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Why Intel Should Buy Nokia

An opinion piece at ZDNet makes the case that Intel is the best match for struggling handset-maker Nokia, arguing that Intel needs help breaking into the smartphone market and Nokia isn't tied as tightly to Qualcomm/ARM hardware as other vendors. From the article: "Another factor in favor of a union is Nokia and Intel's shared history — albeit not the most successful — of working together in mobile, thanks to their collaboration on the Linux-based MeeGo mobile OS. What's more, Intel has a long relationship with Microsoft, handy given the impending release of Windows Phone 8 and Nokia's new-found commitment to Microsoft's platform. The fact that Intel is currently using Android, as seen with Orange's San Diego smartphone, isn't much of a hindrance; Intel has already said it hasn't written off the idea of using Windows Phone 8 in future, and due to the x86 architecture, Android phones that use Intel's Atom processor won't even run all of the apps on Google Play, suggesting the relationship between Android and Intel isn't all it could be."

9 of 200 comments (clear)

  1. No. by obarthelemy · · Score: 4, Insightful

    Nokia is wedded to MS. Intel needs to be more flexible than that, especially since WinPhone is in freefall, and Nokia isn't even trying at tablets.

    Dell or HP should buy Nokia, it's their last chance to make it in the mobile space.

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    1. Re:No. by Telvin_3d · · Score: 5, Insightful

      Never happen. Nokia's market cap is hovering just under 10B. Dell's is 20B and HP's 35B. So for Dell to buy Nokia they would have to hand over HALF of their entire company to Nokia's current investors. HP is not in a much better ratio. Never, in a million years, could that happen.

      Frankly, there are not many companies big enough to buy Nokia, particularly in the tech sector. Microsoft would be one. Google another and Apple would be about it. Apple would be buying them for the patents and the other two if they plan to go into first party manufacturing and design in a big way.

      Assuming Nokia doesn't pull out of the death spiral the most likely outcome is that no one buys them outright. A big consortium of companies buys all the patents just to get them off the table and the rest of the company dies.

    2. Re:No. by rtfa-troll · · Score: 5, Interesting

      Your analysis seems pretty right but you've missed that breaking up Nokia can finance quite a bit of the cost of a bid.

      As ever; Tommi Ahonen has about the best analysis about this. Beside the three you have named there are companies like LG or ZTE which could get quite a bit out of the "dumbphone" divisions. With Nokia's current strategy, where it's smart phones are barely selling outside Finland and the US, Nokia can't really get future value out of that division. Almost any company that can deliver Android, however, could use the dumbphone distribution network to get its self into the best position in most of the new upcoming smartphone markets.

      One of the key things seems to me that a live buy of Nokia has to happen extremely soon so that Nokia still retains some experties outside the Windows phones and it looks like Steven Elop is trying to make that as difficult as possible.

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    3. Re:No. by rtfa-troll · · Score: 4, Interesting

      [..] Nokia is most likely tied to microsoft contractually with significant fines on breakage, making for a nice poison pill for any microsoft's competitor [..]

      Tommi Ahonen's argument is that these contracts are clearly actions of an agent of Microsoft and so those contracts could be invalidated. I'm not well exactly that would work, but it's definitely true that Microsoft has always been very arrogant in such matters just expecting to get away with things. There are quite a few things in Microsoft's operations which look very clever, but are actually very risky. People like Sendo and Lindows have managed to get a fair bit of money out of them.

      One of the main things, for example, is that Microsoft always involves lawyers in any discussion of contract negotiations. This looks clever since it means that all such discussions are in theory "undiscoverable" and so not usable in courst. However, it also opens up Microsoft's lawyers to conspiracy in things such as destruction of evidence. If a sufficiently aggressive and clever attacker manages to threaten the MS lawyers with something which looks like jail time they will sing like Nightingales.

      Probably someone who was willing to persue a really aggressive litigation strategy against Microsoft could get most of the cost of the Nokia purchase out of them in a legal settlement, free themselves of all sorts of legal restrain and get a very excellent deal on patent liability protection.

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  2. Re:There comes a time to make that final trip... by Anonymous Coward · · Score: 5, Insightful

    Nokia culture inside Nokia is practically dead. Nokia's old culture was based on Finnish post-war determination, risk taking and fundamental honesty. There were values such as respect for the individual which represented the understanding that each employee had a stake in and responsibility for the company. These values were already under attack long before even Elop joined. "Respect for the individual" had been changed into just "respect" which is a completely meaningless empty feel good phrase. Elop has brought in Microsoft culture to senior management and run around destroying every area of the business which showed individual initiative.

    With Nokia culture dead there is very little to bring the company back to a sane position. The very idea of working so much with a company as immoral and corrupt as Microsoft would have been rejected by the old Nokia, and that is probably part of the reason why the best pepople have been leaving Nokia so quickly since Elop arrived. The place to look for the true Nokia is inside the companies already spun off years ago and within the groups which have been leaving Nokia in disgust recently.

    For the strength that made Nokia survive before to allow it to continue again, there would have to be a very strong move from the board to completely get rid of the current Microsoft culture. That probably has to happen within six months to have a chance since Elop is putting so many of his own placement into the management. I really don't see that much chance of that being done.

  3. Trolltech QT must survive by EmperorOfCanada · · Score: 4, Interesting

    All I care about is that QT ends up surviving and being independent again. As for Nokia they can rot back in the 90s where they seem to be stuck.

    If Nokia had had half a brain they would have made QT for iPhone and then Android so that people could port their iPhone apps quickly to Android, Windows, Mac, Linux, Window Mobile, and oh yes the Nokia phones. Nokia would have then become the center of the app universe while their own app library would have grown somewhat. I reluctantly learned Objective-C and have little desire to relearn Java so that I can port my iPhone apps to android. So with a C++ code once and tweak a bunch of times portability I would have been very happy.

    My worry is that they will pull the rug on QT and then sell the carcass off to some group one step away from being a patent troll.

  4. Microsoft Should Buy Nokia by RudyHartmann · · Score: 4, Insightful

    Nokia has been a huge supporter of Windows for mobile phones. Microsoft has tried harder than anybody has without making any progress with their own phones. Remember the "Kin"? If Microsoft intends to continue trying, they'll have to keep Nokia's patent portfolio away from the other mobile phone manufacturers. Microsoft needs to buy Nokia for this very purpose.

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  5. Re:beat by Dragon+Bait · · Score: 4, Funny

    I think microsoft should beat the shit of nokia and burn them alive. enough with the crap. getting angry for waiting a decent windows phone available on all countries.

    Waiting for a decent windows phone? Isn't that a little like waiting for the first openly gay, married, catholic Pope?

  6. Nokia should buy Nokia by Anonymous Coward · · Score: 5, Insightful

    Seriously, Nokia is a handset maker, they have free choice of everything, processors, software the lot. Their problems began when they tied their own hands behind their backs, hired Elop and restricted themselves to making only Microsoft phones.

    Samsung on the other hand, made Android, Bada, Microsoft, everything under the sun, and found what worked in what markets.

    So I don't see how tying themselves to Intel and using the LESS popular CPU with the not so great power consumption would somehow be a good thing.

    At this point they need to eject Elop, get a pragmatic COMPETENT boss in place, and start making phones that sell instead of phones they already know don't sell.

    Elop is the problem here, not Nokia.