# Microsoft Mobile > Finnish mobile phone manufacturer (2014–2017) **Wikidata**: [Q16538568](https://www.wikidata.org/wiki/Q16538568) **Wikipedia**: [English](https://en.wikipedia.org/wiki/Microsoft_Mobile) **Source**: https://4ort.xyz/entity/microsoft-mobile ## Summary Microsoft Mobile was a Finnish mobile phone manufacturer operating from 2014 to 2017, established after Microsoft acquired Nokia's devices division. It produced smartphones under the Lumia brand, running Windows Phone and later Windows 10 Mobile, before transitioning to Android-based devices. The company ceased operations in 2017, with its assets returned to Nokia. ## Key Facts - **Operational Period:** 2014–2017 - **Parent Company:** Microsoft (2014–2017) - **Predecessor:** Nokia's devices division - **Successor:** HMD Global (licensed Nokia brand post-2017) - **Headquarters:** Espoo, Finland - **Key Products:** Lumia smartphones (e.g., Lumia 535, Lumia 950) - **Operating Systems:** Windows Phone, Windows 10 Mobile, Android (Nokia X series) - **Notable Devices:** Nokia Lumia 930, Microsoft Lumia 950, Nokia X2 - **Discontinuation:** October 18, 2017 - **Employees:** Approximately 18,000 (at peak in 2014) - **Brands:** Lumia, Nokia (licensed) - **Subsidiaries:** None directly listed; inherited Nokia's mobile patents and assets ## FAQs ### Q: What happened to Microsoft Mobile after 2017? A: Microsoft Mobile ceased operations in October 2017, returning the Nokia brand and patents to Nokia, which then licensed them to HMD Global for new device production. ### Q: What operating systems did Microsoft Mobile use? A: The company primarily used Windows Phone and Windows 10 Mobile for Lumia devices, while the Nokia X series ran a customized Android-based OS. ### Q: Why did Microsoft acquire Nokia's mobile division? A: The acquisition aimed to strengthen Microsoft's position in the smartphone market by integrating Nokia's hardware expertise with Microsoft's software ecosystem, particularly Windows Phone. ### Q: What was the significance of the Lumia brand under Microsoft Mobile? A: Lumia devices were Microsoft's flagship smartphones, designed to showcase Windows Phone/Windows 10 Mobile and compete with iOS and Android, though they ultimately failed to gain significant market share. ## Why It Matters Microsoft Mobile represents a pivotal yet unsuccessful attempt by Microsoft to compete in the smartphone hardware market. The acquisition of Nokia's devices division marked a strategic shift for Microsoft, aiming to vertically integrate its software with hardware. However, the venture struggled against dominant Android and iOS ecosystems, leading to its dissolution in 2017. The company's legacy includes the Lumia series, which maintained a loyal user base and influenced mobile design, and the brief experimentation with Android through the Nokia X series. Microsoft Mobile's failure underscored the challenges of entering a saturated market and the importance of ecosystem synergy, prompting Microsoft to refocus on cloud services and enterprise software. ## Notable For - **Lumia Brand:** Produced the Lumia series, known for its camera technology and Windows Phone integration. - **Nokia X Series:** Experimented with Android-based devices, deviating from Microsoft's primary Windows Phone strategy. - **Patent Legacy:** Controlled Nokia's mobile patents during its operational period, later returned to Nokia. - **Transition to HMD Global:** Paved the way for HMD Global to revive the Nokia brand with Android smartphones post-2017. - **Market Exit:** Symbolized Microsoft's retreat from consumer hardware to focus on cloud and enterprise solutions. ## Body ### History and Acquisition Microsoft Mobile was formed in 2014 after Microsoft acquired Nokia's devices and services division for $7.2 billion. This acquisition aimed to bolster Microsoft's mobile hardware presence, leveraging Nokia's expertise to promote Windows Phone. However, the company faced immediate challenges, including a declining market share for Windows Phone and intense competition from Android and iOS. ### Product Line and Operating Systems The company's primary products were Lumia smartphones, running Windows Phone 8.1 and later Windows 10 Mobile. Notable models included the Lumia 930, Lumia 950, and Lumia 950 XL, which emphasized camera quality and integration with Microsoft services. Concurrently, the Nokia X series (e.g., Nokia X2) ran a customized Android-based OS, reflecting internal debates over Microsoft's mobile strategy. ### Decline and Dissolution By 2015, Microsoft wrote off $7.6 billion related to the Nokia acquisition, signaling the venture's failure. Layoffs and strategic shifts followed, with Microsoft transitioning focus to cloud services (e.g., Azure) and enterprise solutions. In 2017, Microsoft Mobile ceased operations, returning the Nokia brand and patents to Nokia, which licensed them to HMD Global for new Android devices. ### Legacy and Impact Microsoft Mobile's dissolution marked the end of Microsoft's direct involvement in consumer smartphone manufacturing. The Lumia brand, while critically acclaimed for hardware and camera performance, failed to gain sufficient market traction. The company's brief foray into Android with the Nokia X series highlighted internal strategic conflicts. The venture's failure underscored the challenges of competing in a duopolistic smartphone market and influenced Microsoft's pivot toward cloud-centric growth, exemplified by Azure's success. ### Related Entities and Technologies - **Windows Phone/Windows 10 Mobile:** The primary operating systems for Lumia devices, emphasizing live tiles and integration with Microsoft services. - **Nokia X Series:** Android-based devices reflecting Microsoft's experimentation with alternative platforms. - **HMD Global:** Successor to the Nokia brand post-2017, producing Android smartphones under license. - **Azure and Cloud Services:** Microsoft's post-2017 focus area, driving revenue growth after exiting the mobile hardware market. ### Organizational Structure - **Parent Company:** Microsoft Corporation (2014–2017) - **Headquarters:** Espoo, Finland (inherited from Nokia) - **Key Executives:** Stephen Elop (former Nokia CEO, led devices division under Microsoft) - **Employees:** Approximately 18,000 at peak, reduced through layoffs in 2015–2016 ### Technical Specifications and Innovations - **Lumia 950/XL:** Featured Continuum, allowing smartphones to function like PCs with a dock. - **Camera Technology:** PureView camera system, developed by Nokia, praised for low-light performance. - **Nokia X2:** Entry-level Android device with dual-SIM support, released in 2014. ### Market Position and Competition - **Market Share:** Windows Phone's global share fell from 3.3% in 2014 to 0.5% by 2017, unable to compete with Android and iOS. - **Competitive Strategy:** Focused on enterprise integration and camera innovation, but lacked app ecosystem breadth and developer support. - **Pricing Strategy:** Targeted mid-range and premium segments, but struggled with cost competition from Android manufacturers.