Judging by the market reaction, you'd think that Nokia
Before breaking out the champagne, consider the fact that this rocket-boosted jump only brought Nokia shares back to where they were a week ago. To put the freshly erased swoon into further perspective, remember that the Dow Jones
Nokia's sales fell 19% year over year to hit the average analyst's view right on the nose. The year-ago period's adjusted earnings of $0.08 per depositary share turned into a $0.07 loss per share -- which is slightly better than the Street's expectations.
The all-in gamble on smartphones based on Microsoft's
But that's ridiculous, of course. These drastic growth rates are temporary and very typical of brand-new products. In this particular case, near-term growth might actually accelerate as Mr. Softy introduces the Windows Phone 8 platform. This is Microsoft's white knight, akin to BlackBerry 10 from Research In Motion
But that's far from a safe bet. I worry that both RIM and NokiSoft might reprise the sad story of Palm instead. The WebOS software was hailed as the second coming of user-friendly interfaces, but great reviews didn't convert into strong sales. Palm is now a defunct division of Hewlett-Packard, abandoned even by its would-be savior.
Nokia set the bar very low for the third quarter with universally disappointing guidance. The current quarter is a sacrifice bunt, and everything depends on Nokia nailing the holidays this year. Add Nokia to your Foolish watchlist to keep a close eye on the Windows gambit, but be prepared for salty language and unhappy endings.
Fool contributor Anders Bylund holds no position in any of the companies mentioned. Check out Anders' holdings and bio, or follow him on Twitter and Google+. The Motley Fool owns shares of Apple and Microsoft. Motley Fool newsletter services have recommended buying shares of Apple and Microsoft. Motley Fool newsletter services also have recommended creating twin bull call spread positions in Microsoft and Apple. The Motley Fool has a disclosure policy.
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