Nokia Microsoft Mobile deal for the acquisition of Nokia by Microsoft (MSFT) for a whopping $7.2 Billion has gone through, but Redmond St. is still unsure of using the brand name. The software giant says it will come out with its new brand new.
This is what the folks in Seattle-based Microsoft have to say, "Microsoft will not be using Microsoft Mobile as a brand name for Nokia; the Lumia and Asha brands and products as well as rest of the Mobile Phone portfolio sold under the Nokia brand will be transferred to Microsoft as part of the transaction.
This Nokia branded product portfolio will continue to receive full support from Microsoft. Nokia does continue to own and operate under the Nokia brand, but Microsoft has licensed the Nokia brand for Mobile Phones for 10 years, as well as for the purpose of marketing Nokia branded smart devices for a limited time."
According to Nokia, the Finnish firm will manufacture phones for Microsoft in the capacity of a contract partner. Apart from Nokia CEO Stephen Elop, approximately 25,000 employees will work for Microsoft. Mr. Elop who was a front runner for the top position at Microsoft will report to the new CEO at Redmond St., Satya Nadella, handpicked by stakeholders and the Board of Directors to make a turnaround at Microsoft. The move came after the Windows Phone brand was not able to compete with iOS and Android smartphones.
Microsoft continued to say in a statement, "Microsoft Mobile Oy is only the legal entity and Microsoft subsidiary to which the Nokia Devices and Services business was sold. The products and services acquired in the deal are now part of the Microsoft Devices Group, an expanded devices business that includes Lumia smartphones and tablets, Nokia mobile phones, Xbox hardware, Surface, Perceptive Pixel (PPI) products, and accessories. Any further decisions regarding specific branding will be made further down the road as part of the future integration."
As the top executive for Nokia under Microsoft, Elop will have a big say in speeding up processes at Nokia. Nokia's downfall in the mobile industry is partly attributed to its slow 'plodding pattern' of making phones although it has been consistent in designing reliable feature phones. Analysts say that consumers will be watching how Elop will be able to influence naming of new Nokia products and branding them for a successful sales strategy.
"Only time will tell how that plays out in the rapidly commoditizing mobile device market...Elop did chose to follow Nokia and return to Microsoft. Elop received a $25 million payout when he left Nokia which caused quite a stir at the time last fall. Microsoft paid 70% of that amount so they clearly wanted him to come back into their fold," reports Joan Lappin for Forbes.
