Will Nokia's Tablet Save Windows RT?

Watch stocks you care about

The single, easiest way to keep track of all the stocks that matter...

Your own personalized stock watchlist!

It's a 100% FREE Motley Fool service...

Click Here Now

Nokia's (NYSE: NOK  ) upcoming Lumia 2520 is a Windows RT tablet sporting a 10.1-inch display. When Nokia's hardware becomes a part of Microsoft (NASDAQ: MSFT  ) , it will be the second Windows RT tablet the company has offered. Still, despite Nokia's offering, Windows RT faces immense challenges. Most of Microsoft's OEMs, including Samsung (NASDAQOTH: SSNLF  ) , have shunned the operating system.

The difference between Windows RT and Windows 8
Aesthetically, Microsoft's two operating systems -- Windows RT and Windows 8 -- are indistinguishable; under the hood, they couldn't be more different. Microsoft's Windows 8 is a full-fledged PC operating system, capable of running virtually any piece of software written for the broader PC platform. Windows RT, on the other hand, is limited -- it can run only mobile apps and a watered-down version of Microsoft Office.

Windows RT, then, is Microsoft's version of Apple's iOS and Google's Android. But unlike those competing platforms, Windows RT lacks a robust app ecosystem -- Microsoft's app store is still missing a number of popular apps, including LinkedIn, Pinterest, and HBO Go. Even Facebook didn't arrive until earlier this month.

One might argue that these apps are superfluous -- there are browser-based alternatives for all of them. But according to research firm Flurry, 80% of the time users are on mobile devices, they're using apps. Clearly, the touch-optimized interface is important.

Perhaps that's why Microsoft's efforts to sell its Surface tablet have come up short. Microsoft hasn't released exact sales numbers, but in July, GeekWire estimated that Microsoft had sold just 1.7 million tablets from last October through June. When Microsoft reported earnings last week, it said that sales of the Surface had doubled, but even still, the $400 million in revenue it generated paled in comparison with the $6 billion Apple brought in selling iPads last quarter.

A camera, cellular connectivity, and a paint job
Outside of a better camera and a different paint job, Nokia's upcoming tablet isn't noticeably different from the second version of Microsoft's Windows RT tablet, the Surface 2. Both tablets are similar in size, weight, and screen resolution. They both have covers that double as keyboards, and about the same battery life.

Nokia's 2520 has a better rear-facing camera, and its Lumia handset-like body might be more visually appealing than Microsoft's Surface 2, but buyers who go with Nokia's option will have to fork over an additional $50. That extra $50 includes LTE connectivity; in fact, Nokia has said it will sell the device through wireless carriers. That's a big distinction, but it's unlikely to be a major selling point -- the vast majority of tablets sold in the U.S. are Wi-Fi-only.

Microsoft's partners have stayed away
The most notable thing about the Lumia 2520 is that Nokia would even consider making it: All of Microsoft's hardware partners have shunned the operating system. Asus and Dell released Windows RT tablets, but both companies have abandoned them, citing poor sales.

Samsung sold a Windows RT tablet in Europe but then discontinued it and never brought it to the United States. Samsung went further, blaming Microsoft for the failure of its mobile operating system, and telling CNet that the consumer was confused. According to Samsung, the company still had to do "heavy lifting" to explain Windows RT to consumers.

Despite Samsung's criticism, the company still offers Windows tablets -- but only tablets running full Windows 8. In fact, the Windows tablets that Samsung does sell helps to illustrate the broader problem with Windows RT -- for about the same price as Nokia's 2520, a consumer can purchase Samsung's ATIV Smart PC 500T. With full Windows 8, Samsung's tablet isn't hobbled by the limitations of Windows RT.

The future of Windows RT
Even with Nokia offering another Windows RT tablet, Microsoft's mobile operating system remains immensely challenged. Sales of Windows RT devices have been poor -- poor enough to scare away all of Microsoft's hardware partners.

With limited app support, and Microsoft's hardware partners like Samsung offering full Windows 8 tablets at competitive prices, the future of Windows RT remains bleak. Investors shouldn't expect Nokia to sell many Lumia 2520s.

Windows RT might not last forever, but these companies will
As every savvy investor knows, Warren Buffett didn't make billions by betting on half-baked stocks. He isolated his best few ideas, bet big, and rode them to riches, hardly ever selling. You deserve the same. That's why our CEO, legendary investor Tom Gardner, has permitted us to reveal The Motley Fool's 3 Stocks to Own Forever. These picks are free today! Just click here now to uncover the three companies we love. 

Read/Post Comments (6) | 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, 2013, at 12:30 PM, thethreestooges wrote:

    Why didn't Microsoft let Nokia know that they are coming out with Window8 so they won't waste time with the RT. RT will be obsoleted before it launch. Another Microsoft misstep or being clueless.

  • Report this Comment On October 27, 2013, at 2:18 PM, AlexzGreat wrote:

    It's Lenovo's full Windows 8 tablet that makes RT irrelevant.

  • Report this Comment On October 27, 2013, at 4:40 PM, nohelmet wrote:


  • Report this Comment On October 27, 2013, at 9:53 PM, NoWindows8LockIn wrote:

    It amazes me that so few writers explain to their readership *WHY* Microsoft is doing what it is doing. Look..if you saw a billionaire dumping gold into the Hudson River, would be news. But the one question on everyone's mind would be *WHY* is something doing something so ostensibly stupid?

    That's the story here. Inside Microsoft's boardrooms is a bunch of suits who came up with a "plan" to milk customers based on gimmicks. It's failing, but they keep trying.

    Write about what is going on in the minds of these idiots. It would be fascinating entertainment!

  • Report this Comment On October 27, 2013, at 10:09 PM, Grimm wrote:

    The Nokia 2520 is the only tablet for me. All the little things add up. Also RT can be easily jailbreaked, which Soft has said will bs in the next up date. Meaning RT will be both a fast tablet and a Laptop, which I can switch to and fro. Yes this isn't ment for basic ppl but anyone with tech skills can make an RT better then anything else

  • Report this Comment On October 28, 2013, at 10:17 AM, orochifj wrote:

    about Lumia 2520 and surface 2

    1 Chinese website have a very good point of view about them.

    if you interesting

Add your comment.

Compare Brokers

Fool Disclosure

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: 2701282, ~/Articles/ArticleHandler.aspx, 9/28/2016 1:43:55 AM

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...

Today's Market

updated 4 hours ago Sponsored by:
DOW 18,228.30 133.47 0.74%
S&P 500 2,159.93 13.83 0.64%
NASD 5,305.71 48.22 0.92%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/27/2016 4:00 PM
MSFT $57.95 Up +1.05 +1.85%
Microsoft CAPS Rating: ****
NOK $5.71 Up +0.09 +1.60%
Nokia CAPS Rating: **
SSNLF $1550.00 Down +0.00 +0.00%
Samsung CAPS Rating: No stars