April 25, 2014
The acquisition was approved by Nokia shareholders and government regulatory agencies around the world. The closing of the acquisition marks the first step in bringing these two organizations together as one team.
“Today we welcome Nokia Devices and Services to our family. The mobile assets and capabilities they will bring will drive our transformation “said Microsoft CEO Satya Nadella. “Together with our partners, we remain focused on delivering faster innovation in a world where mobility and the cloud come first.”
Former Nokia President and CEO Stephen Elop will report to Nadella and serve as Executive Vice President of the Microsoft Devices Group, where he will oversee the devices division, which will now include Lumia smartphones and tablets, Nokia mobile phones, the Xbox hardware, Surface, and Perceptive Pixel (PPI) products and accessories. Microsoft hosts a deeply experienced team in more than 130 locations in 50 countries around the world, including several factories that design, develop, manufacture and market an extensive portfolio of innovative smart devices, mobile phones and services. As part of the transaction, Microsoft will honor all existing warranties from Nokia device customers.
Windows Phone is the fastest growing ecosystem in the smartphone market, and its portfolio of award-winning devices continues to expand. According to IDC, in the fourth quarter of 2013 Windows Phone confirmed its position as the third operating system for smartphones and was the fastest growing platform among the main operating systems, with a year-on-year gain of 91% .1 In addition, with the Nokia’s mobile phone business, Microsoft will enter the low-cost mobile device market, an opportunity of $ 50 billion a year, 2 bringing the first mobile experience to the next 1 billion people and introducing the services of Microsoft to new customers around the world.
In Latin America, Windows Phone strengthened its position in 2013 and is now the second best-selling mobile operating system in Brazil, Argentina and Peru through operators such as Telefónica and América Móvil. According to IDC, Microsoft’s mobile operating system had the highest growth rate in the region, growing 148% during 2013. As part of its strategies to attract developers and benefit consumers, Microsoft offers a operator billing platform in the Windows Phone store, being one of only two companies to provide this advantage in the region.
Microsoft will continue to provide new value and opportunity, and will work closely with different hardware partners, developers, operators, distributors, and retailers to provide the platforms, tools, applications, and services that enable them to create exceptional devices. Thanks to its deep understanding of the workings between hardware and software, the company will strengthen and expand the demand for all Windows devices in general.
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