

Samsung Preparing a Bid for Nokia? - staktrace
http://www.bgr.com/2011/06/08/samsung-preparing-a-bid-for-nokia/

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hugh3
I'm confused as to why Samsung would want Nokia. Right now Samsung is making
better phones than Nokia. Samsung has a whole supply chain, kickarse
manufacturing abilities, and a corporate culture that would be difficult to
integrate with Nokia's. What does Nokia have that Samsung would want, and that
Samsung can't acquire for less than $28 billion?

Now, Microsoft buying Nokia I could understand, since it would give Microsoft
a much-needed boost in the mobile phone wars. Not necessarily $28 billion's
worth, though, that's more than half Microsoft's dragon-guarded treasure pile.

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ansy
[http://www.idc.com/about/viewpressrelease.jsp?containerId=pr...](http://www.idc.com/about/viewpressrelease.jsp?containerId=prUS22689111)

Nokia shipped 100 million 'smart' phones in 2010. Samsung shipped 23 million.
That's a big difference. If Samsung bought Nokia it would own over a third of
the global smart phone market. Notice also that even though Nokia isn't
growing as quickly as its competitors, it is still growing.

And, looking at the entire mobile phone market. Nokia sold 453 million phones
while Samsung sold 280 million phones. Combined that would be over half the
entire mobile phone market.

[http://www.idc.com/about/viewpressrelease.jsp?containerId=pr...](http://www.idc.com/about/viewpressrelease.jsp?containerId=prUS22679411)

But you are right in one respect. Samsung has been extremely cautious about
mergers after several failed mergers in the 1990's. So it would really need to
have a good reason go down that path again.

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shareme
and NOkia stated that business will decline by 35% in 2011 alone

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ansy
Samsung could be a good buyer for Nokia. It could switch over the supply of
Nokia's internal components to Samsung thereby creating synergy. Samsung could
swap out Symbian with Bada on lower end phones and (depending on the Microsoft
contract) Android on the high end.

In exchange Samsung gets Nokia's patents, Nokia's mapping assets, and access
to an enormous global supply chain.

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cube13
>Samsung could be a good buyer for Nokia. It could switch over the supply of
Nokia's internal components to Samsung thereby creating synergy. Samsung could
swap out Symbian with Bada on lower end phones and (depending on the Microsoft
contract) Android on the high end.

I don't think Samsung would stop the Win7 phone production, or convert
existing phones to Android from Win7. They already have a few Win7 phone
models that reviewed pretty well. This would remove a potential competitor for
those phones, as well as put them in a better position to deal with MS about
the OS itself with Nokia's technology and supply chain.

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ansy
I don't think Samsung would stop making Win7 Nokia phones. That would be
throwing away money. But depending on the exclusivity clauses in the Microsoft
deal Samsung might start making Android flavored Nokia phones as well. Samsung
is strongly aligned with Google and just hedging its bets with Microsoft.

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jerf
Could someone please add the question mark back to the end of that title? It's
a rumor, not a fact.

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staktrace
Good point, fixed.

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Apocryphon
A Korean conglomerate buying a Finnish multinational? We are truly living in
cyberpunk times. Move over, Weyland-Yutani!

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MatthewPhillips
Does Samsung really have 28 billion in cash?

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patrickaljord
Don't forget that every time an apple mobile device is sold, they get money
(the A4 processor is part Samsung technology). Many other phones use samsung
technology and phone is just one thing Samsung do. They're the biggest company
in South Korea.

Last but not least:

AMOUNTS IN BILLIONS WON| DOLLARS| EUROS

Net Sales* 220,120.4| 172.5| 124.1

Total Assets 343,811.6| 294.5| 205.3

Total Liabilities 212,512.9| 182.0| 126.9

Total Stockholder's Equity 131,298.6| 112.5| 78.4

Net Income* 17,663.8| 13.8| 10.0

source:
[http://www.samsung.com/us/aboutsamsung/corporateprofile/ourp...](http://www.samsung.com/us/aboutsamsung/corporateprofile/ourperformance/samsungprofile.html)

