This is already major news but if you’ve been under a rock then Microsoft is acquiring Nokia’s smartphone business and a ten year license arrangement to use the Nokia brand on mobile phone products. Perhaps the major kicker is access to Nokia’s intellectual property which is important as the smartphone wars heat up on both strategic and legal fronts.
Nokia keeps its network infrastructure, HERE and Advanced Technologies business.
If you’re after the nitty gritty of the deal then you can checkout the Nokia press release here.
So why is this a big deal?
Well, Apple already has had control over the hardware it marries up with its iOS software whilst locking out any other manufactureres from the platform. This tight control allows Apple to make incredibly optimisations on both software and hardware while being able to deliver a consistent user experience. In contrast, Google was comparatively “hands off” in the update of Android by smartphone manufacturers which has lead to varying levels of device specifications (from prohibitively low through to mindblowing with a whole lof of stuff in between). However, this has changed recently with Google acquiring Motorola which now provides a native capability for Google to produce smartphone hardware (although the level of oversight undertaken by Google is rumoured to be minimal).
Microsoft has had a different approach so far.
In the case of Windows Phone, there have been some rigid specifications regarding specifications in order for a smartphone to be considered compliant. This includes things such as hardware buttons and their order of placement as well as the amount of RAM and the required sensors (such as GPS and gyroscopes). However, manufacturers have been free to make most other design choices but have had to abide by some (seemingly) arbitrary upper limits in terms of specifications dictated by Microsoft.
However, now that Microsoft is moving to acquire Nokia’s smartphone business then it could enable a more aggressive push in this space whilst offering tighter integration between hardware and software. Of course, this acquisition could put other manufacturers of Windows Phone handsets offside as they have been small fish in comparison to Nokia with none of the partnership frills. Maybe this is an intentional move by Microsoft if it wants to assume full control over the hardware for its slowly growing smartphone platform and have other manufacturers leave by their own volition rather than kicking them out.
Of course, we will see how things unfold but Microsoft is making some very bold moves in recent times.
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