Why Nokia Corporation (NYSE:NOK) and Microsoft (MSFT) Have the Best Chance Now to Break In to the Smartphone Market
For Nokia Corporation (ADR)(NYSE:NOK) and Microsoft Corporation (NASDAQ:MSFT) this is the best shot they get, if not the last, to make their mark on the smartphone market, that has been dominated by Apple, Samsung and Google (or its Android operating software).
With five more days to go for Nokia to launch its new smartphone, it has very little time to ensure that the product, it is introducing into the market, will have sufficient impact to divert consumer’s attention away from Apple.
On September 5, Nokia is expected to unveil its new Lumia range of smartphones – at least two versions are expected – and if it fails to grip the customer consciousness, it will be a long time before it gets another chance. Because a week later, Apple will be ready with its new iPhone and that will certainly capture worldwide attention.
Microsoft, which is riding on Nokia as its operating software partner, also has a lot at stake as it struggles to get a foothold in the mobile market.
“This is very high stakes,” Canaccord Genuity analyst Michael Walkley told Reuters.
“Nokia bet everything on Windows, and if this doesn’t succeed the next step might be having to do what’s best for shareholders, and that might include selling off key assets or selling the whole company,” he said.
The Finnish handset maker lost its position as the top mobile handset maker to Samsung earlier this year. In the last year and a half the company’s losses have been of the order of over 3 billion euros, while it has had to cut jobs and sell off some of its assets.
For Microsoft, a successful Lumia launch would convince more handset makers and carriers to support its latest phone software. Its current operating software Windows Mango is making a slow job of capturing attention. Windows phones have only captured 3.7 percent of the global smartphone market, according to Strategy Analytics. Android phones have 68 percent, while Apple has 17 percent.