In this video, tech and telecom analyst Andrew Tonner explains some of the risks involved with investing in Nokia (NYSE:NOK). First, the company's long-term viability is riding on the success of its high end smartphones. Nokia has not done well in this field and needs a winner. Additionally, attracting new customers will likely be difficult. Once a smartphone or tablet user acclimates to a particular operating system, it's difficult to draw them into a different system. So gaining customers who already use Android or Apple operating systems will be an uphill battle. Nokia also faces significant uncertainty. The company has struggled to stay afloat despite reorganization attempts. It's is looking for a new partner, which may or may not work out. Nokia could turn around, but doing so requires a lot things going right.
Andrew Tonner owns shares of Apple. The Motley Fool recommends Apple. The Motley Fool owns shares of Apple. Try any of our Foolish newsletter services free for 30 days. We Fools may not 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.
