Microsoft Acquires Nokia Handset Business

United States software giant Microsoft on Saturday completed the acquisition of Nokia’s mobile handset business, while excluding the Finnish firm’s Chennai factory from the over USD 7.2 billion deal due to tax issues.

Nokia will continue to operate the Chennai plant, one of its largest manufacturing facilities, on a service contract for Microsoft. The factory started in 2006, more than a decade after Nokia’s India operations began in 1995.

According to analysts, the takeover of Nokia’s handset business will enable Microsoft to become a major devices manufacturer.

Nokia shipped over 250 million units last year, second to Samsung’s sales of 446.7 million handsets, according to IDC.

The acquisition also reiterates Microsoft’s India-born CEO Satya Nadella’s focus on “mobile-first, cloud-first world” as the Redmond (US)-based firm tries to restore the lost glory of a firm that was once the world’s largest handset maker.

Nokia lost market share to Samsung and Apple as it struggled to position itself among the fast-changing needs of consumers.(PNA/PTI) JBP/RSM