Microsoft Gets Out Of Smartphone Manufacturing - Canadian TV, Computing and Home Theatre Forums

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post #1 of 31 (permalink) Old 2015-07-09, 02:49 AM Thread Starter
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Microsoft Gets Out Of Smartphone Manufacturing

About 7,800 jobs are being cut (mostly in Finland) and Microsoft is taking a $7.6B USD bloodbath on their failure to achieve success with the takeover of Nokia Mobile Phones several years ago, which was described back then in the following thread: The Future Of Nokia?

You can read articles about Microsoft's announcement on all the usual business and tech sites today.

An interesting side note: the original agreement between Microsoft and the Nokia parent corporation's board called for Nokia to not compete in the mobile phone market either by 2016 or if Microsoft was to get out itself. I would love to see Nokia come roaring back in the Mobile Phone space.



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post #2 of 31 (permalink) Old 2015-07-09, 08:16 AM
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So, MS destroyed Nokia for nothing. Thep planted that CEO that ran Nokia into the ground, so they could buy the assets cheap and then abandoned them when things didn't work out.

I haven't lost my mind. It's around here...somewhere...
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post #3 of 31 (permalink) Old 2015-07-09, 08:29 AM
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I'd bet Nokia puts out a (Foxconn built) Android phone next year.

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post #4 of 31 (permalink) Old 2015-07-09, 09:13 AM
 
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Quote:
Originally Posted by JamesK View Post
So, MS destroyed Nokia for nothing. Thep planted that CEO that ran Nokia into the ground, so they could buy the assets cheap and then abandoned them when things didn't work out.
Because Nokia was doing gangbusters before the msft acquisition? Please.
Symbian was dead on the table. MeeGo was a dream that never saw the light of day (aside from Tizen). And how is Sailfish doing? If anything, this news may breathe new life and Nokia can become an Android manufacturer.
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post #5 of 31 (permalink) Old 2015-07-09, 10:51 AM
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It's surprising it took this long. The smartphone market is maturing rapidly and there is only room for a few major players. Apple created the market but it only leads in NA. Samsung is the major international player. In Asia, Xiaomi and Huawei are huge plus there are 16 other Chinese smartphone manufacturers. Provided increased market share is possible MS, might be happy with third place but below 5th with a declining share is not in their game.
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post #6 of 31 (permalink) Old 2015-07-09, 11:28 AM
 
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What a misleading thread title.....it is written nowhere they are getting out of the phone business, that's just spin.

Bloomberg ? Microsoft 'expects to make its own phones for at least the next two years' | Windows Central

They plan on manufacturing for at least two years and they want to change their strategy.

Don't you think after buying Nokia and developing Windows 10 mobile it would be stupid to shut down?
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post #7 of 31 (permalink) Old 2015-07-09, 11:49 AM
 
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Well other companies have done it before. years ago HP bought out the PC gaming boutique company Voodoo and the moment they bought them they just killed the company and took the ENVY name for their products. i cringe now every time i see a HP printer with the name ENVY on it
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post #8 of 31 (permalink) Old 2015-07-09, 11:50 AM
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There have been similar business decisions in the past. Google's acquisition of Motorola ranks up there with this one. Don't think that a write down of assets equals a loss. It just means the company is writing off the original purchase. Once integrated into the company, the purchased assets could eventually create income that exceeds the write down. Income from patent licensing is just one possibility.
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post #9 of 31 (permalink) Old 2015-07-09, 12:42 PM
 
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I'm not saying it never happened before, I'm saying that we cannot say for sure what the future will be. And for now, there's no plan for that. So saying Microsoft is getting out of the smartphone manufacturing is false extrapolation.
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post #10 of 31 (permalink) Old 2015-07-09, 01:07 PM
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I think the scary aspect of the smartphone market (from the perspective of smartphone manufacturers) is the commoditization of devices that really, are quite powerful and are "good enough". There is no reason to spend anywhere near $1000 on a new phone when there are some fantastic devices available at ~$300-$400.

It's not a profitable business if you're not Apple.

It's a pity, Windows Phone is/was quite good from a software perspective; it's just that the hardware offered just was always a step or two behind the latest and greatest iOS and Android hardware.
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post #11 of 31 (permalink) Old 2015-07-09, 01:41 PM
 
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There remains talk of two flagship Lumia phones coming later this year, the 940 and 940 XL, which have also been called the Talkman and Cityman. They have high-end specs and the XL supposedly will incorporate the 'Continuum' thing where you can hook it up to a monitor and keyboard/mouse and use it as a mini-computer with a full Windows desktop. I'm not sure how it makes sense to make that much of an investment cut in the business if the plan remains to push Windows phone forward, unless they're trying to model their own phone production on how they've used Surface - producing a relatively high-end proof of concept so that 3rd-party manufacturers will start making their own?
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post #12 of 31 (permalink) Old 2015-07-09, 02:55 PM
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Frankly, they needed to stream line things. The three focus groups now are low end, business, and flagship. About damn time!

"So for the short term, Microsoft will focus its phone hardware on three key customer segments—businesses, value phone buyers, and those Windows fans who are clamoring for flagship devices—while creating fewer models than before. Long term, Microsoft hopes to create new hardware categories and try to grow the market for third party devices."

https://www.petri.com/microsoft-to-l...nokia-purchase
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post #13 of 31 (permalink) Old 2015-07-09, 05:04 PM Thread Starter
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My turn to say "oh puleeeeze" to you, Abysmal.
Quote:
Originally Posted by Abysmal
Because Nokia was doing gangbusters before the msft acquisition? Please.
Symbian was dead on the table. MeeGo was a dream that never saw the light of day (aside from Tizen).
I was wondering when that tired old mythology would be recited yet again. Read through the following thread to learn everything you will ever need to know about Nokia's state prior to the Microsoft takeover, whch includes Elop's own data proving that myth wrong: The Future Of Nokia?

Full disclosure: earlier this year I signed my buyout package to bring my career as a global-level R&D IT manager to a close with Nokia and Microsoft after also previously working with Sun and HP, amongst other firms. I have undertaken to never divulge topics or information that would contravene my Non-Disclosure Agreement.



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post #14 of 31 (permalink) Old 2015-07-09, 05:07 PM Thread Starter
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Quote:
Originally Posted by mmc-dsm
What a misleading thread title.....it is written nowhere they are getting out of the phone business, that's just spin.
The title clearly says "Manufacturing" and not "Business" since their plans say that they will not be physically manufacturing smartphones after a rampdown. Clear? If they begin physically manufacturing Microsoft smartphones in a new plan, so be it, but that's not what was announced.



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post #15 of 31 (permalink) Old 2015-07-09, 05:15 PM Thread Starter
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Nokia return with Sailfish and/or QT5?

Quote:
Originally Posted by TorontoColin
I'd bet Nokia puts out a (Foxconn built) Android phone next year.
I've been wondering how Nokia might get back into the mobile phone business again if/when their Microsoft agreement ends. I don't think a new Nokia mobile phones unit would risk starting over by using somebody else's product like that. Interestingly, the Jolla project has just announced that they are getting out of the hardware side of the business. How convenient it would be for Nokia to buy them out and take over the Sailfish OS. That's just an idea of my own, not anything I've read or heard. Android is always a possibility, I agree, but Nokia's work on the QT5 Toolkit can still be resuscitated since that UI environment can be bolted onto almost any UNIX-like OS, such as Android-Linux, iOS, OS X, QNX, etc. etc. so the possibilities are certainly out there for a fresh UI start.



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