As Microsoft finalizes its acquisition of Nokia by fully merging Nokia into the larger Microsoft organization resulting in layoffs of 18,000 employees, they indicate they will also be putting an end to Nokia’s efforts to produce Android-based smartphones. This move comes as Microsoft has been expending some effort to ensure their software offerings are available across a wider range of platforms. When it comes to hardware though, especially smartphones, the company has decided to make Windows Phone the only platform that fits in their strategy.
Nokia had two Android-based smartphones in its portfolio, the Nokia X released earlier this year and the recently announced successor, the Nokia X2. Microsoft indicates they will continue to support those devices, but all future phones will be built for the Windows Phone operating system. This decision is part of an effort by Microsoft to target the budget and mid-tier portions of the market with their Lumia line of devices. According to a letter released by Microsoft,
“We will be particularly focused on making the market for Windows Phone. In the near term, we plan to drive Windows Phone volume by targeting the more affordable smartphone segments, which are the fastest growing segments of the market, with Lumia. In addition to the portfolio already planned, we plan to deliver additional lower-cost Lumia devices by shifting select future Nokia X designs and products to Windows Phone devices. We expect to make this shift immediately while continuing to sell and support existing Nokia X products.”
Microsoft is implementing a new phone business unit, based on the former Smart Devices and Mobile Phones business units, that will be responsible for both the Lumia line of smartphones and devices as well as the transition of Nokia X over to the Lumia line.