Nokia buys network operations from Siemens

[LazyLion]

Nokia says it will buy Siemens' half of their joint network operations in a ?1.7 billion ($2.22 billion) deal.

The Finnish company says that the transaction, to be completed during the third quarter this year, means that the joint venture Nokia Siemens Networks will become a wholly owned subsidiary of Nokia Corp.

Nokia CEO Stephen Elop said Monday that the network operations had improved its financial performance, and progress in high-speed data provides "an attractive growth opportunity."

Nokia, once the dominant cellphone maker, is struggling in the smartphone market against Samsung, Apple's iPhone and handsets that use Google's Android software as well as against Asian manufacturers making cheaper handsets.


Source : Sapa-AP /mjs
Date : 01 Jul 2013 07:46

 

[Mouse]

Next step: sell off the cellphone division to M$

 

[krycor]

Next step: sell off the cellphone division to M$

I don't think so hey, I suspect they will just focus on 1-5 models as a primary instead of the plethora of models they maintain. 2ndly the Network Vendor market is under tight margins with competition from Hauwei and ZTE lately and although the European companies have arguably better quality, with tight economic conditions the Chinese companies offers for parts of the network look good.

Back in late 1990's till about 2005 this sector was where the money was.. lately nope. The major profit these days are consumer products/handsets which has it's own set of problems. All in all i think besides being an operator Telecoms remains tough sector for the last 5 yrs, everyone is pinning their hopes on LTE+ for network roll out contracts etc but margins aren't like they were for 2G & 3G and new tech is simplifying the operator to becoming a pipe of sorts.. like fixed is for net with heavy push to decrease voice. all in all not good.

Unless they can come up with some new service/offering that's unique and tied in to every handsets i doubt they'd sell up handset core business.

 

[ToxicBunny]

Nokia won't be selling its cellphone division, and MS won't be buying it.

It was possibly on the cards until recently, but apparently Nokia wanted to much cash and MS were nervous about their market position.

 

[Nod]

Nokia will probably go back to their core business eventually ...
The telecoms market is tough.

 

[Maverick Jester]

Nokia won't be selling its cellphone division, and MS won't be buying it.

It was possibly on the cards until recently, but apparently Nokia wanted to much cash and MS were nervous about their market position.

I dunno, with the acquisition of NSN as a whole, they have obtained a plethora of mobile patents. Something Microsoft would be keen to get their hands on...

 

[ToxicBunny]

I dunno, with the acquisition of NSN as a whole, they have obtained a plethora of mobile patents. Something Microsoft would be keen to get their hands on...

Not for the money Nokia would ask for it I don't think.

Nokia as a whole would be a risky move for MS I think, and one they wouldn't be keen to take on at this point in time.