Nokia Refutes Speculations of Acquisition by Microsoft

Famed leaker of Nokia information Eldar Murtazin had tweeted that Microsoft would purchase Nokia by the end of 2011, though pricing and terms were not known, creating many to speculate about Microsoft’s foray into creating its own hardware for Windows Phone 7 and potentially alienating other OEMs of the platform. However, Nokia has responded and is refuting speculations started by Murtazin.

In a rare exception on commenting on rumors and speculations, a Nokia communications director tweeted, “We typically don’t comment on rumors. But we have to say that Eldar’s rumors are getting obviously less accurate with every passing moment.”

If the deal does happen as Murtazin reported, it would allow Microsoft the same tight control between hardware and software as Apple and HP enjoy right now with iOS and webOS respectively. However, having such control over the software and its own hardware may give Microsoft more power in the hardware business and the company may risk alienating other partners, such as LG, Samsung, and HTC. The deal may also give Microsoft a better strategy to make its Windows Phone division more profitable and worthwhile. Currently, the division still charges OEMs a small fee for the software’s license for each device sold. The lucrative profits is in the hardware business, and Microsoft could stand make additional income by entering into the hardware business with a respected brand like Nokia.

Via: My Nokia Blog