Feeds

Awkward? Elop now answers to ex-junior Nadella as Microsoft closes Nokia buyout

Who are you, you wet-behind-the-ears little scamp?

Build a business case: developing custom apps

Microsoft has closed its $7.1bn garbage-trucks-colliding deal to buy Nokia’s struggling mobile handset business.

The software giant announced the successful completion of a seven-month campaign to take ownership of the Nokia unit, announced last September.

Nokia now becomes the Microsoft Devices Group, headed by Nokia’s former chief executive Stephen Elop, now the new group’s executive vice president.

In an interesting dynamic, Elop will report to Microsoft's new CEO Satya Nadella, who was a mere senior vice president for research and development in online services – covering Bing – when Elop last drew a Microsoft salary. Elop was a Microsoft a group president while Nadella was in the R&D wing.

Elop quit in September 2010 to become Nokia’s first non-Finnish CEO.

It was both men's former boss, Steve Ballmer, who announced and brokered the deal to bring Nokia onto the Microsoft mothership.

The awkwardness of the two execs' positions has been helpfully illustrated by Microsoft in a completely unposed photo shoot, below. Nadella and Elop are striking out in the Finnish/Washington State winter tundra, minus suitable clothing, with Elop tightly gripping his only asset - a Nokia smartphone.

Elop and Nadella, photo: Microsoft

Nadella and Elop: Cold here isn't it? Wait 'till we're working together.

Under the deal, Microsoft is now taking on 25,000 Nokia staff, meaning its corporate head count now busts the 100,000 head barrier by a country mille.

With the staff come a number of Nokia manufacturing plants, although not – as was hoped – plants in Masan, South Korea and Chennai, India.

According to Microsoft last year, owning Nokia made sense because it brought “proven capability and talent in critical areas such as hardware design and engineering, supply chain and manufacturing management, and hardware sales, marketing and distribution.”

Today, Nokia is Microsoft’s single-largest supplier of Windows Phone handsets to the market while Windows Phone’s market share is less than five per cent.

The deal is supposed to give Microsoft the hardware manufacturing and engineering expertise to build Windows phones, tablets and phablets.

The deal marks the end of a grand turnaround plan from Elop that was supposed to save Nokia.

Elop was brought in by Nokia’s elders in a last throw of the dice to turn around the company’s plummeting market share against Apple and Android. Elop’s grand plan was to commit Nokia to Windows Phone on its smartphones, dumping Symbian and Linux.

In February Nokia did a U-turn on Elop’s Windows Phone-only policy, unveiled in 2011, by announcing the X Android-powered range.

The phones are supposed to help Nokia capture the “next” billion smart-phone users.

Elop’s plan was in tatters late last year as his company announced net sales for the phone business was down 29 per cent for the fourth quarter to €2.63bn ($3.6bn). Net phone sales for the full year were down 29 per cent, to €10.74bn ($14.71bn). ®

Secure remote control for conventional and virtual desktops

More from The Register

next story
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
Premier League wants to PURGE ALL FOOTIE GIFs from social media
Not paying Murdoch? You're gonna get a right LEGALLING - thanks to automated software
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Ballmer quits Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Online tat bazaar eBay coughs to YET ANOTHER outage
Web-based flea market struck dumb by size and scale of fail
Amazon takes swipe at PayPal, Square with card reader for mobes
Etailer plans to undercut rivals with low transaction fee offer
Call of Duty daddy considers launching own movie studio
Activision Blizzard might like quality control of a CoD film
US regulators OK sale of IBM's x86 server biz to Lenovo
Now all that remains is for gov't offices to ban the boxes
prev story

Whitepapers

5 things you didn’t know about cloud backup
IT departments are embracing cloud backup, but there’s a lot you need to know before choosing a service provider. Learn all the critical things you need to know.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.