The Nokia Acquisition (post comments and questions here)

[squire777]

Why don't Nokia fans realize that Nokia had been reduced to a state worse than Blackberry's current state before MS bailed them out?

Most of them speak as if Nokia was tearing up the smartphone industry and then MS came along and sank them.

 

[Reflexx]

Why don't Nokia fans realize that Nokia had been reduced to a state worse than Blackberry's current state before MS bailed them out?

Most of them speak as if Nokia was tearing up the smartphone industry and then MS came along and sank them.

I wouldn't go that far. Blackberry is pretty much dead in the water.

At the time that MS bailed out Nokia, Nokia was in a downward spiral: certainly falling much more quickly than Blackberry. Nokia started from a much higher perch though. So there was a very very very long way to fall. The downward momentum was faster than Blackberry, but their actual position wasn't as bad.

I think that Nokia's smartphone business was turning around this past few months. I actually wouldn't be too surprised if it was no longer losing money. But the sheer size of it and the amount of resources required to compete in the handset market is prohibitive when you are trying to diversify your business. The phone business simply takes too many resources to run. So even if it did start to see a positive turn around, Nokia may have felt that the process was too slow to be worth it when there was an opportunity to instead maximize what they could do with HERE.

 

[mohit9206]

Whoever is saying this acquisition is a good thing needs to have their heads examined.

 

[WinFan1]

Re: MS buys Nokia for 7 Billion... Cost already 18 Billion...

microsoft buying nokia was perfectly logical. it makes perfect sense microsoft will get the hardware division whilst not alienating nokia as a partner while also protecting against claims from other competitors due to patents. microsoft has the budget to push nokia forward assuming the fund them and allow them to continue to do the good work they do while working with the windows phone team internally. people will say what they will but this was perfectly timed.

 

[paulxxwall]

Re: MS buys Nokia for 7 Billion... Cost already 18 Billion...

microsoft buying nokia was perfectly logical. it makes perfect sense microsoft will get the hardware division whilst not alienating nokia as a partner while also protecting against claims from other competitors due to patents. microsoft has the budget to push nokia forward assuming the fund them and allow them to continue to do the good work they do while working with the windows phone team internally. people will say what they will but this was perfectly timed.

when a company sells its because thing aren't going well. So Nokia not doing well does not makes sense .saying goodbye to Nokia is not good for me or anyone.wp8 looks sweet but I would never want to try it on a huawei those phones are bad. But wp8 on a nokia now not only do you have a badass phone but its working on a sweet os nokia has proven history as quality phones just like Toyotas and hondas

 

[gsquared]

Re: MS buys Nokia for 7 Billion... Cost already 18 Billion...

Well CoolKnight,

Can you provide us some reasons why YOU do not feel it was a good decision. I'm not talking about the garbage you are reading in those gossip column business publications. If you don't actually have an opinion thats OK too. Lots of us have a mixed reaction to this.

Myself, I support it but believe its a very risky move. I believe it is a risk that had to be taken.

 

[EAA575]

It's a good thing for Microsoft and Windows Phone but not for Nokia

 

[Reflexx]

It's a good thing for Microsoft and Windows Phone but not for Nokia

How is it bad for Nokia?

Their stock rose more in a single day than at any point in their history.

They get to focus on a field that they believe has a lot of growth potential and that they believe they can bbecomea world leader in.

Their expenses have been dramatically reduced.

They have a ton of liquid cash now. That mmeans that they are extremely financially stable.

So, how iis this bad for Nokia?

 

[Reflexx]

Whoever is saying this acquisition is a good thing needs to have their heads examined.

We should. Then we could find out what makes us so awesome and smart.

 

[Reflexx]

Don't know. But somehow I have this terrible feeling that this news might prompt most of the researchers, designer and innovators to leave company, even before the acquisition. Just like the way we Nokia fans are feeling bad about this. They too might be having the same feeling and might think of Newkia

I'm sure they would just love to throw away their nice incomes so they could work at an unstable and underfunded company.

 

[iamtim]

So, how iis this bad for Nokia?

It's not. It's only bad for the Nokia fans.

 

[EAA575]

How is it bad for Nokia?

Their stock rose more in a single day than at any point in their history.

They get to focus on a field that they believe has a lot of growth potential and that they believe they can bbecomea world leader in.

Their expenses have been dramatically reduced.

They have a ton of liquid cash now. That mmeans that they are extremely financially stable.

So, how iis this bad for Nokia?

They lost a major part of the company and where most of their money is coming from

Stock changes all the time, so it can drop at any moment

You mean their Siemens Network or their HERE maps?

Point taken

So all that cash will make them turn a profit?

 

[Reflexx]

They lost a major part of the company and where most of their money is coming from

...and where most of their expenses are from.

Stock changes all the time, so it can drop at any moment

True. But "best ever in the history of the company" doesn't happen all the time.

You mean their Siemens Network or their HERE maps?

I am most excited about HERE location services (not just maps).

Point taken

So all that cash will make them turn a profit?

The cash gives them stability and the flexibility to aggressively take risks.

Profit comes from the business itself. And the businesses they have remaining are profitable ones.

 

[WanderingTraveler]

For the people who try to convince people that Newkia will succeed, and Nokia should have gone Android and avoided the fate of having to sell their Devices and Services Division, here are a fee bugs with your program:
1. All the risks associated with going Android
2. Newkia is still a tiny start-up
3. Newkia sounds like a Nokia rip-off.

 

[WanderingTraveler]

I'm sure they would just love to throw away their nice incomes so they could work at an unstable and underfunded company.

You know, Jolla is actually a bright prospect at this stage.

 

[Reflexx]

You know, Jolla is actually a bright prospect at this stage.

And what ecosystem is there to support it?

 

[WanderingTraveler]

And what ecosystem is there to support it?

Just a dedicated team of devs who singlehandedly kept Maemo and MeeGo, and to a lesser extent, Symbian^3 alive.

You do not know how many people are willing to switch to Jolla just because it kept the Nokia spirit alive.

 

[iamtim]

You do not know how many people are willing to switch to Jolla just because it kept the Nokia spirit alive.

Enough to propel it out of the "Other" category in the mobile phone operating system market share breakdown? Probably not...

 

[JustToClarify]

Why would they want to? They are focused on their profitable existing businesses.

NOKIA is not just a mobile phone company.



And they were in a freefall. Without this "n00b" (seriously?), the mobile division would have dragged down the rest of the company.

The "n00b" gave them a parachute which bought them time to get their affairs in order and exit that market while making a lot of money and being propelled into very strong financial position.

You keep refusing to understand that Nokia is STRONG now. They made out in this deal.

Nokia could sell its mobile business for a lot more money when elop came and be in this same position only with a lot more mioney, so where is your logic here that he has done a good job?

example : you have the car that you can sell without wheels for $10K, you get $10K and keep the wheels, 2nd option you lend it to someone who drives it and destroys it so you can now get $1K and have those same wheels as before, that person done a good thing according to you?

 

[Reflexx]

Just a dedicated team of devs who singlehandedly kept Maemo and MeeGo, and to a lesser extent, Symbian^3 alive.

You do not know how many people are willing to switch to Jolla just because it kept the Nokia spirit alive.

It's nice in spirit I suppose. But a real ecosystem requires infrastructure that very few companies in the entire world are even capable of supporting, let alone implementing.

The phones may be fine for people that don't really need all the modern conveniences of being connected to everything.