The Nokia-Microsoft deal: Microsoft looking to transform the mobile market with Nokia devices and services

(Credit: Nokia)Nokia devices.

On Friday, Microsoft Corp. finalized its agreement to acquire Nokia Devices and Services. Having received all the "go ahead" signals from regulatory government bodies around the world, Microsoft is now preparing to implement Nokia's devices and services unit into its own business.

General Counsel Brad Smith of Microsoft said the Microsoft-Nokia acquisition deal will help Microsoft speed up innovation, as well as market adoption for Windows Phone. Microsoft will focus on the affordable mobile market, with fresh products that run Windows Phone.

With the Nokia business, Microsoft is also eyeing a $50 billion yearly opportunity to provide a top mobile experience to approximately one billion people, while delivering Microsoft services around the world.

The acquisition was conceptualized in September, 2013, when Microsoft and Nokia agreed that Microsoft buys the Nokia Devices and Services business, which components includes the mobile device business, marketing support, sales, operations, assembly facilities, manufacturing and the design team.

Microsoft will still honor existing customer warranties from Nokia for its existing devices, starting on April 25, 2014.

The Redmond company's $7.2 billion acquisition deal does not, however, include Nokia's factories in Masan, South Korea and in Chennai, India, due to oppositions from local authorities. These two factories will still operate under the Nokia's umbrella.

Former President and CEO of Nokia Stephen Elop will head the Microsoft Devices Group as executive vice president, and is responsible for every device manufactured by the company, including the Lumia line of tablets and smartphones, Surface, Xbox hardware, Perceptive Pixel products and accessories. Elop will report directly to Microsoft CEO Satya Nadella.

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