Nokia could sell mobile phone biz to Microsoft and Huawei

AT&T to launch Nokia Lumia 920 on October 21st?

Nokia, a struggling Finnish based phone manufacturer, is finally gaining some traction with its flagship Lumia 920 handset. However, this won’t stop the company from ultimately exiting the mobile business, according to Keepskor founder and Forbes contributor Tristan Louis. Louis believes the mobile industry will see a huge shift this year, as he sees Nokia being one of those major events.

“The biggest shocker (and what I suspect will be my most controversial prediction), though, will be the [sic] departure of Nokia from the phone business as the company sells its mobile operation and infrastructure divisions to Huawei in order to focus on software and services,” Louis wrote. ”With the company’s bet on Windows [Phone] 8 having failed in the marketplace, it will see Microsoft (MSFT) and Huawei competing for the mobile device division and will eventually sell its smartphone group to Microsoft and the rest of its telecom interests to Huawei.”

Much like analyst, you have to take what’s said here with a grain of salt. Tristan Louis is just stating an opinion, as he has no evidence of Nokia selling off its mobile business. Besides, Nokia has plenty of other routes it can take when it comes to turning its mobile biz around — like giving Android shot.

[via BGR]

 

  • http://www.facebook.com/imperialdynamics Imperial Dynamics

    Hahaha insane. Is this a joke? ROFL

    • Murthy

      Exactly! Microsoft has sent Stephen Elop to loot Nokia and use that to increase WP market share:

      1. Stephen Elop killed a well-selling Nokia’s own Symbian, just because it is a competitor to Windows Phone. When it was killed, Symbian was selling 27 million phones a quarter. Can Nokia WP phones achieve that ever ?

      2. Stephen Elop killed Nokia’s furture OS at its infancy. The Meego OS. Again, this is just because it is a competitor to Windows Phone.

      3. Stephen Elop selected and bet whole Nokia on an ugly, old Windows Phone OS, having already rejected by Samsung and others. Nokia is not the first one to introduce WP phones. It is in fact the last one, as other had already tried and rejected as there has been no demand for WP OS.

      4. Stephen Elop heartily welcomes Samsung and others to manufacture WP phones even though they are competitors. This action clearly tells that Elop is working to boost WP phones and not Nokia. He publicly encourage Nokia competitors to produce WP phones.

      5. Stephen Elop see Android as competitor. This would have been correct if Nokia had its own smartphone OS (Symbian and Meego). With an OS owned by someone else, it is a joke that Elop sees Android as competitor. This is because he thinks and acts as if he is a Microsoft employee and not Nokia CEO…

      • Ajit

        Bingo!

      • Antonio

        no, the move to WP was planned long before Elop was CEO, Nokia invested millions to buy Symbian then later see it as the worst mistake ever, the plan was to hire an “American” (actually Canadian) to “make things happen” as he quoted when he was appointed CEO, if by any chance this failed then the “foreigner” was to blame, that’s Elop.

        funny how people still think Elop made the decision…

        • Murthy

          Why kill well-selling Symbian and move to WP ?

          Why not simply add WP and Android to existing products portfolio ? See, Samsung still sells Bada OS phones even though it sells less.

          It’s all Microsoft’s dirty trick, man.

          • Matthew Paul

            There are a number of simple and logical reasons. First of all, Nokia was in no position to develop products on four different OS’s. Secondly, Symbian, Meego, and the QT plan had to have so much backing to make it continually viable that even without Nokia developing other products it would have been risky. Thirdly, it would have simply not paid off. Developing for those platforms, the money involved, R and D, distribution etc. resources would be way too stretched, and the existing line up of devices, and the Windows Phone line, would probably not have had enough backing to make them break through. It would be more likely for them to fall through whilst incurring further losses. Lastly, Microsoft asked for Nokia’s best work, and full backing. The partnership would never have been formed if Nokia wanted Meego to live. At the time, Google was also driving a hard bargain. I doubt if Nokia tried to support all of them that Google or Microsoft would have actually been willing to license out their software.

          • Ravinder Reddy

            You mean, with 60,000+ employees, Nokia can’t produce 2-3 OS phones? Very ridiculous.

            Why has Elop killed a well-selling Symbian so prematurely ? It was selling more than 26 million a quarter when Elop announnced its death. Why? If Symbian is bad, it would have died slowly and naturally. Why forcibly kill it when it was in selling so high numbers?

            Why not sell MeeGo N9 smartphone in all markets? Just because they beat Lumia lines and Elop can’t justify Lumia sales as it is shadowed by great Symbian/Meego phones ?

            When Microsoft can sell its OS through so many hardware manufacturers, why can’t Nokia simply employ all popular OS on their phone? If a s/w vendor sticks to only one hardware partner, it wont succeed. Similarly, it a hardware vendor sticks to only one s/w partner, it wont succeed. Thus, Nokia wont survive with only one OS phones, and no company in fact (including Apple) and that too an ugly, rejected OS with mere 2% share for last 10 years.

            Elop has publicly indicated so many times that he is working for Microsoft and want WP ecosystem grow at any cost, even if Nokia goes into backruptly. He see Android as competetor and not Samsung and HTC who are also in WP domain.

          • Matthew Paul

            You can’t just say that because they have thousands of employees that they can produce devices on multiple OS’s. It depends what those employees are doing, what their jobs are, what their individual expertise is etc. With the company having to cut thousands of jobs to be nimble enough to survive and to break-even, no, they cannot support 3 OS’s.

            If you had thousands of cars, you still couldn’t drive unless you have roads, money for petrol, and a driving license.

            The Symbian and Meego plan was clearly not working out. It
            was troublesome, taking too long to develop, they had to support it all by themselves, they had to build up an ecosystem themselves with QT, they were sinking billions into it, and Symbian sales were still beginning to decline. Symbian was so far behind the competition in consumers’ minds, even if not technically. Although, some parts of the OS still were technically inferior and linked back to legacy S60 devices e.g. QT installation process, slow browser with slow touch screen handling, social clients. Nokia was losing their relations with
            carriers because of this.

            Nokia needed to make quick and drastic decisions and that is what they did.

            They wanted to be partners with either Google or Microsoft, as they wanted control, money, and their own perks like the other party using their services. Nokia wanted to remain individual, maintain an image, and be in as much of an equal partnership as possible. After extensive talks, Google would not give any of those things to Nokia apart from them being able to use Android. There was no place for Nokia Maps, and the Android market was, and still is, full of OEM’s, with Google’s own Nexus line being prominent too. On the other hand, talks with Microsoft broke through and a strong partnership was
            made. Nokia’s services including Nokia Maps are endorsing the ecosystem and are actually used by Microsoft. Microsoft has been willing to let Nokia have more of a say in the development of their
            operating system, and they were paying Nokia billions every quarter! Nokia has also benefited from Microsoft’s advertising.

            Nokia found a place in the market and has created its own distinct brand around Lumia, and underneath the surface: Windows Phone. They are a big fish in a little pond, instead of a small fish in a big pond. Now, the pond is growing and they are too. Nokia’s plan is long term and their recovery will be in the long haul. In Q4 2012 they made an underlying profit in the ‘devices & services’ segment of the company for the first time in 6 quarters- a sign that things have stabilised thanks to Elop’s work.

            Would you risk ruining and boycotting your company’s turnaround by releasing other products on a different OS just before the launch of your new devices? No!

            Microsoft and Nokia would not have been compatible if Nokia was still running around with Symbian and Meego. Microsoft wanted Nokia’s ‘best work’. Windows Phone would not have had a big enough push if Nokia was not focusing on it.

            ‘If a s/w vendor sticks to only one hardware partner, it wont succeed. Similarly, it a hardware vendor sticks to only one s/w partner, it wont succeed.’ That statement does not apply to Microsoft or Nokia at all. Microsoft is not sticking to one hardware partner, they have Samsung, HTC, Nokia, and Huawei for phones and countless others for PC’s and tablets. Nokia is not just sticking to one software partner, and it is not just using one OS. It has itself! Nokia is still selling millions of S40 phones. It is the backbone of the company. Nokia has produced the Asha range and Asha Touch with new software and devices.

            You are just solely concentrating on Nokia’s smartphone line, instead of looking at the full picture and seeing all the points they need to address. Their announced strategy was basically to partner with Microsoft, produce smartphones on the Windows Phone operating system, ‘connect the next billion’ with S40 and Asha, and to ‘invest in future disruptions’.

            Thanks to Elop Nokia is so much more competitive than before. They managed to release two new phones just 9 months after the partnership was finalised! Also, it is a fact that Nokia’s R&D expenditure has been the biggest out of all mobile companies throughout the last decade and more. Thanks to Elop some of that can be cut back (Microsoft is now developing the software) and more of it can now be used for developing their phones and innovations, hence ‘investing in future disruptions’. All the pieces of the puzzle fit together.

            ‘Nokia wont survive with only one OS phones, and no company in fact (including Apple) and that too an ugly, rejected OS with mere 2% share for last 10 years.’ We have already tidied up the fact that Nokia is in fact using more than one OS, but I am really not sure what your point to do with Apple is. It just makes no sense. It makes even less sense if you try to understand what you are saying. Is IOS an ‘ugly,
            rejected OS with mere 2% share for last 10 years’, well last time I checked it holds over 15% market share worldwide, and above 50% in the USA , so is certainly not ‘rejected’! Market share has grown massively, and back in 2007 since the IPhone launched it has been the main problem for Nokia for years. IOS also holds more than 50% of the worldwide tablet market- rejected I’m sure!!

            Another thing that I suspect you are incorrect on is you need to learn about what market share actually means. You cannot use market
            share as a good measure of demand for a product, let alone an accurate measure of sales. Market share does not just indicate sales of a product, it is measured as a percentage, and so the number allocated to Windows Phone sales will not be solely down to the sales of Windows Phone devices. For example, if Android has a blow-out of a festive season, everyone else’s market share will drop.

            Finally, you are completely disillusioned if you genuinely think Elop has ever indicated that ‘he is working for Microsoft’ and wants the ‘WP ecosystem grow at any cost, even if Nokia goes into bankruptcy.’

            Of course he sees Samsung and HTC as competitors, and he
            never said that they are not. However, he rightly says that any effort with Windows Phone will help the OS and therefore Nokia. Going back to my analogy earlier, he wants the pond to grow, so Nokia can grow. There was a misunderstanding in translation there.

          • Sudhakar

            Nokia made minuscule profits in Q4/12 just because Elop fired more than 20,000 Nokia employees, closed all Nokia smartphone factories and instead went to a low-quality Chinese smartphone manufacturer to produce Lumia phones for Nokia. Thus, Nokia no more has its own smartphone manufacturing plant. It has a few feature-phone plants left with it.

            With lot of ads, promotions, giving away for free, Nokia+dirty MS could sell just 4 million Lumia phones in last quartner. Had Nokia produced and sold Symbians/MeeGO/Android, they would have sole 30 million each. Shame on Nokia and MS to sell just 4 million Lumia in a most important quarter, and that too with new flagship 920 device, and giving away for free or at heavy discounts.

            Note that Nokia is making losses for each Lumia sold. Thus, they are profiting in Q4, not because of Elop’s dirty trick, but by removing people.

          • Sudhakar

            You are 100% right. Also, Elop sold Nokia HQ for $250 million, which also contributes. Further, Microsoft gives $250 million each quarter as bribe for not selling Symbian and selling only WP phones.

            Thus, last quarter Nokia received this additional $500 million. Naturally, it will be little bit profitable.

            For next quarter, Elop needs to find next Nokia assets to sell to show profits.

          • Sudhakar

            Yes, Elop is here to destroy Nokia during his attempt to boost WP at Nokia’s cost.

          • Sudhakar

            “They managed to release two new phones just 9 months after the partnership was finalised”

            Some Chinese lo-quality company has designed and produced Lumia phones for Nokia. Further, there is nothing new in those phones, and hence they failed miserably.

            “t is a fact that Nokia’s R&D expenditure has been the biggest out of all mobile companies throughout the last decade and more. Thanks to Elop some of that can be cut back (Microsoft is now developing the software)”

            Yes, Microsoft is developing OS and ecosystem because they own it. What does Nokia get from that ? If WP OS is sold to say HTC and say some app is sold through ecosystem, does Nokia get anything ? No. Basically, Nokia has killed its own Symbian/MeeGO OS + ecosystem and depending on someone else ecosystem.

            Further, what happened to Nokia when MS announced that WP 7 will not be compatible with WP 8? Nokia had to abandon Lumia 900 production and sell of inventory at heavy losses.

      • Prasad

        Whoever made the decision had made a good decision not to stick with Android. See Nokia is making turnaround now. Share prices has moved 40% up. Then if you want to save your Android job, then trolling will not help. Learn to code and do some programming for Windows Phone , its easier than Android.

        • Murthy

          Good decision to sell Nokia properties one by one and still be in loss !

          Great!

  • Nirmala Pandey

    Hey Nokia, simply put Android on Lumia and see the result. For this, first fire Stephen Elop and recover all losses (around $20 billion) from him and kick him out of Finland. He is a Microsoft virus just to loot Nokia to boost Windows Phone market share. Fortunately, that is not happening and hence Nokia ( not Microsoft ) is losing.

    • DhaneshDalmia

      Android itself is losing market to Windows Phone. See the nokia lumia sales. Most of the Galaxies are eating dust on inventory now. So whats your point ? Why should now nokia run to Android now ? . More of lumia and windows phones will do. Nokia is known for stable and stout devices, Android represent just opposite of that so its better Nokia differentiate from the x or y or z who makes cheap but crappy androids.

      • Sundaranga

        Dirty man! How much you got from Microsoft ?

        With lot and lot of efforts and heavy discounts, Microsoft an Nokia can sell hardly 8 million Lumia in a quarter. This is just 4% of market share. And, WP share is declining day by day.

        Secondly, even with those 8 million sales, Nokia is not going to make any profit as it is giving away Lumias with losses because otherwise they wont sell.

  • Radhakrishna

    It is very unfortunate that neither Finnish Govt nor its people are able to recognize the dirty business trick Microsoft is playing with Nokia by forcing it to Windows Phone only option.

    If Microsoft can have tens of hardware partners to sell its OS, then why can’t Nokia have at-least couple of software partners (since Nokia has become just a hardware company after killing its own, well selling Symbian/Meego OS) ?

    Further it is still unfortunate that Nokia CEO ( a Microsoft virus ) started selling Nokia properties one by one and still not considering well selling and high demand Android option. At-least Finnish Govt should understand this Microsoft’s drity trick and teach them a lesson.

    With just WP-only, Nokia will be here not more than a year.

    • Murthy

      Exactly! Microsoft has sent Stephen Elop to loot Nokia and use that to increase WP market share:

      1. Stephen Elop killed a well-selling Nokia’s own Symbian, just because it is a competitor to Windows Phone. When it was killed, Symbian was selling 27 million phones a quarter. Can Nokia WP phones achieve that ever ?

      2. Stephen Elop killed Nokia’s furture OS at its infancy. The Meego OS. Again, this is just because it is a competitor to Windows Phone.

      3. Stephen Elop selected and bet whole Nokia on an ugly, old Windows Phone OS, having already rejected by Samsung and others. Nokia is not the first one to introduce WP phones. It is in fact the last one, as other had already tried and rejected as there has been no demand for WP OS.

      4. Stephen Elop heartily welcomes Samsung and others to manufacture WP phones even though they are competitors. This action clearly tells that Elop is working to boost WP phones and not Nokia. He publicly encourage Nokia competitors to produce WP phones.

      5. Stephen Elop see Android as competitor. This would have been correct if Nokia had its own smartphone OS (Symbian and Meego). With an OS owned by someone else, it is a joke that Elop sees Android as competitor. This is because he thinks and acts as if he is a Microsoft employee and not Nokia CEO.

  • Murthy

    Exactly! Microsoft has sent Stephen Elop to loot Nokia and use that to increase WP market share:

    1. Stephen Elop killed a well-selling Nokia’s own Symbian, just because it is a competitor to Windows Phone. When it was killed, Symbian was selling 27 million phones a quarter. Can Nokia WP phones achieve that ever ?

    2. Stephen Elop killed Nokia’s furture OS at its infancy. The Meego OS. Again, this is just because it is a competitor to Windows Phone.

    3. Stephen Elop selected and bet whole Nokia on an ugly, old Windows Phone OS, having already rejected by Samsung and others. Nokia is not the first one to introduce WP phones. It is in fact the last one, as other had already tried and rejected as there has been no demand for WP OS..

    4. Stephen Elop heartily welcomes Samsung and others to manufacture WP phones even though they are competitors. This action clearly tells that Elop is working to boost WP phones and not Nokia. He publicly encourage Nokia competitors to produce WP phones.

    5. Stephen Elop see Android as competitor. This would have been correct if Nokia had its own smartphone OS (Symbian and Meego). With an OS owned by someone else, it is a joke that Elop sees Android as competitor. This is because he thinks and acts as if he is a Microsoft employee and not Nokia CEO..

  • Zakkir

    Lot of nay sayers are looming around making their death wishes. :-) Meanwhile Nokia is giving a good chase that is emptying the money coffers of Apple and Androids :) , The frustration is quite visible when you troll now :-)

  • Gregory C Newman

    I hope that Nokia can hang in there and not have to sell it’s smart phones business to anyone. Microsoft however may buy it because Microsoft now has defined itself as a “Devices and Services” company. Microsoft is no longer just a software Giant. Microsoft’s purchase of Nokia would make sense because they are now like Apple because they make software and hardware. Nokia makes Microsoft’s top selling Windows smart phones and has better connections in the world to get Products made more cheaply than Microsoft. I just wish Nokia had made a Nokia Nexas Android smart phone to make money off of Android as well as make those great windows smart phones. I Think, they would have had no trouble staying in business. I am Windows smart phone fan who thinks Nokia should have been like HTC or Samsung and make both Android smart phones and Windows smartphones. Life is not what we want it’s what it is I wish Nokia success

  • Gregory C Newman

    It is sad that People are really crazy to think that MR Elop was secretly working for Microsoft to take down Nokia so Microsoft could buy it. there was report to the contrary that states Microsoft looked into buying it but decided not to. Mr Elop I think really wants Nokia to succeed especially because he is it’s CEO and this is his big Chance to make it as a good CEO. If he fails here will he get a chance to be the Boss of Bosses again anywhere?. Right now Android and Apple Iphones seem to be what people like. Windows 8 smart phones now have an operating system more powerful than Android or Apple IOS because it’s operating system is based on the Windows “NT” kernel. Developers can now do things to make Apps for Windows 8 smart phones they could not do with Windows 7 series smart phones.one thing Microsoft has to do is to make it’s Modern UI Tiles look better by rounding off the tiles corners and put art work in them. People do not like the way the sharp cornered Tiles look on the Windows smart phones. the icons on other smart phones have some art in them and are more appealing to the eyes. Plus windows smart phones need more Apps. Now that Windows smart phones have a real first class Network OS kernal in them they will be the best among smart phones.

    • Sudhakar

      Why kill a well-selling Symbian OS ? It was selling 27 million a quarter when its death was announced. Whether a sane Nokia CEO does it ?

      If Elop’s intention was to improve Nokia, he would have added WP and Android OS to their phones.

      If Microsoft can have tens of hardware partners to sell its OS, then why can’t Nokia have at-least couple of software partners (since Nokia has become just a hardware company after killing its own, well selling Symbian/Meego OS) ? Can Elop answer to this ??

      Microsoft has certainly bribed Nokia to adapt WP-only. That is done by Elop.

  • Abhishek

    Wow, are you guys crazy? You really think sticking with symbian/Meego was what Nokia should have done? Because clearly that was working right.

    Developing a new software ecosystem is no joke. You need to have really deep pockets to make it a success. Symbian as smart phones was clearly dead and meego was too early in its infancy to make a mark. Just look at Palm, it was a great OS, critically acclaimed, HP bought it but look how it turned out. How silly do you have to be to think Nokia could have pulled off Meego.

    WindowsPhone is a great distinction for Nokia, it got a couple of billion $$ upfront for research for the Lumia line. Samsung/HTC/Huawei all are making windows Phone devices but niether got the amount of $$ Nokia got, hence the exclusivity. If there is any third ecosystem that has a chance against Andriod and Apple it is Microsoft. So stop talking silly, Nokia is on the right track. Now it only remains to see how well it paid off.

    If you know anything, you should realize that Google is a big competitor for Nokia. Nokia maps (navteq) which Nokia is investing heavily in and possibly will integrate it in vehicles and other systems has mainly google maps are a primary competitor. So you really think Nokia should go in bed with the primary competition andriod, get your facts straight.

    It is unrealistic to expect results over night. But Year on year sales are rising, Lumia line has excellent reviews, customer satisfaction. They are headed in the right direction, and capturing more market share. Just need to see if it is fast enough for Nokia.

    And seriously, Elop isn’t giving its giving its customers to samsung and HTC. He is saying competition is good, come make products and grow the ecosystem. But he is still going to compete with those products head on, so what is wrong with inviting Samsung htc to make win phones? Want do you want him to say, only Nokia will make win phones because we are scared of a little competition? Really think before you criticize

    For the record windows phone is a beautiful, stable OS. Try it sometime.

    • Sudhakar

      Why kill a well-selling Symbian OS ? It was selling 27 million a quarter when its death was announced. Whether a sane Nokia CEO does it ?

      If Elop’s intention was to improve Nokia, he would have added WP and Android OS to their phones.

      If Microsoft can have tens of hardware partners to sell its OS, then why can’t Nokia have at-least couple of software partners (since Nokia has become just a hardware company after killing its own, well selling Symbian/Meego OS) ? Can Elop answer to this ?

      Microsoft has certainly bribed Nokia to adapt WP-only. That is done by Elop.

  • Bobbi Ganoosh

    Seems that Charles West is on crack, …again!

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