Microsoft was reportedly in advanced negotiations with Nokia to acquire the Finnish mobile maker’s devices unit earlier this month but the talks have failed.
Citing people familiar with the matter, the Wall Street Journal reported that the talks failed over price and worries about Nokia’s slumping market position, among other issues, these people said.
One of the people said negotiations took place as recently as this month but aren’t likely to be revived.
A Nokia spokeswoman was quoted by the Journal as saying that: "We have a deep partnership with Microsoft, and it is not uncommon for Nokia and Microsoft to meet on a regular basis."
According to a report from International Data Corporation, Nokia was responsible for driving Windows Phone unit volumes accounting for 79% of all shipments in the first quarter of 2013.
Nokia’s net sales dropped 20% during the first quarter of 2013 to €5.852bn, while its Devices and Services division reported operating loss of €42m with margin in Devices and Services dropping 1.5%.
Last month, Nokia chief executive Stephen Elop said the company will continue to use Microsoft’s Windows Phone software, despite shareholders decision, who are calling for alternative strategy.