Can Microsoft Save Nokia?

Stephen Elop, Nokia's (NYSE: NOK  ) CEO, rolled out the company's newest line of smartphones, phones that will incorporate a first for Nokia: the Microsoft (Nasdaq: MSFT  ) Windows Phone operating system.

Ignoring the fact that other companies -- Samsung and HTC, for example -- also produce smartphones that run on the Windows Phone OS, Elop proclaimed the Nokia Lumia as "the first 'real' Windows Phone."

The phones will first go on sale in November. The U.K., France, Germany, Spain, Italy, and the Netherlands will get the phones first, followed by the Asia-Pacific region by the end of the year. A U.S. launch will come soon after the New Year. China will get them a few months later.

Elop said versions of the new phones based on CDMA and LTE will be coming out later.

This phone introduction is a big deal for Nokia. Its shipments of smartphones fell by 38% in the third quarter; It has even been losing out to Research In Motion (Nasdaq: RIMM  ) , which itself has been staring at a steep decline in market share for its own BlackBerry. The big gainers, of course, have been Apple (Nasdaq: AAPL  ) with its iOS powered iPhones, and Google's (Nasdaq: GOOG  ) Android, the OS that powers the majority of the world's newly sold smartphones.

Nokia and Elop have a lot riding on how well this new phone introduction goes. Investors are concerned that the company may lose so much market share that climbing out of the hole may well be almost impossible. Indeed, shares of Nokia have fallen 40% this year on that fear.

The die has been cast, and we will have to wait several months to see what kind of bedfellows Nokia and Microsoft make.

"It's a new dawn for Nokia," Elop told reporters at the Nokia World conference in London where the phones were introduced. But the famously long, dark, and cold Finnish winter is coming up quickly. It'll be critical for Nokia that this new partnership produces results that'll get the company through the night and to that dawn with dispatch.

Keep an eye on Nokia's journey by placing it on My Watchlist.

Fool contributor Dan Radovsky has no financial interest in the above-mentioned companies. The Motley Fool owns shares of Apple, Microsoft, and Google. Motley Fool newsletter services have recommended buying shares of Apple, Microsoft, and Google and creating bull call spread positions in Microsoft and Apple. Try any of our Foolish newsletter services free for 30 days. We Fools don't 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.


Read/Post Comments (2) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On October 27, 2011, at 2:29 AM, fatmonk wrote:

    The question is Can Nokia safe Microsoft windows for mobile?

  • Report this Comment On October 27, 2011, at 7:16 AM, kariku wrote:

    Yup, and I'm willing to be on it (with real money, both MSFT and NOK).

    Finally a serious competitor to iPhone, and hopefully taking down Android.

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1577929, ~/Articles/ArticleHandler.aspx, 12/19/2014 7:11:03 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement