Microsoft Acquires Nokia

Microsoft's Acquisition of Nokia

It looks like Microsoft is going to add another company to put in its portfolio. The ever-hungry Microsoft (M$FT to some people) has decided to acquire its biggest partner and ally in its Windows Phone endeavor, Nokia. This acquisition has always been a rumor since Nokia announced that it would make Windows Phone devices for its smartphone line. It also didn’t help that former Microsoft executive Stephen Elop has been running Nokia since then. The real big news is that Microsoft is going to acquire Nokia, and that could change a lot of things in the tech industry.

Nokia Lumia 1020

Nokia Lumia 1020 with Windows Phone 8

Microsoft really made a smart move buying Nokia because of Nokia’s extensive patent portfolio. Microsoft won’t have to pay a dime for some of Nokia’s patents for the next 10 years.  Nokia also has an extensive imaging portfolio for which Microsoft can bring to its other brands whether it would be using some of the patents to better Skype, better the camera on the Kinect platform, or even using it for the imaging on its Windows Phone 8 stack. Using Nokia’s patents will be free for ten years, so whatever money Microsoft used to spend on Nokia patents can now be thrown at other projects in Microsoft.


Nokia Asha 210

Nokia’s World budget phone, the Nokia Asha 210 priced around $80 USD

Nokia’s recognizable brand name is also important for Microsoft. A lot more people know the name Nokia than Microsoft, and this is true in third world nations. Nokia is known for making cheap, reliable devices and for this it makes a profit in other regions in the world. By putting the Microsoft-owned Nokia devices in the hands of the people, Microsoft has the chance to gain customer loyalty in the parts of the world it usually doesn’t receive recognition. Currently, there’s a race in the third world nations to dominate in the phone realm. The race to gain the next billion users is on and with the Nokia acquisition, Microsoft will be fit to compete.


Microsoft Logo

The real reason Microsoft bought Nokia (in my opinion) is because of hardware. The patents and its brand name are just frosting on this delicious cake. Microsoft wants to make hardware. It’s taking the Apple approach to its devices. It wants to be hardware and services/software instead of just a software company. Now like Apple, Microsoft can make its own phone, tablet, and other devices with total control over it. Microsoft can use Nokia’s hardware experience to make beautiful and cost effective devices, like Nokia already has, but with with the budget Microsoft can throw at it, the devices may be better. Microsoft can get around to making their own Google glass, or even a smartwatch with the expertise provided by Nokia.

Either way, the acquisition is very exciting as it will change the nature of both companies.