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Intel Businesses Cellphones

Why Intel Should Buy Nokia 200

Posted by Soulskill
from the desperately-seeking-sales dept.
An opinion piece at ZDNet makes the case that Intel is the best match for struggling handset-maker Nokia, arguing that Intel needs help breaking into the smartphone market and Nokia isn't tied as tightly to Qualcomm/ARM hardware as other vendors. From the article: "Another factor in favor of a union is Nokia and Intel's shared history — albeit not the most successful — of working together in mobile, thanks to their collaboration on the Linux-based MeeGo mobile OS. What's more, Intel has a long relationship with Microsoft, handy given the impending release of Windows Phone 8 and Nokia's new-found commitment to Microsoft's platform. The fact that Intel is currently using Android, as seen with Orange's San Diego smartphone, isn't much of a hindrance; Intel has already said it hasn't written off the idea of using Windows Phone 8 in future, and due to the x86 architecture, Android phones that use Intel's Atom processor won't even run all of the apps on Google Play, suggesting the relationship between Android and Intel isn't all it could be."
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Why Intel Should Buy Nokia

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  • No. (Score:5, Insightful)

    by obarthelemy (160321) on Saturday August 04, 2012 @04:21PM (#40880359)

    Nokia is wedded to MS. Intel needs to be more flexible than that, especially since WinPhone is in freefall, and Nokia isn't even trying at tablets.

    Dell or HP should buy Nokia, it's their last chance to make it in the mobile space.

  • Re:No. (Score:5, Insightful)

    by Telvin_3d (855514) on Saturday August 04, 2012 @04:38PM (#40880483)

    Never happen. Nokia's market cap is hovering just under 10B. Dell's is 20B and HP's 35B. So for Dell to buy Nokia they would have to hand over HALF of their entire company to Nokia's current investors. HP is not in a much better ratio. Never, in a million years, could that happen.

    Frankly, there are not many companies big enough to buy Nokia, particularly in the tech sector. Microsoft would be one. Google another and Apple would be about it. Apple would be buying them for the patents and the other two if they plan to go into first party manufacturing and design in a big way.

    Assuming Nokia doesn't pull out of the death spiral the most likely outcome is that no one buys them outright. A big consortium of companies buys all the patents just to get them off the table and the rest of the company dies.

  • by symbolset (646467) * on Saturday August 04, 2012 @04:47PM (#40880571) Journal
    Nobody is going to buy Nokia. Intel isn't a good fit. They're trimming the company down to where it can fit in a filing cabinet managed by a couple paralegals.
  • Re:No. (Score:2, Insightful)

    by Anonymous Coward on Saturday August 04, 2012 @05:12PM (#40880757)

    Nokia's market cap is hovering just under 10B.

    It's $8.8 billion US dollars NOW, (not "just under 10"), but it's been falling pretty damned fast. All they would have to do is wait. A year ago their stock price was in the 7's. Now, it's 2.27. Expectations are that it continues to drop over the next year as the company comes unglued from its failure to adapt to the smartphone market. Earnings per share is *negative*, and they are laying off people.

    All a potential purchaser has to do is wait.

  • by Anonymous Coward on Saturday August 04, 2012 @05:14PM (#40880771)

    Nokia culture inside Nokia is practically dead. Nokia's old culture was based on Finnish post-war determination, risk taking and fundamental honesty. There were values such as respect for the individual which represented the understanding that each employee had a stake in and responsibility for the company. These values were already under attack long before even Elop joined. "Respect for the individual" had been changed into just "respect" which is a completely meaningless empty feel good phrase. Elop has brought in Microsoft culture to senior management and run around destroying every area of the business which showed individual initiative.

    With Nokia culture dead there is very little to bring the company back to a sane position. The very idea of working so much with a company as immoral and corrupt as Microsoft would have been rejected by the old Nokia, and that is probably part of the reason why the best pepople have been leaving Nokia so quickly since Elop arrived. The place to look for the true Nokia is inside the companies already spun off years ago and within the groups which have been leaving Nokia in disgust recently.

    For the strength that made Nokia survive before to allow it to continue again, there would have to be a very strong move from the board to completely get rid of the current Microsoft culture. That probably has to happen within six months to have a chance since Elop is putting so many of his own placement into the management. I really don't see that much chance of that being done.

  • by Bert64 (520050) <bert@s[ ]hdot.fi ... m ['las' in gap]> on Saturday August 04, 2012 @05:16PM (#40880781) Homepage

    Intel have never had any success in mobile...
    Nokia are falling fast...
    And MS are somewhere between, never had much success and also seem to be falling, albeit from a much lower height than Nokia.

    Why would 3 failures of the mobile market want to get together?

  • by UpnAtom (551727) on Saturday August 04, 2012 @05:28PM (#40880851) Homepage

    Intel dumped MeeGo at the same time they started Tizen with Samsung.

    Jolla are the folks who designed the awesome N9. For merely keeping MeeGo going we should be throwing money at them but I hope they can sort the business end of it too.

  • by RudyHartmann (1032120) on Saturday August 04, 2012 @05:44PM (#40880973)

    Nokia has been a huge supporter of Windows for mobile phones. Microsoft has tried harder than anybody has without making any progress with their own phones. Remember the "Kin"? If Microsoft intends to continue trying, they'll have to keep Nokia's patent portfolio away from the other mobile phone manufacturers. Microsoft needs to buy Nokia for this very purpose.

  • by Anonymous Coward on Saturday August 04, 2012 @10:04PM (#40882751)

    Seriously, Nokia is a handset maker, they have free choice of everything, processors, software the lot. Their problems began when they tied their own hands behind their backs, hired Elop and restricted themselves to making only Microsoft phones.

    Samsung on the other hand, made Android, Bada, Microsoft, everything under the sun, and found what worked in what markets.

    So I don't see how tying themselves to Intel and using the LESS popular CPU with the not so great power consumption would somehow be a good thing.

    At this point they need to eject Elop, get a pragmatic COMPETENT boss in place, and start making phones that sell instead of phones they already know don't sell.

    Elop is the problem here, not Nokia.

  • by symbolset (646467) * on Saturday August 04, 2012 @10:32PM (#40882927) Journal
    Why buy the cow when the milk is free? They already have everything they want from Nokia.
  • by rtfa-troll (1340807) on Sunday August 05, 2012 @01:49AM (#40884037)
    You are right I guess; even now switching back to a "produce everything we can sell" strategy could save Nokia. The problem is that you clearly have to get rid of Elop to achieve this; the primary thing which is killing Nokia is things he has said, so everthing he ever did needs to be completely repudiated. Probably this needs a complete change of the board of directors and that can't be done without a buy out. The real question is: "why are the big shareholder's sleeping on the job?".

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