Verizon, Nokia, and Microsoft Are About to Get a Lot Closer

It's been more than a year, but it looks like Verizon (NYSE: VZ  ) may be ready to give Microsoft's (Nasdaq: MSFT  ) Windows Phone another shot. Way back in May 2011, ancient history in the smartphone world, Big Red launched its first Windows Phone 7 device, the HTC Trophy.

HTC Trophy. Source: Verizon Wireless.

Since then, the device has sat all by its lonesome as the sole Windows Phone device available on Verizon's network, as the carrier continues to focus heavily on peddling Google Android devices. AT&T (NYSE: T  ) is also making a big push with Windows Phone, putting a bunch of marketing dollars behind its exclusive Nokia (NYSE: NOK  ) Lumia 900, running Windows Phone 7.

According to a recent Bloomberg report, Verizon has a new device in the cards for later this year: a new Nokia phone running Microsoft's newest Windows Phone 8. Microkia has recently sent out press invites for an event on Sept. 5, presumably a baby shower for their newest offspring that's ready to be shown to the world. Verizon isn't expected to have a presence at the event, but it will launch the new Nokia device at a later date.

Sept. 5 would also put the event directly up against Apple's (Nasdaq: AAPL  ) rumored Sept. 12 iPhone event, showing that Microkia has high hopes of tackling the new iPhone head-on. Verizon and AT&T have both been looking to wean their reliance on the iPhone in recent times, in part because of the hefty subsidies that device carries and the lack of control they exert on it. To them, the iPhone remains a necessary evil, but both carriers continue to diversify the mobile operating systems offered on their networks.

It would also be a solid win for Nokia to get in bed with the largest U.S. carrier, as Verizon currently doesn't offer any Nokia devices of any flavor. Microsoft has also been making progress in market share, increasing its slice in the second quarter to 3.5%, up from just 2.3% the year prior, according to the latest figures from researcher IDC.

A deal with Verizon would be a step in the right direction for both Microsoft and Nokia.

Carriers despise the iPhone because the big subsidies add up quickly as the device sells like hotcakes -- but that spells big-time profits for Apple. Sign up for The Motley Fool's brand-new Apple research service, and you'll get a detailed report on everything current or prospective shareholders should know, as well as key updates as news develops.

Fool contributor Evan Niu owns shares of AT&T, Verizon Communications, and Apple, but he holds no other position in any company mentioned. Check out his holdings and a short bio. The Motley Fool owns shares of Microsoft, Google, and Apple. Motley Fool newsletter services have recommended buying shares of Apple, Microsoft, and Google, creating a synthetic covered call position in Microsoft, and creating a bull call spread position in Apple. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days. The Motley Fool has a disclosure policy.


Read/Post Comments (3) | Recommend This Article (9)

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  • Report this Comment On August 23, 2012, at 12:00 AM, gcp3rd wrote:

    Prediction:

    September 5th Windows phone launch announced

    September 12th iPhone 5 launch announced

    September 13th we never hear about this Windows phone again

  • Report this Comment On August 23, 2012, at 2:33 AM, ajaykc wrote:

    September 5 event is a sure thing from Microkia; however, September 12 is an iDream.

  • Report this Comment On August 23, 2012, at 10:17 AM, pkvillager wrote:

    Everyone tries to make this a Apple VS WP war in comments of any positive WP article.

    The point people are missing is not everyone wants an iphone which should be obvious since android has done so well and actually out sells apple. In the same way not everyone wants android either. There is room for a third and maybe even fourth OS out there.

    Nokia sold a few million lumias at AT&T and there is no reason they wont do the same with other carriers.

    I have had iphones and loved them, I am a current android user and love it(needed bigger screen) and I tested a HTC trophy and think the WP UI is the best hands down. As soon as Verizon gets a 4.5 or larger screened WP Im upgrading.

    As far as investing in NOK goes its a no brainer. There is no chance that AAPL will double in the next few weeks and NOK already has and its still undervalued.

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