Nokia appears free to return as an Android or Windows Phone maker in 2016
With the final regulatory approvals secured, and with details of factory transfers and other sticking points finally ironed out, Microsoft Corp. (MSFT) announced late Thursday that it had completed the acquisition of Nokia Oyj.'s (HEX:NOK1V) devices unit.
I. Let's Make a Deal
Nokia Oyj. -- based out of Finland -- served Microsoft loyally as the primary champion of Windows Phone.
The relationship was fraught with controversy from Microsoft's payments to Nokia to the role of former Microsoft business division head Stephen Andrew Elop, who had been appointed CEO of Nokia. Some felt Nokia would have been better served becoming yet another in the growing pack of Android phonemakers. Others argued that despite the low sales Nokia successfully downsized, returning to profitability and producing truly differentiated offerings with the Lumia handset line.
Ultimately, Microsoft decided that the best option in order to make sure Nokia Devices stayed onboard with Windows Phone and to quell cries that Stephen Elop was a "Trojan horse" was to simply buy the unit from Nokia Oyj. On Sept. 3, 2013 Microsoft announced that it was acquiring Nokia Devices for €3.79B ($5.24B USD) and licensing Nokia's patents and software services (e.g. HERE maps) for €1.65B ($2.28B USD), in a deal initially worth $7.2B USD. Adjusting for current exchange rates, the deal at its close was worth just slightly more -- around $7.5B USD.
[Image Source: Bloomberg]
Microsoft will draw upon its overseas cash resources to fund the transaction. The transaction is expected to close in the first quarter of 2014, subject to approval by Nokia’s shareholders, regulatory approvals and other closing conditions.
The deal was quickly cleared by shareholders in Nov. 2013, and scored U.S. and EU regulatory approval by Jan. 2013. Approval in China was the final roadblock recently cleared by Nokia and Microsoft, which allowed the deal to complete.
[Image Source: Reuters]
In the end the transaction took a month longer than hoped, but 8 months really wasn't that bad a turnaround, given the thorny competitive issues and global trade issues on the table.
The decision will likely long be remembered as one of Microsoft's second CEO -- Steve Ballmer's -- final and most critical decisions.
II. Microsoft's Shiny New Hardware
With the deal now closed Microsoft will gain control of one of the world's biggest feature phone lines, which includes the Asha smartphones -- a phone family that has sold over 1 billion units globally to date. Asha and most of Nokia's other feature phone families run on variants of the aging Symbian operating system, such as the S40.
Microsoft's low end is comprised with Symbian smartphones in the Asha line. Microsoft may look to slowly phase that out for reskinned Android devices to avoid having to continue to develop the proprietary S40/S60 operating systems.
Microsoft also will be left to develop the role for Nokia's recently launched mid-range Nokia X, an Android offering that's reskinned to look and feel like Windows Phone. It's probable that Nokia X will slowly replace the Asha line as budget smartphones.
Microsoft will likely continue to sell the Nokia X, a reskinned Android smartphone to the budget smartphone market.
On the high-end will be the Lumia brand, which exclusively runs pure Windows Phone.
The Nokia Lumia 930
Microsoft is continuing to court third-party OEMs to the Windows Phone platform with its latest greatest Windows Phone 8.1. Notably it waived licensing fees for Windows Phone, giving it a key leg up over Google Inc.'s (GOOG) Android (which is also free, but will invariably lead to you being forced to pay licensing fees to Microsoft for features found in Android that are seemingly covered by Microsoft's large software patent portfolio).
The decision to give away Windows Phone for free is very recent. Even before that some OEMs were expressing interest at Microsoft's very low prior licensing rates, which may have in some cases been cheaper than Android licensing fees. While it remains to be seen how much OEMs really commit to Windows Phone volume wise, the decision could be a game changer, ensuring Microsoft Devices isn't going it alone with its first party products.
For now Nokia devices will continue to sell under their familiar brand names, as Microsoft gained the rights to both the brand names and even the name "Nokia" itself as part of the deal. Nokia's employees -- 34,000 of which will be inherited by Microsoft -- will largely stay where they are, doing what they're doing. But Microsoft will look to streamline the device unit's overally strategy to further its Windows Phone vision, and offer tighter integration than the devices unit had enjoyed when it was under the umbrella of a separate company.
Mr. Elop will answer to new Microsoft CEO Satya Nadella, the man who beat him in the competition to replace Mr. Ballmer to become the next CEO.
Microsoft CEO Satya Nadella (L) and Devices EVP Stephen Elop discuss products.
While they served as rivals during the CEO search, the pair appear to have a good working friendship in the aftermath of the Mr. Nadella's victory. Both men share a common vision of the importance of mobility and the cloud to Microsoft's long-term goals.
In an open Mr. Elop writes to customers, investors, and the public in general, commenting:
Six months ago, we announced our plans to bring the best of Microsoft and Nokia Devices and Services business together. Today is an exciting day as we join the Microsoft family, and take the first, yet important, step in our long-term journey.
At our core, we are passionate about building technology that will change the world. From the early vision of Microsoft of placing a PC in every home and on every desk, to Nokia connecting billions of people through mobile devices, we have empowered generations. But we could not have achieved any of this without our fans around the world.
Your support has created strong momentum for Nokia Lumia smartphones and they continue to grow in popularity around the world. Last year alone, the awards, accolades and fan-generated rave reviews offered proof of the growing number of champions for our phones and tablets.
And we are committed to continuing our support for feature phones, the Asha family, and the Nokia X family of devices, announced at the Mobile World Congress in February.
Whether you want to read more, capture more, watch more, listen more or get more done, Nokia mobile devices have been and are your go-to choice.
As Microsoft and Nokia Devices and Services come together as an expanded family, we will unify our passion, dedication and commitment to bringing you the best of what our joint technologies have to offer.
Together, we can connect and empower people with one experience for everything in their life in a world where it is mobile first and cloud first.
The Xbox, Surface tablets, PC accessories (mice, keyboards, etc.), and Perceptive Pixel (PPI) products will also be under Stephen Elop's command. Basically almost anything you see in a Microsoft Store in terms of hardware will be driven by the unit led by Mr. Elop.
III. Nokia Could Return as Android OEM in 2016
Nokia, meanwhile gains $7.2B USD in cash and for now exits the device space.
It will continue to draw revenue from patent licensing deals with Android phonemakers and Apple, Inc. (AAPL), and it retains control of the advanced technologies team that tinkers with novel smartphone technologies. The cash will immediately be put to use in paying off the €1.7B ($2.34B USD) cost of Nokia's buyout of Siemens AG's (ETR:SIE) share in Nokia Solutions and Networks (NSN). NSN -- a top player in the telecom equipment market -- will now be Nokia's chief breadwinner, in terms of revenue.
Nokia Solutions Network (NSN) is now solely owned by Nokia. [Image Source: Telegraph]
Currently one of the biggest controversies and risks to Nokia lies in licensing rates. Given that Nokia has the mobile industry's most formidable patent portfolio which is not encumbered by mandatory licensing, Nokia has long been free to name its own inflated licensing rates. Rivals have little choice but to comply as Nokia has generally shown its portfolio capable of scoring sales bans on virtually any smartphone in a variety of jurisdictions.
But with the deal to Microsoft, Nokia is technically out of the phonemaking business, so it'sfacing concern that it will now be essentially acting as a non-practicing entity (NPE) or the less euphamistic equivalent -- a patent troll. As a result Nokia likely had to agree to limit the license rates to certain Android OEMs to avoid abusing it dominant position.
An under examined aspect of the deal was a line item that Nokia revealed earlier this year:
Upon the closing of the transaction, Nokia would be restricted from licensing the Nokia brand for use in connection with mobile device sales for 30 months and from using the Nokia brand on Nokia's own mobile devices until December 31, 2015.
Hence while Nokia will for now focus on its global communications network hardware offerings, its licensing deals, and its software services such as HERE, it could make a return to the smartphone market in 2016. This creates the fascinating possibility that both Microsoft and Nokia could peddle products with different features but identical brand names ("Nokia") for as long as eight years of Microsoft's ten year licensing pact.
Nokia is allowed to reenter the phone market as an Android or Windows Phone device maker in 2016. [Image Source: Digital Trends]
In reality that may never happen. While Nokia has a massive financial advantage when it comes to licensing, it would face a crucial production and design deficit now that most of its production and smartphone engineering employees have transferred to Microsoft. Nokia would have to painstakingly rebuild its team. While it may yet do that, suffice it to say that's not as easy as it sounds.
No one knows if Nokia is plotting such an approach, but it would not be surprising to see Nokia make a bold comeback in 2016 as an Android OEM, given its built in licensing advantage over fellow Android rivals (and cross-licensing deals with Apple and Microsoft). An Android rival might be stuck paying $15-40 USD per device to Microsoft, Nokia, and Apple. By contrast Nokia would pay no licensing fees for its Androids, and would actually receive money for every rival Android device or iPhone sold.
Modern UI appears hear to stay, but Microsoft is willing to make tweaks based on criticism
SuperSite For Windows blogger Paul Thurrott has dug up some interesting details on what might be coming next for Microsoft Corp.'s (MSFT) veteran operating system.
I. Return of the Mack... er Start Button
Microsoft in October rolled out Windows 8.1, an update that marks the company transitioning to a path of faster, iterative releases ร la Apple, Inc. (AAPL). The update came at a time when PC sales were in record decline, following criticism of Windows 8 and Microsoft's struggles in the mobile market. While Windows 8.1 included a number of requested changes, such as the ability to boot into Desktop Mode (instead of Modern UI) and the return of the iconic Start Button, it remains to be seen if it will help the platform's sagging sales.
If Windows 8.1 went back on some of Microsoft's decisions to ditch familiar Windows features, its successor "Windows 8.2" is expected to continue further down the path of backtracking. According to Mr. Thurrott the next bump -- expected to land sometime late next year or in early 2015 -- will include a full Start Menu similar to that found in Windows 7 and previous releases.
Microsoft is reportedly restoring the start menu in Windows 8.2. [Image Source: Microsoft]
His sources are referring to the build simply as "the next version of Windows."
The Start button found in Windows 8.1, while a familiar icon, dumps you into Modern UI, making it function different from Start buttons in every other consumer Windows release of the past two decades. Many consumers were frustrated that Microsoft refused to give them the Start Menu and simply gave them more Modern UI, when it was Modern UI that they were unhappy with in the first place. But before Microsoft traditionalists get too excited, Mr. Thurrott adds a warning, stating, "It's possible this will appear only on those product versions that support the desktop."
Some third party apps have already restored the eliminated menu.
II. "Threshold" == Windows 8.2 & Company?
According to ZDNet's Mary Jo Foley, Microsoft is preparing a series of updates for its Windows Phone, Xbox One, and Windows 8.x platforms dubbed "Threshold". Threshold will reportedly take Microsoft to -- you guessed it -- the "threshold" of a unified API set. The Windows 8.x SKU for "Threshold" (which Mr. Thurrott guesses will be Windows 8.2) will come in three forms: a "consumer" OS SKU for ARM Holdings plc (LON:ARM) chips (likely a scalable build of Windows Phone, bearing some similarities to Windows RT); a "traditional" x86 SKU; and an even more traditional enterprise SKU.
Many enterprise users have complained that Windows 8's touch-driven graphically rich UI is poorly suited to power use. The Enterprise SKU should help to fix that, and in some ways inherits the legacy of the "Professional" or "Ultimate" SKUs in past Windows releases, SKUs that typically bundled in extra enterprise-friendly features.
The Threshold plans sound reasonable as far as rumors come; Microsoft has already made its goal of API unification well known in recent presentations.
Microsoft's "Threshold" releases aim to enable developers to deploy a single app that works on Windows Phone, Xbox One, and Windows 8.x, without custom code. [Image Source: Microsoft, et. al.]
In addition to the huge news of the return of the Start Menu, Mr. Thurrott also claims that Windows 8.2 will allow users to run Modern UI (aka "Metro") apps in floating Windows on a desktop. How this clash of styles will wind up looking, if the rumor holds true, will be interesting to say the least.
Even if these rumors hold true, there's no telling if Microsoft will continue to follow that direction. It's notably preparing for a power transition with CEO Steve Ballmer stepping downafter over a decade in charge of the firm. His successor has not yet been announced; the top candidates are thought to be Ford Motor Comp. (F) CEO Alan Mulally and Microsoft Devices executive vice president (and former Nokia Oyj. (HEX:NOK1V)) CEO) Stephen Elop.
Mr. Mulally recently stated that he will remain at Ford through the end of 2014, but Forbescontends that plan is not set in stone. If he does take over at Microsoft it is unclear exactly what changes he might aim to make in terms of direction. If Mr. Elop takes over he reportedly will move away from exclusivity for top Microsoft apps like Internet Explorer and Microsoft Office, releasing them for additional platforms like Google Inc.'s (GOOG) Chrome OS and Android; Apple, Inc.'s (AAPL) iOS and OS X; and other top Linux distributions like Canonical's Ubuntu.
You can often use it for quick Web surfing and to check e-mail. Occasionally, kids come down and do homework on the communal PC when they get tired of being cooped up in their rooms. This can work particularly well if you have networked storage somewhere in the house, so people can get to their files whether they're on a personal system or a communal one.
If you do have this type of communal PC, your first inclination might be to create separate accounts for each person. I've found this isn't really necessary. Since it's communal, no one really keeps private information on it.
The flip side is that you'll want security software that's as bullet-proof as possible. Since you have multiple users on one system, eventually someone, sometime, will hit a Web site that may attempt to download a Trojan horse or other malware.
2.Make It a Secondary Computing Server
If you're a content creator using a title like 3dsmax, Adobe After Effects or Sony Vegas, having another PC to help with distributed rendering chores can greatly speed up final renders for complex projects.
Each application handles distributed rendering a little differently, so you'll need to consult your documentation. But typically, you'll install a lightweight application on the secondary rendering system, which will take data and commands from the primary system and then return results when done. The main application on your production system, or a separate manger app, manages the rendering across multiple networked systems.
3.Use It for Old-School Gaming
Related to the idea of using an older system as a dedicated game server, consider repurposing that box for old school gaming. You can go as nuts as you want. For example, install Windows 98, so you can run those older Windows 95 and DOS games, if you have a bunch around. Note that this isn't as necessary as it used to be. Online services like Steam and Impulse are offering older games that have been rewritten to work under newer operating systems, and DOSBox lets you emulate a legacy DOS environment to get your classic gaming fix.
4.Use It as a Dedicated Game Server
Do you have a favorite multiplayer game? If so, check and see if it's a game where you can host a server on a local computer--you might consider making your old system a dedicated game server. Most multiplayer games capable of playing online often support dedicated servers.
5.Convert It Into a NAS or Home Server
If you're running a home network and have multiple users--you, your spouse, your kids--reuse as network-attached storage or even as an actual server may be just the ticket for an old system.
However, it's not just a matter of plugging an old PC into a network connection and starting it up. Most desktop systems aren't configured to be effective servers or storage systems. For one thing, they probably use too much power. You'll want to set BIOS power management to run cooling fans in quiet mode, if that option exists. You'll also need to set up the operating system so that it doesn't shut down at inconvenient times, yet run in a low power state when it's not being actively used.
Bear in mind that you'll probably want to run your server "headless" (that is, without a monitor), and sans keyboard and mouse as well. While you'll need a display and input devices for the initial setup, make sure the system will work properly without them. Having a scheduled reboot hang because the system halted during startup (it couldn't find a keyboard, perhaps) is annoying, to say the least.
Also, the operating system is likely not well suited for storage applications, particularly for multiple users. While Windows XP, Vista, or Windows 7 can function well as a storage repository for a couple of users, you'll want to take the time to create user accounts for each person who might need access. In some cases, you may want to set storage quotas.
A better solution would be to install a proper network operating system. One choice is Windows Home Server. However, that will cost you somewhat north of $100, and WHS may prefer newer hardware. An alternative is FreeNAS.
FreeNAS is open-source software designed to turn a PC into a network-attached storage device. It's based on FreeBSD, a UNIX variant. If you're uncertain whether you want to commit to an unfamiliar OS, FreeNAS can be downloaded as a LiveCD version. This is an ISO file which, when burned to a CD, will boot off an optical drive and run completely from memory. You can keep your old OS on the hard drive until you determine if FreeNAS is suited to your needs.
Motorola's Project Ara partners with PhoneBloks to roll out build-it-yourself smartphones
The advanced research team at Google Inc. (GOOG) subsidiary Motorola Mobility (Motorola's Advanced Technology and Projects group) has launched a new project dubbed "Project Ara".
The goal is to create a "modular" smartphone composed of parts that plug in, potentially to a common backplane. The idea is to make a phone that can have easy hardware upgrades or configuration changes (say swapping a bigger speaker for a bigger camera lens) similar to what you can do with a traditional PC.
The concept was initially championed by Dutch designer Dave Hakkens, who envisioned a Lego like model called "PhoneBloks":
The concept created much excitement, but was it feasible in reality?
Currently the most common aftermarket phone customization is simply a case. For example Apple, Inc. (AAPL) sells colorful cases to further spice up the already colorful iPhone 5C. Motorola takes things a step further with its Moto X flagship device, allowing you to personalize numerous elements of the body design color-wise.
And then there's Nokia Devices, whose Lumia 1020 comes with an optional camera grip, which not only helps you steady your shots, but also expands the device's battery life substantially.
Powered by Android smartphones, PhoneSat 1.0 cost less than $3,500 to make. [Image Source: NASA]
Perhaps the most ambitious modular phone product to date was the now-defunct Modu, founded in 2007 by Dov Moran. Modu drew attention when in mid-2008 launched the world's lightest phone, the minimalist Modu 1.
Something of a freak show, the Modu 1 lacked the bare necessities of smartphones at the time, trading them for a minimalist "phone" unit that slipped into "jackets" to provide additional swappable functionality. Candy bar phones, tablets, and boomboxes are among the jackets Modu dreamt up. While Modu earned praise for the flexibility of its product and originality of the concept, ultimately all of the results were somewhat disappointing compared to stand-alone alternatives.
Thus it is perhaps not surprising that Modu eventually went under, ceasing commercial operations in Feb. 2011. But Google was interested enough in the concept to pay $4.9M USD for several of Modu's key patents, according to unconfirmed reports.
Project Ara inherits the intellectual legacy of Modu.
Now -- for better or worse-- that IP is being rolled into the new Project Ara project. Motorola writes:
Our goal is to drive a more thoughtful, expressive, and open relationship between users, developers, and their phones. To give you the power to decide what your phone does, how it looks, where and what it’s made of, how much it costs, and how long you’ll keep it.
The design for Project Ara consists of what we call an endoskeleton (endo) and modules. The endo is the structural frame that holds all the modules in place. A module can be anything, from a new application processor to a new display or keyboard, an extra battery, a pulse oximeter--or something not yet thought of! ... In a few months, we will also send an invitation to developers to start creating modules for the Ara platform (to spice it up a bit, there might be prizes!). We anticipate an alpha release of the Module Developer’s Kit (MDK) sometime this winter.
Project Ara has actually partnered with PhoneBloks creator Dave Hakken and his community of modular phone dreamers for the project.
So what will the results be?
Nobody quite knows, but judging by this critical thread on Reddit ("This is currently on the front page. A good example of what happens when no one talks to an Engineer") most engineers believe that while the project is feasible it will produce a bulkier, more expensive, and less efficient phone than the dreamers hope. 3D printingmay yet change that, but there's a long way to go to overcome the technical hurdles still facing the project.
Whether or not modular phones prove as quixotic a quest as the critics claim, it's certainly fun to watch these free spirited efforts to make a Lego phone. source:http://www.dailytech.com
The new GTA V has just thrilled every gamer.delivering high level entertainment and a chance to challenge their gaming abilities with the outside world... with a smashing release GTA ruled the gaming market.... and now as per latest news GTA earns $500,000 this month.... what can be better than this... Before receiving your GTA Online cash, though, gamers are instructed to install the upcoming GTAV title update (1.04), which will allow Rockstar Games to provide the GTA$ stimulus cash to players. It will also fix vehicle purchase loss issues, and gamers can expect to see it next week.
The half a million will be delievered to October gamers in two separate deposits of $250,000 a piece. Rockstar didn't say when these two deposits will take place, but said it would update gamers at Rockstar Newswire.
However, Rockstar Games said it expected deposits to start as early as next week.
Lenovo latest tablet features an Intel Bay Trail-T processor
Lenovo is expanding its reach into the Windows 8.x tablet arena with the introduction of the new Miix2. The Miix2 is an 8.1” tablet that runs Windows 8.1.
Although the idea of a compact, 8.1” tablet running a full-blown version of Windows is admirable, one must also realize that the screen resolution is “only” 1280x800. With that said, Lenovo says that the display features a 178-degree viewing angle and features 10-point multi-touch.
When it comes to processing power, the Miix2 features an Intel Bay Trail-T quad-core processor paired with integrated seventh generation Intel HD Graphics. Storage duties are handled by either 32GB or 64GB of onboard eMMC storage. This, however, can be expanded thanks to an included microSD slot.
Other features include Bluetooth 4.0, 802.11n, 2MP front-facing camera, and a 5MP rear camera.
The tablet measures 5.18” x 8.48” x 0.32”, weighs just 0.77 pounds, and has up to seven hours of battery life.
The Miix2 will start at $299 for the 32GB version; the 64GB model will set you back $349. Lenovo is also selling a cover with an include stylus pen for $20. The tablet and its accessories will be available later this month.
Is it a car? Is it a plane? Er, no - it's a hovercraft. Called the Volkswagen Aqua this is one young Chinese designer's interpretation of an off-road vehicle for the future. Hovercraft concepts have been a dime a dozen over the years, so why not add another one to the long list of vehicles we wish will one day make it to the assembly line? Created by Chinese industrial designer Yuhan Zhang, the Volkswagen Aqua Hovercraft concept would certainly be a dream come true.
The 21 year old opted for a hybrid setup that sees the main engine powered by a hydrogen fuel cell, while the fans at the end of vehicle controlling the thrust and steering system are powered by individual electric motors. The Volkswagen hovercraft was designed specifically to tackle all of the varying landscapes found throughout China from roads and rivers to snow and sand.
