Microsoft came close to buying Nokia

by: Gary SimsJune 20, 2013

nokia-microsoft-wp7It basically seems that Nokia is up for sale. Earlier this week a top-level exec from Huawei said that the company was philosophically open to buying Nokia, however it never entered into any discussions. The same can also be said of Microsoft except that it actually has been in deep talks with Nokia about buying its handset business.

The deal making, which occurred as recently as this month, seems to have collapsed over the price and worries about Nokia’s decreasing market share. According to those familiar with the possible acquisition say that the talks have now stopped and are unlikely to be revived.

Since 2011 Nokia has been using Microsoft’s Windows Phone as its only smartphone platform, a move which has so far failed to change Nokia’s fortunes. Although other companies like Samsung and HTC make Windows Phone based devices, they also make Android based phones. Nokia doesn’t make any Android phones and as a result is dependent wholly on the fortunes of Microsoft and Windows phone.

According to research company IDC, around three percent of smartphones shipped in the first three months of this year use Windows Phone. This is a very small market share when compared to Android, which IDC says was used on 75 percent of smartphones shipped in the same period. The only seemingly good news for Nokia is that Windows Phone is now more popular than Blackberry (but that is hardly a reason to celebrate) and that 79 percent of all Windows Phone devices are now made by the Finnish company.

Because of the 2011 deal, which effectively locked Nokia into only using Windows Phone, it isn’t clear why Microsoft would want to buy Nokia unless Microsoft thinks that other parts of the handset maker’s business, like the Navteq mapping division, could add value.

What do you think, who should buy Nokia?

  • Victor

    I hope Microsoft buy Nokia, and then they can do good looking phones. Nokia as it is today can not do that.

  • Victor

    I hope Microsoft buy Nokia, and then they can do good looking phones. Nokia as it is today can not do that.

    • MasterMuffin

      No, Nokia makes great looking and sturdy phones. How would Microsoft make things better?

  • Allen Themba

    It just goes to show that one very small executive decision can completly run the company down under. In 2011, nokia was in a position to buy huawei, 18 months latet, its the other around….!

  • MasterMuffin

    If Huawei buys Nokia, I hope they keep Nokia separated and don’t fire the old workers and designers. I don’t want that the brand Nokia stops existing!

    • Vyrlokar

      You have Fl… I mean Elop to thank for that. Nokia phones used to be made in Finland, and Nokia had a lot of control over the supply chain. Now they’re made in China, like everyone else’s.

      Mind you, I like the design of the Lumias, I just don’t like the OS. Mind you, the design was created for the N9, and from there, they haven’t really innovated design-wise (not that there is anything wrong with that, but it’s not something that was created for the Lumias)

  • ryq24

    Nokia should make android phone! They have no other choice! Windows is just not clicking with consumers. Many loyal nokia fans have shifted to samsung or apple but I believe most will return if nokia will come out with an android phone.

  • Dandy

    In my opinion, Nokia should leave Windows or at least go for Android too.

    As they clearly are the best phonemaker they would easily gain the upper hand on the concurrence, including Samsung and Apple.

    I never understood why they waited (wasted?) 4 years before getting a decent OS while letting Apple and Samsung eating their market share on smartphones they where the first to invent.

    And the Windows choice is not good. WIndows is not bad at all. But it is not the most appealing OS.

  • gargamel

    It’s nice to see how much love there is for Nokia on this Android forum. Also nice to see that nobody here really hate WP. The most people say is that they just don’t want to use it.
    Very different from WP forums where the hate towards Android is making me sad. It’s just phones after all…

  • Ruzveh

    It would be interesting to see if Google had bought Nokia and not Motorolla

  • I think Nokia would really make some cash if they used their current design plans and made a new Android phone.

  • nishantsirohi123

    WP is cool
    it has a unique interface and runs super smooth. Microsoft should now push all mainstream apps to it.

    Release codes, provide free video guides on your website about everything from the programing side to the whole unique user interface(i am an android user but i love how the WP8 looks)
    most developers of apps are regular people and entrepreneurs
    help them out

    I want WP and BB10 and all others to succeed.

    for the whole idea behind Android, that is choices. monopoly is bad

  • David Allen

    Google should buy Nokia. Could you imagine how awesome a Nokia Nexus would be. I love their hardware but absolutely HATE WP8.