Together At Last

Ben Bajarin / September 2nd, 2013

News just broke that Microsoft has acquired Nokia’s handset and devices division. Here is the intro from the press release:

Microsoft to acquire Nokia Devices & Services, accelerating the Windows ecosystem

Nokia and Microsoft have always dreamed big – we dreamed of putting a computer on every desk, and a mobile phone in every pocket, and we’ve come a long way toward realizing those dreams.

Today marks a moment of reinvention.

I don’t know if this comes as a shocker to many since speculation of this acquisition has been in the works for some time.

We will have a number of more in-depth analysis of this acquisition and it’s impact to the industry in the days to come for our Tech.pinions Insiders. But for now I encourage you to read Tim Bajarin’s prediction of this even from 2011. His analysis of why Microsoft would buy Nokia still stands today as the context that makes sense of this acquisition.

Vertical is the trend. Any company who owns hardware, software, and services bound together as a complete ecosystem presents themselves as a formidable competitor positioned for the long haul. Doesn’t mean all will be successful with this recipe but many will try none-the-less.

Why Microsoft Will Buy Nokia.

Ben Bajarin

Ben Bajarin is a Principal Analyst and the head of primary research at Creative Strategies, Inc - An industry analysis, market intelligence and research firm located in Silicon Valley. His primary focus is consumer technology and market trend research and he is responsible for studying over 30 countries. Full Bio
  • qka

    I’ve been expecting this ever since Nokia hired Elop as CEO.

  • Heinz Peter Bredow

    Microsoft will pay 1.65 billion Euros for patents Nokia owns.

    Meaning more patents in the hands of Microsoft.

    Meaning more bullying/threatening and more law suits
    by Microsoft in the mobile space!!!

    HPB

    • steve_wildstrom

      Microsoft has licensed nonexclusive rights to use the patents. They remain the property of Nokia, which means that only Nokia can sue.

      • Defendor

        Nokia freed of it’s own HW business can become a full time patent troll.

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