Will Nokia Thrive or Die in 2013?

In the video Motley Fool senior technology analyst Eric Bleeker looks at what lies ahead for Nokia (NYSE: NOK  ) in 2013. He pulls out a few data points that any Nokia investor should keep in mind at all times.

Last year wasn't a great one for the Finnish phone maker. Sales of Symbian smartphones dropped drastically, from 93 million units in 2011 to 26 million. Moving to Windows Phone has been little consolation, since the company sold only 11 million Windows Phones, taking total smartphone sales to just 37 million.

On the other hand, Microsoft (NASDAQ: MSFT  ) , with its $66 billion cash pile, will provide a solid boost for Nokia in 2013 and won't hesitate to spend money on promotions to make Windows Phone relevant. That's how Samsung has become such a success. Samsung not only has a large ad budget, but a sales promotion budget four times of that of Apple (NASDAQ: AAPL  )

Finally, Eric ends the video with a word of caution for Nokia investors. Many companies in similar situations to Nokia either ended up being acquired or went bankrupt. Though Nokia has Microsoft to back it up, investors need to be alert.

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  • Report this Comment On January 06, 2013, at 4:12 PM, marv08 wrote:

    "...and won't hesitate to spend money on promotions to make Windows Phone relevant. That's how Samsung has become such a success."

    That is a bit naïve. While ads and promotions where certainly part of it, remember that MS is already promoting WP8 like hell, throughout Europe there is at least one WP8 or Lumia spot in every TV break, 24 hrs a day. They do more advertising than Samsung, and far more than Apple, not less.

    When the Lumia 800 was launched in 2011, Nokia gave the phones away for nothing, and MS even added free Xboxes in a few countries. Samsung never did promotions that generous. People just do not want Windows Phone.

  • Report this Comment On January 07, 2013, at 7:19 AM, wilsantiago wrote:

    @ marv08

    Speak for yourself. If you think Apple and Samsung will stay on top forever then you are naive. Everything takes time and if you ever have used all 3 platforms (like myself) then you will know that the Nokia Lumia 920 and Windows 8 is years ahead of the competition in software and most definitely in HARDWARE.. People are not buying them by the millions yet because they are unaware...but that will change. Windows Phone 8 is the most modern and sophisticated mobile OS on the planet. Nokia has no where to go but up. Long NOK!!

  • Report this Comment On January 07, 2013, at 4:04 PM, scottyvegas wrote:

    I've owned a Samsung "Android" Galaxy, my wife and two daughters have iPhone 5's. I opted for the Nokia 920. I'm no phone expect but from a usability standpoint this phone is as solid as it gets. The interface is far superior over Android or the iPhone. Yes I am serious! To me the Android and iPhone just looks dated and navigating is page flipping madness. Take a look at the Windows 8 phone OS it's very clean the layout makes sense. No special apps to manage it either. Just plug it in and it works.. No quirks either (blue screens)

  • Report this Comment On January 08, 2013, at 11:46 PM, marv08 wrote:

    @wilsantiago: I have used, and I am regularly testing, almost all platforms for my company. Calling the 920 ahead in anything is a bad joke.

    The device is dead ugly, made of cheap plastic, the screen is terrible (fake colors everywhere) and the interface must have been developed by somebody on LSD. Toy-like candy tiles with letters bigger than on a PC screen, a stupid mail app that can't display more than 5 mails in a listing at once and a sore lack of apps for anything. And all that in a package that weighs a ton and feels like a brick in your hand. Imbecile engineering at its worst.

    I do not care what looks "dated" (and I even do agree that iOS does look dated by now), as long as it works better. And I never had to do more flipping and scrolling than under WP8. This system is designed for the lowest information density of any mobile OS ever designed. Yeah, there are flashy kiddy tiles, but they do not convey more information than a number badge and/or the notification screen in iOS. Getting to a specific app to actually do anything is a nightmare.

    Really, I even prefer Windows Mobile 6.x over Windows Phone. This is really just kiddy junk.

    (I do admit though that the 920s camera is a bit, really not much, as all reviews confirm, better than the one on the iPhone 5. As I have taken less than 20 real - other than for testing purposes - photos using a mobile in my life, I just do not really care.)

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