This has been a big week for Microsoft and its position in the smartphone world. Yesterday, Microsoft announced that it would be purchasing Nokia’s devices and services business. Microsoft also announced that it intends to continue licensing Windows Phone to other companies despite the fact that it will be able to build its own hardware.
The move comes as no surprise since Microsoft has clearly tried to compete against Android on the smartphone market and wants to continue doing so after the Nokia deal closes meaning the more manufacturers the better. Nokia is the largest maker of Windows Phones currently and will undoubtedly continue to be the largest maker of smartphones running Windows Phone after Microsoft completes the purchase. Microsoft did reportedly use its Android patents to get some device manufacturers to produce Windows Phone devices.
Reports indicated in the past that Microsoft may have “sweet talked” Android patent licensees into building devices using Windows Mobile suggesting some back scratching may have gone on. Microsoft announced yesterday that it intends to acquire Nokia’s device unit that deal worth about $7.17 billion.
That amount also includes money Microsoft is paying to license Nokia patents. When Microsoft stepped into the hardware market and built the Surface RT and Surface Pro tablets some of its hardware partners didn’t appreciate having to compete with Microsoft. I’m sure some of Microsoft’s Windows Phone partners are feeling the same way this week.