Microsoft was 'in talks to buy Nokia handset business'

Insiders say Nokia market position caused talks to break down

Microsoft and Nokia were in talks that could have led to the software giant absorbing the Finnish communications company's mobile handset business, those close to the matter have said.

Telling the Wall Street Journal that talks were still taking place as recently as June 2013, contacts said the discussions began to fail due to Microsoft's fears over Nokia's slipping market position, as an acquisition price could not be agreed on.

Microsoft and Nokia have enjoyed a largely successful partnership over the past couple of years, with Nokia's Lumia series positioned as the launch hardware for Microsoft's Windows 8 Phone platform which, while still struggling to gain significant market share, is now in third place behind Android and iOS, ahead of BlackBerry according to sales reports from the end of May.

Rumours are also now rife that Nokia will soon be shipping Lumias containing Qualcomm's Windows 8-compatible Snapdragon 400, which would place top-end Lumias on a par with high-end Android devices like the Samsung Galaxy S4, or Apple's iPhone 5.