Microsoft Buries Nokia and then Scales Back Smartphones to Focus on Enterprise

dgstorm

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We have a couple of reports regarding Microsoft's mobile phone efforts. First, it looks like Microsoft's Nokia division has been such a big stinker that the folks in Redmond are burying it. Microsoft announced another round of layoffs for the Nokia division to the tune of 1,850 people worldwide. Of that number, 1,350 are in Finland. This is basically the rest of the Nokia folks.

Microsoft is also preparing to take a $950 Million dollar financial write-down on Nokia ($200 Million of that is severance pay). Since 2013 when Microsoft acquired Nokia, the ultimate financial hit they will have taken from the whole endeavor will be $7.6 billion. Ouch!

To go along with the final death throes of Microsoft's Nokia, Microsoft also shared that they are scaling back on their mobile phone efforts entirely. They made it clear that they are not exiting completely, but are simply refocusing on the enterprise market. What this means for the oft rumored Surface Phone remains to be seen. Here's a quote with more of the details,
Rumors say that Microsoft will make a Surface phone in the future, but nothing is confirmed. In an email to staff, Executive Vice President of the Windows and Devices Group Terry Myerson said the company plans to be “more focused” on its phone efforts, saying that “we’re scaling back, but we’re not out!”He says the company plans to “develop great new devices,” though it’s not clear what that means.

Basically, it looks like Microsoft has put the brakes on their mobile phone business. We will have to watch carefully to see how when/if they accelerate it again.

Source: BGR
 

Jonny Kansas

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I'm still trying to wrap my head around the Nokia deal recently made with Foxconn/etc. Reading up on that deal, it sounded like they had at least one person that would be running those efforts who was OG Nokia.

Is it just the name that Microsoft made a deal on? Because I thought it was also including some staff as well. Maybe I misunderstood that original announcement of that deal?

In any case, I think MS is making the smart move here.
 

boidsonly

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I can't wait to see how M$ gets that $7.6 billion back from all the PC users....;)
 
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