners, including LG, ZTE and Lenovo and several Indian phone makers, which suggests that many companies are embracing the change instead of shunning it.
Perhaps these new partners are just open to the idea of launching a Windows Phone and are just waiting to see what happens after today's merger. After all, few if any of the listed companies have announced their plans, and the rumor mill is curiously dry. Granted, it's never a bad idea to have a partnership like this in your back pocket just in case it comes in handy. If any of Microsoft's partners (outside of Samsung) are worried about not getting equal treatment, they aren't speaking up about it -- of course, this wouldn't be anything new, since Nokia was considered the Windows Phone poster child ever since it started supporting the platform in 2011, so not much has actually changed in that sense.