Microsoft bought Nokia Oyj in a surprising move last year in September. The deal was more considered as a survivor platform for Nokia as well as Windows Phone, because both of these units were not performing up to the mark.
It has been around 7 months after that deal and now there is something even more surprising coming out of the joint headquarter of the two giants in respective fields. In a leaked report, the officials confirmed that later this month, Nokia Oyj will be officially renamed to Microsoft Mobile Oy, which works as a subsidiary unit of Microsoft to take care of the mobile hardware and software business.
When decision like this takes place, there are hell lot of doubts people have about the decision, the reasons of the decision and the possible outcomes of the decision. One such doubt which was amazing literally everyone was about the partnership of Microsoft Mobile Oy with the dealers, partners and customers of Nokia products, however, in a official release, Microsoft made it clear that the agreement which Nokia had with their partners, dealers and the customers will not be changed after the change of the name of the company to make sure that Microsoft Mobile have the same kind of understanding and profitable model while manufacturing the handsets. A part of the official release is attached below
Under the terms of the sale, Microsoft will assume all rights, benefits and obligations of the Nokia Devices and Services business, including Nokia’s agreements with suppliers, customers and partners which pertain to the Devices and Services business. Therefore, the purpose of this letter is to update you that the current terms and conditions that you have with the Devices and Services business will not change.
Please note that upon the close of the transaction between Microsoft and Nokia, the name of Nokia Corporation/Nokia Oyj will change to Microsoft Mobile Oy. Microsoft Mobile Oy is the legal entity name that should be used for VAT IDs and for the issuance of invoices.
However, the headquarters of Microsoft Mobile is supposed to remain in Finland (confirmed by the format of invoice sent to the suppliers by Nokia).
Nokia has reportedly been working on a concept of Smart Watches. According to the information, all the services and products will now come from HERE division of Nokia. HERE is expected to launch some more consumer oriented products later this year.