Nokia-branded smartphones to be phased out following Microsoft buyout

Under the terms of the £4.6bn buyout, the Nokia branding will only appear on feature phones on a 10-year license, while the Asha and Lumia trademarks will transfer to the Windows firm.



Microsoft CEO Steve Ballmer with Nokia President Stephen Elop

Any future Windows Phone devices made by the newest division of Microsoft will bear the Redmond company's own branding,The Verge understands.

Microsoft's purchase of Nokia is expected to close in the first quarter of 2014 should competition regulators and the phone maker's shareholders approve the deal.

CCS Insight chief of research Ben Wood described the acquisition as a "necessary gamble" on Microsoft's part, and believes that it is a positive move for both parties.

"With mobile now firmly positioned as the world's fastest growing and largest computing platform we see this move as a bold, but entirely necessary gamble by Microsoft. Mobile needs to be a cornerstone of Microsoft's business for future success," he said.




Microsoft and Nokia have been closely linked by its Windows Phone operating systems

"The failure of Microsoft's platform-only approach over the last 15 years, initially with Windows Mobile and more recently with Windows Phone, has left it with few alternatives given its almost complete reliance on Nokia for Windows Phone devices and the competitive eco-system strength of Google and Apple."

He added: "This move should be positive for both companies. A more integrated approach to hardware, software and services will help overcome some of the challenges Nokia and Microsoft have faced operating as independent entities in terms of service integration, marketing consistency and costs, as well as time-to-market for new devices and updates."

Microsoft is aiming to triple the market share of its Windows Phone platform by 2018 with the acquisition
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