Microsoft’s Nokia Deal by the Numbers
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.
RELATED POSTS:
- Microsoft CEO Promises to Limit Nokia Phone Names to 10 Syllables or Less
- Samsung, HTC Mum on Any Interest in Windows Phone Post-Nokia
- Elop in July: It’s “Hard to Understand the Rationale” for Selling Nokia’s Devices Business
- Microsoft Is Getting Nokia’s Phone Business for a Song
- Nokia Shares Rise, Microsoft Falls in Reaction to Deal
- So Much for BlackBerry’s “Clear Shot” at Being No. 3 in the Smartphone Market
- Selling Nokia Was Hard Emotionally, But Right Thing to Do, Says Interim CEO
- Marko Ahtisaari, Nokia’s Top Designer, To Leave Company in November
- Steve Ballmer on Why Buying Microsoft’s Biggest Phone Partner Makes Sense
- Nokia Interim CEO: We Have Three Strong Businesses Remaining
- Barcelona Rendezvous, 50 Nokia Board Meetings Led to Microsoft Deal
- Microsoft’s Nokia Deal By The Numbers
- Microsoft Confirms It Gets Less Than $10 Per Nokia Windows Phone Sold
- Stephen Elop Is Now Microsoft CEO Candidate to Beat
- Microsoft Wants to Keep Licensing Windows Phone to Others, Post-Nokia Deal
- Microsoft Explains the Rationale Behind the Nokia Deal
- Microsoft to Buy Nokia’s Device Business in Deal Worth $7.17 Billion