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Microsoft Mobile Oy was a Finnish subsidiary of Microsoft Devices involved in the development and manufacturing of mobile phones. Based in Keilaniemi, Espoo, it was established in 2014 following the acquisition of Nokia's Devices and Services division by Microsoft in a deal valued at €5.4 billion, which was completed in April 2014.[2] Nokia's then-CEO, Stephen Elop, joined Microsoft as president of its Devices division following the acquisition, and the acquisition was part of Steve Ballmer's strategy to turn Microsoft into a "devices and services" company. Under a 10-year licensing agreement, Microsoft Mobile held rights to sell feature phones running the S30/S30+ platform under the Nokia brand.

Key Information

Originally Microsoft had established a major partnership with Nokia in 2011, in which the company exclusively produced smartphones using the Windows Phone platform, and promoted Microsoft services on its feature phone products (including Bing search). Microsoft also licensed Here Technologies data for its own mapping services. While Nokia's resultant Lumia range had the largest market share out of all Windows Phone vendors, Nokia's overall market share was falling rapidly due to competition from other major vendors, resulting in a dire financial situation. In September 2013, Microsoft announced its acquisition of Nokia's devices and services businesses, which closed with the formation of a Finnish subsidiary, Microsoft Mobile. On smartphones, the Nokia name was phased out in favour of Microsoft branding on future Lumia products.

While the Lumia range continued to be successful, especially with low- and mid-range devices targeting emerging markets, sales of both Microsoft-manufactured smartphones and feature phones began to see major declines, due primarily to the rapidly-deflating market share of Windows Phone. In 2015, Microsoft took a US$7.8 billion (~$10.1 billion in 2024) write-down on the Nokia purchase, and announced layoffs of 7,800 employees, primarily within Microsoft's phone business. In May 2016, Microsoft abandoned its mobile business, selling the Nokia feature phone line and trademark rights to the Finnish startup HMD Global, and announcing that it planned to cut up to 1,350 positions in Finland and focus on offering its productivity services on competing mobile platforms. In 2017, Microsoft executive Joe Belfiore revealed that Microsoft had ceased the development of new Windows phones and new features for Windows 10 Mobile, citing the losses in market share and lack of app development.

History

[edit]
A Microsoft Kin device from 2010, Microsoft's first foray in mobile phone hardware

With the acquisition of Nokia's devices and services division, Microsoft re-entered the smartphone market. In Microsoft's previous attempt, Microsoft Kin, a result of the acquisition of Danger, Inc., had been poorly received.[3][4]

2011–2013: Partnership between Microsoft and Nokia

[edit]
Nokia Lumia 800, Nokia's first device running Windows Phone

In February 2011, Nokia CEO Stephen Elop and Microsoft CEO Steve Ballmer jointly announced a major business partnership between the two companies, which would see Nokia adopt Windows Phone as the primary platform for its future smartphones, replacing both Symbian and MeeGo. The deal also included the use of Bing as the search engine on Nokia devices, and the integration of Nokia Maps into Microsoft's own mapping services.[5] Nokia announced that it would still release one device running the MeeGo platform in 2011, but that it would devote fewer resources to future development of the platform, and would phase out Symbian entirely.[5] Aligning with Microsoft had been considered a possibility by analysts, due to Elop's prior employment with the company.[6][7][8]

As Nokia was the largest mobile phone and smartphone manufacturer worldwide at the time,[9] it was suggested the alliance would help Windows Phone,[8] but from the beginning of 2011, until 2013, Nokia fell from #1 to #10 in smartphone sales.[10] In June 2011, Nokia was overtaken by Apple as the world's biggest smartphone maker by volume.[11][12] In Q2 2011, amid falling sales, Nokia posted a loss of €368 million, after having realized a profit of €227 million in Q2 2010. In September 2011, Nokia announced it would cut another 3,500 jobs worldwide, including the closure of its Cluj factory in Romania, after having cut as many as 7,000 the previous April.[13] In August 2011 Chris Weber, head of Nokia's subsidiary in the U.S., stated that "The reality is if we are not successful with Windows Phone, it doesn't matter what we do [elsewhere]. He further added, North America is a priority for Nokia […] because it is a key market for Microsoft.[14] On 26 October 2011, Nokia unveiled its first Windows Phone 7-based devices, the high-end Lumia 800 and the mid-range Lumia 710, at its Nokia World conference.[15][16] After this announcement, Nokia's share price fell about 14%, its biggest drop since July 2009.[17] Nokia's smartphone sales, which had been increasing, collapsed.[18]

Market share of Symbian, Windows Mobile and Windows Phone 7 among US smartphone owners from Q1 2011 to Q2 2012 according to Nielsen Company

Nokia reported sales "well above 1 million" of its Lumia line in 2011,[19][20] 2 million sales for the first quarter of 2012,[21] and 4 million for the second quarter of 2012,[22] when Nokia sold only 600,000 smartphones (Symbian and Windows Phone 7) in North America.[23] By comparison, Nokia had sold more than 30 million Symbian devices worldwide in Q4 2010[24] and the Nokia N8 alone had sold almost 4 million in its first quarter. In Q2 2012, 26 million iPhones and 105 million Android phones shipped, compared to only 6.8 million devices with Symbian and 5.4 million with Windows Phone.[25] In announcing an alliance with Groupon, Elop declared, "The competition... is not with other device manufacturers, it's with Google."[26] In June 2012, Nokia chairman Risto Siilasmaa told journalists that Nokia had a contingency plan in the event that Windows Phone failed, but did not specify what it was.[27][28]

On 8 February 2012, Nokia announced 4,000 layoffs at smartphone manufacturing plants in Europe by the end of 2012, to move assembly closer to component suppliers in Asia.[29] Despite its commitment to the Windows Phone platform, Nokia continued to sell Symbian (particularly the Nokia 808 Pureview) and Asha feature phones, which may have indicated a failure in the smartphone sector. On 14 June 2012, Nokia announced 10,000 layoffs globally by the end of 2013[30] and that it would shut production and research sites in Finland, Germany, and Canada, in line with continuing losses and the stock price falling to its lowest point since 1996.[31] In total, Nokia laid off 24,500 employees by the end of 2013.[32] On 18 June 2012, Moody's downgraded Nokia's bond rating to junk status.[33] Nokia's CEO admitted that the company's inability to foresee rapid changes in the mobile phone industry was one of the major reasons for the problems.[34] On 4 May 2012, a group of Nokia investors filed a class action against the company, as a result of disappointing sales.[35] On 22 August 2012, it was reported that a group of Finnish Nokia investors were considering gathering signatures for the removal of Elop as CEO.[36] In December 2012, to cut costs during a period of falling revenues, Nokia announced that it would be selling its headquarters, Nokia House, for €170 million, and leasing the use of it back long-term.[37]

In January 2013, Nokia reported sales of 6.6 million smartphones for Q4 2012, consisting of 2.2 million Symbian and 4.4 million Lumia devices (Windows Phone 7 and 8).[38] In North America, only 700,000 mobile phones were sold, including smartphones. In May 2013, Nokia released the Asha platform for its low-end smartphone devices. The Verge commented that this might have been recognition on the part of Nokia that Windows Phones weren't selling at the bottom end of the smartphone market fast enough and that they might be "hedging their commitment" to the Windows Phone platform.[39] In the same month, Nokia announced its partnership with the world's largest cellular operator, China Mobile, to offer Nokia's new Windows-based phone, the Lumia 920, as the Lumia 920T, an exclusive Chinese variant. The partnership was a bid by Nokia to connect with China Mobile's 700 million-person customer base.[40]

Following the second quarter of 2013, Nokia reported an operating loss of €115 million (£98.8 million), with revenues falling 24% to €5.7 billion, despite Lumia's sales figures exceeding those of BlackBerry's handsets during the same period. Over the nine-quarters prior to the second quarter of 2013, Nokia sustained €4.1 billion worth of operating losses. The company experienced particular problems in both China and the U.S.; in the former, Nokia's handset revenues were the lowest since 2002, while in the U.S., "Nokia continues to show no signs of recovery in the US market. High investments, high expectations, low results."[41] In July 2013, Nokia announced that Lumia sales were 7.4 million for the second quarter of the year – a record high,[42] but Windows Phones in general still lacked momentum and lacked global market share, although scoring progressively better than other competing mobile platforms such as BlackBerry.[43]

In June 2013, despite Nokia's falling commitment to the Windows Phone platform, Nokia's share of that market was a dominant 83.3% of all such phones sold;[44] and by October 2013, Nokia's Lumia line held over a 90% market share of all Windows Phones in use.[45] A part of the reason Nokia couldn't make a profit was that their low priced Nokia Lumia 520 dominated the market while high-end models barely sold.[46]

2013–2014: Acquisition of Nokia's mobile phone business

[edit]

On 2 September 2013, Microsoft announced that it would acquire Nokia's mobile device business in a deal worth €3.79 billion, along with another €1.65 billion to license Nokia's portfolio of patents for 10 years; a deal totaling over €5.4 billion. Steve Ballmer considered the purchase to be a "bold step into the future" for both companies, primarily as a result of its recent collaboration. It was also part of Ballmer's long-term vision of transforming Microsoft into a "devices and services" company. Pending regulatory approval, the acquisition was originally expected to close in early 2014.[47][48] In an interview published in Helsingin Sanomat, former Nokia executive Anssi Vanjoki commented that the Microsoft deal was "inevitable" due to the "failed strategy" of Stephen Elop.[49]

In an Helsingin Sanomat interview from 2018, Nokia chairman Risto Siilasmaa revealed that Microsoft were also in talks to purchase HTC, another Windows Phone vendor, before they opted to purchase the Nokia business.[50]

In March 2014, it was announced that the acquisition of Nokia's mobile phone business would not be completed by the end of March as expected, but instead was delayed until April of that year due to problems with regulators in Asia.[51] The acquisition of Nokia's mobile phone business by Microsoft was closed on 25 April 2014 for "slightly more" than the originally stated €5.44 billion.[52] Nokia's mobile phone assets became a part of Microsoft Mobile, a new subsidiary of Microsoft based in Finland.[53][54]

While Microsoft licensed the Nokia brand under a 10-year agreement, Nokia agreed not to use its name on smartphones and to be subject to a non-compete clause preventing it from producing any mobile devices under the Nokia name through 31 December 2015. Microsoft acquired the Asha and Lumia brands as part of the deal, a license to use the Nokia name,[55] as well as the Nokia PureView, ClearBlack, Surge, Mural, and Symbian-related trademarks.[56][57] Further, the deal included the acquisition of 8,500 design-related patents by Microsoft, and license on 30,000 "utility" patents on a non-exclusive basis for 10 years.[58][59][60]

As part of the deal, a number of Nokia executives joined Microsoft: Stephen Elop became the head of Microsoft's devices team (which oversees products such as Xbox and Surface); Risto Siilasmaa replaced Elop as interim CEO, before the appointment of Rajeev Suri.[61][62][63][64]

On 17 July 2014, it was reported that a major round of layoffs, totaling over 18,000 across the entire company, would occur at Microsoft over the following year. The majority of these layoffs were related to the integration of Nokia's former staff into Microsoft, in an effort to reduce redundancy. It was also reported that Microsoft had ended future development of Nokia's Asha, Series 40, and X lines, in favor of focusing exclusively on Windows Phone.[65][66]

Shortly after the acquisition, Microsoft discontinued Nokia's smartwatch prototype, codenamed "Moonraker", dropping it in favour of the Microsoft Band.[67]

2014–2017: As a subsidiary of Microsoft, rebranding from Nokia to Microsoft, divestment and closure

[edit]

2014

[edit]
Microsoft Lumia 535, the first Microsoft branded Lumia device

Rebranding started in 2014. In March 2014, Nokia Mail and Nokia Chat were closed, offering migration services to Microsoft's Outlook.com and Skype until April 2015.[68] All Nokia accounts were closed on 25 April 2015.[69][70][71] Most of Nokia's social media sites were rebranded as Microsoft Lumia[72][73][74][75] rather than Microsoft Mobile, to emphasize their focus on Windows Phone as opposed to other Nokia mobile phones. Windows Phone social network pages were rebranded as well,[76] Nokia Conversations being rebranded as Lumia Conversations,[77] and NokNok.tv as Lumia Conversations UK.[78]

The rebranding was not entirely consistent, as the Nokia Army, launched in 2012,[79][80] became the Spartan Nation. The support site for legacy phones, accessories, as well as other Nokia-branded devices and services, Nokia Discussions, was renamed the Microsoft Mobile Community.[81] In July 2014, it was reported by evleaks that Microsoft was attempting to license the Nokia name in a co-branding scheme, which would have seen future devices branded as "Nokia by Microsoft".[82][83][84] After the acquisition of Nokia's mobile device business by Microsoft, several Lumia devices were unveiled by Microsoft Mobile in September 2014 that still carried the Nokia name, including the Lumia 830 and Lumia 735.[85] Nokia's mobile applications retained by Microsoft were rebranded as "Lumia".[86]

In September 2014, Microsoft announced Windows 10 operating system, a common platform for smartphones, tablets, laptops and Xbox. It was made available for their Lumia line of smartphones.[87] Due to the position of Microsoft Lumia devices being first-party hardware by Microsoft, Lumia handsets were the first to receive the Windows Insider preview.[88]

In October 2014, Microsoft announced that future Lumia devices would be branded with the "Microsoft" name and logo rather than "Nokia".[89][90] In November 2014, Microsoft announced its first self branded phone, Microsoft Lumia 535.[91] In November 2014 The Lumia Beta Apps division launched the Lumia Cinemagraph Beta which migrated content from Nokia's website to Microsoft OneDrive and subsequently implemented this feature in Lumia Cinemagraph.[92][93] Previously cinemagraphs used to be synchronized via the Nokia Memories site, the change was made in relation to migrating all content from Nokia's sites to Microsoft's services.[94]

In December 2014, Microsoft discontinued the Nokia Sync service, which used Nokia's account service to synchronize contacts and general phone information, in favour of other offerings such as Microsoft OneDrive, which uses Microsoft accounts as part of the transition from Nokia accounts to Microsoft accounts.[95]

2015–2017

[edit]
A Microsoft Authorised Reseller Store in Hanoi, Vietnam
Microsoft Mobile office building in Hervanta, Tampere, Finland

To compete in developing markets, Microsoft launched various low- and mid-range devices—such as the Lumia 430 Dual SIM,[96][97] 532, 435, 640, 640 XL, and 540 Dual SIM—to boost Windows Phone sales and increase market share.[98][99] In Q2 2015, Lumia sold 10.5 million devices, compared to 8.2 million during the same quarter in the prior year.[100] As a consequence of the Microsoft Lumia 535 being as popular as its predecessor, the Nokia Lumia 520, in key markets such as India and Brazil,[101] Microsoft would not concentrate on releasing a high end Microsoft Lumia device until the launch of Windows 10.[102] In Q2 2015, feature phone sales declined year-over-year, with a total of 40 million being sold for a total revenue of $2.28 billion, and a gross margin of $330 million (14%), being significantly lower than previous years due to a global decline in the demand for feature phones in favour of smartphones.[103]

In Q3 2015, Lumia sales increased 6.5% over the previous year,[104] a total of 8.6 million Lumia handsets being sold (an 18% increase). But with declining sales of 25.7 million non-Lumia phones, Q3 2015 showed a decline overall.[105] Despite the increased Lumia sales, costs exceeded sales revenue by $4 million, and Microsoft posted a loss of 12 cents per phone sold.[106][107] In February 2015, Microsoft stated that most Lumia devices would be able to upgrade from Windows Phone 8.1 to Windows 10 Mobile. Joe Belfiore said that Microsoft was "working on" a limited version of 10 for low-end devices with 512 MB of RAM, citing the Nokia Lumia 520, which at the time represented 24.5% of all Windows Phone devices sold.[108][109][110]

On 28 April 2015, Microsoft opened the first Microsoft Priority Reseller Store, in the Indian city of Gurgaon, Haryana, as a move to rebrand all their Nokia stores worldwide. At the time Microsoft had 15,684 retail outlets and 324 Nokia Care centres. In addition to selling phones, the stores would also offer Surface and Xbox devices. Of India's 8,872 stores only 441 would become priority resellers, while the rest would be rebranded as Microsoft Mobile Reseller stores.[111][112] On 3 June 2015, Microsoft announced the new Nokia Series 30+ powered Nokia 105 and Nokia 105 Dual SIM devices, which would be primarily marketed to business and travelling users, first-time mobile telephone owners, and as "a back up device" for smartphone owners.[113][114]

In Q4 2015, Microsoft managed to sell only 19.4 million feature phones, compared to 30.3 million in the prior year.[115][116][117] In June 2015, Microsoft took over naming rights to Nokia Theatre L.A. Live, a 7,100-seat concert hall in Los Angeles, renaming it the Microsoft Theatre, supplying and installing new AV equipment, and renovating public spaces. L.A. Live's 40,000-square-foot outdoor plaza would be known as Microsoft Square; and Club Nokia, a 2,300 seat venue in the Plaza, would also be renamed.[118][119]

On 8 July 2015, Microsoft announced a planned restructuring of Microsoft Mobile, including a $7.6 billion (~$9.8 billion in 2024) write down on the acquisition of Nokia, planned layoffs of up to 7,800 jobs, and a plan to downsize its first-party smartphone business, releasing fewer devices per year and pulling out of underperforming markets. New Microsoft CEO Satya Nadella stated that the company planned to have a "more effective and focused phone portfolio", and aimed to "create a vibrant Windows ecosystem including our first-party device family."[120][121][122] In October 2015, Microsoft announced the first Lumia devices running on Windows 10 Mobile, the Lumia 950, 950 XL, and 550, the first two being high-end devices, the latter a budget phone.[123][124][125][126]

In February 2016, the Lumia 650, which runs on Windows 10 Mobile, was launched. It was primarily targeted towards mid-range consumers.[127]

In April 2016, it was revealed that 2.3 million Lumia devices were sold in the previous quarter, a major drop compared to 2015.[128] The rapidly falling sales, coupled with Windows Phone market share dropping below 1%,[129] led to Microsoft announcing on 23 May the "streamlining" of the business. It would lay off "up to 1,850 jobs worldwide",[130] with up to 1,350 of those in Finland. The company also wrote off US$900 million from the Nokia acquisition.[131] Microsoft planned to complete most of these job cuts by the end of 2016, with the rest being completed by July 2017. The company stated that it would continue to develop Windows 10 Mobile, support existing Lumia and future third-party devices (implicating that it would no longer produce new Lumia models), and "embrace other mobile platforms with our productivity services".[132][133]

The same month, Microsoft sold its Nokia feature phone business to HMD Global, a Finnish startup backed by former Nokia executives.[134] The Foxconn subsidiary FIH Mobile acquired a factory in Vietnam, as well as other distribution and manufacturing assets, from Microsoft Mobile as well. HMD and FIH announced that they would collaborate on developing and manufacturing new devices under the Nokia trademark (having reached a new 10-year license for the brand, and the Android-based Nokia 6 smartphone as its first device), with input from Nokia on design and incorporation of its technologies.[135][136][137]

In October 2017, Microsoft executive Joe Belfiore revealed that Microsoft would no longer develop new phone hardware, and that Windows 10 Mobile would only receive maintenance releases and patches from then on, citing its low market share and Microsoft's abandonment of its mobile business.[138][139] Microsoft would later attempt to revive their phone business with the Android-based Surface Duo, which was also met by failure.[140] After 2022, Microsoft no longer makes or supports mobile devices,[141] with the Nokia phone business fully spun off to Nokia Mobile (now HMD)[142], and related services have been phased out. Microsoft has since been promoting their Phone Link app on Windows for use on Samsung Galaxy devices[143], with Bill Gates now using a Galaxy[144].

Hardware products

[edit]
See also: List of Nokia products and Microsoft hardware

Lumia

[edit]
Main article: Microsoft Lumia
Lumia 950

Lumia was a line of touchscreen smartphones and, previously, tablet computers, introduced in November 2011. All Lumia mobile telephones run on the Windows Phone operating system. The only Lumia tablet Lumia 2520, running Windows RT, was introduced in November 2013 and has been discontinued.[145] The Lumia is Microsoft's flagship phone portfolio.[146][147]

In October 2014, Microsoft officially announced that it would phase out the Nokia brand in its promotion and production of Lumia smartphones, and that future Lumia models would be branded solely with the name and logo of Microsoft.[148][149][150][151] In November 2014, Microsoft announced its first self-branded phone, Microsoft Lumia 535.[91][152][153] Rebranding the Lumia line from "Nokia" to "Microsoft" did not affect sales, though some critics believed that the change might influence consumers' decisions due to Nokia being an established phone brand, compared to Microsoft.[154][155]

In October 2015, Microsoft announced the first Lumia devices running on Windows 10 Mobile platform, the Lumia 950, Lumia 950 XL, and Lumia 550.[156][157][158] In addition. Microsoft stated that most Lumia devices would be able to upgrade from Windows Phone 8/8.1 to Windows 10, from December 2015.

In October 2017, Microsoft executive Joe Belfiore revealed that Microsoft would no longer develop new phone hardware, and that Windows 10 Mobile would only receive maintenance releases and patches from then on, citing its low market share and Microsoft's abandonment of its mobile business.[138][139]

For its Microsoft Lumia series Microsoft Mobile created such exclusive content as the Lumia imaging apps (that make use of the PureView technology on higher end Lumia devices) and new software was often tested through the Lumia Beta Apps. The 2024 HMD Skyline has been compared to a revival of the Lumia line[159], though using stock Android instead of Windows Phone.

Nokia X

[edit]
Main article: Nokia X family
The Nokia X

In mid-September 2013, a media report revealed that Nokia tested the Android operating system on both its Lumia and Asha hardware.[160] On 11 December 2013, a report showed that development of the Asha-like device, codenamed "Normandy", was continuing, despite the finalisation of Nokia's acquisition by Microsoft.[161] In February 2014, in Barcelona, Spain, the Nokia X family was unveiled at Mobile World Congress. These devices, which were aimed towards emerging markets, run a modified version of Android known as Nokia X Software Platform, which was aligned towards Microsoft services and did not use Google Play Store. In a company memo released in July 2014, it was announced that, as part of cutbacks, Microsoft would end the Asha, Series 40, and X range entirely, in favor of solely producing and encouraging the use of Windows Phone products.[66] The X series branding was later reused by HMD for their high end Android phones,[162] (such as the Nokia XR20) but they do not use the X platform and are no different from stock Android,

Asha

[edit]
Main article: Nokia Asha
Nokia Asha 501

The Asha series consisted of feature phones and low-end smartphones targeted mainly at emerging markets. The series has a mixture of full-touchscreen, "touch and type", QWERTY, and traditional T9-keypad devices. Originally, the Asha devices ran on Nokia's veteran operating system Series 40. Nokia later created the Asha platform as a result of their acquisition of Smarterphone. In May 2013, the Asha 501 became the first device running under the new OS, and all new Ashas since have been running on the new Asha platform.[163] During the July 2014 job cuts and restructuring at Microsoft, these device lines were moved to "maintenance mode", and would be discontinued, along with Nokia X and Series 40,[164] in favour of solely producing Windows Phone products.[66]

Series 40

[edit]
Main article: Series 40
Nokia 6300

Series 40, or S40, was a software platform and user interface (UI) based on Java used for Nokia's broad range of mid-tier feature phones, as well as on some of the Vertu line of luxury phones. It was one of the world's most widely used mobile phone platforms.[165] On 25 January 2012, Nokia announced that the company had sold over 1.5 billion Series 40 devices.[166] Although S40 has more features than the Series 30 platform, it was not used for smartphones, where Nokia primarily used Windows Phone and, until 2012, Symbian. However, in 2012 and 2013, several Series 40 phones from the Asha line, such as the 308, 309, and 311, were advertised as "smartphones" although they did not support smartphone features like multitasking or a full-fledged HTML browser.[167] In July 2014, it was announced that Microsoft would discontinue Series 40.[66] It was replaced by S30+, which was not compatible with J2ME apps.

Series 30+

[edit]
Main article: Series 30+
The Nokia 215, which runs on the Series 30+ platform

Series 30+ is a software platform and user interface that was used by Microsoft Mobile for its entry-level mobile devices.[168] The first Series 30+ device was the Nokia 130,[169][170] which had basic features such as a flashlight, FM radio, USB charging, video playback from microSD cards, and Bluetooth and USB connectivity, but no internet access. The Nokia 215, released in 2014, allowed users to browse the internet with Bing and MSN Weather and came pre-installed with Opera Mini.[171] Most S30+ devices did not come with Wi-Fi and were marketed for developing nations, with the Nokia 105 making up the majority of sales.[172] In June 2015, Microsoft further expanded the line of Nokia-branded feature phones with the Nokia 105 aimed specifically at developing nations, and named after an earlier model with the same target audience,[173] but marketed also towards present smartphone owners, being "perfect for those looking to own their first mobile phone or for those needing a reliable back-up phone for travel and fun."[174] In the third quarter of 2015, the Nokia 222 was released. It featured a larger, 2.4-inch screen.[175] In December 2015, the Nokia 230 was the last Nokia phone from Microsoft. It had an aluminium body, a 2 megapixel front-facing camera, and a dedicated selfie camera key.[176] Series 30+ still lives today as part of HMD Global.

Nokia 100

Series 30

[edit]
Main article: Series 30

Series 30, or S30, was a software platform and user interface created by Nokia for its entry-level mobile devices. S30 phones are not capable of running Java apps.[177] By mid 2014, Microsoft discontinued S30 for its Nokia-branded mobile devices.[178]

Mobile accessories

[edit]

Besides phones Microsoft Mobile also produces mobile-phone accessories such as the Bluetooth enabled Treasure Tags. In newer devices Microsoft has bundled the Swedish company Colourd's headsets as opposed to first-party hardware.[179] In late 2014, Microsoft launched a portable battery charger called Microsoft Portable Power,[180] succeeded by Microsoft Portable Dual Chargers.[181][182]

Treasure Tag

[edit]

Treasure Tag, originally Nokia Treasure Tag, is an NFC and Bluetooth enabled keychain companion to Lumia devices. When Treasure Tags are attached to small valuables, such as keys or wallets, the Lumia device can show a map to help locate them.[183][184]

Treasure Tag Mini, originally Nokia Treasure Tag Mini, was launched by Microsoft in 2014 as a successor to the original Treasure Tag. It added support for iOS, Android (including Nokia X devices) and Microsoft feature phones (Such as the Nokia 105). Compared to the original, the Treasure Tag Mini comes in fewer colours, has shorter battery life, lacks NFC capabilities, and has no notification tones.[185][186]

Corporate affairs

[edit]

Corporate governance

[edit]

When Nokia's devices and services group entered Microsoft's workforce, former Nokia CEO Stephen Elop became the new head of Microsoft Devices, which includes other hardware such as the Surface and Xbox. Elop was joined by Nokia executives Jo Harlow (smart devices), Juha Putkiranta (operations), Timo Toikkanen (feature phones), and Chris Weber (sales and marketing), who gained similar positions at Microsoft. Microsoft Devices retained most of Nokia's groups, including the hardware and studios teams, while software teams were merged with Microsoft's respective teams.[187] The transition worked without much complication, as Elop had previously reorganised Nokia's structure to be similar to Microsoft's.[188]

Many former Nokia executives have joined other projects at Microsoft, an example being Pasi Saarikko who became Principal Hardware Engineering Manager at the Microsoft HoloLens project.[189]

On 17 June 2015, as part of a reorganisation, Microsoft announced that former Nokia executives Stephen Elop,[190] and Jo Harlow would be leaving the company.[191] As part of the structural reorganisation of Microsoft the Devices and Studios group was merged with the Operating Systems group to form the new Windows and Devices group, which is headed by Terry Myerson.[192] Other than Microsoft Lumia, this new engineering group includes Microsoft hardware divisions such as Surface, Band, HoloLens, and Xbox, as well as the Windows operating system.[193]

Headquarters

[edit]
Main article: Microsoft Talo
Microsoft Mobile's former head office

Microsoft Mobile's head office was Microsoft Talo in Keilaniemi, Espoo, Finland. The building was previously named Nokia House, and was part of Microsoft's acquisition of Nokia's device business, becoming Microsoft Mobile's headquarters in April 2014 and receiving its new name.[194] It is now occupied by both Microsoft Finland[195] and Tieto.

See also

[edit]

Notes

[edit]

References

[edit]
[edit]
Revisions and contributorsEdit on WikipediaRead on Wikipedia

Microsoft Mobile

View on Grokipedia
from Grokipedia
Microsoft Mobile Oy was a of Corporation formed in April 2014 as part of the $7.2 billion acquisition of Nokia's Devices and Services business, tasked with the development, manufacturing, and distribution of mobile devices such as the Lumia smartphones running , feature phones, and Nokia X Android-based devices. The division represented Microsoft's ambitious entry into mobile hardware manufacturing, building on earlier software efforts like (introduced in 2000) and (launched in 2010), with the goal of integrating hardware and software to compete against and Android ecosystems. Under CEO , Microsoft restructured the mobile operations in July 2015, writing off $7.6 billion in assets, laying off 7,800 employees (primarily from the mobile unit), and shifting focus from consumer smartphones to productivity tools and enterprise solutions, effectively scaling back Lumia production. By May 2016, facing ongoing losses estimated at over $8 billion from the acquisition, Microsoft sold its assets, including rights to the brand for those devices, to Oy and FIH Mobile Ltd. for $350 million, while retaining smartphone patents and licensing them to partners. The subsidiary continued limited operations until 2017, when Microsoft fully exited consumer mobile hardware, ending support for on December 10, 2019, and redirecting mobile strategy toward cloud services, Android app development (e.g., for Android), and partnerships like those with for integrated productivity features.

History

Partnership with Nokia (2011–2013)

On February 11, 2011, Nokia and Microsoft announced a broad strategic partnership during a joint press conference in London, led by Nokia CEO Stephen Elop and Microsoft CEO Steve Ballmer. The alliance aimed to leverage Nokia's hardware expertise and Microsoft's software capabilities to challenge the dominance of Android and iOS in the smartphone market. As part of this shift, Nokia committed to adopting Windows Phone as its principal smartphone operating system, effectively moving away from its previous focus on Symbian and MeeGo platforms. The partnership included several key agreements to support development and . A definitive agreement was signed on , , outlining a revenue-sharing model where would compensate for promoting and developing devices, estimated at over $1 billion in platform support payments. The companies also pledged joint marketing efforts and a shared development roadmap to accelerate . Additionally, 's mapping services were positioned as exclusive for the partnership, with Nokia Maps integrated into 's Bing and adCenter to enhance location-based features and advertising. The first devices from this collaboration, the and Lumia 710, were unveiled at Nokia World on October 26, 2011. These handsets launched in in November 2011, with the Lumia 800 priced at approximately €420 and the Lumia 710 at €270. In the United States, the partnership's initial offerings arrived in early 2012, starting with the Lumia 710 on in January, followed by the Lumia 900 on in April as the first LTE-enabled . Despite these efforts, early sales reflected challenges in gaining traction against established competitors. By the end of 2012, Nokia had sold approximately 15 million Lumia units cumulatively since launch, representing modest growth but only about 3% global market share for amid Android's over 70% dominance and iOS's strong position.

Acquisition of Nokia Devices and Services (2013–2014)

On September 3, 2013, Microsoft announced its agreement to acquire substantially all of Nokia's Devices and Services (D&S) division for $7.2 billion in cash, a move that included the acquisition of Nokia's smartphone and feature phone businesses, along with associated patents and mapping services. The deal was structured with approximately $5 billion allocated to the core D&S assets, such as design, manufacturing, and sales operations, and $2.2 billion for a 10-year license to Nokia's extensive patent portfolio, including the outright acquisition of over 8,500 design patents and a 10-year license to Nokia's broader portfolio of approximately 30,000 utility patents and patent applications related to wireless and networking technologies. The transaction required regulatory scrutiny and approvals from multiple jurisdictions, including the , the U.S. Department of Justice, and China's Ministry of Commerce. The granted unconditional approval in December 2013, citing no significant competition concerns in the market, followed by U.S. clearance earlier that month. China's approval came on April 8, 2014, subject to commitments from to maintain fair pricing and licensing practices for standard-essential patents, clearing the final major hurdle. As part of the transition, Nokia retained ownership of its brand and licensed it to for use on the acquired products, including feature phones, for an initial 10-year period, while Nokia agreed not to re-enter the market until the end of 2016. The acquisition brought approximately 32,000 Nokia employees to , primarily from , , , and teams across 18 countries, with significant concentrations in and . The deal closed on April 25, 2014, leading to the formation of Microsoft Mobile Oy as a wholly owned subsidiary headquartered in , , to oversee the integrated devices business. Following the closure, , Nokia's former CEO, returned to as Executive of the Devices Group, tasked with leading the combined hardware and services efforts. also announced plans to introduce its first self-branded smartphones in 2015, signaling a shift toward unified branding under the Microsoft Lumia line.

Rebranding and early operations (2014)

Following the completion of Microsoft's acquisition of Nokia's Devices and Services division on April 25, 2014, the handset business was reorganized as Microsoft Mobile Oy, a wholly owned subsidiary focused on developing and manufacturing mobile devices. This marked the official transition from Nokia's independent operations to integration within Microsoft's ecosystem, with the new entity emphasizing the continuation and evolution of the Lumia smartphone lineup running 8.1. Early efforts centered on leveraging the acquired assets to accelerate device innovation while aligning with Microsoft's broader operating systems strategy. In August 2014, Microsoft Mobile launched the Lumia 530 as its first affordable entry-level smartphone post-acquisition, priced under 100 euros and featuring a 4-inch display, dual-SIM support in select variants, and integration with Microsoft services like Skype and Office. This device targeted emerging markets to broaden Windows Phone adoption amid the platform's approximately 3% global market share at the time. Building on this momentum, Microsoft unveiled the Lumia 730, 735, and 830 at IFA Berlin on September 4, 2014—these mid-range smartphones introduced enhanced imaging capabilities, such as wide-angle front cameras on the 730 and 735 for selfies, and positioned the Lumia line as a competitive option in the affordable flagship segment. Although still bearing the Nokia Lumia branding under a transitional license, these models represented Microsoft's initial major product releases, incorporating the company's logo on packaging and software interfaces. Microsoft Mobile reported directly to the Operating Systems Engineering Group led by executive vice president Terry Myerson, ensuring tight alignment between hardware development and the platform. For feature phones, including lines like and /40, Microsoft retained the Nokia brand under a 10-year licensing agreement, allowing continued sales in developing regions without immediate rebranding. This approach preserved market recognition while focusing primary resources on the Lumia smartphones. The acquisition provided with access to Nokia's extensive , including licenses to approximately 30,000 utility patents and over 8,500 design patents, which strengthened its position in cross-licensing agreements with Android device manufacturers. These patents were utilized to enforce royalties on Android implementations, with reporting over $1 billion in annual revenue from such deals, exemplified by its arrangement with . This patent portfolio not only defended 's interests but also supported broader ecosystem partnerships amid competitive pressures in the mobile market.

Challenges and restructuring (2015–2016)

In July 2015, Microsoft announced a $7.6 billion writedown on its acquisition of Nokia's Devices and Services division, effectively acknowledging that it had overpaid for the assets by nearly the entire purchase price of $7.2 billion from the previous year. This move was accompanied by plans to eliminate 7,800 jobs, representing about 78% of the workforce in its phone hardware business, as part of a broader restructuring to streamline operations and refocus on core strengths. Amid these financial setbacks, Microsoft underwent significant leadership changes in June 2015. , who had led the mobile division since the Nokia acquisition, departed the company, with his role effectively demoted prior to his exit. The phone hardware group was restructured and integrated into a larger Windows and Devices organization under Executive Vice President Terry Myerson, aiming to better align mobile efforts with Microsoft's software ecosystem. Despite the internal turmoil, Microsoft proceeded with key product launches in late 2015. In November, the company released the Lumia 950 and Lumia 950 XL smartphones, its flagship devices running Windows 10 Mobile, which introduced innovative features like Continuum. This capability allowed users to connect the phones to an external display, keyboard, and mouse via a Microsoft Display Dock, transforming the device into a desktop-like PC experience for productivity tasks. By early 2016, pivoted its strategy toward low-end devices to target emerging markets, exemplified by the December 2015 launch of the budget-oriented Lumia 550, priced under $150 and featuring basic hardware like a quad-core Snapdragon 210 processor and 1 GB of RAM. This shift reflected a recognition that high-end Windows phones were not gaining traction, leading to the discontinuation of premium device development by mid-2016 as resources were redirected to more affordable models suited for price-sensitive regions. Internal assessments in 2016 highlighted the division's struggles, with Microsoft admitting that its mobile platform had failed to achieve meaningful market adoption. Windows Phone's global market share fell below 1% in the first quarter of that year, according to analyst firm Gartner, underscoring the platform's diminishing relevance amid dominance by Android and iOS.

Divestment and closure (2016–2017)

In May 2016, following earlier restructuring efforts in 2015 that included significant layoffs and a $7.6 billion write-down on the acquisition, Microsoft sold its business to and FIH Mobile—a subsidiary of —for $350 million. The deal transferred approximately 4,500 employees, manufacturing facilities, and assembly operations, while Microsoft retained key intellectual property including design patents. , a newly formed Finnish company backed by former executives, secured an exclusive 10-year license from Corporation to use the brand for feature phones and smartphones. The Lumia 650, released in February 2016, marked the final smartphone model produced under Microsoft Mobile, running with modest hardware upgrades over prior Lumia devices. No subsequent hardware followed, despite persistent rumors of a high-end "Surface Phone" project—codenamed Andromeda—that envisioned a foldable dual-screen device but was ultimately canceled as Microsoft pivoted away from phone manufacturing. By October 2017, Microsoft formally ended development of new features and hardware for , effectively closing its mobile hardware division and shifting focus to software and services such as integration and cross-platform apps. This closure followed prior rounds of layoffs, including about 1,850 positions in May 2016 and nearly 3,000 more in July 2016, primarily affecting the unit. The venture had incurred cumulative losses exceeding $10 billion, encompassing the $7.2 billion acquisition cost, operational deficits, and impairment charges; retained assets like patents were integrated into Microsoft's broader portfolio. As part of the transition, began releasing Nokia-branded Android smartphones in early 2017 under the licensing agreement, reviving the brand in the competitive Android ecosystem while Microsoft emphasized licensing its technologies to partners.

Products and Services

Lumia smartphones

The Lumia series of smartphones was introduced as a result of the between and , announced in February 2011 to develop devices running the operating system. The first models, the Lumia 800 and Lumia 710, were unveiled on , 2011, at Nokia World in , marking Nokia's entry into the ecosystem with hardware optimized for Microsoft's platform. These initial devices ran 7.5 (codenamed ) and featured Nokia-exclusive apps like Nokia Drive for , setting the foundation for the line's emphasis on imaging and location services. The Lumia 800, positioned as the flagship, boasted a curved unibody design, a 1.4 GHz Snapdragon processor, and an 8-megapixel camera, while the more affordable Lumia 710 targeted emerging markets with interchangeable back covers. The series evolved significantly with the release of in late 2012, beginning with the Lumia 920, which introduced advanced hardware capabilities including in its PureView camera system for sharper low-light photos. Subsequent updates saw the transition to in mid-2014, enabling features like the Glance screen—a customizable showing time, notifications, and battery status even when the device is locked—to enhance user accessibility without unlocking the phone. By 2015, the lineup adopted with the Lumia 950 series, incorporating Continuum for desktop-like productivity when connected to a monitor. Design-wise, early models favored vibrant, durable bodies for a lightweight yet robust build, while later iterations like the Lumia 925 incorporated aluminum elements for a premium feel and improved heat dissipation. Key high-end models included the Lumia 920, Nokia's first device with a 4.5-inch HD display, 1.5 GHz dual-core processor, and built-in wireless charging support. The Lumia 1020, launched in 2013, stood out with its groundbreaking 41-megapixel PureView camera featuring lossless zoom and optical , allowing professional-grade on a . The Lumia 1520, introduced later that year, pioneered the category in the series with a 6-inch Full HD display, quad-core Snapdragon 800 processor, and support for enhanced multitasking. In the mid-range segment, the Lumia 640 (2015) offered a 5-inch HD screen, 1 GB RAM, and LTE connectivity in a plastic chassis, balancing performance and affordability. The Lumia 730, also from 2014, emphasized selfie capabilities with a 5-megapixel front camera and . Budget options like the Lumia 520 (2013), the best-selling with over 12 million units moved in its first year, featured a 4-inch display and 512 MB RAM for basic tasks; the Lumia 530 added support, while the Lumia 550 (2015) upgraded to with a 5-megapixel rear camera. Production of Lumia devices occurred across multiple global facilities, including Nokia's plants in , , for high-end assembly; Dongguan, , for mass-market models; and Bac Ninh, , to serve Asian and emerging markets efficiently. Microsoft reported shipping over 36 million Lumia units in fiscal year 2015, reflecting peak production before market challenges intensified. Innovations in the series included deep integration of Nokia's Here Maps, providing offline navigation, traffic updates, and features like City Lens for point-of-interest discovery directly on Lumia hardware. Select models, starting with the Lumia 920 and extending to the 820 and , supported Qi wireless charging, allowing users to power devices without cables via compatible pads or covers. Following Microsoft's acquisition of Nokia's Devices and Services division in April 2014, the branding shifted to Microsoft Lumia for new releases, though the core design and feature philosophy remained consistent.

Feature phone lines (Asha, Series 30/40)

Microsoft Mobile inherited Nokia's feature phone portfolio following the 2014 acquisition, retaining lines like , , and to serve budget-conscious users in emerging markets. These platforms emphasized affordability, basic connectivity, and durability over advanced computing, contrasting with the ecosystem focused on Lumia smartphones. The platform comprised touch-based feature phones running a variant of the operating system, blending simple touch interfaces with limited app support for users transitioning from basic handsets. Models such as the 501 and 503, introduced just before the acquisition but continued in production and sales under , featured compact designs with or numeric keypads, basic web browsing via compressed data tools, and entertainment options like FM radio. These devices targeted first-time phone buyers with prices under $100, prioritizing long battery life and ease of use in low-bandwidth environments. Series 40 (S40) powered mid-tier feature phones with Java-based capabilities, enabling lightweight applications and multimedia features on devices like the 301 and 515. Under , these handsets supported social apps such as and , alongside and integration, allowing users to access messaging and social networking without full complexity. Enhancements during the Microsoft era included dual-SIM functionality for cost-effective calling in multi-network regions and improved data compression for web access, though the platform remained focused on voice, , and basic browsing rather than advanced computing. Series 30 and its evolved variant represented ultra-basic platforms for voice and SMS-centric phones, exemplified by models like the Nokia 105 and 130, which emphasized with no app support or internet browsing. These devices featured durable builds, extended standby times up to a month, and essentials like FM radio and torchlights, appealing to rural or entry-level users. maintained production of these low-cost units, with annual feature phone shipments reaching around 60 million by 2016, driven by high-volume sales exceeding 15 million in early quarters alone. Throughout its tenure, applied minor updates to these lines, such as enhanced dual-SIM support and integrated FM radio across models, to sustain appeal in price-sensitive regions. Approximately 70% of sales occurred in and , where feature phones held dominant market positions due to affordability and network coverage limitations. By mid-2016, discontinued these platforms amid a strategic pivot to higher-end Windows devices, selling the feature phone business—including design rights, software, and manufacturing—to and FIH Mobile for $350 million. The final model, the Nokia 216 on Series 30+, launched in September 2016 with VGA cameras, audio, and up to 18 days of talk time, marking the end of 's involvement in basic handsets.

Other devices (Nokia X, accessories)

The Nokia X series represented an experimental foray into Android-based smartphones by Nokia, launched at the in February 2014, shortly before Microsoft's acquisition of the Devices and Services division. These budget devices, including the Nokia X, X+, and XL models, ran a heavily customized version of Android derived from the Android Open Source Project (AOSP), eschewing the Store in favor of Nokia's app store and integrated Microsoft services such as Bing search, Outlook, and cloud storage. The X featured a 4-inch display, 512 MB RAM, and a 1 GHz dual-core Snapdragon processor, while the X+ offered 768 MB RAM and the XL a larger 5-inch screen with a 5-megapixel rear camera; started around $122 for the base model to target emerging markets. Microsoft continued limited development post-acquisition, releasing the Nokia X2 in June 2014 with upgraded specs like 1 GB RAM and better cameras, but the entire line was discontinued in July 2014 after just five months under ownership, as the company refocused on ecosystems and shifted select X designs toward low-end Lumia models. The series achieved only modest sales and failed to capture significant market share, hampered by its hybrid OS lacking full integration and competition from established Android devices. Complementing its smartphone lineup, Microsoft Mobile introduced several accessories emphasizing ecosystem integration with Windows Phone devices, often bundled with Lumia sales to enhance user experience. The Nokia Treasure Tag (model WS-2), unveiled in February 2014 and priced at approximately $30, was a compact Bluetooth Low Energy (BLE) and NFC-enabled keychain tracker designed to locate misplaced items like keys, wallets, or bags by sounding an alarm when separated from a paired Lumia phone beyond a set range (up to 50 feet). It leveraged Windows Phone's Find My Phone feature for remote location via GPS and battery alerts, with a replaceable CR2032 battery lasting up to six months; apps were later developed for iOS and Android compatibility. A smaller variant, the Treasure Tag Mini (WS-10), followed with similar functionality. Other notable accessories included portable power solutions like the Nokia DC-18 Universal Portable USB Charger, a 3400 mAh launched in 2013 and carried over by , which provided up to two full charges for Lumia devices via a built-in Micro-USB cable and supported pass-through charging. For wireless connectivity, the ScreenBeam Mini2 adapter enabled Miracast-based screen mirroring from Lumia phones to HD TVs or projectors without cables, supporting high-definition content sharing and integration with Continuum features on later models. These peripherals, including wireless display adapters and , were marketed to extend Lumia functionality and often sold in bundles to promote the ecosystem. Microsoft also explored wearable concepts, such as the unreleased Moonraker developed by and shelved after the 2014 acquisition. This round-faced device, codenamed internally as a companion to Lumia phones, featured gesture-based navigation, notifications, step tracking, and Cortana voice assistant compatibility via , but was canceled in favor of Microsoft's Band fitness trackers to streamline hardware focus. With the sale of Microsoft's feature phone business to [HMD Global](/page/HMD Global) and FIH Mobile in 2016, production of these accessories and experimental lines ceased, though some like the Treasure Tag continued limited availability through third-party channels.

Software integration with Windows Phone

Microsoft Mobile's hardware, particularly the Lumia lineup, was deeply integrated with the operating system, leveraging its unique architecture to create a cohesive centered on productivity and real-time information access. and 8.1 featured a tile-based on the Start screen, where Live Tiles provided dynamic, real-time updates from apps such as weather forecasts, notifications, and email previews without needing to open the application. This design emphasized glanceable content and seamless navigation, distinguishing it from grid-based icons in competing platforms. Hardware requirements for Lumia devices running included a minimum of 512 MB RAM, enabling broad compatibility across entry-level models while supporting multitasking and app performance. Key software features further enhanced this integration, with Microsoft rolling out the Cortana digital assistant in 2014 alongside on Lumia devices starting with the Lumia 635 and higher-end models. Cortana offered voice-activated assistance for tasks like setting reminders, sending messages, and providing contextual information, deeply embedded in the OS for natural language interaction. In 2015, the introduction of Continuum on the Lumia 950 series allowed select Lumia phones to function as a desktop PC when connected to an external display, keyboard, and mouse via the Microsoft Display Dock, transforming the mobile interface into a full for productivity apps. The app ecosystem, distributed through the , grew to over 500,000 apps by early 2015, supporting a range of utilities, games, and productivity tools optimized for Windows Phone's architecture. However, significant gaps persisted in third-party developer support, notably the absence of a native app throughout the platform's lifecycle, forcing users to rely on web versions or third-party alternatives that were later restricted. Uber maintained a native app from 2013 until support ended around 2017, but inconsistent updates highlighted broader challenges in attracting major social and service-oriented developers. Microsoft services were tightly woven into the Lumia experience to promote cross-device continuity. provided 15 GB of free cloud storage with every , enabling automatic photo backups from the camera roll and seamless file syncing across devices. The Office Mobile suite, including Word, Excel, and PowerPoint, came pre-installed on Lumia phones, allowing users to create, edit, and share documents natively. integration enabled seamless switching between regular calls and video chats directly from the dialer, while Outlook handled email, calendar, and contacts with deep OS-level ties for notifications via Live Tiles. Support for Windows Phone evolved into Windows 10 Mobile, but updates concluded with build 15254 in 2017, marking the final feature release for the platform. Microsoft committed to security patches until December 2019, after which Lumia devices no longer received official updates, transitioning users toward newer ecosystems.

Operations and Corporate Structure

Leadership and governance

Microsoft Mobile, operating as a subsidiary known as Microsoft Mobile Oy, was established following Microsoft's acquisition of Nokia's Devices and Services business in April 2014, with governance structured to align closely with the parent company's strategic priorities. The subsidiary was headquartered in , , and functioned under Finnish while reporting to Microsoft executives in , ensuring integration with broader operational oversight. The top leadership of Microsoft Mobile was initially headed by , who served as Executive Vice President of Microsoft's Devices Group from 2014 to 2015 after transitioning from his role as Nokia's CEO, where he had played a pivotal role in negotiating the acquisition deal valued at $7.2 billion. Elop's tenure focused on integrating Nokia's mobile operations into , but he departed in June 2015 amid a broader reorganization. Jo Harlow, a key Nokia executive who joined as Corporate Vice President for Phones, Hardware, and Operator Sales, continued in a leadership capacity until her exit alongside Elop in 2015, contributing to early product strategy for Lumia devices. Overall strategic oversight was provided by , who became 's CEO in February 2014 and emphasized a "mobile-first, cloud-first" vision that guided Microsoft Mobile's alignment with cloud services and cross-platform experiences. Key decisions under this leadership reflected evolving priorities, including Elop's facilitation of the acquisition to bolster Microsoft's hardware capabilities in smartphones. In July 2015, Nadella announced a significant pivot, restructuring the phone hardware business to prioritize services and software over consumer devices, resulting in a $7.6 billion impairment charge related to the purchase and the elimination of 7,800 jobs to streamline operations. This shift was informed by financial reviews that highlighted underperformance in the mobile sector, leading to further write-offs, including a $950 million charge in May 2016 as Microsoft exited the consumer phone market. In terms of diversity and policies, Microsoft Mobile benefited from company-wide initiatives under Nadella to promote gender balance, with women comprising 27.2% of Microsoft's senior leadership team by late —an all-time high at the time—supported by targeted hiring and retention efforts. As a Finnish entity, the subsidiary adhered to data protection regulations, including compliance with directives on handling in mobile services, governed by Finnish implementations of law to ensure in device operations and user . Following the 2016 closure of its consumer phone division, remnants of Microsoft Mobile's operations, including and licensing, were integrated into 's Experiences and Devices group, led by Terry Myerson, to support ongoing ecosystem efforts in Windows and cloud-integrated devices.

Headquarters and facilities

Mobile's primary was located at Keilalahdentie 2-4 in , , a site originally developed as Nokia's headquarters and acquired by as part of the 2014 purchase of Nokia's Devices and Services division. This facility served as the central hub for design and (R&D) activities, including work on the Lumia series, leveraging Nokia's established expertise. The company maintained several manufacturing sites inherited from Nokia, with the Dongguan factory in China operating as one of the largest production facilities, responsible for a substantial share of mobile device assembly prior to its closure. Additional manufacturing occurred at a plant in Beijing, China, which was also shuttered as part of cost-cutting measures in early 2015. In Finland, operations included software testing and engineering at the Oulu facility, while the Salo plant—previously announced for partial closure by Nokia in 2012 before the acquisition—saw limited retention of high-end Lumia production activities until its full shutdown in 2015. Microsoft Mobile integrated closely with Microsoft's global infrastructure, including coordination from the corporate headquarters in , and sales operations in key markets such as Beijing, China. The Espoo campus featured advanced R&D labs equipped for prototyping emerging technologies, though initiatives like development remained largely unrealized during the division's operation and were not fully utilized before closure. Sustainability efforts at the Espoo site emphasized energy-efficient building designs and resource optimization, aligning with broader Microsoft environmental goals. Following the of the business in 2016, the was repurposed for other divisions, including services, by 2018. The closed Chinese plants in and were either sold or leased to third parties as exited hardware production.

Workforce and

Following the acquisition of Nokia's Devices and Services group in April 2014, Microsoft Mobile integrated approximately 25,000 employees from Nokia's mobile operations across 50 countries. This workforce peaked shortly after the deal closed, supporting the development and production of Lumia smartphones and feature phones under the new division. However, a series of restructurings led to significant reductions; by mid-2016, the division's employee count had declined to around 4,500, primarily due to multiple rounds of layoffs aimed at streamlining operations amid declining market performance. In , where a substantial portion of the acquired Nokia workforce was based, labor practices were shaped by strong union representation, with negotiations influencing terms during the 2015 restructuring. That year, announced cuts affecting up to 7,800 positions globally, including around 2,300 in , sparking criticism from government officials and calls for enhanced severance and retraining support for affected workers. These layoffs, concentrated in sites like and Salo, drew public scrutiny over social impacts in regions heavily reliant on mobile manufacturing, though specific protest actions were limited to political statements urging corporate responsibility. Microsoft Mobile relied on a global for device assembly and components, contracting manufacturers such as for Lumia production facilities, including a key site in starting in 2015. While Compal was involved in earlier hardware as an , 's role expanded under to handle assembly in . For critical components, the division sourced Snapdragon processors from , enabling compatibility in Lumia devices through established partnerships that accelerated market-ready hardware. Camera lenses came from a continued collaboration with , originally initiated by in 2004 and extended into the era for high-end Lumia imaging systems like the PureView technology. Diversity efforts within Microsoft Mobile aligned with broader company initiatives during 2014–2016, including programs to promote inclusive hiring and skills development in key manufacturing hubs. In , YouthSpark events targeted underrepresented groups, such as young women, for training in and software relevant to Windows development, contributing to multicultural expansion in local plants. Similar outreach in supported partnerships for device localization, though specific training quotas for Windows development were not publicly detailed beyond general diversity reporting showing incremental progress in global employee representation. The division's decline culminated in the 2016 divestment of its business to and FIH Mobile (a subsidiary), transferring approximately 4,500 employees to the buyers or providing opportunities for them to join, preserving jobs in assembly and support roles. Amid these changes, Microsoft emphasized internal mobility, offering skill retraining to redirect talent from mobile hardware toward growing areas like , though the scale of such programs was not quantified for the Mobile division specifically.

Market Performance and Legacy

Market share and competition

Microsoft Mobile's entry into the smartphone market via the 2014 acquisition of Nokia's Devices and Services division positioned it as a challenger in a dominated by and Android, but its remained marginal. Windows Phone achieved a global peak of approximately 3.7% in the second quarter of , driven by strong Lumia device sales under Nokia's stewardship. By 2016, however, this had plummeted to below 1%, reflecting a sharp decline in shipments and adoption amid intensifying competition. Lumia sales totaled approximately 36.8 million units in 2015, a fraction of the volumes seen in the Android ecosystem. Revenue performance underscored these challenges, with Microsoft Mobile reporting $7.5 billion in 2015 for its phone hardware segment, down from Nokia's pre-acquisition Devices and Services revenues of approximately $16 billion in 2013. Feature phones, including and Series 30/40 lines, accounted for approximately 77% of overall device volume during this period, providing a buffer in emerging markets but insufficient to offset losses. Competition was fierce, with Apple's commanding the premium segment through ecosystem lock-in and brand loyalty, while Samsung's lineup offered diverse Android options across price points. A key hurdle was Google's free licensing of Android, which enabled manufacturers to produce low-cost devices rapidly, eroding Microsoft Mobile's pricing advantages and limiting Windows Phone's distribution. Regionally, performance varied significantly. In , Windows Phone captured about 10% in 2014, bolstered by affordable Lumia models appealing to price-sensitive consumers. saw relatively stronger adoption, with shares around 5-7% in key markets like the and during 2014-2015, supported by carrier deals. In contrast, the U.S. market remained weak, with less than 1% share by 2015, hampered by limited operator support beyond select partnerships. Microsoft Mobile's mid-range pricing strategy was frequently undercut by sub-$200 Android alternatives from brands like and , further pressuring margins. Strategic decisions exacerbated these issues, including a delayed app ecosystem that lagged behind and Android, resulting in fewer third-party applications and developer reluctance to invest. Carrier partnerships, such as the Verizon-exclusive Lumia in , aimed to boost visibility but failed to scale nationally against broader Android promotions.

Critical reception and challenges

Microsoft Mobile's Lumia smartphones received acclaim for their innovative camera technology, particularly the Nokia Lumia 1020's 41-megapixel sensor, which earned the Stuff Gadget Awards 2013 Readers' Gadget of the Year for its exceptional imaging capabilities. Reviewers frequently praised the Lumia's unibody construction for its durability and premium feel, contrasting it favorably with the more fragile plastic or glass designs common in many Android competitors at the time. Critics, however, highlighted significant shortcomings in the Windows Phone ecosystem, including limited app availability that forced users to rely on workarounds for popular services like until an official app launched in late 2013. Early Windows 10 Mobile builds on Lumia devices also faced complaints about poor battery life, with users reporting rapid drain due to unoptimized software on older hardware. User surveys indicated high satisfaction among existing owners, with Microsoft's Lumia 640 and 535 models topping customer delight ratings in a 2015 report, reflecting strong approval for performance and design despite broader market challenges. However, low overall adoption stemmed from network effects, where the platform's smaller user base deterred developers and limited with dominant ecosystems like and Android. Operational challenges included software integration issues following the Nokia rebranding, such as delays in the 2014 Lumia Denim update rollout, which prioritized older models over flagships and extended into early 2015. The acquisition of Nokia's devices business also drew antitrust scrutiny from China's Ministry of Commerce (MOFCOM), which conditionally approved the deal in April 2014 after concerns over potential competition restrictions in and patent licensing markets. Media retrospectives often portrayed as innovative yet ultimately unsuccessful, with The Verge describing in 2017 as "a glorious failure" that advanced hardware concepts like modular designs—envisioned in early patents for swappable components such as keyboards and battery packs—but failed to deliver them to market.

Post-closure developments and licensing

Following the closure of Mobile in 2017, initially licensed the brand for feature phones to in a deal spanning 2016 to 2026; extended this agreement in 2025 for an additional two to three years to support continued production and sales of Nokia-branded devices. retained ownership of key from the acquisition, including patents related to mobile technologies, and has continued licensing these to Android original equipment manufacturers (OEMs) as part of broader cross-licensing agreements that generate substantial royalty revenue. In pivoting away from proprietary mobile hardware, shifted focus to software and services integrations with Android ecosystems, exemplified by its 2017 partnership with to pre-install and promote apps such as and on devices, enhancing cross-platform productivity. This strategy extended to cloud services, with Azure providing infrastructure for mobile developers to build and deploy applications, including support for 5G-enabled scenarios like for gaming and enterprise mobility. Microsoft's mobile-era patents have influenced the industry through ongoing licensing and litigation, contributing to cross-licensing pacts that resolve disputes over standard-essential technologies in wireless communications. The legacy of Microsoft Mobile's hardware innovations persisted in the 2020 launch of the Surface Duo, a dual-screen Android foldable device that drew on prior experience in mobile form factors to prioritize productivity features like app spanning across screens. As of 2025, has shown no indication of reviving its mobile hardware operations, instead emphasizing software, cloud, and AI initiatives. Occasional collaborations with Technologies have emerged in areas like networking and AI-driven , supporting Azure's expansion without direct ties to consumer devices. Under HMD Global's stewardship, Nokia-branded phones have maintained a presence in emerging markets, with the licensee reporting strong shipment volumes since 2016. In his 2017 memoir , CEO described the Nokia acquisition and mobile division challenges as a cautionary example of the risks in pursuing integrated hardware-software strategies without sufficient alignment.

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