Nokia vs. Android
Nokia was once the largest cellphone manufacturer in the world, until Apple?s iPhone struck the first blow, and Google?s Android the second. Nokia used the most popular OS at the time, Symbian, until Android took over that top spot in 2010. Nokia sales plummeted and they started looking for ways to survive, but a funny thing happened on the way to their rebirth ? they decided to go with yet another struggling OS, Windows, rather than the more popular Android.
Bernstein Research?s Pierre Ferragu has been a busy person dealing with BlackBerry?s Q1 report, but still found the time to analyze Nokia?s woes, as well. He believes Nokia?s stock is overpriced even though it is down 10-cents or 2.6-percent at $3.81 per share. ?He concludes that Nokia cannot afford to continue offering only Windows Phone:
Our second conclusion is about how Nokia should consider it?s near term future. The company is facing two structural challenges: its exposure to the disappearing feature phone market and the lack of traction of Windows phones. Both could cost Nokia a lot of cash in the near term, in restructuring, marketing / distribution support, and operational losses, which means it could be too late to address the problem in a couple of years. From that perspective, a decision concerning a new platform strategy appears urgent. Better to take the pill before one cannot afford to do so anymore. We wouldn?t be surprised to see Nokia adopting Android as its new low-end platform by year end.Nokia is hesitant about switching for two reasons ? one, even though Nokia pays Microsoft for the right to use their OS, it is far less than the approximately $1 billion a year that Microsoft pays Nokia, and secondly, Google does not advertise the Android system, but Microsoft spent $400 million dollars to advertise WP7?dollars that Nokia does not have to spend. According to their agreement, the fewer Windows Phones that Nokia sells, the more they would have to pay Microsoft. It is a tough situation for Nokia, their initial decision was based strictly on survival at the time and it may be too late for them to start making Android phones to survive into the future.
Let us know in the comments if you would like to see Nokia make an Android phone ? with Nokia?s quality and design coupled with Android OS, it could be a forced to be reckoned with.
Source: http://feedproxy.google.com/~r/briefmobile/~3/-QzmrsHeRcs/nokias-future-survival-is-with-android
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