Nokia's wholly-owned NSN is preparing to sell its mobile phone business?

Nokia's movements suddenly and dramatically. Yesterday morning, Nokia was to buy back the shares of Siemens Holdings of NSN Company, the midday exposure Nokia announced that it would spend 1.7 billion euros (about 13.6 billion yuan), the overall acquisition of Siemens owned Nokia Siemens Communications Company (hereinafter referred to as "NSN") 50% shares. The object of speculation is still in the takeover rumours of Nokia, the reason is that Nokia's acquisition of NSN all shares of the move, is not in preparation for the sale of mobile phone business? Why do you say that? Please look down. NSN is valuable, but Nokia NSN all shares should be careful to consider NSN company has some value, but for the still in the plight of Nokia, the acquisition of NSN is still a must be worth considering things. NSN 2013 First quarter results NSN Company, although in the first quarter of this year, achieved net sales of 2.804 billion euros, but it is still down 5% compared with 2.947 billion euros in the same period last year, while NSN has made a profit this year, operating at € 3 million, but lost as much as 1.004 billion euros in the same period last year, and then contacted 20 November 23, 11 Nokia Siemens announced that it will cut 17000 jobs globally by the end of 2013, and it is a question of NSN's value and whether this year's profit is due to layoffs. In addition, the data show that Nokia in the first quarter of 2013 gross cash has 7.6 billion euros, gross liabilities of 4.4 billion euros, minus the gross debt even if net cash has 3.3 billion euros, but to remove the normal operating business needs of at least 28--51 billion, Nokia Real net cash only-1.8 billion euros to 500 million euros. Nokia's move to buy NSN shares is puzzling from the above, on the one hand, Nokia does not have much money to spend, in this case, Nokia should not be more focused on mobile phone business? On the other hand, the value of NSN is not so important to Nokia, even before the Nokia also intended to sell its stake in NSN, and now Nokia is 180° turn to buy NSN all shares. Perhaps the best explanation for such a move is that Nokia wants to learn to split Motorola and sell its handset business. Nokia would like to learn Motorola, split the sale of mobile phone business appears to be very unlikely, but carefully consider Nokia has the possibility of selling mobile phone business, but for Microsoft, Microsoft has a need to buy Nokia, so Nokia is likely to become the next Motorola, split company to sell mobile phone business. From the Nokia point of view, the main reasons are as follows: 1. Capital demand: In mid-June, Yu, senior vice president of Huawei, said the company was open to the takeover and said the eventual takeover depended on Nokia's willingness to do so, after which Nokia's share price rose 11%, and Nokia's share price plunged after the rumors of Huawei's takeover of Nokia were Yu denied. What does it mean that even this rambling takeover rumor can spur Nokia's share price ups and downs? Show that investors are dissatisfied with Nokia's current performance。 Also at the Nokia shareholder meeting this year, even investors directly told Nokia CEO Stephen Elop that they were impatient for Nokia to try to catch up with the ailing smartphone leader Apple and Samsung. 2. Betting that Windows Phone is marginalized Nokia is in a bad position: in a way that Nokia lags far behind Apple and Samsung, and on the development side, Nokia is less able to gain market share on smartphones and other mobile devices as fast as Asian upstarts do. Nokia sold only 5.6 million Lumia handsets in the first quarter of 2013, while other revenues were backed by smartphones and low-end handset Asha, a situation that was bad for Nokia. Nokia's transition to Windows Phone, in particular, has been around for more than two years, and now Nokia is not only not celebrating its brilliance, but its cash flow is also showing signs of drying up. 3. Nokia did not want to continue to develop mobile phone business after the acquisition of NSN: In view of the current situation, Nokia has been mired in a financial crisis, has not much money to maintain day-to-day operations, not to mention Nokia's huge acquisition of NSN, it still has funds to continue to promote the development of mobile phone business? In addition, from a hefty acquisition of NSN, it is clear that NSN's communications business will be the most important development direction for Nokia in the future. 4. The battle for smartphones is an ecosystem battle. Nokia is powerless: Now it is clear that today's smart-phone debate is actually an ecosystem battle. Even Samsung, the world's largest mobile phone market share, has started to push its self-developed Tizen system with Intel, and Nokia, after abandoning Symbian and Megoo, is a designer and manufacturer of hardware that can be considered the most fundamental war in the smartphone world. So selling may be the best option. 5. The sale of business is not groundless Nokia has the idea of selling mobile phone business: The recent rumours about Nokia's takeover have been followed by Huawei's outward expression of openness to the acquisition of Nokia and the subsequent report by the foreign media Wall Street Journal that Microsoft and Nokia had negotiated in-depth talks on the takeover, and that a verbal agreement had been reached, But the negotiations ended up bursting with price reasons and Nokia's weak position in the global market. Although these are "gossip", but "smoke", it shows that not only Microsoft and Huawei have acquisition demand, for Nokia also has the idea of selling mobile phone business. For Microsoft, Microsoft's acquisition of Nokia has the following necessary: 1. Prevent Nokia from abandoning Windows Phone or being acquired by others: Nokia is known to be an important strategic ally of Microsoft, and according to statistics from April this year, Nokia's Windows Phone phones account for 80% of the entire Windows Phone market, Nokia has completely ruled the Windows Phone handset market. So Microsoft will not sit idly byKia gives up WP system (Nokia's Vertu has already started using Android) or is bought by others, because Nokia once sold, the basic signal of Microsoft's foray into the mobile market failure, that how to ensure that Nokia will not give up Windows Phone or someone else to buy it, The only way is to turn it into your own company. 2. Microsoft's consideration of major restructuring equipment and services is one of its development directions: Microsoft CEO Steve Ballmer not only last October's shareholder meeting that Microsoft will transform itself into a device-and service-centric company, and will make a major restructuring of Microsoft this July, One of the developments in the restructured Microsoft is equipment and services. After Microsoft launches Xbox and surface, perhaps the next step is to produce its own Windows Phone phone and set a benchmark for the industry. This may not be wise, but even unwise surface tablet can be introduced, not to mention is brewing restructuring, and the equipment and services are ready for the time of Microsoft? 3. Microsoft needs to speed up the pace of Windows Phone: For many smartphone makers, using Windows Phone is just an option, and the idea is to put eggs in two baskets for safety, So when other vendors put most of their energy and resources on Android, Microsoft needs to speed up Windows Phone layout by acquiring Windows Phone, and for why, see the next reason. 4. Smartphone is the future Wearable computing Center Microsoft has to buy Nokia: Wearable devices are one of the trends in the future, with the exception of Google Glass, most wearable devices may play a role as a sensor in the future due to computational power and battery-endurance considerations. By handing most of the calculations to smartphones, the future smartphone is likely to become a hub for connecting wearable devices and keeping them interconnected, while smartphones will also be a key driver for the development of wearable technologies, So in order to ensure that Microsoft still has a leading position in Mobile Internet 3.0, acquiring Nokia to expand its share may be its biggest guarantee and best choice. On top of that, Nokia has also fallen from its high value to just 14 billion dollars in Nokia's market capitalisation, and Microsoft now has enough cash and can use offshore cash to reach a deal, especially since its overseas subsidiaries currently have about $66 billion trillion in reserves, The acquisition of Nokia will not only achieve the above benefits, but also save a large tax bill. Nokia, is there a possibility of not selling mobile phone business? Of course, Nokia also can choose not to sell mobile phone business, but to have a way out may only choose to go to the arms of Android, but the former mobile phone industry overlord can put down the shelf, settling? Even if you can put down the shelf, and then into the Android camp,How much advantage can Google give to Nokia's core manufacturers? Even if Google treats Nokia and other core manufacturers equally, the problem is that the Android ecosystem is saturated and, on the other hand, it is slow and not good at software design capabilities for Nokia's hardware maker, and it can keep up with other vendors (think about why we stopped buying Nokia later)? Not to mention simple hardware, it is better than the current Samsung how much better? These are the issues that Nokia deserves to consider. Selling mobile phones may be the best option to get out of this mess. Nokia Gao Yuzeng admitted this May that the application flaw is a big weakness for Windows Phone phones. Yes, even though the number of Windows Phone App Store software is close to 150,000, the ecosystem is still short of high-quality apps, and users are still unable to find software such as Instagram and Dropbox in the App Store. Meanwhile, the market research firm Gartner data shows that Lumia sales have increased, but Nokia has slipped to tenth place in the global smartphone market. In addition, the decline in Lumia sales not only can not guarantee Nokia's survival, but also worse is Windows Phone cold, Nokia is currently experiencing inventory crisis. Because Windows Phone system is Microsoft, Nokia is unable to change the status of Windows Phone, and Windows Phone can not save Nokia, coupled with Nokia's current difficult situation and the possibility of putting Android in the arms, after buying NSN company Nokia, Splitting and selling the handset business may be the best option-splitting the company into two parts of the communications and mobile business, selling it to Microsoft or Huawei, and Nokia focusing on the communications business and related services.