Microsoft Acquires Nokia; Is Elop Still Chief Executive?

Microsoft has successfully bought out one of the first popular cell phone-maker across the globe.

Stephen Elop, Nokia's chief executive, confirmed the Microsoft acquisition in an open letter posted on the Nokia website. According to him, the acquisition is the "first" and "important step" in the unified companies' "long term journey."

"As Microsoft and Nokia Devices and Services come together as an expanded family, we will unify our passion, dedication and commitment to bringing you the best of what our joint technologies have to offer. Together, we can connect and empower people with one experience for everything in their life in a world where it is mobile first and cloud first," writes Elop. "From today onwards, the possibilities are endless. As now, we're one!" he ends the open letter.

The Guardian reports that the acquisition cost Microsoft around $7.5 billion. Stephen Elop, formerly Nokia's chief executive will now be executive vice president of the Microsoft Devices Group. Elop will be working under Satya Nadella, the tech company's CEO, notes Chron. The former Nokia chief executive will be "in charge of Lumia smartphones and tablets, Nokia mobile phones, Xbox hardware, Microsoft Surface, and Perceptive Pixel (PPI) products," adds Chron.

Nokia has had its days as the reigning cell phone maker back when smartphone companies such as Apple and Samsung have not yet penetrated the mobile industry. The Guardian says that at present, industry statistics show Apple to be the smartphones market leader, with the recent company results also showing continuing positive growth. "Samsung is leading behind Apple," adds the outlet.

The Guardian adds that the mobile industry, as a whole, is "saturated" and therefore, "competition is extremely tough." Despite the stiff competition, Microsoft confirms that the Nokia brand name will not be changed for now, saying that the Nokia brand has been licensed for 10 years for all cell phone devices.

Times of India quotes IDC Senior Market Analyst Manasi Yadav who said that Microsoft might be looking to take advantage of Nokia, with the cell phone-maker being a big hit in India. "Nokia has a strong portfolio of devices across price points and of smartphones. We hope that Microsoft will continue to play across the spectrum, both high and the low-end as far as prices are concerned."

Will the recent acquisition result in a successful mobile device venture for Microsoft and Nokia? Share your thoughts below.