Analyst says Nokia should adopt Android before it's too late

Analyst says Nokia should adopt Android before it's too late
In a note to clients, Bernstein Research's Pierre Ferragu warns that Nokia may have “to take the pill before one cannot afford to do so anymore” eying Android as a possible fit for Nokia's low-end devices and indicating that the symbiosis with Redmond may run the Finnish company into the ground. “Based on what?”, you may ask, and Ferragu has the answer – sans the Nokia-Siemens Network division, the iconic handset manufacturer is running out of cash. Furthermore, Ferragu argues that the feature phone market is shrinking and slowly ceases to be the cash cow that Nokia needs it to be, at the same time Windows Phone has failed to create the required traction.

This comes with Nokia finally catching a break – the main force behind Windows phones, it certainly is behind most of the OS's latest expansion. According to Kantar's latest figures, Microsoft's mobile OS runs on 6.8% of total devices in EU5 countries (Germany, Great Britan, Italy, Spain and France), a 2.5% increase on year. A meager 0.9% increase is also seen in the States, now at 4.6%. Furthermore, with aggressive pricing strategies, we can definitely see the duo gaining more ground on US soil in the future.

Moreover, Windows Phone did achieve its goal – it is now the third mobile OS in the world. This, combined with the latest research data should at the very least placate the naysayers and ease the strain on Nokia as the company seems to be doing better than in recent years. But we can't help but wonder whether Nokia should switch over to Android, at least partially.

source: Barron's

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111 Comments

111. ashk26

Posts: 1; Member since: Aug 19, 2013

Nokia, before you go down the drain, like RIM probably would, do consider this proposition: You have a strong market hold in India, but not so much now that local guys like Micromax, Xolo, Karbonn, and big cats like Samsung, HTC and Sony are crowding it up with their Android devices. So here's the thing, and get it quick through that thick skull of your management - port your devices to Android! Do it, goddamn it! 60% of the people buying Samsung/Sony/HTC/Micromax/Xolo/Karbonn devices would jump ship right away!! Let me tell you, this IS the magic solution you've been waiting for! Windows Phone OS isn't going to save you!! Microsoft probably will you buy you out like Google bought Motorola! So adopt Android early, while there is still time, and see your market sales soar back up. I'm saying this because I'd love to have the awesomeness of Android on the reliability of a Nokia. That's probably what a million Indians would want. And probably many more around the world. Don't be foolishly blind to the opportunities that knock on ya.

110. timezone

Posts: 87; Member since: Jun 16, 2013

Have Nokia phones crash every 2M. Now that is a fan boy. Those of us that love what Microsoft and Nokia have accomplished never talk about how we hope the iPhone or Android will crash. We do talk about the superiority of the windows phone platform because it is true. We don't wish anything bad to befall the iPhone or Android. We just want a fair chance. One the news commentators and bloggers refuse to offer. Android and iPhone people should also be appalled at this because tables can be turned around. Unless you don't know, windows phones do not crash, are secure and are not filled with malware. Android phones are not an opened platform. That is a fallacy. The mobile companies would never allow it.

109. JDeus01

Posts: 48; Member since: May 07, 2013

yes, plz nokia, make laggy phones than crash every 2m!!!

101. dre786

Posts: 46; Member since: Nov 10, 2012

reading some of these comments its obvious that most of you never use WP8 or Nokia Navigation services lately. so you think just like how Google want you to think . take the WP challenge then talk. I was an IOS guy and had GS, GS2/GS3 and NEXUS wp provide a holistic experience to consumers that the other OS don't that why some of these people commenting promote WP as a no apps platform, or something negative so as to keep people going to android and ios but people are not stupid that's what is fueling the growth of Wp

100. kanagadeepan

Posts: 1291; Member since: Jan 24, 2012

Why NOT release 41MPx Pureview on both WP8 and (stock) Android and test the water Nokia???

92. hezikiahearl

Posts: 1; Member since: Jun 14, 2013

You sale it in a lower price which affordable, only in the philippines

85. Damo579

Posts: 268; Member since: May 18, 2013

It sounds like a good idea but what about the software that Nokia makes. I don't think Google would be ok with Here maps,transit,and drive on an android phone. Don't forget Nokia music also.

88. Whateverman

Posts: 3295; Member since: May 17, 2009

Sure they would. There are tons of other navigation apps on Android as well as music services, and even app stores. If Nokia maps are better, then it'll just force Google to step their game up.

102. dre786

Posts: 46; Member since: Nov 10, 2012

Google would always feel severely threatened by nokia services cause its better you have to use it to know

107. Whateverman

Posts: 3295; Member since: May 17, 2009

I've used it, it's not bad. But Google is king.

81. roscuthiii

Posts: 2383; Member since: Jul 18, 2010

Even if not Android, they should think about Firefox OS, Tizen, Sailfish, etc. All your eggs in one basket never seems to turn out to have been the right choice in the long run.

103. dre786

Posts: 46; Member since: Nov 10, 2012

this is a comment from some one who is not in touch with reality. why would nokia go an chose a untested os when you have one that's already working for you

78. Socahan

Posts: 9; Member since: Oct 17, 2012

If Nokia didn't (entirely) sell their soul, they should have continued working on the (butchered) MeeGo OS during the past 2 years. In my view, a fresh but competitive, in-house brewed OS is the ONLY long-term-viable answer for the Finish company. A transition to Android would only prolong the company's agony as Google has its own agenda - and altruism and mercifulness are definitely NOT on the list - especially as Google gets to grab a large majority of market share. Furthermore, although Nokia is still proving capable to produce quality, as strictly hardware manufacturers they wouldn't be bringing much advantages to Android world in such a crowded market, especially when new but ambitious Chinese player also want a piece of the pie.

76. XperiaFanZone

Posts: 2282; Member since: Sep 21, 2012

No, STAY WITH WINDOWS PHONE!! BE DIFFERENT! ;)

75. SingDaFire

Posts: 74; Member since: Jun 21, 2013

Whatever it is.. Nokia won't make android phones.. I believe for now..as WP is growing and loads of games and apps are on the way.. Plus 1080p screens and quad core processor , it will only move to android if WP completely fails but I don't see that happening . The End

74. therealestboy

Posts: 82; Member since: May 03, 2013

I would probably buy one. Nokia is known for make top notch hardware.

69. airisoverrated

Posts: 55; Member since: Jun 08, 2012

I won't argue the statistics of WP being 4.6% of smartphone sales in the US means Nokia has a tough battle to carve out market share with Microsoft. However I don't get this constant argument that they'd have much stronger sales if only they ran with Android. Nokia at least has MS helping to carve out their niche, rather than facing off against the hordes of Android manufacturers to scramble for a piece of that pie. While the upcoming 41MP camera phone certainly stands out against the competition (we'll see if this comes at a price point that makes a splash and increases that Windows Phone market share), the rest of Nokia's lineup would make for very run of the mill boring Android phones. Thicker, slower, and plastic are not selling points in the Android world where even the capable and beautiful HTC One has trouble slaying the big, powerful, boring plastic S4. I don't think it's reasonable to think they would carve much of a % of Android sales. Plus Nokia's aesthetic of colorful yet simple hardware is enhanced by the equally colorful and simple WP8 interface. The two really do look right together. I really don't think a wallpaper with some app icons and a widget or two would be more attractive on Nokia hardware vs any existing Android manufacturers.

67. 7thspaceman

Posts: 1597; Member since: Feb 14, 2011

although I am not an Android Fan I have always felt that Nokia should have had a high end and mid range android smartphone on the market to help them stay in the black financially. IF they go down Microsoft should buy them out because they have no guarantee that Samsung, HTC and other MS OEM's will continue to make Windows smart phones. If they have Nokia they will make a splendid Nokia/ Microsoft branded smart that will give People the best Windows smart phone experience.and keep Windows smart phones alive

61. Avenger337

Posts: 94; Member since: Apr 14, 2013

We know that windows phone met its goal of being the third ecosystem but failed by the fact that not taking off and while Nokia is betting on the decisions of the "big Elop" will have to settle for crumbs and carrion or joke again be as powerful as it used to mess with windows phone. I recommend you start making Android smartphones or Sailfish consider applications running android OS. Nokia still has time to save themselves if they really want it.

60. Jyakotu

Posts: 868; Member since: Dec 12, 2008

Why would Nokia want to compete against Samsung when HTC, LG, Sony, and a host of other Android OEMs can't even compete with them? Nokia and its Lumia phones are seen as the "face" of Windows Phone. Windows Phone is growing and it's the 3rd largest mobile OS right now. The apps catalog is growing. The OS still remains buttery smooth. I think Nokia should stay with Windows Phone and keep showing the other Windows Phone OEMs how its done. Create exclusive apps and features to make your phones stand out. Hell, I'm sure Samsung could bring some of their features from Android on a Windows Phone if they wanted!

56. Stoli89

Posts: 333; Member since: Jun 28, 2010

Please Nokia, listen to the analyst that writes for a bank whose trading office is IMHO worried about a SHORT squeeze over the coming week. Ferragu has been floating this story in different ways for at 2 years! Tech bloggers from this site should stay away from investment analysts...you're like pigs to the slaughter.

55. timezone

Posts: 87; Member since: Jun 16, 2013

When you think about it, this is all about people with a forum to speak who want to see Microsoft fail.

52. cdgoin

Posts: 614; Member since: Jul 28, 2010

This again..? Really..? I can find you a few articles from investors that say its looking really good for Nokia with WP.. ? This is getting old PA

57. Stoli89

Posts: 333; Member since: Jun 28, 2010

Ferragu has been writing about Nokia's demise non stop for quite awhile. He's gonna look pretty bad if Nokia reports a decent quarter next week.

51. Dastrix unregistered

I think the best thing is that Nokia should at least try to make a flagship Android, and see the overall public reception.

63. TROLL

Posts: 4851; Member since: Apr 13, 2012

Very true ®

50. Whateverman

Posts: 3295; Member since: May 17, 2009

Again, the fear of a Nokia with Android is strong! Making an Android device doesn't mean Nokia can't work on WP8 at the same time, it means there will be a stream of revenue coming in other than M$ money. They can't survive off that alone and I think that obvious by now. No one is saying dump WP, that's what the WP fanboys aren't getting. We're saying make them both, they can't afford NOT to. And if Nokia can't turn the WP ship and goes down with it, the true Nokia fans will be pissed, while the fanboys will just mope and pout. The companies survival is more important that pleasing the fanboys.

59. freebee269

Posts: 543; Member since: Aug 10, 2012

except they have an agreement with MS to only support WP. so until that agreement is up, your wanting them to do android is falling on deaf ears. just like this analyst.

68. Whateverman

Posts: 3295; Member since: May 17, 2009

As I recall, the agreement was that Nokia would use Windows Phone for 5 years and receive 1 Billion dollars in return. I don't remember any mention of not being allowed to us any other OS. And I'm sure its not falling on deaf earso its too obvious and Nokia themselves said they were open to other Options.

83. freebee269

Posts: 543; Member since: Aug 10, 2012

"Elop said the door is open to any shift over time " this was speaking about tablets not about smart phones. they are right now going to war with windows phone and dont have any plans to use any other operating system. you can wish all you want, you keep posting the same "nokia needs to make an android phone" all you want. neither nokia or microsoft reads it, therefore it's falling on deaf ears.

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