Here’s Nokia’s New REVIVAL Plan
Nokia (NYSE:NOK) is selling its app-writing technology Qt to IT firm Digia as the Finnish company increases its reliance on Microsoft (NASDAQ:MSFT) to take on Apple (NASDAQ:AAPL) and Google (NASDAQ:GOOG) in the smartphone race. Nokia, which started using Microsoft’s Windows Phone operating system in place of its own Symbian last year, now looks to be heading toward a complete abandonment of home-grown software.
Nokia bought the Qt technology in 2008 with the idea of giving developers tools to write programs for Symbian and MeeGo devices.
“With Nokia smartphones relying on Windows-based applications, which are rapidly increasing in number, Qt no longer has a role to play in Nokia’s smartphone efforts,” Liberum Capital analyst Janardan Menon told Bloomberg. “Nokia is keen to restructure, to squeeze out margin as well as improve cash where possible.”
Nokia, which lost its position as the top mobile phone vendor earlier this year as Apple’s iPhones and devices running on Google’s Android software dominate the market, has announced more than 20,000 job cuts and closed several of its plants in an attempt to cut costs.
Nokia’s market value has plunged about 90 percent since the iPhone’s debut in 2007. The popularity of Apple and Google devices has, in no small part, been credited to their healthy app stores. The iPhone maker announced recently that its App Store now had 650,000 programs to download, while Google Play is said to offer close to half a million apps.
No terms of sale were disclosed by Nokia, but the company said 125 of its employees will move to Digia as part of the deal. Digia, which acquired the Qt commercial licensing and services business last year, has said it plans to bring Qt to other operating systems, including Apple’s iOS, Android, and Windows 8.
Separately, Nokia agreed to sell more than 500 patents to Vringo for an undisclosed amount of cash and proceeds from revenue generated from the portfolio.
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