Friday, June 17, 2011

Nokia Value Dropping ? Will Windows Mobile Save Them?

Nokia Windows Phone 7Nokia has been struggling for a few years and the partnership with Microsoft, according to Nokia, was supposed to reverse the losing market share they have been seeing. Today, Nokia stock has again gone lower and it does not seem like the trend it is heading in is going to be slowed by anything at this time. It started the year out above $10 per share and today it is below $6 per share from the high this year of $11.73 on February 9th. This slide is not helping investor confidence and there is nothing at the moment that is going to slow the slide for Nokia stock values.

When Nokia downgraded the sales projections last month, it was a sign of things to come and an admission by the company that things are not going well for them. Nokia has asked customers and potential customers to continue to stay with Nokia and the Symbian OS, even though it is going away next year. They are expecting customers to jump onto Nokia and Windows Phone 7 next year, but that is not a product this year that you can buy. All of this leaves Nokia in a bad position. There are rumors that Nokia will be coming out with a Windows Phone 7 by the end of the year. That is a long time off given where they are at.

This has to make Microsoft wonder about the partnership with Nokia where someday, Nokia will be putting Windows Phone 7 on all their handsets. The current guesses are that it will take most of 2012 to have all the phones from Nokia being covered by the Mobile OS. Microsoft was looking to shore up the market share of their Mobile OS by using Nokia to capture a larger market share. Given the current events, Microsoft may not come out of this deal the way that they had wanted.

If Nokia continues this way, it is starting to look doubtful that Microsoft is going to make a huge difference in the value of the company in the first year. Nokia?s problems are looking much worse for them and since they have tied their future to Microsoft, the only real thing that is going to turn them around is releasing a Nokia Windows Phone 7 now. That is this month and not the end of the year.

Nokia has few options and the only one that is going to make a difference is putting out a Nokia phone that is running Windows Phone 7.

Source: http://feedproxy.google.com/~r/techieinsider/~3/n2AzNghvU8k/8661

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