With Android and iPhone unlikely to be toppled from 1st and 2nd place in the near or distant future, the 3rd place is up for grabs. Windows Phone 8 has had a good start but so has been the reception of the Blackberry Z10. Will the BB10 devices be enough to stop the eroding market share or will Windows Phone 8 finally have the breakthrough Microsoft and Nokia are wishing for?
Microsoft and Nokia have independently scheduled big announcements for Monday, 18th June. Is it really a coincidence when both companies schedule press conferences/events for the same day?
While most analysts expect Microsoft to announce Windows 8 tablets and Nokia to announce a Windows Phone with Pureview (the 808 for Windows Phone) I am inclined to speculate that this will be an announcement of Microsoft to acquire a significant stake (if not all) of Nokia.
Some evidence that this may happen:
Nokia has prepared itself for a possible acquisition. Most of the hard decisions have been taken and the amount of negative news and predictions released by Nokia could be so that the acquisition price is lower and for Microsoft to start on a fairly clean sheet.
Nokia has just announced another 10,000 job cuts
Nokia has sold Vertu (since it wouldn’t have fit into the MS strategy of smartphones for the masses)
Nokia has issued very negative forward looking statements for Q2 and Q3
So all seems to be set for a Nokia takeover by Microsoft.
Please comment below with your views on this subject.
Last week was a bad one for Nokia. Even though it was clear Nokia wouldn’t have a pretty quarterly result, many had believed that Nokia had bottomed out already. Well, that wasn’t the case. The transition to Windows Phone while production and even new launches of Symbian^3 devices are still in full swing are taking it’s toll.
In any case here is why I believe Nokia has a very bright future ahead of it:
Microsoft just can’t afford to have Windows Phone not succeed at any cost. While already being late to the party on tablets and losing the battles on browsers as well, Microsoft can’t afford to be a niche player in the mobile OS market. Therefore Windows Phone must succeed and for it to succeed Windows Phone needs Nokia.
There is no denying that Nokia builds some of the best hardware and industrial design only matched by Apple. The Nokia Lumia 800 and 900 are cutting edge industrial design that is functional, durable and fashionable at the same time.
The Nokia 808 Pureview is a prime example that Nokia still got what it takes to innovate. Seemingly most of the R&D must have gone into hardware (and somewhat services with Nokia Drive/Transport/Maps) to the detriment of OS development. The Nokia 808 would be an absolute killer device and bestseller if it would run Android or at least would have launched with Windows Phone. But the hardware development seems to be too far ahead for it’s time, at least for Windows Phone.
The services based on NavTeq are cutting edge as well. Drive, Transport and Maps are excellent services that neither Android nor iOS can compete with. Nokia Life Tools is a very unique offering for the developing world demonstrating once more that Nokia has the ability to listen, research and innovate.
It seems that Nokia has bottomed out. Maybe there is one more quarter with poor results to come but that then should have a positive outlook for the following quarter. As far as I am concerned I have stocked up on NOK shares when they dropped below $4.