John Paczkowski

Recent Posts by John Paczkowski

Microsoft’s Nokia Deal by the Numbers

Microkia

While $7.2 billion might be the headline number on Microsoft’s agreement to purchase Nokia’s devices and services business, there are plenty of other figures to consider as part of the transaction. Here’s a quick rundown:

  • Microsoft is spending about $7.2 billion to acquire Nokia’s core cellphone business.
  • Of that, $5 billion is for Nokia’s devices business.
  • The remaining $2.18 billion is to license Nokia’s intellectual property
  • Nokia’s patent portfolio includes some 8,500 design patents.
  • It also includes approximately 30,000 utility patents and patent applications.
  • About 32,000 Nokia employees are expected to transfer to Microsoft as part of the deal.
  • About 18,300 of those are “directly involved in manufacturing.”
  • But 56,000 Nokia employees will remain at the company once the deal has closed.
  • With 8.7 million units shipped, Windows Phone had a 3.7 percent share of global smartphone market in the second quarter of 2013, according to IDC.
  • Windows Phone has greater than 10 percent share in nine markets, according to Microsoft.
  • Windows Phone is outselling BlackBerry in 34 markets — again, according to Microsoft.
  • Nokia accounted for 81.6 percent of all Windows Phone smartphone shipments during the second quarter of 2013.
  • Microsoft’s gross margin on sales of Nokia’s Windows Phone handsets before the deal: Less than $10.
  • Microsoft’s expected gross margin on sales of Nokia’s Windows Phone handsets after the deal: More than $40.
  • Nokia’s share of the smartphone market was 49.4 percent in 2007.
  • By fall of 2012, it was 4.3 percent.

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