9:28 PM
Microsoft acquires Nokia handset biz
USSOFTWARE giant Microsoft on Friday completed the acquisition of Nokia's mobile handset business, while excluding the Finnish Firm's Chennai factory from the over USD 7.2 billion deal due to tax issues.
Nokia will continue to operate the Chennai plant, one of its largest manufacturing facilities, on a service contract for Microsoft. The factor)' started in 2006. more than a decade after Nokia's India opera-nuns began in 1995.
The ('hcnrui plant employs about 8.000 workers, equivalent to about a third of Nokia's 25.000 staff that are being transferred to Microsoft, who will remain on the rolls of the Finnish firm.
Nokia will offer a programme of support, including financial assistance, to help employees seek opportunity elsewhere.
According to analysts, the takeover of Nokia's handset business will enable Microsoft to become a major devices manufacturer. Nokia shipped over 250 million units last year, second to Samsung's sales of 446.7 million handsets, according to IDC.
The acquisition also reiterates Microsoft's India-horn CEO Satya Nadella's focus on "mobile-first. cloud-first world" as the Redmond (US)-based firm tries to restore the lost glory of a firm that was once the world's largest handset maker.
Nokia lost market share to Samsung and Apple as it struggled to position itself among the fast-changing needs of consumers.
The new firm - Finnish entity Microsoft Mobile Oy -- will target the affordable mobile devices market, which it says is a USD 50 billion annual opportunity
Nokia will continue to operate the Chennai plant, one of its largest manufacturing facilities, on a service contract for Microsoft. The factor)' started in 2006. more than a decade after Nokia's India opera-nuns began in 1995.
The ('hcnrui plant employs about 8.000 workers, equivalent to about a third of Nokia's 25.000 staff that are being transferred to Microsoft, who will remain on the rolls of the Finnish firm.
Nokia will offer a programme of support, including financial assistance, to help employees seek opportunity elsewhere.
According to analysts, the takeover of Nokia's handset business will enable Microsoft to become a major devices manufacturer. Nokia shipped over 250 million units last year, second to Samsung's sales of 446.7 million handsets, according to IDC.
The acquisition also reiterates Microsoft's India-horn CEO Satya Nadella's focus on "mobile-first. cloud-first world" as the Redmond (US)-based firm tries to restore the lost glory of a firm that was once the world's largest handset maker.
Nokia lost market share to Samsung and Apple as it struggled to position itself among the fast-changing needs of consumers.
The new firm - Finnish entity Microsoft Mobile Oy -- will target the affordable mobile devices market, which it says is a USD 50 billion annual opportunity
Posted in: News 2014
0 comments:
Post a Comment