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We knew this was coming so it’s not a huge surprise: Microsoft is replacing the Nokia in front of the word Lumia. New smartphones from the company will be called Microsoft Lumia devices, marking the final absorption point as Microsoft assimilated Nokia’s hardware business for $7.2 billion in September 2013.
As part of that deal, [company]Microsoft[/company] not only bought a phone manufacturer, but also gained the right to use the Nokia brand for 10 years. And it is will continue to exercise that right because entry-level handsets will still carry the Nokia name. Microsoft points to the Nokia 130 — a basic low-cost candy bar handset — as an example.
While this is mainly just a branding exercise, it couldn’t come at a better time. Yesterday, Microsoft reported its fiscal first quarter numbers and the phone division brought in $2.6 billion in revenue for the company, $478 million of which contributed to the company’s gross margin. The 9.3 million Lumia devices sold in the quarter were five percent more than the year ago period.