This is what a $7.2 billion smartphone looks like
By Zach Epstein7 hours ago
It might not look like much, but the colorful low-end handset pictured above (via @evleaks) is the most valuable smartphone on the planet. Code-named “Normandy,” the tiny unreleased phone was to be the first Nokia device powered by Google’s Android operating system. But it’s also so much more — it’s a $7.2 billion smartphone. As we have discussed before, various chatter suggests that Nokia likely created this handset with the primary intention of forcing Microsoft’s hand. During ongoing negotiations between the two companies, Nokia not only needed a way to move the acquisition of its smartphone division along, but also to ensure that Microsoft acquired the company’s waning feature phone business as well. And what better way to guarantee all of the above than to threaten Nokia with embracing the Android platform?
Did it work? Nokia’s shaky devices business will soon be in Microsoft’s hands in exchange for about $5 billion, and Microsoft will license Nokia’s patents for 10 years for another $2.2 billion. Mission accomplished, we’d say.
This article was originally published on BGR.com
Totalfixation 4 hours ago04Just so the masses are aware Microsoft makes money from android phone sales. Second Nokia wanted this to replace the low end mobile market instead of focusing on R&D for their outdated Symbian OS. Replacing their Asha line with android and offering a broader range of apps for their low ends mobile phone made sense. This may have been a negotiating tactic at some level but at the same time MS probably though we're making money both ways. My real inclination as to why they purchased the Nokia Device & Services is to sell phones at below cost to weed out Samsung and Apple. IE following similar sales and marketing tactics such as the Amazon Kindle and other similar Google Products. MS can make money by other means. Nokia clearly couldn't sustain a negative profit on each handset sold, only MS can.Reply
Ben Stratton 4 hours ago018Reply- David 6 hours ago143Expand Replies (3) Reply
Phil 7 hours ago011Expand Replies (3) Reply- Montville Local 2 hours ago33Expand Replies (4) Reply
Rafeal 1 hour ago03Reply- John 42 minutes ago00I use a 20 dollar a year Majicjack at home and a tracfone cell that costs about 10 a month. Don't get all this big money for phones.Reply
- Richard 1 hour ago00So Nokia is going under?Reply
- VladyDaddy 58 minutes ago00Typical garbage by yahoo. Waste of time.Reply
Mike 3 hours ago017.2 Billion, Jesus I thought my cell bill was expensive.Reply
