Microsoft To License Nokia Brand To Foxconn, Says Report (techtimes.com)
SmartAboutThings quotes a report from Windows Report: It's no secret that Microsoft's phone business isn't going according to plan. Last quarter alone saw a 46% drop in phone revenue, slightly better than the 49% drop the quarter before that. And now it seems that Microsoft is finally realizing this: according to rumors, the tech giant is considering licensing 50% of its mobile business to Foxconn -- in other words, the Nokia brand it had purchased for 10 years, until 2024. It appears that negotiations have reached very advanced stages, with Microsoft and Foxconn currently deliberating the final clauses of the deal. Some of the implications of such a deal could mean about 50 percent of the Microsoft Mobile members would be looking for new jobs. The rest of the team is said to join the Microsoft Surface team, and may be tasked with working on an upcoming Surface Phone which has been rumored for some time now.
happens again.
Don't they build iPhones?
If you want news from today, you have to come back tomorrow.
Microsoft/nokia actually still makes some nice phones for the money.... but they run Bing Adware on them, more annoying than google's crap....
They bought the phone business not the 'Nokia' brand. Nokia continues on as a Networks business and that company owns the Nokia brand.
Ha ha. It's even worse than that. Nokia, the real company, not the phone business sold to Microsoft. Licensed the 'Nokia' brand to Foxconn to make Android tablets the day after Microsoft bought the phone business:
https://en.wikipedia.org/wiki/Nokia
"On November 17, 2014, Nokia technologies head Ramzi Haidamus disclosed that the company planned to re-enter the consumer electronics business by licensing in-house hardware designs and technologies to third-party manufacturers. Haidamus stated that the Nokia brand was "valuable" but "is diminishing in value, and that's why it is important that we reverse that trend very quickly, imminently."[20] The next day, Nokia unveiled the N1, an Android tablet manufactured by Foxconn,"
So all those games Microsoft played with Elop to get Nokia (the top selling smartphone at the time), and its ends up with nothing. Not even the name.
I'm not sure what they're licensing. Patents maybe? Is the brand still strong in some countries? The only time I hear about Nokia is when folks from Europe talk about how much better the Lumina was than it's competition. But then Apple & Google came out with their phones and well..
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It is going on 7 years old now, but I keep hanging on to it because I have yet to see anyone come up with a hand held computer that makes phone calls that has all of its features. Number one in my book would be the requirement that it the ability to run whatever software the devices owner to choose to run. Number two would be the ability of the devices owner to create whatever software that he choices to run on the device. Oh, and above all, a good hardware keyboard.
Time is what keeps everything from happening all at once.
When I think of the term "Surface Phone" I can't help having visions of someone leading over to put their ear against a table to talk...
"There is more worth loving than we have strength to love." - Brian Jay Stanley
The IMF team would have had no plots, and there would of course have been no Space: 1999, and likely no Drusilla.
I still can't believe that MS blew it so badly.
ALL THEY HAD TO DO WAS THIS:
1. Make a phone that could be fully integrated/managed with Active Directory and Group Policy, as if it were a normal PC. Including AppLocker functionality.
2. Put a fully-functional Exchange client on it. FULLY functional. Hell, throw Skype for Business on there, too.
That's pretty much it. Corporations would buy one for every employee. Managing Android and iPhones is a colossal pain-in-the-ass, and MS could completely take over the "business smartphone" market if they made a phone that could be easily managed. But...no.
Nokia is now the Zune, the Bing, of cell phones?
you've already got all the marketing done for you.
Liberty - Security - Laziness - Pick any two.
> the Nokia brand it had purchased for 10 years, until 2024
My understanding is that Microsoft has a licence to use 'Nokia' for dumbphones and feature phones for 10 years, but for smartphones it was only 2 years. 'Lumia' they have for ever (unless Panasonic dispute the use of this because it is too close to 'Lumix'.
Foxcon has already licensed 'Nokia' from real Nokia for the N1. Why would they care about Microsoft?
Windows CE 6.0 fixed most of the glaring problems with building a phone around WinCE but it came along too late and with far too little emphasis to stem the rising tide of Android and iOS. I hate seeing decent technology turned into grist for the patent wars but the current generation of MS 'me too!' phones won't be remembered fondly by anyone, IMHO.
Personally, I think that Stephen Elop should be in prison for what he did. From every action he took it was clear that he was a plant from MS to devalue the Nokia brand as much as possible so that MS could purchase it for pennies on the dollar.
I do not think that MS was ever too serious about producing phones, but they were very serious about acquiring Nokia's patent portfolio.
To think about 1000's of jobs lost and lives ruined because of that ass hat. That, to me, is criminal.
Would Nokia have turned things around eventually? Personally, I think they would have. At the time, I was in a position to see many of the models Nokia had in the pipeline. I thought they looked fantastic. Then the came Elop and Windows phone. Then came the speedy end.
Now, I am not saying that I would condone such actions, but it has always surprised me guys like him don't get murdered by some former employees. I mean, looks at the amount of lives these guys screw up. Like Chris Galvan at Motorola in the early 2000's. This guy fired 10's of thousands of people and made one ridiculous decision after another. The year he kicked out 40k employees, he saw fit to give himself an 8 million dollar bonus. I was a lower level manager at the time as send him an email asking how much he would get when he fires the rest of the workers. I got an email back from his secretary saying his bonus was inline with the industry, to which I responded that other CEO's don't lose half their market value in 2 years.
I mentioned this to my wife and she said, "Microsoft is in the phone business?"
According to the Nokia-Microsoft deal, Microsoft can use the Nokia brand only with dumb phones.
46% drop in phone revenue, slightly better than the 49% drop the quarter before that
So that's a 72% loss in two years. That's not a drop, it's much faster than freefall could accomplish.
The rest of the team is said to join the Microsoft Surface team, and may be tasked with working on an upcoming Surface Phone
from the we-created-a-total-disaster-one-time-lets-try-again department ?
Look, Mickeysoft: You just can't produce phones. You've been trying for 20 long years, and produced nothing but total failures. When the market says no to you so clearly, loudly and consistently, maybe it's time to give up and do something else?
Assorted stuff I do sometimes: Lemuria.org
Perhaps next Microsoft will license the 'Nokia' brand to Nokia. Btw, who owns the 'Microsoft' brand ?
They could have been bought by HP.
He should be in Australia now, not too far from China. Any hope to see him heading to manage Foxconn ? It would be the final blow to chinese economy...
Windows phones are certainly not terrible. They obviously have had the support of not only Nokia for hardware but Microsoft for an OS. But in the smartphone market you need developers for apps, and that support was driven by shear numbers of potential users of those apps. In the end those developers chose IOS or Android and decided Windows mobile had little chance to gain from those two giants. I think Microsoft plans to try success with a smartphone as it has with a tablet/notebook of the Surface branding. Will a Surface smartphone driven by perfection in hardware and OS still lack the apps to support it?
MeeGo was very likely to be hugely successful. It could be the dominant platform now, or going head to head with Android
And what evidence do you base this hypothesis on? Is it possible that it could have been successful? Sure. It's conceivable it might have been a player. "Highly likely"? I don't see any reason to believe that. Nokia (the major backer along with Intel) was already on shaky ground by the point MeeGo became a viable product. It was always more likely to fail than to succeed just like most projects. That's not a critique of the technology or it's merits or the efforts of its backers but rather the fact that it's really frickin hard to develop a commercially successful OS that captures substantial market share. Even Microsoft with all it's billions of dollars has struggled to capture even a fraction of the market share they have on the desktop in mobile.
I agree that Elop really screwed Nokia in a big way but he really just hastened the demise that was already underway. Nokia didn't realize until too late who their real customer was. They thought it was the telecom companies and they developed phones with that in mind. Apple proved that the customer was really the person holding the phone. By the time Nokia figured that out, handset buyers were already heading for the exits and it was too late to stop them. Nokia's hardware was (mostly) great but their software was terrible. Symbian wasn't good enough and MeeGo was too late to the market. They gave Apple and Android a 3 year head start in the market before MeeGo was introduced (2007 vs 2010) which is an eternity. While MeeGo had a lot of positives, it simply was too late to be likely to capture substantial market share. Obviously we can never know for sure but it seems hard to envision a scenario where MeeGo really turned into a game changer in the face of Apple and Google.
Imagine two uncles long past their primes are trying together to look attractive and cool for a bunch of teens. Remember that PC guy from I am Mac ads? Just two of them.
That even a decent hardware couldn't help.
The N900 sold all available units on little more than word of mouth and the newer device with MeeGo was an incremental improvement - thus a fair assumption.
First, the N900 sold with Maemo, not MeeGo. MeeGo was made for the never sold to the public N950 and the well received but dead on arrival N9. Second, one product selling a handful of units to some core fans is hardly sufficient evidence to believe that MeeGo would have been "highly likely" to succeed. The N900 sold less than 100,000 units in it's first 5 months which on the market. That's a rounding error. The iPhone sold somewhere close to 16 million units during the same period. And you think such ludicrously bad sales figures are evidence it was going to take the market by storm? There is NO objective evidence to realistically believe that MeeGo was likely to capture substantial market share. None.
Putting a manager from a rival in as his first ever attempt at being a CEO did that. Before Elop turned up Nokia was selling more mobile telephones than any other company in the world.
Nokia was already fading in the smartphone business before Elop showed up. Elop became CEO in September 2010. Nokia's market share had fallen from near 50% in 2007 to about 40% at the start of 2010. Their market share fell to around 32% in 2010 prior to Elop taking over. So the fall was well underway long before Elop arrived. He merely threw gas on the fire. That is a 25% fall in market share in 9 months. This is after MeeGo was released and before Elop took over. If people were really excited about MeeGo (which they weren't) then it makes little sense that Nokia would have seen continued market share erosion after its release and before Elop killed the platform in February 2011. Fact is that almost nobody gave a shit about MeeGo in 2010 aside from some fanboys. It wasn't that it was a bad product but it was WAY too late to the party to really matter in all likelihood.
Why they didn't hedge their bets with an android model is beyond me.
That's really easy to explain. Profits. The profits on smartphones aren't in the hardware but in the software. Hardware-wise there is basically no real difference between an iPhone and a similarly equipped Android smartphone. All the real difference is in the software. If Apple were to put Android on their phones their profit margins would evaporate faster than you could say "shareholder lawsuit". There would be nothing really different about it and thus no real reason to pay more. Nokia would have been in the same boat.
The dominant reason Apple is able to charge more is because people are willing to pay more for their software. (No it isn't because of "marketing" - marketing is not magic pixie dust - there has to be products that people like behind any marketing) Apple's software is what really makes their products unique. There is only one company that has made substantial profits selling Android phones (Samsung) and there is no particular reason to believe Nokia would have been able to capture substantial profits on the Android platform. Even Samsung makes far less profit than Apple. For Nokia to really be profitable they needed software that made their phones different from everyone else's. Nokia knew this but were unable to fix the problem. There was really very little upside for Nokia on the Android platform and a large chance they would end up with little to no profits.
So Nokia bet the farm first on Maemo/MeeGo and then on Windows. The bet didn't work out for a variety of reasons but it's easy to understand why they did it. They were gambling on being able to control the platform which is where the real profits in smartphones are.
That is, the track toward irrelevance and, with any luck, decomposition. With any luck, in a few years time it will have split itself into a number of smaller, less obnoxious companies.
Hence the words, which you even quoted "the newer device with MeeGo was an incremental improvement".
Why bother replying if you have got things that messed up?
Goalpost shift detected. I wrote "more mobile telephones than any other company in the world" which is correct. Changing goalposts to a subset just so you have something to argue about would normally be considered utterly pathetic.
Why bother typing all of that out when it has little or no relationship to my earlier post? Writing "fact is" in front of opinions doesn't make them reality either. I did not pretend my opinion that it could have taken off as a platform was reality, please have the decency of not trying to browbeat reader by pretending your opinions are "facts".
There was never a public release of a MeeGo device. I wanted one - Nokia would not sell me one of the limited number of developer units. Pretty obvious from that why "nobody gave a shit about MeeGo in 2010 aside from some fanboys" - nobody else had even heard of that unreleased product!
I could see a 50% drop - they went from selling two phones per year to just one single phone. But 46%? They must have raised the price on the phone they sold.
Do you have ESP?
It's even worse than you think. Want to know what happened to the poor slob who was in charge of the Windows Phone team for the past several years and was, in many ways, responsible for its abject failure? Terry Myerson is the name of this particular "genius". Surely he was fired, right?
Well, he became head of the entire Windows division at MS in 2013. You can lay everything wrong with Windows 10, from the frequent bugs, the ads, and the telemetry, at his feet. Wonder how much damage he can do to the Windows brand before they sack him?
Hence the words, which you even quoted "the newer device with MeeGo was an incremental improvement". Why bother replying if you have got things that messed up?
Oh I understood you just fine. However you were conflating two operating systems and implying that sales of the N900 somehow were evidence that there was widespread demand for MeeGo. I obviously disagree and the evidence seems to back me up. If you can show me a logical narrative backed by evidence of how a few thousand N900 sales somehow implied MeeGo would be a game changer I'd be impressed but so far I'm not buying that argument at all.
Goalpost shift detected.
Only if you fail to understand my point completely. Nokia's problems started well before Elop got on the scene and I said so right from the start. There is plenty of evidence of this and I provided some. Nokia was hemorrhaging market share before they hired Elop and Nokia was several years behind the curve in the smartphone market. Elop merely accelerated the already underway decline through some spectacularly idiotic decision making and/or conflicts of interest.
I wrote "more mobile telephones than any other company in the world" which is correct.
And irrelevant. Most of those "mobile telephones" sold by Nokia were not smartphones and that was clearly not where the growth or profits were by 2010. Smartphones didn't outsell "dumb" phones until 2013 but the writing was on the wall by 2010 to anyone with a functioning brain. Nokia sold a lot of Symbian phones and that accounted for the nearly all of their smartphone sales prior to 2011. However Symbian was technologically behind Android and iOS by quite a lot in 2010. Nokia knew this and was working on new systems to replace Symbian. Maemo and MeeGo had statistically insignificant market share so any argument based on Nokia's market share for their success implies that Nokia could transition all those Symbian customers to the new system(s) which is a hard trick to pull off without much evidence that Nokia was up to the task. Worse the fact that Nokia was dabbling in several system made the picture confusing for developers. The fact that Nokia still led the world in handset sales by quantity in 2010 is true but badly misses the bigger picture of what was going on.
Writing "fact is" in front of opinions doesn't make them reality either.
Find me any objective evidence that there was widespread interest in MeeGo in 2010 and that it had any realistic chance to displace Android or iOS or even Blackberry and I'll concede the point. Good luck with that.
There was never a public release of a MeeGo device.
Not true. The Nokia N9 was released to the public and was the only device from Nokia with MeeGo on it sold to the public. You can get them on eBay today. It was not released in the US and much of Europe but it was sold for a time.
Pretty obvious from that why "nobody gave a shit about MeeGo in 2010 aside from some fanboys" - nobody else had even heard of that unreleased product!
Oh there was a fair bit of press about the N9 and MeeGo but it was met with a huge yawn by most and puzzlement by anyone with a brain. Why would anyone buy a phone with an OS that would be dead and unsupported by the maker of the product? Why they even bothered to actually bring it to market is a mystery. Nokia had already announced their intention to go to Windows so the product was effectively dead on arrival.
Actually, Samsung beat Apple in profits a few years ago.
Samsung has beat Apple for short periods from time to time but over longer periods Apple has substantially out performed Samsung in profits from smartphones. With some slightly odd mathematics last year Apple had 92% of all profits from smartphones. Samsung had about 15%. Together they actually have more than 100% of the profits because other smartphone makers actually lost money. Nobody else made any meaningful profits. You are correct that Samsung has taken the low margin high volume route and they have done well but they haven't been able to match Apple's profits.
It's what happens when you lie to your customers promising an OS update for all your devices running a certain version, and then you leave the best selling ones out of the update. Your customers won't fall for it twice. Enjoy your dead mobile division.
I couldn't get an N9 - stop making things up.
I was addressing a potential and not an actual thing as you are very well aware so please stop acting like an idiot. I this some sort of stupid high school debate tactic to try to get me angry? It's not the place for that, this is no debate, it is a situation where on person is aware of an issue and another is a fanboy needlessly filling the site with noise to attempt to justify the actions of Microsoft vs Nokia.