Microsoft buying Nokia Devices and Services unit, licensing patents for €5.44 billion

Microsoft and Nokia have just been made public a letter announcing the purchase of all the hardware division of the Finnish company for a total of 5,440 million euros. The operation, which will be effective at the beginning of 2014, will enable Microsoft make the same terminals Lumia, probably the best that have been known to carry your Phone operating system Windows 8.

How is Nokia?

The question that remains in the air is clear. If Nokia sells its mobile division, what is left of the company? The answer is: Maps and patents. Microsoft has bought the division of hardware and devices, but the agreement implies that Nokia retains ownership of its more than 30,000 patents. Of the total money that Microsoft has paid, 1,650 million euros are for the use of licenses that still in the possession of Nokia. Equally, the Finnish retains its Nokia maps service.

With the operation, Nokia ceases to be manufacturer of mobile phones to become something halfway between the research laboratory and a service company. There will be to allow some time to see what is going to devote the Finnish exactly in the future.

What is known is that the 32,000 workers of the company involved in the Hardware division will remain in their posts, only this time under the banner of Microsoft. 18,300 Of these employees work directly in production of smartphones. After the acquisition, there are still 56,000 employees working for Nokia.

The future of Microsoft

For its part, Microsoft wins control of the entire range of smartphones that Nokia had and incorporates to its hardware division. The company has already developed that will not stop licensing Windows Phone to third parties. Simply now manufacture their own terminals.

To those of Redmond suits them much this maneuver because, according to sources in Nokia, Microsoft had received only $10 in concept of licenses for each Lumia sold. This is especially poignant when we consider that Nokia sells more than 80% of the total mobile phone Windows. Following the agreement, the margins of Microsoft will rise to $40 per terminal, as little.

In spite of this, Nokia long ago that no longer has the weight that had in mobile telephony. In 2007, its market share was 49.4 %. At the end of 2012 this figure had fallen to 4.3 %. However, Windows Phone has managed to unseat BlackBerry in many markets.