Buddy, can you spare $2 for a share of Nokia?

Buddy, can you spare $2 for a share of Nokia?
Nokia's stock is down 5% on Thursday for no apparent reason outside of the same old story. The shares hit a low of $2.00, a level that Nokia shares haven't seen since October 1994. Nokia's stock now costs the same as a win ticket at your local horse or dog track and the Finnish based handset makers earnings could be negatively affected by the upcoming launch of Windows Phone 8. That might seem counter intuitive because once Windows Phone 8 is launched, won't Nokia sell tons of Windows Phone flavored models? Well, the answer is only slightly more complex. With current Windows Phone models unable to update to Windows Phone 8, potential buyers are now frozen. Buy a Windows Phone 7.5 model now and you will have to wait two additional years to get a Windows Phone 8 model, or just wait for the new software to launch. The latter means that revenue will be pushed back which can be a problem for Nokia's trigger happy stockholders.

What will it take for a turnaround at Nokia? The most important thing would be for the public to get blown away by Windows Phone 8. While many would say that the Motorola DROID started Androidmania, it actually was Android 2.0 on the Motorola DROID that got the ball rolling. So, strong software from Microsoft would be a must. But let's not mistake the fact that for Verizon customers, who the previous year had the BlackBerry Storm thrown at them as an Apple iPhone competitor, the DROID was a model with features they never had the chance to use before.

So for Nokia to make a strong comeback, it will take acceptance of Windows Phone 8 and at least one strong handset that runs the OS. The two easily go hand in hand because Windows Phone 8 will allow for larger screens with higher resolution, multi-core processors and other specs that you would tend to find on high-end models. We will set our calendar for a year ahead to remind us to re-visit this issue and take a look at Nokia's plight a year from now. Not only will we be able to see what kind of acceptance the software has received, we will be able to see if anyone made some money taking a flyer on Nokia.

source: Forbes

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22 Comments

1. clevelandiskindacool

Posts: 37; Member since: Jul 03, 2012

I don't even have $2 nor confidence in nokiasoft

2. jove39

Posts: 2145; Member since: Oct 18, 2011

Why investors shouldn't wait till $1 price on share or even less for that matter?

3. Aeires unregistered

While I hate the term "Droid," it stuck. MS on the other hand has no such luck with WP8, or any other iteration of their new Metro UI. It would take a Herculean marketing effort on the scale of Apple to make WP8 take off like the Droid campaign did.

13. Whodaboss

Posts: 176; Member since: Nov 18, 2011

That's why they should have called it simply "Metro"! What a lost opportunity.

17. kartik4u98

Posts: 511; Member since: May 19, 2012

Android also had the open-source power which MS don't have..

23. MySchizoBuddy

Posts: 159; Member since: Aug 23, 2011

Android is only semi open. It isn't developed in the open. The opensource community doesn't contribute to Android. Google doesn't take any code from any opensource developer. Once google develops android it dumps it for everyone to use and improve it. These improvement are NOT send upstream to Google. Not to mention code in Android that isn't opensourced.

4. thedarkside

Posts: 654; Member since: Apr 30, 2012

buy low, sell high.

5. facts&truth

Posts: 42; Member since: Jul 15, 2009

All your bubbles will be busted. Their is a plan amist us..

6. PAPINYC

Posts: 2315; Member since: Jul 30, 2011

I was trying to reply to Aeires but, my iPhone 4S won't let me (should I be on wi-fi?). Maybe Microsoft should change the name of WM8 to Windowless 8; it might help in creating disassociation? Or, maybe Nokia should just change its' name to sLokia?

7. chris_t610

Posts: 14; Member since: Mar 30, 2012

For their part, Nokia has done a wonderful job in making the transition to Microsoft OS. They were able to create good-looking handsets in the likes of Lumia 800/900 as well as the lower end 610. The real fish kill is Microsoft's announcement of Windows 8 and the inability of current MS devices to update to the newest OS. MS is the real traitor against OEMs, I think its best for Ballmer to get himself a fish bowl and dip his shinny head.

8. sonofzeus

Posts: 95; Member since: Jul 05, 2012

this is the time for nokia to realise that android os is the only solution for its problems Nokia phone+android os is a killer combination

18. bbblader

Posts: 590; Member since: Oct 24, 2011

I have another awesome idea that maybe will never happen Nokia and Samsung to join to get the best tech-os smartphones in the world but still maybe will never happen

9. bluechrism

Posts: 99; Member since: Sep 09, 2011

(in reply to Sonofzeus) not a chance of it happening though. Nokia would want to replace Google for default maps and probably not possible. Likewise, google wouldn't work with nokia on some of this stuff. Plus, the impression i got (from a 7 page bloomberg businessweek interview with Elop and other nokia execs - do a web search and you'll find it) is that Google were fairly dismissive when approached by Nokia back in 2010 when Nokia were evaluating meego/Windows phone/ android. So much so i even think had MS not been so happy to work with nokia, they probably would have gone MeeGo before Android.

10. downphoenix

Posts: 3165; Member since: Jun 19, 2010

Not true. Kindle Fire uses android, no Google Maps on that.

11. corporateJP

Posts: 2458; Member since: Nov 28, 2009

The name is too big to fail, so if they can't right the ship themselves, somebody else will come in and do it. Some venture firm will eat it up just off brand recognition alone if Elop can't get it figured out or the board kicks him out first. Either way, this stock is a steal right now. Thanks, Mr. Cramer!

14. snowgator

Posts: 3621; Member since: Jan 19, 2011

I am all in on buying Nokia stock. It is not just that I believe in WP (which I agree with everyone that Metro OS would have been a more fun name), and it isn't just that I think Nokia make high quality hardware and really fun apps. It is not that I think it is still a great union of two techs that compliment each other and that I still believe Nokia will benefit and recover. Even if they get bought out, you make money on the stock.

15. jack1059

Posts: 72; Member since: Mar 31, 2012

Recovery? What exactly will they recover to? Nokia used to be a world leader in mobile phone tech. They controlled there own handset and os manufacture and had a worldwide footprint with sales and their app store. They've pretty much given all their innovative tech to ms or dismantled it. So what's left to recover to? Simply put nokia is now just Redmonds beyotch and that's all they can ever hope to be.

19. FoneAddict

Posts: 263; Member since: Jul 05, 2011

Microsoft killed Nokia. End of story.

20. microsoftnokiawin

Posts: 1268; Member since: Mar 30, 2012

more like Elop

24. MySchizoBuddy

Posts: 159; Member since: Aug 23, 2011

more like Nokia was already dying of cancer, and Microsoft provided an experimental radiation treatment called Windows 7. It didn't work, the cancer spread to Nokia's brain and soon it will die. It isn't MS fault Nokia would have died anyway. probably sooner.

21. imran_khan0786

Posts: 61; Member since: Jun 21, 2012

Pureview+wp8=awesome smartphone

22. nuadar1

Posts: 24; Member since: Dec 05, 2011

Maybe for free but at 2USD? Nah, It'll fall, just wait a bit more :)

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