Microsoft Mobile

Microsoft Mobile Oy was the Finnish subsidiary created when Microsoft completed its acquisition of Nokia's Devices and Services business on 25 April 2014. Based in Keilaniemi, Espoo, the subsidiary inherited Nokia's mobile-phone manufacturing operations, device brands, engineering resources, patents, and product pipeline. Its creation represented the operational culmination of the Microsoft–Nokia partnership announced in 2011 and of Steve Ballmer's strategy to make Microsoft a devices-and-services company rather than a software supplier alone. The business had its roots in Nokia's decision to make Windows Phone the exclusive operating system for its principal smartphone range. Under chief executive Stephen Elop, Nokia introduced the Lumia family, which became the leading source of Windows Phone hardware and achieved particular traction in lower-priced and mid-range products and in several emerging markets. The alliance also connected Nokia hardware with Microsoft's services, including Bing, while Nokia's mapping data and services were incorporated into Microsoft's mapping offering. Although Lumia was the strongest Windows Phone product family, Nokia's wider handset business was already under severe pressure from Apple's iPhone and the rapidly expanding Android ecosystem. Windows Phone's limited market share and comparatively small application catalog restricted the ability of Nokia and Microsoft to compete at scale. Microsoft announced in September 2013 that it would acquire Nokia's devices and services operations for €3.79 billion and separately license Nokia's patent portfolio for €1.65 billion over ten years. The combined transaction, valued at slightly more than €5.4 billion, closed after regulatory delays in April 2014. Microsoft received the Lumia and Asha brands, a license to use the Nokia name on feature phones, design-related patents, and access to a large portfolio of utility patents. Elop joined Microsoft as executive vice president responsible for the Devices group, which also covered products beyond phones. After the acquisition, Microsoft gradually shifted the consumer-facing identity from Nokia toward Microsoft Lumia. Some 2014 products, including the Lumia 830 and Lumia 735, still carried Nokia branding, but later smartphones increasingly used Microsoft branding. The company continued to develop Windows Phone and then Windows 10 Mobile products, including the Lumia 950 and Lumia 950 XL. It also discontinued or deprioritized several inherited product lines, including Asha, Series 40, and Nokia X, as it concentrated resources on Windows-based smartphones and Microsoft's broader device strategy. The strategy did not reverse the platform's declining position. Microsoft announced a US$7.8 billion write-down associated primarily with the Nokia phone acquisition in 2015 and disclosed substantial workforce reductions, with the phone business bearing much of the impact. In May 2016, Microsoft sold the feature-phone business and rights to use the Nokia brand for those products to HMD Global and Foxconn-linked manufacturing interests. Microsoft also announced further reductions in Finland and said it would focus on productivity and software services across competing mobile platforms rather than continue as a conventional smartphone manufacturer. Microsoft Mobile therefore became a transitional organization rather than a lasting consumer-phone brand. Microsoft retained Windows 10 Mobile support for existing devices for a period, but did not build a sustainable successor product portfolio. In 2017, executive Joe Belfiore publicly confirmed that Microsoft had stopped developing new Windows phones and new Windows 10 Mobile features because of weak market share and the difficulty of attracting application developers. The Microsoft Mobile operating business is consequently regarded as defunct, although Microsoft continues to offer mobile applications and services for Android and iOS and later returned to hardware through…

Microsoft Mobile was established through Microsoft's acquisition of Nokia's Devices and Services division. The relationship began in February 2011, when Microsoft and Nokia announced that Nokia would make Windows Phone its main smartphone platform. The companies combined Nokia hardware and distribution with Microsoft's operating system and services. Bing was used on Nokia products, while Nokia mapping assets supported Microsoft's mapping services. Nokia's first major Windows Phone products were the Lumia 800 and Lumia 710, introduced in October 2011. The partnership gave Windows Phone its most important hardware manufacturer, but it did not solve the platform's structural disadvantages. Nokia's smartphone position fell rapidly as Android manufacturers expanded across price points and Apple strengthened the premium segment. Lumia sales grew and periodically outperformed rival Windows Phone vendors, especially in affordable devices, but the wider Nokia handset business suffered falling revenue, plant closures, layoffs, and repeated operating losses. Windows Phone also remained far behind Android and iOS in application availability and global scale. Microsoft announced the Nokia acquisition on 2 September 2013. The transaction consisted of €3.79 billion for the devices and services business and €1.65 billion for a ten-year patent license, for a total of more than €5.4 billion. It closed on 25 April 2014 and created Microsoft Mobile Oy in Finland. Microsoft acquired the Lumia and Asha brands, licenses for selected Nokia trademarks, design patents, and access to Nokia's utility-patent portfolio. Stephen Elop moved to Microsoft to lead the Devices group, while Nokia appointed Risto Siilasmaa as interim chief executive before Rajeev Suri became chief executive of the remaining Nokia company. The new subsidiary inherited Lumia smartphones, Asha and Series 40 feature phones, and other development programs. Microsoft soon narrowed the portfolio. Nokia Mail and Nokia Chat were closed with migration paths to Outlook.com and Skype, while online communities and applications were rebranded around Microsoft Lumia. Several 2014 devices retained Nokia branding, but Microsoft increasingly presented Lumia as its own device family. It cancelled or ended future development of Asha, Series 40, and Nokia X products, concentrating on Windows Phone. Microsoft launched Lumia devices based on Windows Phone 8.1 and later Windows 10 Mobile. The Lumia 950 and Lumia 950 XL represented the company's high-end Windows 10 Mobile effort, while lower-cost Lumia phones continued to target price-sensitive markets. The portfolio could not generate enough volume or developer momentum. In 2015 Microsoft announced an approximately US$7.8 billion write-down connected chiefly with the Nokia phone acquisition and reduced its phone workforce substantially. In May 2016, Microsoft announced the sale of its feature-phone business and Nokia brand rights for feature phones to HMD Global and Foxconn-linked entities. It also announced further job cuts in Finland and a strategic shift toward productivity applications and services on Android and iOS. Microsoft did not immediately end support for existing Windows 10 Mobile devices, but its hardware investment became increasingly limited. In 2017 Joe Belfiore stated that the company had stopped developing new Windows phones and new Windows 10 Mobile features. Microsoft Mobile consequently ceased to operate as a meaningful phone manufacturer, while Microsoft continued its mobile presence through software, cloud services, and applications on competing platforms.

1. 2017New Windows phone development ends

   Microsoft confirmed that it was no longer developing new Windows phones or new Windows 10 Mobile features.

   Source
2. 2016Feature-phone business divested

   Microsoft sold its feature-phone operations and related Nokia brand rights to HMD Global and manufacturing partners.

   Source
3. 2015Nokia acquisition write-down and phone layoffs

   Microsoft recorded a large write-down associated with the acquisition and reduced staffing in its phone organization.

   Source
4. 2014Microsoft Mobile begins operations

   The Nokia transaction closed on 25 April, transferring the mobile-device business to a new Finnish Microsoft subsidiary.

   Source
5. 2014Microsoft begins Nokia-to-Lumia rebranding

   Microsoft shifted product, application, and online-community identities toward Microsoft Lumia, although some devices continued to carry Nokia branding.

   Source
6. 2013Microsoft announces Nokia devices acquisition

   Microsoft announced the purchase of Nokia's devices and services business and a separate long-term patent license.

   Source
7. 2011Microsoft and Nokia announce Windows Phone partnership

   Nokia selected Windows Phone as the main platform for its future smartphones and agreed to integrate Microsoft services into its mobile products.

   Source
8. 2011First Nokia Lumia Windows Phones introduced

   Nokia unveiled the Lumia 800 and Lumia 710, its first major smartphones built around Windows Phone 7.

   Source

A vertically integrated Microsoft mobile-device business built around Windows Phone and Windows 10 Mobile, combining Nokia's hardware, manufacturing, design, and distribution capabilities with Microsoft's software and services. Its products emphasized integration with Microsoft accounts and services, camera technology, mapping, and affordable Lumia devices, but the business ultimately struggled against Android and iOS.

• LumiaSmartphone family2011

  Lumia was the principal smartphone family associated first with Nokia and then with Microsoft Mobile. It covered entry-level, mid-range, and premium Windows Phone devices, with later models upgraded toward Windows 10 Mobile. The range was known for colorful industrial design, camera-focused models, integration with Microsoft services, and broad availability in emerging markets. Microsoft inherited the brand in 2014 and used it during the transition from Nokia identity to Microsoft Lumia. The Lumia 950 and 950 XL were the final prominent high-end Microsoft-branded Windows 10 Mobile phones.

• AshaFeature phone and low-cost smart-device family2011

  Asha was Nokia's low-cost mobile-device family, inherited by Microsoft through the acquisition. It served price-sensitive customers with feature-phone and simplified smartphone functionality, including access to selected online services. Microsoft discontinued future development of the Asha line after the acquisition as it narrowed its mobile strategy around Windows Phone and later Windows 10 Mobile.

• Nokia-branded feature phonesFeature phones2014

  Microsoft Mobile continued selling feature phones under a ten-year license for the Nokia name. These products used the S30 or S30+ platform and served markets where basic calling, messaging, long battery life, and low purchase prices remained important. Microsoft ultimately sold the feature-phone business and relevant Nokia trademark rights in 2016, ending its direct role in this product category.

• Lumia 950 and Lumia 950 XLWindows 10 Mobile smartphones2015

  The Lumia 950 and Lumia 950 XL were Microsoft Mobile's flagship Windows 10 Mobile smartphones. They represented Microsoft's attempt to provide high-end hardware aligned with the Windows 10 common-platform strategy and Microsoft's productivity ecosystem. Their release demonstrated the company's continuing device ambitions, but they arrived as Windows phone market share and developer support were already weakening.

• Microsoft BandWearable device2014

  Microsoft Band was a wearable-device program selected as an alternative to Nokia's Moonraker smartwatch prototype after the acquisition. It reflected Microsoft's broader interest in health, fitness, and cross-platform mobile experiences, but it was not a Microsoft Mobile phone product and did not become a successor to the inherited Nokia hardware portfolio.

• 2017Stop developing new Windows phonesStrategy

  Windows Phone had lost substantial market share and attracted too few developers and applications to support a viable third mobile ecosystem.

  What changed. Microsoft stopped developing new Windows phones and adding new features to Windows 10 Mobile, while maintaining a mobile presence through applications and services on other platforms.

  Aftermath. Microsoft Mobile ceased to function as a forward-looking smartphone platform and became a discontinued device business.

  Source
• 2016Divest feature-phone operationsM&A

  Microsoft's smartphone business was contracting, while the company redirected resources toward software and productivity services on competing mobile platforms.

  What changed. Microsoft sold the feature-phone business and associated Nokia brand rights to HMD Global and manufacturing partners.

  Aftermath. Microsoft exited direct feature-phone manufacturing and reduced the operational scope of Microsoft Mobile.

  Source
• 2015Launch Lumia 950 and Lumia 950 XLProduct launch

  Microsoft positioned Windows 10 as a common platform across PCs, tablets, phones, and Xbox and used the Lumia flagships to demonstrate the mobile version.

  What changed. Microsoft Mobile introduced the Lumia 950 and Lumia 950 XL as high-end Windows 10 Mobile smartphones.

  Aftermath. The products were the principal flagship expression of Microsoft's Windows 10 Mobile strategy, but the platform continued to lose commercial and developer momentum.

  Source
• 2014End inherited Asha, Series 40, and Nokia X developmentStrategy

  Microsoft inherited several Nokia mobile platforms, but sought to reduce product overlap and concentrate resources on Windows Phone.

  What changed. Microsoft ended future development of the Asha, Series 40, and Nokia X lines and prioritized Windows Phone products.

  Aftermath. The portfolio became more focused, but the narrower Windows strategy did not generate sufficient market share or application support.

  Source
• 2014Shift consumer identity from Nokia to Microsoft LumiaStrategy

  Microsoft acquired rights to use the Nokia name in defined circumstances but wanted its own brand to lead the smartphone business.

  What changed. Microsoft rebranded many device announcements, applications, social channels, and support properties around Microsoft Lumia, while some transitional products retained Nokia branding.

  Source
• 2013Acquire Nokia's devices and services businessM&A

  Microsoft and Nokia had a deep Windows Phone partnership, but Nokia's handset business was losing ground to Android and iOS. Microsoft sought greater control over hardware, software, and distribution as part of its devices-and-services strategy.

  What changed. Microsoft agreed to pay €3.79 billion for Nokia's devices and services operations and separately license Nokia patents for €1.65 billion over ten years.

  Aftermath. The transaction closed in April 2014 and created Microsoft Mobile, but the acquired phone business later produced major restructuring costs and a large write-down.

  Transaction value. More than €5.4 billion (Announced 2013; completed 2014)

  Source

• 2017Microsoft confirms the end of new Windows phone development

  Joe Belfiore said Microsoft had stopped developing new Windows phones and new Windows 10 Mobile features because of weak market share and limited developer support.

  Product generation
  Source
• 2016Microsoft sells Nokia feature-phone business to HMD Global and partners

  Microsoft divested its feature-phone operations and transferred relevant Nokia brand rights to HMD Global and associated manufacturing interests.

  M&A
  Source
• 2015Microsoft records a major write-down linked to the Nokia phone acquisition

  Microsoft recorded a US$7.8 billion write-down associated primarily with the Nokia phone business and announced further phone-related job reductions.

  Other
  Source
• 2014Acquisition closes and Microsoft Mobile is formed

  The acquisition closed on 25 April 2014 after regulatory delays, transferring Nokia's mobile-device assets into Microsoft's Finnish subsidiary.

  M&AOther
  Source
• 2014Microsoft announces major layoffs following Nokia integration

  Microsoft announced a large company-wide workforce reduction, with many affected positions connected to integrating Nokia's former employees and reducing duplication.

  Leadership changeOther
  Source
• 2013Microsoft announces acquisition of Nokia's mobile-device business

  Microsoft announced a transaction to acquire Nokia's devices and services operations and license Nokia patents, setting up the later formation of Microsoft Mobile.

  M&A
  Source

1. Microsoft Mobile