Sale of Mobile Division to Microsoft is a Big Plus for Nokia…Not so Much for Microsoft


Would you rather be Nokia going forward or Microsoft, which now has to fix a mobile device unit that saw sales plummet in the first quarter? Advantage Nokia.

The more time passes the better Nokia’s sale of the handset business to Microsoft looks. Just imagine how Nokia’s sale is going to look a few years from now.

Microsoft touts buying Nokia’s handset business—now run by Stephen Elop inside the software giant (again)—as a transformative deal. The transformation rests with the old Nokia, now a networks, patent licensing and navigation company.

Last week, Microsoft welcomed Nokia’s handset business into the fold, talked about the future and had an optimistic view of the mobility landscape. Nokia’s earnings results, the last with the device business, tell a different tale.

The device business—Lumia and other mobile phones—are represented by discontinued operations for the most part. Simply put, the mobile phone business is in freefall compared to a year ago.

The loss for the quarter was €326 million.

Keep in mind that the year ago was no picnic either. Here’s a look:

nokia discontinued

Microsoft’s job now is to stop the bleeding, harness Nokia’s hardware knowhow and get its act together for what will be a critical fourth calendar quarter and holiday season.

Nokia’s job is to spend Microsoft’s money and retool.

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SOURCE:  for Between the Lines 

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