Microsoft Buy Nokia

Microsoft early Tuesday morning (India time) said it would buy Finland-based Nokia's phone business and license its patents for over $7 billion, in a last-ditch attempt to compete in the mobile handset market dominated globally by Apple and Samsung.

As part of the Microsoft deal, Elop agreed to step down as Nokia's chief executive and rejoin Microsoft when the deal closes, which is expected to happen in early 2014. He will lead an expanded devices team inside Microsoft, responsible for both hardware and Microsoft's business in things like games and music.

NEW DELHI: Nokia was one of the few brands, especially in India, that could match the emotional connect Apple had with its consumers. Now this brand is gone. While full details are still awaited, there is a strong possibility that the world may never see a Nokia phone again. And Nokia fans, who feel they have an emotional connect with the brand, are not happy.

"People were already sore, because they felt like there would be a deal with Microsoft as soon as he came on," said a former Nokia executive, who requested anonymity to maintain professional ties. "There was uncertainty, there was infighting, and the market share plummeted."

Elop was making a risky decision that still hasn't paid off.

"He had to do something," said Del Prete. "Smartphones change so fast, and this was a company where workers expected to stay their whole lives."

While the first models of Nokia phones running Microsoft software were expensive and failed to excite consumers, Del Prete added, "they are making progress. They are adding developers. It will take longer than people envision, and it will take the coffers of Microsoft."