Stephen Elop’s task on turning Nokia Mobile phones business to Microsoft compatible has come to end: Microsoft Corporation and Nokia Corporation today announced that the Boards of Directors for both companies have decided to enter into a transaction whereby Microsoft will purchase substantially all of Nokia’s Devices & Services business, license Nokia’s patents, and license and use Nokia’s mapping services.
Microsoft will pay EUR 3.79 billion to purchase substantially all of Nokia’s Devices & Services business, and EUR 1.65 billion to license Nokia’s patents with EUR 5.44 billion all-cash transaction. Under the terms of the agreement, Microsoft will acquire substantially all of Nokia’s Devices and Services business, including the Mobile Phones and Smart Devices business. Microsoft is acquiring Nokia’s Smart Devices business unit, including the Lumia brand and products. The deal includes, among other things, the Nokia Asha brand.
The transaction is expected to close in the first quarter of 2014, subject to approval by Nokia shareholders, regulatory approvals and other customary closing conditions. Microsoft has agreed to a 10 year license arrangement with Nokia to use the Nokia brand on current Mobile Phones products. Nokia will continue to own and maintain the Nokia brand.
Following the transaction, Nokia plans to focus on its three established businesses: NSN (network infrastructure and services), HERE (mapping and location services and Advanced Technologies (technology development and licensing).
Stephen Elop will be coming back to Microsoft, and he will lead an expanded Devices team, which includes all of our current Devices and Studios work and most of the teams coming over from Nokia. As part of the acquisition, a number of key engineering leaders will be joining Microsoft from Nokia. Approximately 32 000 employees are expected to transfer to Microsoft. Among them, 4 700 in Finland. Microsoft is getting several of the cellphone industry’s better-known leaders in one shot — and Nokia’s remaining leadership will be mostly unrecognizable to long-term fans.
I was fearing that this could happen already two years ago. Now it has happened. Microsoft’s acquisition of Nokia’s Devices & Services business has more implications for Nokia than you might suspect at first glance. Nokia CEO Stephen Elop is stepping down ahead of transition to Microsoft. Nokia’s Chairman of the Board Risto Siilasmaa will be Nokia’s interim director. Timo Ihamuotila will be interim CEO.
Forbes analyst Tero Kuittinen is surprised by Stephen Elop activities: Elop chose Nokia to become Microsoft Windows operating system company and ther operating systems, development stopped completely. Now he’s decided to sell Nokia’s smartphone unit at greatly reduced prices … Microsoft, a company in which he returns, Kuittinen says. Nokia Sells Handset Business To Microsoft At A Shockingly Low Price tells that it cannot be said that Nokia‘s decision to sell its handset unit to Microsoft is a surprise. But what definitely are surprises are the timing and the price. Nokia’s glory days of 110 B euro market cap are long gone – yet it’s a visceral shock to see the Devices and Services unit sold under 5.5 B euros.
Etla research director Jyrki Ali-Yrkön says that Nokia phones sales to Microsoft is a sign of the error from the previous move: “As a result, the company acknowledges that Microsoft’s operating system is not enough to save Nokia” Something similar I was thinking more than 2 years ago at my Nokia future: Windows Phones 
posting. And the current news clearly shows that the previous decision – the Windows Phone operating system transition – was not correct.
The press conference is held today at 11 am in Espoo Dipoli.
This is the end of the Nokia as I used to know it…. Nokia’s importance to Finland has been in 90′s and since the early 2000′s insane. It has pulled the tail of starring in other IT companies in the world, and helped the Finnish international. Now, a big part of it is gone.
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Tomi Engdahl says:
Nokia Extorted For Millions Over Stolen Encryption Keys
http://yro.slashdot.org/story/14/06/17/1939245/nokia-extorted-for-millions-over-stolen-encryption-keys
At the end of 2007, when Nokia still had huge market share with Symbian devices, they failed to disclose that somebody had stolen their encryption keys and extorted them for millions of Euros. The Finnish National Bureau of Investigation has not been able to figure out who did it.
The blackmailer had gotten hold of the Symbian encryption key used for signing.
Tomi Engdahl says:
Nokia paid millions of euros in ransom
http://www.mtv.fi/uutiset/rikos/artikkeli/nokia-paid-millions-of-euros-in-ransom/3448918
MTV News Investigative Team reveals that Nokia became a target of extortion and ended up paying several millions of euros in ransom. The case is unsolved.
Nokia paid millions of euros to a blackmailer to protect an encryption key of the Symbian phones. The extortion took place around the end of the year 2007.
The National Bureau of Investigation confirms that the case is still unsolved.
The blackmailer had gotten hold of the Symbian encryption key used for signing.
In 2007 half of the smartphones sold in the world were manufactured by Nokia.
the ransom payment was made in the Finnish city of Tampere.
Tomi Engdahl says:
Microsoft’s first Android-powered phone from Nokia
The software company Microsoft today announced the Nokia X2-called Android phone. This is a Nokia announced in February, Nokia X-phone family further developed version.
Nokia X2 is the first announced by Microsoft for Android phones. Earlier, Nokia-named Android phones released when the handsets manufacturing in Devices & Services unit was part of Nokia.
Source: http://www.digitoday.fi/mobiili/2014/06/24/microsoftin-ensimmainen-android-puhelin-haisee-reilusti-nokialta/20148830/66?rss=6
Tomi Engdahl says:
Summertime blues: Microsoft insiders brace for cuts
http://gigaom.com/2014/06/30/summertime-blues-microsoft-insiders-brace-for-cuts/
It’s that time of year for Microsoft to slim down. This year, expect bigger than normal cuts, given that the software giant’s $7.2 billion buyout of Nokia brought with it 25,000 new mouths to feed.
Tomi Engdahl says:
LEAKED: Redmond not allowed to sell ‘Nokia’ smartphones after 2015
WP will be even more finished when it’s finished – Belfiore
http://www.theregister.co.uk/2014/06/12/windows_phone_microsoft_internal_memo_leak/
Microsoft has 18 months left to use the Nokia brand name on its smartphones and mutant Androids, according to leaked notes prepared for internal marketing guidance.
Microsoft bought Nokia’s phones business in April. Ironically, Redmond can continue using the Nokia brand longest for the part of Nokia it bought but didn’t really want – the dumbphones. Reports from the negotiations that culminated in a deal suggest that Microsoft (sensibly) wanted Nokia’s HERE maps division, but not the legacy Series 40 feature phone business. Nokia, meanwhile (sensibly) wanted to get shot of the dumbphones, and keep HERE. In the end Microsoft was saddled with a high volume, low margin business.
According to the leaked notes, the Nokia trademark will disappear from Lumia and X (Android) ranges sold by Microsoft next December 2015, but Redmond can keep using it on Series 40 feature phones.
On Twitter, Microsoft’s corporate VP for Windows Phone Joe Belfiore has been justifying the decision to remove deeply integrated social network support from the operating system.
One of Windows Phone’s unique features when it was launched was system level support for Facebook, Twitter and LinkedIn, but now Microsoft uses third party APIs – so it’s as badly integrated as iOS or Android, and throws the user into the social network’s own app. Belfiore says this allows Microsoft to update the support for social networks more often.
Tomi Engdahl says:
Software giant Microsoft is expected to show this week gigantic layoffs, says the news agency Bloomberg.
News Agency According to Microsoft plans to announce layoffs this week. There will have to Bloomberg data, the company’s largest layoffs for at least five years, and may never, and will focus on, among other things, last year purchased a Nokia mobile phone unit.
The number of redundancies could rise even higher than in 2009, when the company reduced its 5800 people, Bloomberg says.
Source: http://www.tivi.fi/uutisia/nokialta+microsoftille+siirtyneet+vaarassa++yhtio+aikoo+ilmoittaa+tuhansien+jattipotkuista+keskella+kesalomia/a998114
Tomi Engdahl says:
Cell Phone-Nokia choked on middle management
Today’s successful companies combine agility on many levels: product development, processes and organization.
Cell Phone-Nokia renewal would have been very difficult due the company’s structure: It can be said that Nokia choked to death on their own middle management.
This said, Nokia, Quality Manager and agility coach in 2007-2011 served as Martin von Weissenberg.
Weissenberg, Nokia cell phone was in the organization of the 13 levels. The middle management was just too much. Initiatives with the best ideas and visions stopped almost always one of the tier Pry of the organization.
- The more levels and cord, the more politics in the organization, Weissenberg.
Can a big company, then the first place to be agile? Coaches agility believe that they can. – Agile large companies does not appear to be a traditional corporate bureaucracy, departments, project managers and our annual budget, Weissenberg and Ziegler say.
The most typical agile house is, however, a newer, smaller software or services. They agility is essential. And in fact, they have to find their own way to be agile.
- If it is the same way agile than its competitors, it does not get a strategic advantage. If it is different, there is a chance of success
Source: http://etn.fi/index.php?option=com_content&view=article&id=1664:kannykka-nokia-tukehtui-keskijohtoonsa&catid=13&Itemid=101
Tomi Engdahl says:
Microsoft is pushing the Nokia phone down production in Hungary and Mexico
Microsoft, Nokia to concentrate manufacturing earlier made in China, Hungary and Mexico, to Vietnam, write in Vietnam News Brief Service.
Microsoft will close some of its manufacturing plants in and Quangdong China.
Microsoft will also change Komárom Hungary and Reynosa plant in Mexico to repair centers.
Source: http://www.tivi.fi/uutisia/microsoft+ajaa+nokian+puhelintuotannon+alas+unkarissa+ja+meksikossa/a1005539
Tomi Engdahl says:
Pro Malinen: Will there be Microsoft jobs in Finland?
The Oulu region is the recent and now the future staff reductions as a result as soon as about 1500 unemployed IT experts. Employer-employee negotiations in Finland since the fall of Microsoft’s jobs are also at risk of disappearing.
Mobile Finland, Microsoft employs about 4,000 before deductions taken now.
– Unfortunately, the bad news does not necessarily end there. Finland 3 000 post-Microsoft jobs are in danger of disappearing. The staff is now a strong perception that the following co-determination negotiations will start in October, says trade union Pro, Chairman Jorma Malinen.
- For scarce jobs in the sector is highly competitive, which employers use shame, good. Available jobs are roughly underpaid. Seniorikoodaajille, which requires about eight years of work experience, offered EUR 1 900 per month, or IT project managers around 2000 Euros per month, says Malinen.
The available jobs are in some cases so poorly paid that they receive the employee unprofitable. The employee currently receive income-related allowance may be equal to or even better.
Source: https://www.sttinfo.fi/release?releaseId=17380605
Tomi Engdahl says:
Nokia saw the future, but couldn’t build it
Everything that Apple and Google are today, Nokia wanted to become
http://www.theverge.com/2014/9/22/6826051/nokia-saw-the-future-but-couldnt-build-it
There was once a time when my search for a new phone would start (and likely finish) with a visit to Nokia.com. The Finnish company had the widest choice, the best designs, and the most respected brand around the world, so it was pretty hard to pick a bad phone from its catalog. Try doing the same thing today, however, and you’ll find every link on the Nokia homepage pointing to Microsoft’s Mobile Devices division — the new incarnation of the Nokia most of us knew and loved. It’s a vastly different mobile world we’re living in now, but what’s most striking about it is that Nokia saw it all coming.
The best phone in the world today is dressed from head to toe in aluminum and has an outstanding camera that protrudes from its body. So did the Nokia N8 in 2010.
Nokia’s biggest failure was an unwillingness to embrace drastic change. The company sowed the seeds for its self-destruction when it made “the familiarity of the new” the tagline for its big Symbian upgrade those many years ago. It feared alienating current users by changing too much, so it ended up with a compromised mess of an operating system that wasn’t fit for the future. Even as it was making one mistake, however, Nokia was keenly aware of the threat of another.
Jumping to Android was widely advocated as a quick shortcut to making Nokia’s software competitive, but Anssi Vanjoki dismissed that idea as a short-term solution that was no better than “peeing in your pants for warmth in the winter.”
I was among those who thought him wrong, but the recent financial struggles of HTC, Motorola, and Sony have shown him to be more prophetic than paranoid. Nobody outside of Google, Samsung, and Microsoft (by virtue of patent royalty payments) is making real money off the sales of Android phones.
Eventually, Nokia’s hand was forced into making a switch and it chose Microsoft’s Windows Phone as the platform to build its future on. That construction project is still going on, though it no longer carries the Nokia name.
The list of things Nokia saw coming but failed to adapt to is regrettably long. Another instance where Anssi Vanjoki seemed to exaggerate was when he predicted that DSLRs would be replaced by cameraphones. I mocked his outlandish claim then, but to look at the new iPhones, the Panasonic CM1, and Nokia’s own Lumia 1020, there are now certainly enough excellent options to make at least a few people drop the bulky dedicated camera.
Before the iPhone had apps and Android got Maps, Nokia phones had both. Today there isn’t a flagship smartphone without either a metal or faux metal finish.
Tomi Engdahl says:
Finnish reporters claim in his book:
New books: Elop perhaps the world’s worst CEO
Stephen Elop is the number of counts among the worst in the world – if not the worst – the CEO.
This allegedly new book Operation Elop, written by financial journalist Pekka Nykänen and fiction writer, journalist Merina Salminen.
- The day before the start of Elop, Nokia’s market capitalization was EUR 29.5 billion. When Nokia announced the sale of its phone functionality to Microsoft, the value of the remaining EUR 11.1 billion, the book is illustrated Elop’s a complete failure.
- Achievement is utterly incomprehensible, Paper, gaze in awe.
According to the book, Elop made huge mistakes, the largest of which was to put all your eggs in one basket at great risk. Microsoft Federation, among other things, killed the tablet development and made it impossible for less than 100 euro smartphone manufacture.
Elop, Nokia was leaving 24.2 million in the output of money. According to the book mega bonus allowed Elop’s agreement was “an American yardstick reasonable”.
Source: http://www.iltalehti.fi/talous/2014100718725322_ta.shtml
Tomi Engdahl says:
This is how Microsoft pulled the rug from under Nokia
Microsoft gave Nokia too rosy picture of the capabilities of Windows Phone in 2011, will today be published in book Operation Elop. Nokia, Microsoft held a damaging surprises to Lumia after years of cooperation.
In 2011, a phone manufacturer Nokia Smartphones chose the operating system software company, Microsoft’s Windows Phone operating system. Nokia did not know exactly how the system was incomplete.
Windows Phone survived the many shortcomings of the company’s Management Board and the employees did not know until after the companies were told February 11, 2011 Microsoft’s operating system use of Nokia smartphones.
Data can be found today published the book Operaatio Elop (Operation Elop), which followed the editors Pekka Nykänen and Merina Salminen have put together Nokia’s mobile phone unit over the last few steps. For the book authors are interviewed about one hundred people, most of whom have worked at Nokia.
- We began to wonder, was there no one studied the Windows Phonea practical level prior to the agreement – and we came to the conclusion that, says one of the book interviewed nokia sort of team ideas.
One paper estimated the Windows Phone 7 was even a year, developed by Nokia Meego operating system behind.
Only year after the announcement of the senior management found out, for example, that the Windows Phone was able to bed used in low-cost phones in the way Nokia would have wanted.
Writers that none of the interviewed did not believe that Microsoft would deliberately lied to Nokia Windows Phone exaggerated abilities.
Windows Phone deficiency list was long. Windows Phone, for example, was difficult to connect the camera. The operating system lacked the support of mobile phone front camera, which can be used, for example, video calls. The system does not support large screens.
MMS did not act in the manner prescribed standard
In addition, the system was difficult to make country specific changes (without which the phone is simply not for sale in certain countries).
Also, many programs where there were problems, so, for example, Microsoft Word and PowerPoint programs, getting the phone was uncertain.
Microsoft wanted to focus only on America and Europe, while Nokia operating globally. Nokia offered to help in increasing the languages, but Microsoft rejected the offer, because the languages would have revealed the addition of soot are subject to too much system software code.
Nokia was forced to disappoint the operator partners, who wished to own a music store to run on Windows phones.
Contrary to what was promised in the negotiations, Nokia had trouble getting their wishes through at Microsoft.
Nokia had the so-called valley of death, when it announced the Microsoft co – without a ready-made handsets. Nokia received its first Windows Phone 7 operating system with Snow Trap stores in autumn 2011.
Unfortunately, Microsoft was already moving to Windows Phone 8 operating system, which did not work in old phones. Nokia had already in the summer of 2012 a new valley of death, when Microsoft announced Windows Phone 8, but Nokia did not have it working phones.
Did Elop here for a break in the time when companies were negotiating co-operation? The question remains Operation Elop in book unanswered, because the authors were from two reliable it deems the source of conflicting information. Second, Nokia and Elop knew of the problem in advance, according to the second it did not know even Microsoft itself.
Nokia’s credibility suffered in any case
According to the authors, Windows Phone 8 update could also be assigned to the earlier Windows Phone models with great effort. Nokia needs did not interest Microsoft, however.
The next unpleasant surprise, Microsoft held as early as May 2011, Microsoft announced the acquisition of the Internet phone company Skype, which was irritated by the operators. Operators had developed a similar service, which they would be able to charge. Trade could be a strange light Elop’s previous talk of new operators in a friendly ecosystem.
Microsoft did not tell me in advance for Nokia Nor Surface-tablettiensa release, in June 2012, the writers at that time, “the sky fell on Nokia’s neck.”
Nokia had been working with its Windows operating system functional tablet device, and designed sales launch in late 2012. Microsoft’s announcement, Nokia has postponed its own tablet plans, and returned to the fair years later, the publication of a Nokia 2520 tablet. Nokia tablet was not successful any better than poorly selling Microsoft Surface.
Source: http://www.itviikko.fi/talous/2014/10/07/nain-microsoft-veti-maton-nokian-alta/201413821/7
Tomi Engdahl says:
New books reveals a strange pattern consultant who took the Nokia-Microsoft hook up
Nokia entered the Microsoft-union cooperation in the preparation of a consultant, who has strong links with Microsoft, released on Tuesday, Nokia-book.
Tuesday published Kauppalehti suppliers Pekka Nykänen and Merina Salminen book Operation Elop says that Nokia used the strategy work in 2010 and 2011 left the McKinsey consulting services.
The authors note that McKinsey’s role in Nokia’s strategy choices was “one of the most accurate things have remained secret.”
The book says that McKinsey Finland’s net sales increased in 2011 to EUR 36.4 million the previous year’s 14.2 million – presumably largely due to cooperation with Nokia. According to the book, Elop took contacted Norwegian Endre Holen immediately after his appointment, and asked him to think about what Nokia should do. “one of the most important Nokia’s strategy and renewal of the people who made”.
The authors wonder why Elop took over in strategy “as the left Kadesh” coupled with Microsoft and the customer in relation to a human, and why does McKinsey found her exclusion. The book says that one reliable source Holen has even responded to the Microsoft customer relationship McKinsey.
Book believes that the Nokia Board of Directors is not aware of McKinsey and Holenin double roles.
“Mind the pictures still life is unsustainable: Nokia’s strategy choices of thought and practice, decisions are made two very strong Microsoft people.”
Source: http://www.tivi.fi/uutisia/uutuuskirja+paljastaa+oudon+konsulttikuvion+joka+vei+nokian+microsoftkimppaan/a1017737
Tomi Engdahl says:
The book says that in August Vanjoki seemed to drive the CEO race managed a block. Still, however, turned into a few weeks.
According to the book “a large rear Vanjoki for neglecting the devil” was the Nokia Board of Directors and the Nomination Committee, Marjorie Scardino, who served as the mouthpiece of the government foreign owners. Scardino was a media company Pearson’s Director General
On the other hand Elopkaan did not have a Nomination Committee to the original number one favorite, and the broader problem is that the “A-class candidates” is not simply derived from the company’s management – in that bad situation Nokia was already in the fall of 2010.
Source: http://www.tivi.fi/uutisia/quottama+takapiru+tuuppasi+elopin+nokian+johtoon+ohi+vanjoenquot/a1017743
Tomi Engdahl says:
Journal: Microsoft’s government had rejected the Nokia acquisition
Microsoft’s government was about to cancel the decision to buy Nokia mobile phones, tells Vanity Fair background, citing sources.
Vanity Fair, the company’s then-CEO Steve Ballmer would not be the intended purchase of Nokia phones, if the company’s Board of Directors had not originally been encouraged.
The negotiations progressed, Ballmer was, however, more and more convinced that Microsoft will buy mobile phones.
At the end of June 2013, Ballmer said the government had made an oral agreement with Nokia management. The transaction was closed by Microsoft Board of Directors’ approval.
The next day, however, the government announced Ballmer for that trade is not done, and that the matter will not be discussed.
But is was reborn in September 2013, because Microsoft’s Board of Directors saw that without the trade in the company’s story of the mobile phone market would have been over.
Source: http://www.iltalehti.fi/ulkomaat/2014100818729013_ul.shtml
Tomi Engdahl says:
Nokia-commerce spoiled billionaires intervals
Vanity Fair reportage highlights Nokia-trade premises. According to the newspaper, Microsoft got us on the Apple and Samsung had a larger share, smartphone store.
Microsoft realized that if Android passed Nokia, the size of Microsoft’s smart phone brand die.
Nokia’s CEO Steve Ballmer announced in December 2012 to discuss Nokia’s then chief executive, Stephen Elop, Nokia and Microsoft, with the cooperation of the future.
Finally, in July 2013, Ballmer announced that he had made an oral agreement with Nokia’s phone business to sell to Microsoft.
The Board of Directors did not agree the Nokia store buying. According to the newspaper the Government after the announcement Ballmer became angry. Either he leaves the company or the company, then the trade is accepted. In the end, the government’s management realized that they had to buy Nokia to stay in smart phone business.
Although Nokia transaction was 5.44 billion contract, was also start of then end of Ballmer career: the change in company culture and Ballmer decided to end his career at the top.
- The company’s course was no longer able to turn this to the Executive Board, Ballmer explained the magazine.
According to the newspaper the feeling was mutual.
Source: http://www.iltalehti.fi/talous/2014100818729267_ta.shtml
Tomi Engdahl says:
The Empire Reboots
http://www.vanityfair.com/business/2014/11/satya-nadella-bill-gates-steve-ballmer-microsoft
Over the last decade, as the biggest force in tech history hurtled toward irrelevance (albeit lucratively), a few blamed Microsoft’ s woes on founder Bill Gates, while most pointed to his successor as C.E.O., Steve Ballmer. Bethany McLean charts the breakdown of their relationship, the growing dissatisfaction with Ballmer, and the challenges and opportunities facing its third C.E.O., Satya Nadella, as Gates returns to the fold.
Tomi Engdahl says:
Was Nokia’s Elop history’s worst CEO?
No, silly… he was the fall guy for years of Finnish folly
http://www.theregister.co.uk/2014/10/09/elop_new_history/
Stephen Elop’s decision to bet the farm on Windows Phone makes him the world’s worst CEO, according to a new book published this week.
Operation Elop by Pekka Nykänen and Merina Salminen interviews former Nokia staff and arrives at its judgement based on the decline in Nokia’s market value from 2010 to 2013: from €29.5bn to €11bn.
When Elop took the reins, in Q4 2010, Nokia still had a market share of 28.2 per cent in phone sales, shipping 117 million units to Samsung’s 71 million and Apple’s 13.4 million. At the time, Nokia’s mobile OS of choice, Symbian, enjoyed 36.6 per cent of the smartphone market – making it the largest platform – and Apple’s iOS just 16.7 per cent.
Granted, Nokia’s share was declining – but that decline was to accelerate sharply. The market was buying a new, more capable kind of phone from Apple and Android licensees like Samsung.
But how fair is it to blame Elop for years Nokia’s years of neglect? Elop inherited a dysfunctional bureaucracy, warring factions, and a product team that took 18 months to develop a mediocre device. Nokia executives tended to overestimate its formidable brand and distribution power. And its own technological advantages in battery power and call quality were about to become much less important in the new era. Whoever took the CEO’s seat in September 2010 needed to address these challenges – whatever decisions he or she would take.
Nokia employed over 16,000 people in phone R&D when Elop took the helm. One in three dollars spent in global phone R&D was being spent by Nokia, which devoted more resources to it than Apple devoted to all its products. Yet the Finnish firm still couldn’t produce a competitive device.
Elop concluded Nokia’s own software factory was beyond repair, and by choosing Window Phone, effectively outsourced the lot to Microsoft. (He maintained some platform development in-house: the low-cost Series 40 featurephone platform, and for a while, a Unix for midrange phones, until this too was eventually scrapped).
“Plan B is to make sure Plan A is very successful,” Elop told reporters in June 2011.
Operation Elop debunks the weird conspiracy theory that Elop had been brought in to sell the company back to Microsoft cheaply.
The book also asserts that he was sold a pup: Nokia didn’t realise you couldn’t make conventional phones using Windows Phone. This assertion is almost as mad as the Trojan Horse conspiracy. Neither is plausible. Nokia had originally wanted to license its future platform, Meego, to all comers, but nobody was interested
Tomi Engdahl says:
Nokia’s Largest Plant to Shut Down in India
http://www.eetimes.com/document.asp?doc_id=1324231&
BANGALORE, India — One of the world’s biggest cellular phone manufacturing plants, located in the southern India city of Chennai, will stop production of mobile phones and down shutters after Nov. 1. Microsoft, its lone customer, has terminated a subcontract agreement.
“Microsoft has informed Nokia that it will be terminating the manufacturing services defined in the agreement with effect from November 1, 2014,” Nokia announced Tuesday. “In absence of further orders from Microsoft, Nokia will suspend handset production at the Sriperumbudur facility from November 1.”
Nearly 5,200 workers left the Finnish phone maker in a massive voluntary retirement scheme after the factory’s future was clouded by the Indian tax department’s asset freeze move.
Established in 2006 on a 200-acre site, the Nokia facility in Sriperumbudur slowly ramped up production to before the largest single location for mobile handsets globally. The factory once employed 8,000 workers directly and rolled out 450,000 units a day. After Microsoft purchased Nokia’s global handsets and services business in April for $7.2 billion, the factory cut down production drastically and was producing a mere 40,000 handsets a day when the shutdown was announced.
Tomi Engdahl says:
The world and especially the United States Prime Minister of Finland Alexander Stubb, perhaps intended as a joke comment that the loss of the iPhone, Nokia, has also received the analysts to assess what happened. All end up the same: Nokia had the time to respond to the challenge of the iPhone, but it was not able to.
The world and especially the United States Prime Minister of Finland Alexander Stubb, perhaps intended as a joke comment that the loss of the iPhone, Nokia, has also received the analysts to assess what happened. All end up the same: Nokia had the time to respond to the challenge of the iPhone, but it was not able to.
Nokia stumbling block came to software. Nokia tried for too long to patch Symbian problems. Symbian was rejected only in 2011, which was way too late.
Analysts said Nokia would be worth up to buy Palm’s WebOS operating system in 2010, which estimates that the market for second best.
Source: http://etn.fi/index.php?option=com_content&view=article&id=1919:nokialla-oli-aikaa-vastata-iphonen-haasteeseen&catid=13&Itemid=101
Tomi Engdahl says:
Finnish PM: Apple has DESTROYED FINLAND
Well, the mobile phone manufacturing bit, anyway
http://www.theregister.co.uk/2014/10/14/they_wreckyourshit_apple_has_destroyed_finland/
The Prime Minister of Finland has claimed that Apple destroyed his country’s biggest industry: mobile phone manufacturing.
As if that wasn’t bad enough, Alexander Stubb went on to say that Cupertino had also annihilated the paper-making industry, which was his nation’s other pride and joy.
“We have two champions which went down. One could say that the iPhone killed Nokia and the iPad killed the Finnish paper industry, but we’ll make a comeback,” Prime Minister Alexander Stubb said.
However, a leading Finnish analyst has rubbished the PM’s claims, telling us that Nokia “committed suicide”.
“This claim that Apple killed two big industries is not true. It’s a way to put the blame on someone else.”
Tomi Engdahl says:
Finnish PM: Apple has DESTROYED FINLAND
Well, the mobile phone manufacturing bit, anyway
http://www.theregister.co.uk/2014/10/14/they_wreckyourshit_apple_has_destroyed_finland/
The Prime Minister of Finland has claimed that Apple destroyed his country’s biggest industry: mobile phone manufacturing.
As if that wasn’t bad enough, Alexander Stubb went on to say that Cupertino had also annihilated the paper-making industry, which was his nation’s other pride and joy.
“We have two champions which went down. One could say that the iPhone killed Nokia and the iPad killed the Finnish paper industry, but we’ll make a comeback,” Prime Minister Alexander Stubb said.
However, a leading Finnish analyst has rubbished the PM’s claims, telling us that Nokia “committed suicide”.
“This claim that Apple killed two big industries is not true. It’s a way to put the blame on someone else.”
Strand has written extensively on the Nokia collapse, often aiming a swift kick right to nether regions of former CEO Stephen Elop, whom he has previously described as having a “dream of creating shareholder value like Gordon Gekko but ending up as Mr. Flop” instead.
He tracked Nokia’s failure back to the Stephen Elop’s “burning platforms” memo, in which he admitted falling behind competitors and heralded the end of the Symbian platform.
“Elop was not capable of communicating,”
Tomi Engdahl says:
‘Microsoft Lumia’ Will Replace the Nokia Brand
http://mobile.slashdot.org/story/14/10/21/1328243/microsoft-lumia-will-replace-the-nokia-brand
The last emblems of Nokia are being removed from Microsoft products. “Microsoft Lumia” is the new brand name that takes their place. The name change follows a slow transition from Nokia.com over to Microsoft’s new mobile site
Microsoft Lumia will replace the Nokia brand
An obvious choice
http://www.theverge.com/2014/10/21/7026427/microsoft-lumia-nokia-brand-replacement
Microsoft’s decision to drop the Nokia brand itself doesn’t mean that Nokia is going away fully. Nokia still exists as a separate company without its phones business, and the Finnish firm now focuses on mapping and network infrastructure.
Microsoft’s choice to use Lumia as the Nokia replacement won’t come as a surprise to many. Nokia’s Windows Phone apps have been rebranded to Lumia recently, and holiday ads will be pushing Lumia instead of Nokia.
What’s not clear is how Microsoft will handle the branding on its future Windows Phone.
Tomi Engdahl says:
Say hello to Microsoft Lumia
http://conversations.nokia.com/2014/10/24/say-hello-microsoft-lumia/
When we announced that the Nokia Devices & Services business would become part of Microsoft, we also shared that Lumia, our smartphone brand, would become part of the Microsoft family. Since then, we have naturally been making the change from Nokia to Microsoft in our websites, packaging and other consumer touch points.
Conversations: But does this mean Nokia Lumia smartphones that are currently in the market are obsolete?
Tuula: Of course not! Microsoft continues to sell and support the Nokia Lumia phones that are out in the market, such as the recently announced Lumia 830 and Lumia 730/735.
Conversations: Will we see any additional Nokia phones from Microsoft?
Tuula: Yes! Microsoft will continue to sell Nokia-branded, entry-level category of phones, such as the Nokia 130. We have licensed the Nokia brand for such devices.
Tomi Engdahl says:
Nokia Will Return, Hints At 2016 For Finland’s Next Smartphone
http://www.forbes.com/sites/ewanspence/2014/10/26/nokias-not-finished-with-mobile-hints-at-2016-for-finlands-next-smartphone/
Following the release of its third quarter results last week, Nokia’s CFO Timo Ihamuotila talked about the value of the Nokia brand name in the mobile phone space, and how that market space was off-limits at the moment. Speculation remains high about Nokia’s intention in the mobile phone space after the purchase of the Devices and Services section by Microsoft, and Ihamuotila made no effort to dissuade that view during the call.
It’s in Microsoft’s best interest to switch to a brand name that it has full control over as quickly as possible. This process has already started with the latest Windows Phones switching to the ‘Lumia 830′ or similar nomenclature.
Once those dates are past, naturally all bets are off.
Finland May Yet Return To The Mobile Handset Business
Nokia remains interested in the mobile space. The recent launch of HERE Maps as a public beta for Android shows competency and a willingness to experiment outside of its corporate history. While the Nokia X UI skin and Android launcher, along with the Nokia X range of handsets, went to Redmond as part of the purchase, I’m sure that Nokia could find the engineering talent to build a new and workable UI on top of the standard Android package if there was the will.
No executive is going to lock out potential business development areas in the future on a conference call, but Nokia has always been aware of the lock-up period and when it will end.
As for physical manufacturing, the rise of the Chinese OEM would easily take the strain of building these handsets. Don’t forget that Nokia’s first Windows Phone handset, the Nokia Lumia 800, was manufactured as an ‘out of house’ project with the help of Compal Electronics.
As I’ve pointed out here on Forbes previously, Nokia would not need to look far to find a team full of competency with smartphones. Sitting in its old Research and Development Centre in Helsinki is Jolla.
Tomi Engdahl says:
Nokia’s N9 team to develop an Android device
Nokia will sell under its own name with smart phones of 2016, when the agreement with Microsoft allows it. Foreign analysts seem to be sure. Rumors of the network do not fade away, but the pace is increasing.
Nokia’s third quarter results Timo Ihamuotila added fuel to the fire by saying that the company should be to maximize the value of the Nokia brand. For many, this can only mean a return to smart phones.
Source: http://etn.fi/index.php?option=com_content&view=article&id=2034:nokian-n9-tiimi-kehittaa-android-laitetta&catid=13&Itemid=101
Tomi Engdahl says:
Tom Warren / The Verge:
Microsoft announces its first non-Nokia Windows phone, the Lumia 535: 5″ display, 5MP front camera, 1GB RAM, single/ dual SIM, for $130
Microsoft’s first Lumia defines Windows Phone’s future
No more Nokia
http://www.theverge.com/2014/11/10/7190117/microsoft-lumia-535-first-lumia-hands-on
Tomi Engdahl says:
Microsoft discovers long-lost phone division down back of sofa
Confirms it’ll be chucking ‘Lumia’ brand into the round file
http://www.theregister.co.uk/2014/10/24/microsoft_discovers_longlost_phone_division/
Nokia phones generated $2.6bn in revenue for Microsoft as the division arrested its decline. Redmond sold 9.3m Lumia devices in the quarter, the most ever.
In the quarter a year ago, Nokia (then the owner) shifted 8.8m Lumias. In June only 5.8m Lumias moved. The company had failed to refresh its product line as it, and other OEMs, waited for Windows Phone 8.1 to be ready.
The number is dwarfed by the volumes shipped by Apple. But it shows Microsoft is still a significant global player in phone hardware – whether it wants to be or not.
Nevertheless, Redmond presses on. Microsoft gave official confirmation of what has been known for months – that it would drop the Nokia brand from its Lumia smartphones – it just didn’t say when. And still hasn’t (officially), but it did give a teaser of what they’ll look like.
Tomi Engdahl says:
Nokia: Buh-bye LUMIA and cash-sucking handset pals… LET’S MAKE SOME MONEY!
Nabs deals to roll out networks in China, US
http://www.theregister.co.uk/2014/11/14/nokia_raises_profitability_target_4g_networks/
14 Nov 2014
Nokia has raised its long-term profitability target and expects its new business of concentrating strictly on the telecoms equipment game to grow next year.
The Finnish firm, which has focused on making telco gear and its intellectual property portfolio since ditching its handset unit earlier this year, said that strong demand for faster 4G networks was increasing its profit margin.
Last month, the firm’s results showed an operating profit margin of 11.4 per cent for the first nine months of the year at its networks unit, after it bagged a contract to supply 4G equipment to China Mobile and helped US network Sprint to build out its 4G network.
The boost gave the firm cause to lift its long term target for operating profit margin to eight to 11 per cent, from a previous goal of five to ten per cent. Nokia told investors about the new target at its first Capital Markets Day in some time that.
The company is hoping to grow its networks unit at a slightly faster rate than the market
Tomi Engdahl says:
Microsoft makes big push in emerging smartphone markets
http://www.seattletimes.com/business/microsoft/microsoft-makes-big-push-in-emerging-smartphone-markets/
After a dismal showing for the Windows Phone, Microsoft is making a big push in emerging markets, hoping that low-priced phones will appeal to first-time buyers in those countries.
Seven months after shelling out $7.5 billion for Nokia’s mobile- phone unit, Microsoft put its stamp on the business, releasing the first phone to bear the Microsoft name in years.
Where did Microsoft, the Redmond giant that makes most of its money in the U.S. and Europe, start its post-Nokia era?
At a media event in New Delhi, India.
In acquiring Nokia last year, former Microsoft Chief Executive Steve Ballmer arranged the marriage of two companies that badly lost in the race to sell the first billion smartphones.
Windows Phone, the Microsoft mobile operating system used almost exclusively in Nokia-produced phones, ran just 2.7 percent of the smartphones shipped worldwide in 2014, according to data tracker IDC. In developed economies, consumers have largely committed to Apple- or Google-powered devices, analysts say.
“Any growth left in the market will come from emerging markets that are in the midst of the smartphone transition,” said Peter Richardson, an analyst with Counterpoint Research and a former head of market intelligence at Nokia. In those markets, “there’s still some possibility of Windows Phone finding traction.”
The company is waging its comeback battle with a leaner crew.
Microsoft has nearly halved the workforce acquired with Nokia, cutting 12,500 jobs and closing plants and engineering facilities in locations from Hungary to China. Executives said the cuts were needed to shift the company’s footprint toward the phones of the future and, ultimately, push the money-losing business to profitability.
“These are people who sold hundreds of millions of features phones for years in Africa, the Middle East,” Reith said. “These guys are familiar with that. If you can do enough volume, you can make money.”
India and China, widely targeted consumer markets that together are home to more than a third of the world’s population, represent the promise and the challenge of Microsoft’s approach.
China is the world’s largest smartphone buyer, ahead of the U.S.
In India, now the third-largest market, consumers buy more devices each year than the U.K., France and Spain combined. Some analysts project the country will overtake the U.S. as economic growth accelerates.
India was also one of Nokia’s stronger markets, and home to what was for years the company’s largest manufacturing plant.
But Microsoft, which its executives now acknowledge is playing the insurgent role in the smartphone universe, is hedging its bets.
The company under CEO Satya Nadella dropped its longstanding preference for pushing users toward Windows at all costs, releasing free mobile versions of Office software for Google and Apple smartphones and buying popular app makers for those platforms.
Microsoft is also trying to replicate the success of Google’s free-to-use Android in attracting Asian manufacturers by dropping the licensing fee on copies of Windows Phone.
Company executives at the Mobile World Congress in Barcelona this week said Microsoft is waiting for the release of the Windows 10 operating system later this year to showcase its high-powered hardware.
Redmond hopes Windows 10, with its promises of smoother developer adaptation of desktop programs to smartphones and tablets, opens a backdoor to greater share of the smartphone market. In Microsoft’s vision, vibrant developer and consumer interest will spur other hardware builders to make phones for the operating system.
“They’ve thrown a lot out there that just hasn’t worked over the last couple of years,” IDC’s Reith said.. “I think they’re going to have to hedge their bets with Windows 10 and ask ‘Why are we really out there?’ ”
Tomi Engdahl says:
Nokia went in the wrong direction
Nokia’s rise and fall is a complex entity, and it will be guaranteed the future of the popular business management courses in academic institutions all, but it can be argued that, at some point in their journey, Nokia turned in the wrong direction and went on the wrong path after reaching the end.
Nokia’s mobile phone profitability and the collapse of sales last year, Microsoft was and is for many Finnish underbelly. How could all go so wrong? How the world’s largest manufacturer managed to screw up the situation so quickly, in practice, in a few years?
Nokia’s mobile phone business collapse has already been made in the books. Microsoft Chief Executive Stephen Elop did not come to have not received praise from their time in the company’s management, but may have been short-sighted to blame one man destruction billion business.
Boyd spent a lot of time in Finland in the early 2000s when the Nokia mobile phones were the top of the world. According to him, the Nokia mobile phone business collapsed because the company ignored the value of innovation.
Nokia was synonymous with innovation in the mobile phone sector. Perhaps the more accurate term would be “based on mobile phones.” Nokia shipped a billion mobile phone for two years before Apple got its first iPhone market. It is really a difficult decision to leave the enormous existing business at toward something unknown. Nokia introduced the first smartphone already in 1996. Already in the late 1990s, the company developed its own touch screen phone with Web prototype.
Nokia chose wrong if they wish to improve the performance with extremely precise control over costs. This meant in practice that, for example, Nokia’s component choices directed more to the price, as well as new innovative the features that a bolder policy could provide the users.
Apple’s decision to apply for business smartphones adding a phone equipped with touch screen function network connected platform proved to be ground-breaking innovation that took the entire industry in a new direction. Apple’s iPhone in 2007 started a success only way underscored Nokia’s selection of injustice. Apple did not want to sell the maximum number of smart phones. It wanted to offer something exceptional, that would change the entire smartphone device. It is truly successful. Back in 2011, Apple’s cash rang in three out of four mobile phones profit. It is public knowledge that Apple and Nokia to severe patent dispute in 2011.
The way in innovation performance are sold product with potential users, to distinguish winners from the less successful. Both Apple and Samsung now bring their innovations available in a broad spectrum of product families. The key is to market at the right time with the latest, well-marketed products. If you respond to changes in the market too slowly die as surely as counterfeit products. When the high-end segment under the breaking out of your hands, and low-cost Chinese competitors meet the low-end equipment market, company management, the biggest challenge is to know how to react and steer the company in a new direction.
In other words, a commitment to strive for success on the equipment sold to Nokia’s volume can be said following the “cost of the path”, when Apple was followed by the much smaller volumes of “innovative path”. After choosing – an ex post assessment – wrong route, Nokia had no choice but to try all its energy products to reduce the costs of a powerful and efficient purchasing organization. Cost reduction is not – oddly enough – led to the company’s earnings improvement.
Sources:
http://www.etn.fi/index.php?option=com_content&view=article&id=2526:nokia-lahti-vaaraan-suuntaan&catid=13&Itemid=101
http://www.etn.fi/index.php?option=com_content&view=article&id=2525:suomalaiset-elektroniikkayritykset-tarvitsevat-innovaatioita&catid=9&Itemid=139
Tomi Engdahl says:
Microsoft’s latest job cuts to hit manufacturing, sales
http://www.zdnet.com/article/microsofts-latest-job-cuts-to-hit-manufacturing-sales/
MIcrosoft’s Finland offices and its Sales and Marketing Organization will both be impacted by the company’s 7,800 job cuts. Here’s COO Kevin Turner’s mail to the troops.
Microsoft will lay off more than half of the Microsoft staffers based in Finland, the home of Nokia, as reported by Yle. That means a maximum of 2,300 jobs will be cut in Finland “as the company shuts down its Salo operation and moves tasks from there to Microsoft facilities in Tampere and Espoo,” according to Yle. Currently, there are 3,200 Microsoft employees in Finland, Yle said.
A Microsoft spokesperson confirmed that this report is correct.
Tomi Engdahl says:
Paul Thurrott / Thurrott.com:
Microsoft dramatically scales back on Windows Phone, leaving long-term future of Lumia in doubt as it focuses on “mobility of experiences”
Analysis: Microsoft is Scaling Back on Windows Phone Dramatically
https://www.thurrott.com/mobile/windows-phone/4512/analysis-microsoft-is-scaling-back-on-windows-phone-dramatically
Yes, we were right to be worried about Windows Phone. Satya Nadella’s email only touches on first-party phones for the short term, buying Microsoft time to transition to a “mobility of experiences” future in which it doesn’t matter which phones its customers use.
Windows Phone is failing
Actually, that’s not an opinion, it’s a fact. The company that makes over 96 percent of all Windows Phone handsets in use just wrote off $7.6 billion related to its Windows Phone assets, and has announced plans to dramatically scale back its mobile operations. And, yes, Windows Phone has fallen to just 3 percent market share worldwide too. Things aren’t going well. Sorry.
Phone business restructuring means a total loss from Nokia purchase
Nadella said that Microsoft was “fundamental restructuring” its phone business. This includes an “impairment charge” of approximately $7.6 billion related to assets associated with the acquisition of the Nokia devices and services businesses last year, plus an additional restructuring charge of approximately $750 million to $850 million. When you consider that Microsoft paid $7.2 billion for the only parts of Nokia that mattered (minus HERE), this is a total disaster. Nokia was going out of business. Now only a tiny part of what used to be Nokia remains. And I believe the remainder is on borrowed time.
Tomi Engdahl says:
Microsoft remains no longer a thousand employees
Microsoft today announced that it completed in July to the best holiday season announced co-determination negotiations. The result is as expected. Finland leaves 2300 jobs. Salo operations cease completely. Microsoft remains mobile phones, the development of a little more than one thousand employees.
The company says that it will centralize phone business product management and product development teams in Espoo and Tampere. These offices are combined, as well as product management and product development in order to streamline operations.
Departments shall work in Espoo, Finland will focus on higher-end devices, application software and design. Tampere units come to work in the mid-range smartphone narrower range, as well as key technologies for the development of activities.
Salo transferred certain tasks in Espoo and Tampere. Microsoft supports mobile service in Espoo and Tampere units salon workers in the unit in order to guarantee the continuation of the work for them as easily as possible.
Source: http://etn.fi/index.php?option=com_content&view=article&id=3227:microsoftiin-jaa-enaa-tuhat-tyontekijaa&catid=13&Itemid=101
Tomi Engdahl says:
Nokia may have a hefty payday in January
Although Nokia has abandoned the production of mobile phones, smart phone business it produces more money through other licensed patents. In January, may be coming to a hefty pot from Samsung.
Nokia now expects to inform the final settlement of compensation levels determining the arbitration proceedings by the end of january 2016.
Nokia and Samsung the old Patent ended in 2013, and at that time obtained agreement reached will be followed by a new five-year deal. However, the level of compensation was left open, and it was agreed that it will be settled later.
The old contract is believed to have brought Nokia 0.3-0.4 percent of mobile phones sold in each price. Other similar agreements have the objective of 2-3 per cent royalties. If the arbitration reading level raised to even 1 per cent, more than double the Nokia Samsung collects license fees.
Source: http://www.tivi.fi/Kaikki_uutiset/nokialla-saattaa-olla-muhkea-tilipaiva-tammikuussa-6240085
Tomi Engdahl says:
Microsoft rumored to close feature phone business and sell the Nokia name to Foxconn; layoffs coming
http://www.phonearena.com/news/Microsoft-rumored-to-close-feature-phone-business-and-sell-the-Nokia-name-to-Foxconn-layoffs-coming_id81102
According to a rumor out of China, after selling only 15 million feature phones during the first quarter of this year, Microsoft is closing the division and will license the Nokia name to contract manufacturer Foxconn. Under the terms of its acquisition of Nokia Devices and Services a deal which closed in 2014, Microsoft owns the rights to use the Nokia name for smartphones until 2024.
If you’re looking for further hints that a Surface Phone is coming, the same rumor says that after closing its feature phone group, the remaining part of Microsoft Mobile (which produces Lumia handsets) will be folded into the Surface group. 50% of Microsoft Mobile employees will be laid off.
Tomi Engdahl says:
Tom Warren / The Verge:
Microsoft is selling its feature phone business to Foxconn for $350 million
http://www.theverge.com/2016/5/18/11699660/microsoft-foxconn-feature-phone-sale
Microsoft is selling its feature phone business to FIH Mobile, a subsidiary of Foxconn, for $350 million. The deal will see 4,500 employees transfer over to Foxconn’s subsidiary, and Microsoft handing over the rights to use the Nokia brand, feature phone software, services, and other contracts and supply agreements. Nokia is now planning to license its brand to a newly created company called HMD global, which will produce and sell a range of Android smartphones and tablets.
This deal will only affect Microsoft’s feature phone business, which is currently still using the Nokia brand for basic phones. Microsoft says it will continue to develop Windows 10 Mobile and support Lumia phones and Windows Phone devices from partners like Acer, Alcatel, HP, Trinity and VAIO.
Tomi Engdahl says:
The expected news – Microsoft ending phones
According to several magazines Microsoft today announces its withdrawal still working in the majority of the developers of Finland. Notice of the decision related to the global software company to give up completely on their own smartphone manufacturing.
A decision is expected, but very tedious. The redundancies for up to 1350 employees.
The decision of the Finnish mobile phone at the same time sealed the fate of the design, at least for now. In a way, former nokia kind of fate was sealed as early as 2012, when the then Director-General of Nokia Stephen Elop under the leadership decided to replace Symbian with Windows Phone.
Windows has been the platform for smartphones total flop.
Source: http://etn.fi/index.php?option=com_content&view=article&id=4488:odotettu-uutinen-microsoft-lopettamassa&catid=13&Itemid=101
Tomi Engdahl says:
Thank you and goodbye, Microsoft
Microsoft Mobile Oy is run down. R & D runs from Espoo, Tampere unit be abolished altogether. 1350 developers, and other employees may be fired. A decision is expected but takes your breath away. Thank you and goodbye!
Microsoft Mobile is initiated statutory employer-employee negotiations. Cancelable supported paketein, by offering grants to new Startup base on the framework established last year in the Path of the program. Also developed technology licensing opportunities are given.
General manager of Microsoft’s Satya Nadella laments day to be difficult, as well as Microsoft Finland and its smartphone operations globally. The difficulty associated with certainly more decision due to a $ 950 million write-down, as concerns the Finnish mobile expertise.
Microsoft says it will continue the development of the Windows 10 operating system for small screens, support for Lumia phones and OEM partners phones and the development of new devices.
Source: http://etn.fi/index.php?option=com_content&view=article&id=4490:kiitos-ja-nakemiin-microsoft&catid=13&Itemid=101
Tomi Engdahl says:
Nokia-expert: “Microsoft certainly tried their best”
Microsoft plans to stop the development of mobile phones almost entirely in Finland. The company announced on Wednesday that up to 1350 employees could lose their jobs.
“Unfortunately, these last news did not come as a surprise. I had heard rumors a few months ago, that would happen. After all, this is a sad decision. Finland is not in this situation would have needed at least an additional attack, ”
“This is not about the fact that the Finnish are treated badly, but Microsoft did not get Nokia to buy their phone business to fly, even though it certainly tried their best.”
Even if, inter alia, the Finnish company Global HMD was told last week to begin development of Nokia brand mobile phones and US Robotics Turing is embarking on the preparation of Salo, the scale of their operations is less than Microsoft or Nokia in due course.
Source: http://www.tivi.fi/Kaikki_uutiset/nokia-asiantuntija-microsoft-varmasti-yritti-parhaansa-6553935
Microsoft’s Ballmer in 2013: “Finland central place in Europe” – how did things turn?
Quickly times change, and quickly grow old promises.
When Microsoft’s then-CEO Steve Ballmer visited Finland in autumn 2013 to talk about the company’s intention to buy Nokia’s mobile phone businesses, he promised a bright future operations in Finland.
Ballmer promised at the time that “Finland will become the company’s core place in Europe”.
Source: http://www.tivi.fi/Kaikki_uutiset/microsoftin-ballmer-vuonna-2013-suomesta-ydinpaikka-euroopassa-kuinkas-kavikaan-6553930
Tomi Engdahl says:
Summer mood changed gloom Microsoft – AL: “Work is no longer necessary to make”
Aamulehti has received comments from Tampere Espoo transported to the employee. According to him, work the same way run out.
“The dates have not yet been announced, but the employee’s start right away, and all is terminated. Work no longer need to do, “the worker says to Aamulehti.
According to the newspaper in 1350 termination of a human in Finland means, among other things, the extinction of Microsoft’s operations in Tampere completely.
Microsoft Windows boss Terry Myersonin that Microsoft intends to terminate its business phone 1850 employees, including 1350 in Finland.
Source: http://www.tivi.fi/Kaikki_uutiset/kesatunnelma-vaihtui-synkkyyteen-microsoftilla-al-toita-ei-tarvitse-enaa-tehda-6553890
Tomi Engdahl says:
“Finnish ICT experts jobs – now”
“Even in this situation, it is important to remember that Finnish know-how has not disappeared. The responsibility for any jobs in the new possibilities is losing people at Microsoft and the public authorities, “he urges.
Rinne’s opinion, the government has now wait. He points out that the Prime Minister Juha Sipilä has acknowledged the government’s ICT-houses into social and health care-package.
Source: http://www.tivi.fi/Kaikki_uutiset/suomalaisille-ict-osaajille-uusia-tyopaikkoja-nyt-6553867
Tomi Engdahl says:
“The worst took place” – Stephen Elop forecast had to be engaging in the wrong way
Microsoft’s phone business with shut-downs and the effects of shocking in Finland is enough talk and chew extended period of time. Director of the Organization of Salaried news brought to mind the controversial former Nokia chief’s words.
“Stephen Elop announced by the oil slick in his famous speech on one card strategy has come to an end. Now it is coming true worst-case scenario, parts of which were afraid of the Nokia’s phone business is focused on Microsoft’s operating system ”
According to him, the staff does not fit blame the fact that Microsoft’s phone strategy ran aground: “The staff is doing its best, but it is not enough now.”
Source: http://www.tivi.fi/Kaikki_uutiset/pahin-toteutui-stephen-elopin-ennuste-piti-kutinsa-vaaralla-tavalla-6553858
Tomi Engdahl says:
Everything went – Microsoft terminates the Finnish phone developers
Microsoft estimates that the plans announced today will lead to a reduction of up to 1350 jobs in the Microsoft Mobile Oy in Finland, as well as a reduction of up to 500 jobs globally, sheet sets.
The company is also planning to discontinue the Microsoft Mobile Oy’s operations. Some development teams will remain in Espoo, Finland.
Some workers will be able to move to the US to work in Redmond on their own interest and suitability of tasks depending on.
Source: http://www.tivi.fi/Kaikki_uutiset/kaikki-meni-microsoft-irtisanoo-suomen-puhelinkehittajat-6553841
Tomi Engdahl says:
Anssi Vanjoki: This was already clear in February 2011
Vanjoki, the fate of the former Nokia mobile phone sealing operation as early as five years ago.
- This was just the end of the end, the beginning of the end of February was 11 in 2011, says Anssi Vanjoki, the former head of Nokia’s mobile phone business.
In February 2011, then Nokia’s CEO Stephen Elop and Microsoft’s then-CEO Steve Ballmer announced that Nokia will start using their smartphones for Microsoft’s Windows Phone operating system, and gives up its own Symbian operating system within a few years.
- Then each of the mobile phone sector to the next, it was clear what’s going to happen, and now it finally happened, says Vanjoki.
Today, Microsoft announced the abandonment of the phone business almost completely, which marks the end of Nokia’s already in the 80s initiated by the mobile phone business. Microsoft will continue to develop and support the Windows operating system for phones.
- For me, this has been clear for a long time, and there have been only a question of how long it will take, regardless of who owns it.
Vanjoki, Nokia made a mistake when it gave up its own production software.
Source: http://www.digitoday.fi/bisnes/2016/05/25/anssi-vanjoki-tama-oli-selvaa-jo-helmikuussa-2011/20165646/66?rss=6
Tomi Engdahl says:
Microsoft’s phone runs out of development in Finland, or at least shrink to a minimum. This has already been seen, so that the phone design Finland ends.
In Finland, there are several companies that will take Nokia’s legacy forward.
One of these is the Oulu Bittium.
Oulu has also the Russian Yota Devices manufacturer design team.
Oulu is also designed Marshall of the British London telephone.
Nokia selected the Windows operating system and abandoned MeeGo, a group of former Nokia sorts founded Jolla.
Nokia’s heritage will also take forward fresh HMD Global, which acquired the rights to produce last week Nokia phones. The company has not yet released the products, but analysts estimate expected is likely to be very “Nokia like” products
Salo phone manufacturing starting Turing Robotic Industries is not exactly a Finnish company. However, it set up a phone Finnish Sailfish OS and manufactures their equipment in Salo factory in the former Nokia phone.
Also, Microsoft remains some phone designers.
Source: http://www.digitoday.fi/mobiili/2016/05/25/puhelinten-teko-ei-suomesta-lopu-tassa-ovat-nokian-perilliset/20165650/66?rss=6
Tomi Engdahl says:
This will remain from Windows phones
Microsoft plans to continue to support a small group of customers. However, the main focus appears to be a third-party Windows-phones.
- We will focus our efforts phones in areas where we can differentiate: companies who value data security, device management and Continuum functionality , as well as consumers, who value the same things, Microsoft CEO Satya Nadella said in the announcement.
Beyond this, Microsoft has not commented on the follow-up.
Microsoft is trying at the same time strongly to get other manufacturers of Windows Phone.
Source: http://www.digitoday.fi/mobiili/2016/05/25/tama-jaa-windows-puhelimista-jaljelle/20165627/66?rss=6
Tomi Engdahl says:
Nokia phones spectacular rise and dramatic collapse – we listed the most important steps for the period 1984-2016
1984 The first five-kilogram heavy Mobira Talkman NMT
1989 Soviet President Mikhail Gorbachev to call Moscow Helsinki Kalastajatorppa Mobira Cityman phone.
1991 GSM network opened in Finland first in the world. Nokia will release a year later the first GSM cellular phone
1994, Nokia will release 2110 phone.
1996, Nokia introduced the first Communicator 9000 smartphone.
2001, Nokia will publish its first camera phone, the Nokia 7650′s.
Nokia 2005 is October-December, more than 54 percent market share in the global smart phone sales, says market firm Canalys. Nokia will deliver at that time 9.2 million smartphone.
2006, Nokia delivered during the year, a total of 345 million mobile phones. Research firm Gartner estimates that the company has a market share of 35 per cent worldwide.
2007 Apple will release its first iPhone and Google will present Android operating system. In the same year, Nokia will supply more than 60 million smartphones and excel in the 49.4 per cent market share.
2008 Nokia mobile phones to achieve a global market share of 38.6 percent,
2010 Nokia appoints the President and CEO of the American Stephen Elop. According to Gartner, Nokia has a 29 percent market share in telephone sales.
2011 Nokia’s Elop warns workers Burning Symbian operating system
In September 2013, Nokia and Microsoft announce that Nokia will sell the mobile phone business to Microsoft 5.44 billion euros.
2014 Microsoft’s Ballmer will give way to a result in part due to the mobile phone business losses
2016 On May 25th Microsoft to announce termination of virtually all telephone operations in Finland and to reduce 1350 jobs.
Source: http://www.digitoday.fi/mobiili/2016/05/25/nokian-puhelimien-mahtava-nousu-ja-raju-romahdus–listasimme-tarkeimmat-vaiheet-vuosilta-19842016/20165651/66?rss=6
Tomi Engdahl says:
Ingrid Lunden / TechCrunch:
Microsoft is laying off 1,850 to “streamline” its smartphone business, takes $950M charge — Following last week’s news of Microsoft selling off its feature phone business for $350 million, today Microsoft turned its attention to smartphones: the company announced it would lay off 1,850 staff …
Microsoft is laying off 1,850 to “streamline” its smartphone business, takes $950M charge
http://techcrunch.com/2016/05/25/microsoft-is-laying-off-1850-to-streamline-its-smartphone-business-takes-950m-charge/
Following last week’s news of Microsoft selling off its feature phone business for $350 million, today Microsoft turned its attention to smartphones: the company announced it would lay off 1,850 staff and take a charge of $950 million, including $200 million in severance payments, as it “streamlines” the business to focus on enterprises and niche areas where it feels it can better differentiate.
On one hand, the move is not that surprising, considering that Microsoft has failed to spark much interest in its Lumia-branded smartphones since taking over the business from Nokia, with Android-based devices and Apple’s iPhone continuing to dominate sales and usage globally.
On the other hand, it is a little bit of a shock to see Microsoft doing this.
The layoffs announced today will be fully completed by July 2017, the company said, to coincide with the end of its fiscal year, the company said.
Tomi Engdahl says:
Microsoft made a $ 10 billion mistake
Software giant Microsoft had a 10-year dream, where it could catch the domination of the smartphone from Apple and Google. Yesterday, it was decided to abolish its own production and design. It is estimated that Microsoft made a total of US $ 10 billion in losses over the years.
At the same time Microsoft’s decision to end the so-called practice. a third ecosystem, which also Nokia’s CEO Stephen Elop time justified the decision to choose Windows Phone Nokia smart phone platform. For example, a Creative Strategies analyst Carolina Milanese, Nokia had to make a choice between Android and Windows. The choice was a mistake.
When Nokia announced its decision to choose Windows Phone smartphones, Windows’s market share was 3.6 per cent. This year’s first quarter market share was down to 0.7 per cent.
Microsoft wanted Windows Phone to be the “third ecosystem” – it might have reached point that it was the third most popular mobile ecosystems on popularity, but the popularity was so low that you could not think it as a real strong contender in ecosystem war.
Microsoft managed to practice during the two years to drive down to the old Nokia’s Devices & Services division, which it bought 5.44 billion euros. It is one of the most unfortunate of transactions in recent years and definitely Microsoft’s most expensive failure.
Finland in terms of the fate of our Devices & Services group is a disaster.
Source: http://etn.fi/index.php?option=com_content&view=article&id=4493:microsoft-teki-10-miljardin-dollarin-virheen&catid=13&Itemid=101