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Nokia Oyj to become Microsoft Mobile Oy, Nokia to retain its suppliers base post the deal?

MS NokiaNokia-Microsoft deal is going to close soon and a leaked Nokia’s letter to its existing Devices and Services business suppliers base reveals two interesting things. First revelation is about renaming of Nokia Oyj to Microsoft Mobile Oy, which will be a wholly-owned Microsoft subsidiary and may be the name of Microsoft’s mobile devices arm. Good thing for suppliers is that current terms and conditions that they have with the Devices and Services business will not change post deal-closure.

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.

Another very interesting hint is about Nokia’s bid to keep the supplier base intact for the new Nokia. While NSN to some extent may use such supplier’s services, HERE Maps and Advanced Technology division may need such suppliers only when there is some planning about communication related devices on horizon.

In addition to becoming a supplier for Microsoft Mobile Oy, we appreciate that you might also remain a supplier to the continuing businesses of Nokia (i.e., NSN, HERE or Advanced Technologies) after the close of the transaction between Microsoft and Nokia Devices and Services. Nokia will communicate separately any changes in invoicing methods and addresses before the close of this transaction.

Nokia Smart watch is something which we have heard about coming in Q3 and one recent tip claims that all the future Nokia hardware will come from HERE division. So, this gives a boost to hopes of Nokia thinking about bringing some consumer hardware in future.

Nokia has already announced that 25th April will be the date of Nokia-Microsoft deal-closure. The deal faced hurdles in China due to local vendor’s apprehensions and in India due to the ongoing Tax issues. China approval has been secured now and Nokia will keep making phones in Chennai plant, if it doesn’t get transferred to Microsoft in the deal. In an interesting development, HTC has shown interest in buying Nokia’s Chennai plant, if it is up for sale!

Thanks our own Singhnsk for sending this in. Cheers!!

Actual letter:

Nokia-supplierRead the full letter to suppliers below,

Dear Supplier,

On September 3, 2013, Nokia Corporation announced its intention to sell substantially all of its Devices and Services Business to Microsoft Corporation. We anticipate the transaction to close during April 2014.

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.

NEW BUSINESS INVOICE DETAILS:

New name and registered address replacing Nokia Oyj/Nokia Corporation is:

Microsoft Mobile Oy

Keilaranta 7

02150 ESPOO

Finland

New Bank Accounts: Please note that Microsoft Mobile Oy is going to have new bank accounts, for further information please contact us via AP Portal: https://ap.nokia.com/APPortalExt/Login.aspx (registration required).

There is NO change in the invoice sending method, please continue to send the invoices via electronic channels as before.

For further information on changes (legal address/send to address) after the close of the transaction between Microsoft and the Nokia Devices and Services business, please check our Invoice Address Search tool (IAS): https://ap.nokia.com/APPortalExt/AddressSearch.aspx (No registration required), or contact us via AP Portal: https://ap.nokia.com/APPortalExt/Login.aspx (Registration required).

Please note that the only changes in the Purchase Order (PO) layout after the close of the transaction will be to remove the Nokia Logo and change the legal address, whereas the PO numbering format and sequence will not change.

Continuation of business with Nokia

In addition to becoming a supplier for Microsoft Mobile Oy, we appreciate that you might also remain a supplier to the continuing businesses of Nokia (i.e., NSN, HERE or Advanced Technologies) after the close of the transaction between Microsoft and Nokia Devices and Services. Nokia will communicate separately any changes in invoicing methods and addresses before the close of this transaction.

Best regards,

Nokia Devices and Services Financial Services Purchase to Pay Team

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Nayan

Nayan has more than 10 years of experience of covering Technology and innovations. He is a big Nokia fan and Tech disruptions aficionado. He loves to review new cool gadgets and writing about Android, iOS, Gadgets and general Technology stuff. He has been associated with other well-known Tech sites WinCentral and GadgetOx since long.

He currently sports a Lumia 950 XL and Nexus 5X. Other interests include listening to Nu-Metal Hits and Kick-Boxing.
Write to him at Email: [email protected]

http://www.nokiapoweruser.com
  • After so much of boom of smart phones, Agreed that Selling the Smartphone business to Microsoft was the best possible solution to exit the decline of Nokia. Hope nokia will come with blast 🙂

  • JLIT99

    Elop had turned the smartphone division of Nokia into an exclusive vendor OEM for Microsoft. At least they will be able to create some great devices now that they are no longer hosting that parasite..

    Nokia never used to see Google as a threat before Elop.. I remember Google search being baked into the Nokia N900 and Google Talk integration in the N9..

    Looking forward to the smart watch coming out, and hopefully an Android tablet with great build quality (and full Google integration) to go with it 😉

    • BEN

      tell me how elop a parasite, when he changed the company around. when it was burning back in 2009/2010. YOUR COMMENT IS INVALID. Because Microsoft changed Nokia for the better, make them move forward. Nokia took a long time to get into the smart devices business, and now they are going to release one later this year and to become the one of the largest mapping company in the world. Nokia is more than just a phone company, its a company and a business that evolves from one product to another, it doesn’t stop there, it is a continuation of various products, that’s how they successfully expanded their business, by doing something different.

      • Petter

        Please no revisionism here, they were still growing in sales during 2009 and 2010, and made money until the quarter after the burning platform memo. All the while when Microsoft didn’t have a real platform at all and it took years to get the basics that Symbian handled on a capacitive multitouch phone back in 2010. It took four years after the Mix presentation to get full Exchange mail compatibility, VPN and other business features. Microsoft had nothing and therefore everything collapsed with the more than 30 000 people that had to go from the company. Now they can take over some manufacturing facilities, a brand Nokia created and a few engineers and marketing people for next to nothing and basically selling less phones (with a smartphone platform) than minor companies like Sony Mobile, MMI, and are after all the Chinese vendors and basically gets a company that doesn’t even sell in the millions (per quarter) in North America. NA is very weak for Lumia, where it’s market share is usually less than half of other markets. No real success to show from Mix 2010 to today. Not for what type of company Nokia was back then any way. Microsoft is fine with the scraps and firing most of the people left in the new business, it’s about making their brand rather than anything else.

        Nokia sold about 100 million smartphones in 2010. It sold about 30 million last year. Nokia is no longer in the business and Navteq/Here has nothing to do with Microsoft’s deal with them. They were in the business before even Android was released. Even before Apple had an App Store. This change did cost Nokia a lot of money, it didn’t save it they lost a business that was worth 50 billion EUR or so and had to pay huge losses during the years of Microsoft collaboration. Now they are happy to get rid of them, and no they can’t release a phone later this year, they can’t use the Nokia brand for phones now.

      • John K.

        Agreed…. Selling the Smartphone/Featurephone business to Microsoft was the best possible solution to exit the decline of Nokia, which began long before 2009.

        Look at the market share, the devasting profit development over the years before 2010. Think, without the idea to sell D&S to Microsoft, Nokia now would be completely burned out.

        And with the money power of Microsoft, the Lumia Smartphones will gain real traction.

        • Petter

          Their stocks were declining from 2008, however that wasn’t only dependent on their mobile phone business. They could still pay out dividends peacefully until the burning platform memo. Their D&S division was turning a profit. Their smartphone sales actually grew when they made the decision to basically dissolve the company. The move to WP actually lowered their ASP for a while, and has not made it higher. Nokia spent tens of billions wounding down Devices & Services instead of making money thanks to the deal. Getting rid of it now makes sense, their is nothing but a assembly workers and people working with feature phones and Qualcomm-powered Microsoft phones, the core of the old business was already gone. They could have simply fired everybody, they could (did) accept the pennies Microsoft offered or they could have sold it in pieces to others, but that wouldn’t have served Microsoft’s cause. Equipment and facilities still owned by them weren’t worth a lot, and without the Microsoft deal they wouldn’t have needed to spent tens of billions to cover losses or just receive 6 B EUR for the scraps. Microsoft couldn’t really have afforded to buy Devices & Services back in 2010/11, that would have been a Autonomy like blunder, and then it also had 60,000 employees, not much less than the entire Microsoft conglomerate. Nokia wasn’t your HTC of the world, there was never any grounds for the collaboration to work.

          2013 WP had about 3% market share and Microsoft will never get to the point of Samsung here, they still have the legacy of cheap feature phones they aren’t even in the top five smartphone vendors any more. Xiaomi sells more phones now days, ZTE, Huawei, Yulong and Lenovo too. Sony Mobile, LG, Samsung, and Apple too of course. Not much traction to gain, not much needed, they want to maintain their brand and they can do that by staying with a few percent of the market share.

      • Aldiio

        From the Nokia point of view, it was insane to not 100% bet on their excellent mobile strategey which they had fully developed in mid of 2009. From an engineering point almost everything was complete, only the business department had to take real decisions. Then, Elop killed the excellent engineering effort and took 100% WindowsPhone road which killed Nokia.

        What technologies do I mean? Since 2009 Nokia was standardizing developer tools to QT. Same on Maemo/Meego and Symbian. They released the Nokia N900 end of 2009, based on Maemo/Meego. The N9 was already boiling and was the real iphone killer. It was released in June 2011, four months after the WindowsPhone turn and it was actively murdered right from the beginning. Nevertheless it was very successful in the markets, where it was introduced.

        I am sure that a CEO betting 100% on QT, Meego (high an middle segment) and Symbian (middle/low segment) would have increased sales and profit.

  • I still wonder why they sent me that email :p I am not a supplier 😀

    • Look at the market share, the devasting profit development over the years before 2010. Think, without the idea to sell D&S to Microsoft, Nokia now would be completely burned out.

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