Microsoft has announced that an additional 1850 jobs will be lost at Nokia, HQ based in Finland, on top of the 4,500 jobs they announced would be lost last week. Microsoft will also write off 950 million in Nokia.
Nokia was purchased by Microsoft in 2014 and in just a short span it has totally failed to live up to what Microsoft has wanted. Since buying the company Microsoft has failed to compete with Google’s Android and Apple iPhones, with a current total market share of less than 1 percent. The only time Microsoft saw growth in the mobile business was the year they acquired Nokia, and it was still a small fraction of just 2 percent.
Microsoft won’t be fully leaving the mobile world though and will continue to particpate in some way.
“We are focusing our phone efforts where we have differentiation — with enterprises that value security, manageability and our Continuum capability, and consumers who value the same,” Chief Executive Satya Nadella said in a statement. “We will continue to innovate across devices and on our cloud services across all mobile platforms.”
There are rumors that mobile-like Xbox one devices could be coming soon, along with a strong push to expand Windows 10 across multiple platforms. Microsoft is also still scheduled to reveal new Surface tablets later this year.
Microsoft is also still producing “higher end phones” which includes their own branded phones and the Lumia line. Microsoft is also still producing the Windows mobile OS for other companies that utilize it for mobile gadgets.
The company that purchased Nokia from Microsoft are also expected to return the brand to the mobile market, but with Android. Before Microsoft purchased Nokia, the company was making an Android based line with plans to expand. The new phones are coming from HMD Global as they purchased Nokia rights for 350 million from Microsoft, and the deal lasts for 10 years.
Overall this is a smart move by Microsoft. I never personally had faith that this would take off and thought the Nokia deal was a bad move, so it is good they turned it around as fast as possible to quickly stop the bleeding. Focusing on higher end devices and potentially bridging Windows 10 to more devices is the way to go. A seamless bridge between all devices seems to be their ultimate goal.
As a Zune HD owner, this is why I stayed back anyways.
This is also good news for Xbox. There is a lot of talk about Microsoft throwing way more support behind Xbox soon, and at E3 we may finally see these rumors come true. With more gadgets and Xbox becoming the “living room” piece of Windows 10, this means Microsoft won’t be stepping away any time soon. They are making cuts elsewhere and refocusing and it is a good thing to see Xbox as one of their key products.