Rumor: Samsung to buy Nokia

By on June 8, 2011, 1:00 PM

Samsung Electronics may be considering a purchase of Nokia. The rumor comes from market speculation cited by The Wall Street Journal, though no specific sources were given. Unsurprisingly, both Samsung and Nokia have responded by saying they do not comment on market rumors.

The rumor is questionable because Samsung has seen tremendous growth in the mobile space, whereas Nokia is losing market share very quickly. It's not really clear what value Samsung would see in Nokia, other than maybe patents.

Just a week ago, there was talk that Microsoft would buy the Finnish company. Nokia CEO Stephen Elop ended up having to publicly call the rumor "baseless" in response to constant questions. Four months ago, Nokia announced that it was choosing Microsoft's Windows Phone as its primary smartphone platform. Two months ago, Nokia and Microsoft finally signed a definitive agreement regarding their global mobile ecosystem partnership. All that work would have to be scrapped if Microsoft were to buy Nokia.

There will likely be many rumors about a Nokia buyout as financial analysts continue to downgrade the company's stock. They are doing so because of the cellphone maker's market share is quickly deteriorating thanks to competitors Google and Apple. Furthermore, Nokia gave a surprise profit warning last week, saying that its key mobile-handset business might not make a profit in Q2 2011.

At this point it's too early to tell if Nokia will be bought out, but we really don't think it will be anytime soon. That being said, if it is, we doubt Microsoft or Samsung will be the company to do it.




User Comments: 9

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dunebeetle said:

Who would want to buy Nokia? They are are a cancer at this point.

Guest said:

Well done Elop!

Guest said:

If the sale does go though the Samsung will absolutely DOMINATE the mobile phone market share.

Guest said:

Rumor: The world is going to end soon.

Based on hearsay by people who keep misinterpting words written long ago, the world is going to end.

Since this is just a rumor, I doubt it's true, so please ignore this post. :)

princeton princeton said:

Samsung doesn't need nokia. They're the best mobile semiconductor company in the industry and they also make the best screens in the industry(AMOLED). Purchasing nokia wouldn't make sense, they wouldn't have anything to gain that they couldn't do themselves.

UNLESS, they could be wanting to purchase nokia for their manufacturing plants and of course their licensing for WP7. But buying an entire company seems unnecessary just to obtain that. Nokia isn't a real competitor to Samsung so I still believe this is just a rumor.

jobeard jobeard, TS Ambassador, said:

we seem to have overlooked that Nokia

  1. dominates Europe
  2. and has partnered with Microsoft

Unless one is totally biased toward iPhone +/- Android, the partnership should produce a real winner. Yea todate, the Windows Phone has been a looser - - just wait

Archean Archean, TechSpot Paladin, said:

Jo I would add one more dimension to this, generally people have herd mentality, so iphone and android are bought simply because of this, despite not having any better interface than WP. Then there is also the fact that MS has been responsible for half-baked/halfhearted attempts with regard to mobile solutions in the past.

Lokalaskurar Lokalaskurar said:

Emil said:

"All that work would have to be scrapped if Microsoft were to buy Nokia."

Isn't that supposed to be 'if Samsung were to buy Nokia'? Because if Microsoft bought Nokia, that would presumably make it easier for them to roll out their mobile OS, and to start manufacturing smartphones themselves => MS becomes a greater challenge against Apple.

As for the deal Samsung vs. Nokia, buying Nokia would bring with it a rucksack of deals and treaties to be uphold. Because, Samsung could possibly be forced to release some smartphones with the Windows 7 mobile OS. As Samsung is not exactly famous regarding Win7 - they coud very well be expanding their market here, and not just patent-wise. Yet again, other than deals+patents etcetera, there is not much to be gained by Samsung...

princeton princeton said:

Archean said:

Jo I would add one more dimension to this, generally people have herd mentality, so iphone and android are bought simply because of this, despite not having any better interface than WP. Then there is also the fact that MS has been responsible for half-baked/halfhearted attempts with regard to mobile solutions in the past.

Hey I only bought the SGS because the only WP7 smartphone bell had was the LG optimus quantum and it's remarkably cheap feeling, sort of like a blown up lg rumor.

I would GLADLY trade it for an HTC HD7 but they never had it when I bought my SGS.

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