Nokia Pushes Hard with Windows
Josef Ray is a member of The Motley Fool Blog Network -- entries represent the personal opinion of the blogger and are not formally edited.
For the short-term, Finnish mobile phone pioneer Nokia (NYSE: NOK) may seem to be at a standstill in terms of stock price, as it stays near $4 per share in recent days, but that shouldn’t deter prospective investors or discourage current stockholders. Shares of Nokia have shot up over 150%, rebounding from a several-year low of $1.63 – definitely a good sign for traders. What the company is doing – and planning to do – for the upcoming Nokia RT tablet and the Lumia line of smartphones also bodes well for the company’s long-term future and its foothold in the consumer electronics market.
Recent news on the development of the RT tab is promising; the user-friendly and familiar interface is sure to attract gadget junkies and casual fans all over the globe and drum up more demand for the Finland-based corporation’s stock. Ease of use stems from the fact that the upcoming tablet will use Microsoft (NASDAQ: MSFT) Windows, integrating functionality and ensuring connectivity between this and other devices that use the operating system. The product is no slouch when it comes to power, either, as it is likely to house a dual-core chip or better and a speedy NVIDIA graphics processing unit. Its reach is boosted by one of its primary carriers, telecom bastion AT&T (NYSE: T). The RT tab is set to drop in February 2013.
The partnership between Microsoft and Nokia goes even deeper, as both corporations are considering spending some big bucks on mobile app development to catch up with rival iPhone and Android devices. How much are they going to spend? A cool $2.4 million. This can only be good news for the two corporations, as the Lumia has already made some waves in the smartphone market and sold millions of units worldwide. The fact that Microsoft has a lot of resources – both financial and otherwise – helps, too.
The Nokia AppCampus could also inject the used-to-be-flagging mobile phone maker’s rep with new inspiration. AppCampus, a collaboration between Nokia, Microsoft, and Aalto University, supports budding app designers by providing coaching and financing in the realms of Windows 8 usability, design, and technology, in addition to the distribution and marketing support these people will receive once their apps are completed. This is expected to boost market share and stock price, as its development will add to the relatively meager 100,000 applications for Windows phones, in comparison to the massive number of apps in the Android and iTunes app stores. Since its launch in March of this year, Microsoft has confirmed the development of over 1,500 applications.
The forecast for the once-almighty company and its future looks bright, especially as it hopes to regain lost ground due to the chunk of the market captured by iPhones and Android devices. However, Nokia is making headway at present, with a slow and steady way of getting back into the game via the November release of new Lumia smartphones. It doesn’t hurt investors either that AT&T and Canadian provider Rogers are further sweetening the deal for Lumia owners. Users can expect the networks to improve the reliability of the 920 and 820’s Bluetooth, enhance performance and battery life, as well as throw in extra features on these phones’ instant messaging platforms. This potentially equates to a better customer experience, product reception, and, down the line, happier buyers and investors. Products aside, rosy sales predictions for Nokia are also backed by its plans to expand into new territory – specifically, the UK – after experiencing considerable success in its foray into the Japanese consumer electronics market.
JosefRayDagatan has no positions in the stocks mentioned above. The Motley Fool owns shares of Microsoft. Motley Fool newsletter services recommend Microsoft. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. Is this post wrong? Click here. Think you can do better? Join us and write your own!