Nokia Takes Over Alcatel-Lucent, Companies To Combine On Jan. 14

January 4, 2016 - Written By Kristijan Lucic

Nokia was once the largest cellphone manufacturer in the world. This Finland-based company was regarded to be the premium cellphone manufacturing company, but they made some wrong business moves over the years and basically faded away. Nokia first wanted to push their Symbian OS, as the industry started to move towards smartphones. After that, they’ve released MeeGo OS, which came too late, even though it was a solid operating system. Nokia has ultimately signed an exclusivity agreement with Windows, which meant that they’re allowed to manufacture Windows Phone-powered devices only. This turned out to be quite a mistake by the company, and they were basically forced sell their Devices and Services business to Microsoft due to low sales and financial troubles.

That being said, Nokia did not disappear, the company has since then manufactured an Android-powered tablet with some help from Foxconn, and even though this tablet had limited availability, Nokia managed to sell quite a few copies in China. We’ve also seen quite a few rumors that the company plans on releasing an Android-powered smartphone soon, and that might actually happen this year. That’s not all though, Nokia has sold ‘HERE Maps’ to Audio, BMW and Mercedes for $3 billion, and has decided to acquire Alcatel-Lucent a while back for $17 billion. It took a while for the deal to go through, but it seems like that has happened today. Nokia has announced that they’ve gained control of the company, according to Reuters, and that the two companies will combine on January 14th. Nokia will hold approximately 79% of Alcatel’s shares, and this is what Nokia’s CEO had to say: “We will move quickly to combine the two companies and execute our integration plans”. This deal actually puts Nokia in a great position to compete with Ericsson and Huawei in a market for telecom network gear, not to mention other possibilities it will open for them.

Nokia’s acquisition of Alcatel might also benefit the company’s future smartphone plans, same goes for tablet, smartwatch or any other plans Nokia might have. We’ll probably hear more from Nokia this year than we have in a long time, and it remains to be seen what will happen, but a Nokia-branded Android-powered smartphone seems like an obvious choice at this point, stay tuned.