1. JakeTheCat's Avatar
    Nokia has agreed to sell its hardware business to Microsoft but will be left with its patents, mapping and (after a non-compete clause passes) the Nokia brand.

    Nokia was on a "burning platform" with its prior operating system(s) and it jumped into a lifeboat with no paddles with Microsoft. I imagine it has learned some valuable (if expensive) lessons from those experiences. I think everyone agrees that having control of a vertically integrated company is the preferred way to go in this industry.

    Nokia doesn't seem like it has any hesitation making bold moves when it feels it needs to so the question is, what will it do now? What are the pros and cons for Nokia of using the cash from its handset division sale to buy another handset maker and get control of its own proprietary OS again (i.e. via an acquisition of BlackBerry)? It could buy BlackBerry for less than it is getting from Microsoft and, I believe, would come out in a much stronger position. It would be free of its reliance on Microsoft in smartphones, have a stronger financial position, a stronger patent portfolio, a (presumably) better operating system, the same carrier relationships (almost the same? better?), and would be free of its legacy dumbphone business.

    Please discuss!
    09-04-13 03:15 PM
  2. jeffydude05's Avatar

    Sent from my iPhone using Tapatalk
    09-04-13 03:20 PM
  3. pkcable's Avatar
    I find it extremely doubtful, BUT who knows.
    09-04-13 03:20 PM
  4. Laura Knotek's Avatar
    I doubt it. If they wanted, they could revive MeeGo.

    Sent from my Lumia 900 using Tapatalk
    09-04-13 03:26 PM
  5. tmanthib's Avatar
    Interesting thought Jake,I Iike some features and looks of some of Nokia's and Sony high end phones, incorporate the camera & music player of Sony and designs of both running BB10 OS. Make the phone security and efficiency plus business features #1 bring in the most popular apps.

    Posted via CB10
    09-04-13 03:41 PM
  6. anon1727506's Avatar

    Nokia has seen the writing on the wall - HARDWARE is not a very profitable business right now for most OEM.

    Apple has an entire ecosystem that supports their higher priced devices, but they are seen pressure. Samsung has the scale and because the build many of the components that they and others use, they have an added advantage - but they don't see the profits that Android gets for sales of apps and content like Apple does.
    09-04-13 04:02 PM
  7. amazinglygraceless's Avatar
    No. At this point, left to their own devices Nokia couldn't buy a pack of cigarettes...
    09-04-13 04:04 PM
  8. Dzyen's Avatar
    That would be hilarious LOL
    09-04-13 05:07 PM
  9. Jaredallister's Avatar
    So your theory is Nokia just sold its own hardware business, to buy another? Highly Unlikely!! Nokia just sold their hardware business to get out go hardware. Hardware isn't a very profitable business unless you are Apple or Samsung. Added to that, the Nokia/Microsoft tranaction won't be completed until the end of next year, if the rumors are true, by that time, Blackberry would have already been sold to another company.
    09-04-13 05:14 PM
  10. JakeTheCat's Avatar
    Not exactly. My theory is that Nokia is planning to sell its hardware business that is tied up with Microsoft to get out of hardware with Microsoft and to extract whatever value remains from it (including its legacy non-smartphone line) so it is free to move forward with a new (smartphone only) hardware strategy that is vertically integrated and completely controlled by Nokia. I know it sounds convoluted but I believe that if you think it through it could actually make a lot of sense for Nokia. Free your mind.

    Yes, hardware alone tends to be unprofitable but why? Patents, OS, ecosystem etc. are where the value lies. Nokia was reliant on MSFT for some of that but if it bought BlackBerry it would once again control the whole value chain (excluding the app ecosystem, which would still need to be pushed forward). Apple controls its OS and Samsung essentially gets its for free so those factors help "hardware" margins and that would undoubtedly help Nokia's margins if it bought BlackBerry.

    I agree timing could be an issue.

    As to the comment about Nokia just reviving MeeGo (or using any other OS) instead, it doesn't solve the hardware problem. Buying BlackBerry would provide an OS AND hardware manufacturing capabilities, and a trove of patents that would reduce Nokia's costs and increase their revenue from other manufacturers.
    Last edited by JakeTheCat; 09-04-13 at 06:18 PM.
    09-04-13 05:59 PM
  11. Troy Tiscareno's Avatar
    Nokia's agreement with Microsoft prohibits Nokia from being in the smartphone business anytime in the next 30 months (2.5 years). BlackBerry's fate will be LONG decided by then, and Nokia won't have anything to do with it.
    southlander likes this.
    09-04-13 06:46 PM
  12. JakeTheCat's Avatar
    That's how I read it at first too, Troy. But then I asked myself why Nokia would keep all of it's patent assets and mapping services if it couldn't be involved in smartphones any more. I re-read it and it turns out that Nokia just can't license the name/brand "Nokia" to anyone else for 30 months. They can use it themselves in a little over two years from now. If Microsoft continues to use the Nokia brand in the meantime it will maintain at least some relevance. If Nokia bought BlackBerry I'm sure they could ride the "BlackBerry" brand for at least two years and decide at that time whether to switch to "Nokia", keep "BlackBerry", run with both brands (consumer and enterprise) or go in a completely new direction. I imagine any proposal, purchase, and integration would take about that long anyway.
    09-04-13 08:05 PM
  13. DS1331's Avatar
    Lol yeah no

    From Q10/HTC One aka Batman & Robin
    09-04-13 08:24 PM
  14. BoldPreza's Avatar
    No by the time they are able to do this based on what you said BlackBerry would be done.

    Posted via CB10
    09-04-13 08:41 PM
  15. ARWestenberger's Avatar
    I swear Microsoft bought everything except the licensing to use the Nokia name. Their portfolio, Lumia name and everything went to Microsoft. Consider Nokia gone. The next Windows Phones will probably be called Microsoft Lumia or Windows Lumia. Who knows, maybe they will start the brand under simply Lumia.

    BlackBerry Z10 | Verizon | | In Squircle We Trust
    09-04-13 10:09 PM
  16. anon(4233493)'s Avatar
    Haha, that would be classic.
    09-05-13 01:39 PM
  17. DaedalusIcarusHelios's Avatar
    It's an interesting hypothesis, but it seems unrealistic. It might boost BB10 over Windows Phone though if such a move was made (not necessarily in sales but perception) since it'd really be a slap in the face to MS. Nokia is moving in the automotive space with their maps and they are going to work with QNX, so it seems that Nokia offloading their devices segment helps with them to be able to be more multi-platform with their services. I see them making money off their IP and services through licensing.
    09-05-13 03:28 PM
  18. CrackedBarry's Avatar
    NO! Nokia isn't even ALLOWED to compete in cellphones for a number of years pr the contract they signed with Microsoft.

    And have correctly realized that cellphones are becoming a commodity item, making it a very UN lucrative business,

    They're out for good, and will concentrate on other ventures. Deal with it.
    09-11-13 11:08 PM
  19. CrackedBarry's Avatar
    That's how I read it at first too, Troy. But then I asked myself why Nokia would keep all of it's patent assets and mapping services if it couldn't be involved in smartphones any more. I re-read it and it turns out that Nokia just can't license the
    No. Sorry there is absolutely ZERO chance of what you're describing happening.

    (Never mind the fact that Blackberry doesn't have any manufacturing facilities of their own, have their own serious issues, and would probably be the last choice if anybody wanted to buy a cell phone manufacturer)

    Nokia is keeping their patent and mapping business cause it makes money for them. They license maps to a number of manufacturers, and their patents alone bring in over 600 million dollars a year in royalties and licensing fees.

    Think about it... Why on earth would you go through the trouble and uncertainty of buying Blackberry, when you earn over 600 million dollars a year without lifting a finger through patent licensing and royalties?

    Nokia getting into cellphones again, is as likely as Nokia getting into rubber boots production and toilet paper manufacturing.
    (Their previous key businesses)
    09-11-13 11:18 PM

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