Microsoft will probably make fewer different Lumia models
Microsoft is likely to release fewer different Nokia phones and Lumia models. That can be deduced from the words of Microsoft director Satya Nadella. Nadella will cut 7,800 jobs at Microsoft, many of them in the telephone division.
The layoffs within the Microsoft telephone branch follow a year after the previous round of layoffs, in which 12,500 former Nokia employees already lost their jobs. In addition, former Nokia CEO Stephen Elop will soon be gone too.
Nadella says Microsoft is changing its focus within the telephone division. “In the short term, we will manage a more effective and focused portfolio of phones while retaining the long-term ability to make reinventions in mobility,” said Nadella. It seems that Microsoft wants to release fewer phones. Last year it released many, especially lower-priced, Lumias. According to ZDNet, Microsoft will only make high-end models, phones for businessmen and low-cost models.
Microsoft writes off an amount of 7.6 billion dollars on the purchase of Nokia last year, currently converted around 6.9 billion euros. That is higher than the amount that Microsoft paid for Nokia, about 7.2 billion dollars. It has been known for some time that Nadella was not in favor of the acquisition, but Microsoft’s previous director Steve Ballmer closed the deal before he left.